KSCPA News

COSO Releases Updated Internal Control Framework

Mon, 20 May 2013 12:00:00 EDT

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has released Internal Control–Integrated Framework 2013. The update incorporates two decades of experience from organizations in applying the original 1992 Framework. To achieve this, COSO sought extensive input from the business community.

Built on a Solid Foundation

The revised Framework retains the core philosophy and approach of the original version, but takes account of changed complexities and conditions related to technology and global commerce that have a deep impact on organizations. It is important to note that in the updated Framework, the definition of internal control and the objectives of the framework are essentially the same. Internal control is still defined as a process intended to offer reasonable assurance of meeting three objectives:

Effective and efficient operations
Reliable reporting
Compliance with appropriate laws and regulations

The new Framework also retains the five components of a system of internal control: control environment, risk assessment, control activities, information and communications and monitoring. However, it does not set a higher threshold for internal control system maintenance or design.

The revised Framework sets out fundamental internal control concepts into 17 principles and supporting attributes that companies can use in managing risk and improving performance in an increasingly complex and fast-moving environment. In expressing the philosophy of the Framework through principles, it seeks to give management and boards of directors the flexibility to take their use of the Framework beyond financial reporting factors and toward a more holistic approach to internal control that extends to all aspects of the organization.

Opportunities for CPAs

The Framework represents a number of opportunities for CPAs. “CPAs employed in business, industry and government will be able to apply the updated Framework in their organizations to evolve their internal control systems to meet the demands of our increasingly complex business world,” said [Your State Society CEO]. “CPAs in public accounting who consult with small and medium-sized business clients might use the Framework as a tool to help clients understand the importance of internal control to achieve business objectives, reduce fraud risk and ensure compliance with laws, regulations and reporting requirements. In addition, with the Framework in hand, CPAs can assist clients in designing and implementing a robust and effective internal control system.”

Framework Provides Efficiency in Design, Implementation & Conduct of Internal Control

Entities have limits on human and capital resources and constraints on how much can be spent on designing, implementing and conducting systems of internal control. The Framework can help management consider alternative approaches and decide what action it ultimately takes. Depending on circumstances, these approaches and decisions can contribute to efficiencies in the design, implementation and conduct of internal control. For example:

Understanding the importance of specifying suitable objectives may focus management’s attention on those risks and controls most important to achieving the entity objectives.
Focusing on those areas of risk that exceed acceptance levels and need to be managed across the entity may reduce efforts spent mitigating risks in areas of lesser significance.
Coordinating efforts for identifying and assessing risks across multiple objectives may reduce the number of discrete risks assessed and mitigated.
Selecting, developing and deploying controls to affect multiple principles may also reduce the number of discrete, layered-on controls.
Applying a common language—the Framework—encompassing operations, reporting and compliance processes and controls may lessen the number of languages used to describe internal control across the entity.

The COSO Board encourages users to transition their applications and related documentation to the Framework, in order reflect the enhancements and clarifications, as soon as is feasible under their particular circumstances. However, the COSO Board recognizes that differing applications of the Framework by users in differing circumstances will likely result in differences in how quickly an update can occur in a specific application. COSO will continue to make available the original Framework during the transition period that extends to December 15, 2014, after which time COSO will consider it as having been superseded.

Where to Find the Framework

An Executive Summary of the Framework can be downloaded by the public free of charge and the Framework, Illustrative Tools, and ICEFR Compendium are available for purchase in both hard copy and electronic formats from www.coso.org. In addition, the public exposure drafts of these publications, the related public comment letters, and other background information about the project will remain available on COSO’s website through December 31, 2013.

About COSO

Originally formed in 1985, COSO is a joint initiative of five private sector organizations and is dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management (ERM) internal control and fraud deterrence. COSO’s supporting organizations are The Institute of Internal Auditors (IIA), the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), and the Institute of Management Accountants (IMA).

AICPA Calls for Changes to Home Office Deduction Rule

Fri, 17 May 2013 12:00:00 EDT

The home office deduction is one of the most popular tax breaks for small business owners. The IRS developed a new rule, called a safe harbor method, to simplify calculation of the deduction. The method allows taxpayers to deduct home office expenses at a standard amount ($5 per square foot for a maximum of 300 square feet of qualified space) up to $1,500 per year. In a recent letter, the AICPA commended the IRS for easing taxpayers’ burden, stating that the new method “would simplify the tax preparation and record-keeping process for many taxpayers and small business owners who are eligible for the deduction but who do not currently deduct home office expenses.” The AICPA also recommended several changes to make the method more beneficial, including a higher annual deduction limit up to $2,000-$3,000, as well as a cost-of-living adjustment.

Bright and Carpenter News Clips - Week of 5/6/2013

Mon, 13 May 2013 12:00:00 EDT

Click here for articles from the Topeka-Capital Journal

Economic Development

Kansas outperforms ranking on employment
http://cjonline.com/news/business/2013-05-04/kansas-outperforms-ranking-employment

KBA policies
http://www2.ljworld.com/news/2013/may/05/editorial-kba-policies/

Tax/Budget

Sales (tax) pitch
http://www.salina.com/news/bback-in-salina

You broke it, you bought it
http://www.salina.com/editorials/Income-tax-cut-for-Thursday--May-9--2013

Kansas tax talks in hands of Brownback, top GOP leaders
http://hutchnews.com/Localregional/BC-KS-XGR--Kansas-Taxes-3rd-Ld-Writethru-20130508-21-29-36

Brownback again calls for sales tax extension, no cuts to higher ed
http://www.khi.org/news/2013/may/08/brownback-salestax-extension-cuts-higher-education/

Tax impasse likely to push session past 80 days
http://cjonline.com/news/2013-05-08/tax-impasse-likely-push-session-past-80-days

No quick resolution of tax dispute as lawmakers return to Capitol
http://www.kansas.com/2013/05/08/2794841/no-quick-resolution-of-tax-dispute.html#emlnl=Morning_Headlines_Newsletter

Kansas House, Senate far apart on tax issue as legislative wrap-up starts
http://www2.ljworld.com/news/2013/may/08/house-senate-far-apart-tax-issue-wrap-starts/

Budget focus
http://www2.ljworld.com/news/2013/may/09/editorial-budget-focus/

College plan
http://www.gctelegram.com/opinion/Editorial-5-8-13

Not fair
http://www.hutchnews.com/Editorialblogs/Not-fair

Brownback's sales tax increase is best of bad options
http://www.kansascity.com/2013/05/07/4223811/brownbacks-sales-tax-increase.html

Gov. Brownback finishes higher education tour
http://cjonline.com/news/2013-05-07/gov-brownback-finishes-higher-education-tour

Democrats maintain disagreement with Governor's tax plan
http://www.wibw.com/home/politics/ksleg/Democrats-Maintain-Disagreement-With-Governors-Tax-Plan-206507461.html?utm_medium=twitter&utm_source=twitterfeed

Brownback wants sales tax extended
http://www.kmuw.org/post/brownback-wants-sales-tax-extended

Brownback concludes tour urging support of stable funding for higher education
http://www2.ljworld.com/news/2013/may/07/brownback-concludes-tour-urging-support-stable-fun/?utm_source=twitterfeed&utm_medium=twitter

Retention of higher sales tax up for more debate among Kansas lawmakers
http://www.kansas.com/2013/05/07/2793474/retention-of-higher-sales-tax.html#emlnl=Morning_Headlines_Newsletter

Income tax negotiations coming into focus Thursday
http://cjonline.com/news/2013-05-08/income-tax-negotiations-coming-focus-thursday

Deal on taxes and spending in Kansas could be near
http://www.kansascity.com/2013/05/07/4224005/deal-on-taxes-and-spending-in.html

The irony of the House and Senate tax bills
http://www.khi.org/weblogs/budget-blog/2013/may/08/irony-house-and-senate-tax-bills/

Colleges, Johnson County held hostage by Brownback
http://www.kansascity.com/2013/05/06/4221024/colleges-johnson-county-held-hostage.html

Brownback priorities
http://www.hayspost.com/2013/05/06/brownback-priorities-by-joan-wagnon/

Brownback's sales tax plan another risky experiment
http://ottawaherald.com/opinion/050713editorial

Analysis: Kan. debate over taxes remains volatile
http://www.sfgate.com/news/article/Analysis-Kan-debate-over-taxes-remains-volatile-4489879.php

Joan Wagnon, Chair, Kansas Democratic Party, on Gov. Sam Brownback's tax plan:
http://www.arkcity.net/opinion/letters_to_editor/article_c418f5d0-b603-11e2-ae90-001a4bcf887a.html

Our red-state radicalism
http://www.salina.com/Editorials/Flentje-column-for-Monday--May-6--2013

Governor Brownback looking to cancel scheduled sales tax decrease
http://www.wibw.com/home/headlines/Governor-Brownback-Looking-To-Cancel-Scheduled-Sales-Tax-Decrease-206215361.html

Red-state radicalism hastens rural decline
http://hdnews.net/opinion/insight050513

Shifting the tax burden
http://www.emporiagazette.com/opinion/article_7851e1f0-b434-11e2-adca-10604b9f1ff4.html

Revenue secretary says tax cuts are working
http://www2.ljworld.com/news/2013/may/05/revenue-secretary-says-tax-cuts-are-working/?kansas_legislature

Session to reconvene seeking tax compromise
http://cjonline.com/news/2013-05-04/session-reconvene-seeking-tax-compromise

Governor, lawmakers considering whether to keep planned sales tax cut
http://www.kansascity.com/2013/05/05/4219904/governor-lawmakers-considering.html

Legislators should extend sales tax
http://cjonline.com/opinion/2013-05-04/editorial-legislators-should-extend-sales-tax

Rural Kansas will pay the price
http://www.kansas.com/2013/05/05/2788411/h-edward-flentje-rural-kansas.html

Docking questions Brownback on higher ed
http://blogs.kansas.com/weblog/2013/05/docking-questions-brownback-on-higher-ed/

Health Care

Protesters rally at Capitol over proposal to put developmental disability services under KanCare
http://www.kansas.com/2013/05/08/2795196/disabled-rally-at-capitol-on-kancare.html#emlnl=Morning_Headlines_Newsletter#storylink=cpy

Ralliers want to preserve current system of providing long-term services to those with disabilities
http://www2.ljworld.com/news/2013/may/08/ralliers-want-current-system-providing-long-term-t/

Disability community lobbies for Medicaid exemption
http://cjonline.com/news/2013-05-08/disability-community-lobbies-medicaid-exemption

More than 1,000 rally at Statehouse for DD carve-out
http://www.khi.org/news/2013/may/08/more-thousand-people-rally-statehouse-dd-carve-out/

Social service advocates avoiding KanCare shift
http://cjonline.com/news/local/2013-05-08/social-service-advocates-avoiding-kancare-shift

Where would $100 million in savings come from?
http://blogs.kansas.com/weblog/2013/05/where-would-100-million-in-savings-come-from/

Concerns of those who care for Kansans with developmental disabilities rise as session reconvenes
http://www2.ljworld.com/weblogs/capitol-report/2013/may/7/concerns-of-those-who-care-for-kansans-w/

Many in developmental disabilities community tell lawmakers they don't want services moved to KanCare
http://www.kansas.com/2013/05/06/2792181/many-in-developmental-disabilities.html

Majority of hospitals plan contracts with all three KanCare MCOs
http://www.khi.org/news/2013/may/06/majority-hospitals-plan-contracts-all-kancare-mcos/

Disability advocates talk about divvying new funds
http://cjonline.com/news/2013-05-06/disability-advocates-talk-about-divvying-new-funds

Don't delay Medicaid expansion
http://www.kansas.com/2013/05/07/2791935/eagle-editorial-dont-delay-medicaid.html

Kansas Medicaid expansion likely to be delayed in legislative maneuver
http://www.huffingtonpost.com/2013/05/06/kansas-medicaid-expansion_n_3223286.html?utm_hp_ref=politics

Developmental disabilities advocates support using savings to reduce waiting lists
http://www.kansas.com/2013/05/06/2791517/developmental-disabilities-advocates.html

DD advocates praise governor's call to trim waiting lists for services
http://www.khi.org/news/2013/may/06/dd-advocates-praise-governors-call-trim-waiting-li/

Advocates for those with developmental disabilities applaud Brownback's funding proposal, urge withdrawal of KanCare plan
http://www2.ljworld.com/news/2013/may/06/advocates-those-developmental-disabilities-applaud/

Advocates backing Kan. gov.'s plan for disabled
http://www.sfgate.com/news/article/Advocates-backing-Kan-gov-s-plan-for-disabled-4492407.php

KanCare not the answer
http://www.emporiagazette.com/opinion/article_78278504-b434-11e2-adc6-10604b9f1ff4.html

Advocates for disabled want progress on waiting lists
http://www.khi.org/audioclips/358/

Money for NBAF but not for health care?
http://blogs.kansas.com/weblog/2013/05/money-for-nbaf-but-not-for-health-care/

School Finance

Ad campaign accuses Kansas schools of low academic standards
http://www2.ljworld.com/weblogs/first-bell/2013/may/6/ad-campaign-accuses-kansas-schools-of-lo/

Roberts, House members fighting Common Core standards
http://blogs.kansas.com/weblog/2013/05/roberts-house-members-fighting-common-core-standards/

Kansas Legislature to vote on retaining kids based on reading
http://cjonline.com/news/2013-05-04/kansas-legislature-vote-retaining-kids-based-reading

Kansas legislators near end of education bills
http://www.sfgate.com/news/education/article/Kan-legislators-near-end-of-education-bills-4488683.php

Evolving door
http://hdnews.net/opinion/editorials/editorial050513

Immigration

Obama administration tries to nix ICE agents' lawsuit
http://www.washingtontimes.com/news/2013/may/7/administration-reverses-course-ice-agents-lawsuit/

Workers Compensation & Unemployment Insurance & Workforce Development

Audit finds state overpaid up to $73.5M in unemployment
http://www.wibw.com/home/politics/ksleg/Audit-Finds-State-Overpaid-Up-To-735M-In-Unemployment-206505161.html?utm_medium=twitter&utm_source=twitterfeed

Workplace safety report released
http://www.khi.org/news/2013/may/07/workplace-safety-report-released/

Union report calls Kansas one of 10 most deadly states for workers
http://www.bizjournals.com/wichita/news/2013/05/07/union-report-calls-kansas-one-of-10.html?ana=twt

Legislature

Senate leader sees session going past 80 days
http://cjonline.com/news/2013-05-09/senate-leader-sees-session-going-past-80-days

Opponents of Common Core unite under dome
http://cjonline.com/news/state/2013-05-08/opponents-common-core-unite-under-dome

Kansas legislators manuevering on biodefense lab
http://journalstar.com/ap/business/kansas-legislators-maneuvering-on-biodefense-lab/article_7161b983-70ed-5950-9dcc-9fa2f498ca3c.html

Kansas Senate panel OKs $202M for biodefense lab
http://www.sfgate.com/news/article/Kan-Senate-panel-approves-202M-in-NBAF-bonds-4500194.php

A dogging concern
http://www.hutchnews.com/Editorialblogs/edit--Dog-in-town

Colorado roofing company violates Kansas Consumer Protection Act
http://cjonline.com/news/business/2013-05-08/colorado-roofing-company-violates-kansas-consumer-protection-act

Kan. Democratic leaders say Brownback hasn't provided enough information about new NBAF bonds
http://www.therepublic.com/view/story/5f2eac2e781743a8a803750471c5d017/KS-XGR--Biodefense-Lab

Dems join call for more NBAF info
http://cjonline.com/news/2013-05-07/dems-join-call-more-nbaf-info#.UYldJe9Tu48.twitter

Wrap up session quickly
http://www.kansas.com/2013/05/08/2793370/eagle-editorial-wrap-up-session.html

Kan. gun law puts pressure on local governments
http://www.kcur.org/post/kan-gun-law-puts-pressure-local-governments?nopop=1

Legislative committees make plans to change judicial selection
http://cjonline.com/news/2013-05-07/legislative-committees-make-plans-change-judicial-selection#.UYldPlkW7c0.twitter

Kan. Demo leader skeptical on judicial selection
http://www.sfgate.com/news/article/Kan-Demo-leader-skeptical-on-judicial-selection-4496164.php

Kansas judicial selection change being pursued
http://www.greenwichtime.com/news/article/Kansas-judicial-selection-change-being-pursued-4495897.php

Survey says...
http://www.hutchnews.com/Editorialblogs/edit--survey-says

Missouri, Kansas lawmakers face furious debates over alcohol regulation
http://www.kansascity.com/2013/05/05/4216856/missouri-kansas-lawmakers-face.html?storylink=twt

Kansas delegation hosts final legislative forum
http://www.kake.com/news/headlines/Kansas-Delegation-Hosts-Final-Legislative-Forum-206254621.html?ref=621

Oh, wait, we were warned
http://www.salina.com/Editorials/Gun-edit-for-Tuesday--May-7--2013

Eric Holder tells Sam Brownback that Kansas' new gn law is unconstitutional
http://www.huffingtonpost.com/2013/05/02/eric-holder-sam-brownback_n_3204287.html

Hawver: Letter on guns is political ammo
http://ottawaherald.com/opinion/050713hawver

County looks at supporting state after US AG Holder threatens gov.
http://www.leaderandtimes.com/index.php?option=com_content&view=article&id=11753:county-looks-at-supporting-state-after-us-ag-holder-threatens-gov&catid=12:local-news&Itemid=40

Alaska not alone in bid to nullify federal gun laws; Kansas faces off with feds
http://www.alaskadispatch.com/article/20130505/alaska-not-alone-bid-nullify-federal-gun-laws-kansas-faces-feds

Legislators list stance on issues
http://hutchnews.com/Todaystop/Sun--Legis-story--1

Highest paid elected officials (local and state)
http://cjonline.com/slideshow/highest-paid-public-employees-elected-officials#slide-1

Most harmful: Gile or Claeys?
http://www.salina.com/Editorials/Norlin-column-for-Wednesday--May-1--2013

New anti-fed gun law stains Kansas character
http://www.winfieldcourier.com/opinion/editorial/article_1c5a36ea-b45c-11e2-b865-0019bb2963f4.html

Shot in the foot
http://www.kansas.com/2013/05/05/2788404/eagle-editorial-shot-in-the-foot.html

Kansas responds to Holder on gun nullification bill, insists on enforcing it
http://www.examiner.com/article/kansas-responds-to-holder-on-gun-nullification-bill-insists-on-enforcing-it

Kansas governor, attorney general spar over new state gun law
http://www.foxnews.com/politics/2013/05/03/kansas-governor-attorney-general-holder-spar-over-new-state-gun-law/

74% of lobbyist spending on Kansas lawmakers unaccounted for
http://www.kansas.com/2013/05/04/2789577/74-of-lobbyist-spending-on-kansas.html

Congressional

Collect online sales tax
http://www.kansas.com/2013/05/09/2794984/eagle-editorial-collect-online.html#emlnl=Morning_Headlines_Newsletter

Fairness in taxes overdue
http://futures.tradingcharts.com/news/futures/EDITORIAL__Fairness_in_taxes_overdue_197358044.html

Bill would provide money for Topeka levee fix
http://cjonline.com/news/2013-05-08/bill-would-provide-money-topeka-levee-fix

House to vote again on ObamaCare repeal
http://thehill.com/blogs/healthwatch/health-reform-implementation/298577-overnight-health

House set to pass tactical Republican debt bill
http://www.reuters.com/article/2013/05/09/us-usa-congress-debt-idUSBRE94806220130509

Republicans set annual luncheon as part of ASD festivities
http://www.mcphersonsentinel.com/article/20130508/NEWS/130509310/1001/NEWS

Food stamp program faces deeper cuts under House farm bill
http://thecaucus.blogs.nytimes.com/2013/05/08/food-stamp-program-faces-deeper-cuts-under-house-farm-bill/

Administartion hands over political ammo
http://hdnews.net/opinion/Hawver050713

Huelskamp thrashes VA bureaucrat who got big bonuses for lousy work
http://washingtonexaminer.com/huelskamp-thrashes-va-bureaucrat-who-got-big-bonuses-for-lousy-work/article/2529135

Jenkins: Spending level "pretty scary"
http://www.marysvilleonline.net/articles/2013/05/08/news/doc518a680469e9d267690303.txt

Pompeo introduces bill to cut regulations on light aircraft industry
http://www.bizjournals.com/wichita/news/2013/05/07/pompeo-introduces-bill-to-cut.html

Pompeo introduces legislation he says will help light aircraft industry
http://www.kansas.com/2013/05/07/2793245/pompeo-introduces-legislation.html#emlnl=Morning_Headlines_Newsletter

Huelskamp: Bureaucrat cannot justify his own $55K bonus
http://www.hayspost.com/2013/05/07/huelskamp-bureaucrat-cannot-justify-his-own-55k-bonus-watch-video/

Head Start sequester cuts could have been avoided: GOP Rep. Lynn Jenkins
http://www.huffingtonpost.com/2013/05/07/head-start-sequester_n_3230910.html?utm_hp_ref=tw

Roberts right about needing to regulate compounding
http://blogs.kansas.com/weblog/2013/05/roberts-right-about-needing-to-regulate-compounding/

Legislation seeks more oversight of pharmacy compounding
http://www.kansas.com/2013/05/05/2791036/legislation-seeks-more-oversight.html

Politics/Elections

Roberts endorses Huelskamp
http://www.kdcountry94.com/2013/05/06/roberts-endorses-huelskamp/

The political rise and fall of Aaron Jack
http://blogs.kansas.com/weblog/2013/05/the-political-rise-and-fall-of-aaron-jack/

Wichitan hoping to unseat Huelskamp
http://blogs.kansas.com/weblog/2013/05/wichitan-hoping-to-unseat-huelskamp/

Pat Roberts epitomizes fear of primary challenges by GOP extremists
http://ottawaherald.com/opinion/050813editGuest

KSCPA Spring Leadership Summit Scheduled for June 5-6, 2013 - Register Today!

Fri, 10 May 2013 12:00:00 EDT

KSCPA Spring Leadership Summit Scheduled for June 5-6
Event Features Barry Melancon, CPA, CGMA, President & CEO, AICPA

Click here for a complete schedule of events and to select a task force to participate in.

The KSCPA Spring Leadership Summit begins on June 5 with "20 up to 40" events. June 6 is highlighted with a professional issues update (2 hours of free CPE) by Barry Melancon, President & CEO of the AICPA. Task Forces meet (includes lunch), and the day concludes with the biannual board of directors meeting. All events on June 6 are free. Register under "Events" on www.kscpa.org.

Member engagement is critical to the success of the CPA profession. The KSCPA is THE advocate for the profession. Membership in the KSCPA and participation at the KSCPA leadership events is what creates the power behind your CPA credential.

Please register on www.kscpa.org/events, a n d invite your colleagues to attend.

Berberich Trahan & Co., P.A. Marks Centenial Anniversary

Thu, 09 May 2013 12:00:00 EDT

BT&Co., Celebrates 100 Years in Business

Founded in 1913 as a branch of Washington, Henry & Co., Federal Tax Consultants, officially became Berberich Trahan & Co. in 1989. During that time a lot has changed – in the firm, the community, and in the profession. At the same time, many things at BT&Co. have stayed the same – their commitment to the community and their passion for helping clients achieve success in their professional and personal lives.

So to celebrate, BT&Co. are sponsoring various charitable events throughout the year. Anyone and everyone is welcome to join in any or all of the events during 2013. For a complete list of the projects and to learn more about the charities, check out the “Let's Give Back” page.

BT&Co. created a timeline of some of the more unheralded – well, let’s call them…random…moments in the past 100 years. Along with these “great” moments in history, they included some significant moments in the firm's history. Check it out here.

FAF and FASB Mark Anniversary with Updated Branding

Wed, 08 May 2013 12:00:00 EDT

The Financial Accounting Foundation (FAF) officially launched a refreshed visual brand identity for the FAF, Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).

This launch marks the beginning of the celebration of the FAF and FASB’s 40th anniversary, and includes new logos for each of the three organizations. The fortieth anniversary celebration provides the ideal opportunity to refresh our brand in a way that reinforces the organizations’ missions and highlights their contributions from the past while looking ahead to the future.

As standard setters for the world’s most robust and dynamic economy, the FAF, the FASB, and the GASB are responsible for ensuring that financial reporting meets the needs of investors who keep our economy thriving. The new branding associated with this responsibility reflects that significance, with each component designed to reflect our shared commitment to working on behalf of U.S. investors and global capital markets.

Accompanying this new branding launch, FASB also unveiled a new FASB website, which features revamped, more user-friendly navigation, an introductory video, new “plain English” explanations of major FASB projects, and the interactive digital timeline that tells the story of the FAF, the FASB, and the GASB through photos, videos, and quotes from the past forty years.

Redesigned FAF and GASB websites will be unveiled in coming months.

BKD Celebrates 90 Years in Business

Wed, 08 May 2013 12:00:00 EDT

BKD, LLP Celebrates Anniversary

National CPA and advisory firm BKD, LLP has reached a milestone anniversary.

To commemorate its 90th year in business, BKD marked the historic occasion on May 1 with a firmwide celebration reaffirming its commitment to the standards of unmatched client service: Integrity First, True Expertise, Professional Demeanor, Responsive Reliability and Principled Innovation. Ingrained in BKD’s culture, these timeless standards are at the heart of the firm’s continued growth and success.

“An unwavering focus on unmatched client service has carried us through to the present, and we have much to celebrate,” says CEO Ted Dickman, the fifth partner to lead the firm. “BKD has accomplished a great deal over the last nine decades, but the best is yet to come. I look forward to celebrating our centennial in 2023.”

As part of the festivities, each BKD employee received a commemorative gift package that included a new edition of the firm’s signature book, The BKD Experience: Unmatched Client Service. The firm’s 2,000 CPAs, advisors and support staff provide accounting, tax and advisory services to clients in all 50 states and internationally.

In January 1923, BKD co-founders William Baird, Wade Kurtz and Claire Dobson opened Baird, Kurtz & Dobson CPA firm with offices in Kansas City and Joplin, Missouri. Since that time, the firm has grown to become one of the largest in the U.S., serving clients in a wide variety of industries, including health care, manufacturing, distribution, financial services, construction, real estate and energy as well as not-for-profit organizations, colleges, universities and governmental entities. BKD also is the largest U.S. member of Praxity, AISBL, a global alliance of independent accounting firms serving clients in 80 countries.

For a detailed look at BKD’s history, view the firm’s interactive timeline here.

IRS News from Tax Professionals - May 2013

Wed, 01 May 2013 12:00:00 EDT

IRS NEWS FOR TAX PROFESSIONALS
MAY 2013

▪ IR 13-40 Last-Minute Filers: Avoid Common Errors
▪ OIL AND GAS INDUSTRY: Tips on Reporting Natural Resource Income
FS 13-6 Taxpayers who own land that contains valuable natural resources should be aware that arranging for the development of the resources by means of a lease creates tax consequences.
▪ Form 8938 - No Requirement to File with Forms 1120, 1120S, 1065 and 1041 for tax year 2012. The IRS has received some Form 8938 submissions from Domestic Entity filers for TY12. Please be advised that these entities are not required to file Form 8938 for TY12. The IRS anticipates issuing regulations in the future that will require a domestic entity to file Form 8938 if the entity is formed or availed of to hold specified foreign financial assets and the value of those assets exceeds the appropriate reporting threshold. Until the IRS issues such regulations, only individuals must file Form 8938.
▪ IR 13-31 The IRS provided late-payment penalty relief to individuals and businesses requesting a tax-filing extension because they are attaching to their returns any of the forms that couldn’t be filed until after January. Notice 13-24

▪ The 0.9% additional Medicare Tax took effect in 2013. The employer is responsible for withholding tax on compensation over $200,000, without regard to the filing status of the employee. An employer who does not withhold the tax may be liable for penalties, but it is necessary to see what the employee pays before the IRS can determine what the employer owes. There is a new line 5(e) on revised Form 941, posted on March 12, for employers to report the tax withheld. The tax is also reported on Form W-2, Box 6. If the tax withheld exceeds the tax owed, the employee will file Form 8959 (not available yet), to compute the correct amount. Instructions 941
▪ FBAR Paper returns (Form TDF90-22.1) are due June 30, 2013, and must be received in the office by Friday, June 28 to be considered timely.

E-file is available but not mandatory for 2012 FBAR’s due June 30
- E-file becomes mandatory July 1, 2013.
  more information FAQs FinCen Forms

EVENTS
▪ The IRS Nationwide Tax Forums have something for you in three days of seminars. You may earn up to 18 CPE credits in one location. Pre-register and save $129! IRS Nationwide Tax Forum Pre-registration is only available for a limited time. Visit the IRS Nationwide Tax Forum website at www.irstaxforum.com for more information.

A separate email will be coming out with the dates of the local summer symposiums and tax schools.

YOUR PRACTICE

▪ IR 13-37 The requests nominations for membership to the Information Reporting Program advisory Committee, federal panel that advises the IRS on various tax administration issues.

▪ Safeguarding Taxpayer Data. Tax professionals must implement safeguards to protect taxpayer data. The security of taxpayer accounts and personal information is a top priority for the IRS as referenced in Revenue Procedure 07-40. Also see Publication 4557, Safeguarding Taxpayer Data; Publication 4600, Safeguarding Taxpayer Information, Quick Reference Guide for Business
▪ Cybersecurity for Your Small Business Check out the FCC website devoted to cybersecurity for small businesses.
▪ The IRS has updated the Test Specifications for the Special Enrollment Examination; they are posted on www.prometric.com/irs. All of the changes will be in effect for test candidates taking any part of the exam beginning May 1, 2013.

WEB TIPS
▪ The Where's My Amended Return? tool is now operational. En Español
▪ Encourage your clients to check on their refunds and watch IRS tax tips videos on the IRS2Go English or Spanish phone app. See this new YouTube video for more.
▪ IR 13-36 The IRS has released IRS2Go 3.0, an update to its free smartphone application that offers practical tax tools and information for the first time in either Spanish or English.

EMPLOYERS/RETIREMENT PLANS
▪ The new telephone number to check the status of your Employee Plan Voluntary Correction Program submission is: (626) 927-2011 (not a toll-free number).
▪ Educate your employees about tax compliance with these links to resources, including widgets for your web site and articles for your company newsletter.
▪ Learn about recent developments affecting defined benefit plans in this April 23 Phone Forum. If you have a specific matter that you would like addressed, email us at ep.phoneforum@irs.gov by April 16.

Read the latest Retirement News for Employers and Exempt Organization Newsletter.

MISCELLANEOUS, TAX TIPS, FACT SHEETS

▪ If you downloaded Instructions for Form 720 before March 7, 2013, a correction has been made to page 16, column 2, 4th paragraph. The corrected version is available for download.
▪ The draft form is released for public review and comment and should not be printed and submitted by a financial institution in an attempt to register for FATCA. FATCA registration can be accomplished most efficiently and effectively through an electronic online process that will avoid the need to print, complete, and mail paper forms. The online registration portal will be available in July 2013.
▪ The Internal Revenue Service released the 2013 updates to the Allowable Living Expense Standards. Collection Financial Standards Web page.

▪ FS 13-05 IRS Achieves $1 Billion in Cost Savings and Efficiencies.

▪ Prepared Remarks of William J. Wilkins, IRS Chief Counsel, at the Tax Executives Institute, March 18, 2013

▪ The American Taxpayer Relief Act of 2012 expands the Work Opportunity Tax Credit for hiring certain workers through Dec. 31. ATRA also extends the WOTC for qualified veterans hired before Jan. 1, 2014

▪ Tax Tips offerings for small business include:
Tax Tip 13-36 Home Office Deduction: a Tax Break for Those Who Work from Home
Tax Tip 13-41 Ten Things to Know about Farm Income and Deductions
Tax Tip 13-43 Don’t Miss the Health Insurance Deduction if You're Self-Employed
Tax Tip 13-46 Top Six Tax Tips for the Self-Employed
Tax Tip 13-49 Six Tips on Making Estimated Tax Payments

OTHER TAX TIPS:
Tax Tip 13-32 Free Tax Help for Military Personnel and Their Families
Tax Tip 13-33 Five Tax Credits that Can Reduce Your Taxes
Tax Tip 13-34 Claiming the Child and Dependent Care Tax Credit
Tax Tip 13-35 Tax Rules on Early Withdrawals from Retirement Plans
Tax Tip 13-37 Itemizing vs. Standard Deduction: Six Facts to Help You Choose
Tax Tip 13-38 Tax Rules for Children Who Have Investment Income
Tax Tip 13-39 Tips to Make Filing Less Taxing
Tax Tip 13-40 IRS Offers Top 10 Tax Time Tips
Tax Tip 13-42 Seven Tips for Taxpayers with Foreign Income
Tax Tip 13-44 Two Education Credits Help Pay Higher Education Costs
Tax Tip 13-45 Nine Tips on Deducting Charitable Contributions
Tax Tip 13-47 Get Connected to the IRS with Social Media
Tax Tip 13-48 Get Credit for Making Your Home Energy-Efficient
Tax Tip 13-50 Top Ten Tips on Making IRA Contributions
Tax Tip 13-51 Eight Tax-Time Errors to Avoid
Tax Tip 13-52 Five Things to Know if You Need More Time to File
Tax Tip 13-53 Tips for Taxpayers Who Can't Pay Their Taxes on Time

IR NEWS RELEASES

▪ IR 13-30 IRS Seeks Comments on Bilateral Safe Harbors for Certain Transfer Pricing Issues
▪ IR 13-32 The IRS today released the 2012 IRS Data Book, a snapshot of agency activities for the fiscal year.
▪ IR 13-33 The IRS has issued its annual “Dirty Dozen” list of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud. Special Edition Tax Tip 13-08
▪ IR 13-34 The IRS announced a nationwide expansion of a program that helps law enforcement get tax return data vital to their local efforts in investigating and prosecuting cases of identity theft.

ANNOUNCEMENTS
▪ Announcement 13-17 serves as the annual public report concerning Advance Pricing Agreements (APAs) and the APMA Program

NOTICES

▪ Notice 13-22 invites the public to submit recommendations for items that should be included on the 2013-2014 Guidance Priority List.
▪ Notice 13-25 announces the 2012 section 45K credit for fuel produced from a nonconventional source. For 2012, the section 45K credit is only available for fuel produced from coke or coke gas (other than from petroleum based products) and is not subject to phase-out.
▪ Notice 13-26 allows additional time for filing claims for certain excise tax payments because ATRA extended various fuel tax credits that expired on December 31, 2011. The due date for filing certain claims for payments related to biodiesel mixtures and alternative fuel had already passed by the date that ATRA was enacted.

REVENUE PROCEDURES
▪ Revenue Procedure 13-22 sets forth the procedures of the IRS for issuing opinion and advisory letters for § 403(b) pre-approved plans.
▪ Revenue Procedure 13-23 provides information to any individual who failed to meet the eligibility requirements of section 911(d)(1) of the Code because adverse conditions in a foreign country precluded the individual from meeting those requirements for 2012. (foreign earned income exclusion).

REPORTS AND STATISTICS
▪ IR 13-39 The IRS’s Low Income Taxpayer Clinic (LITC) Program Office has issued its first report showing how LITCs provide pro bono legal services to help thousands of low income taxpayers nationwide resolve disputes with the IRS and learn about their taxpayer rights and responsibilities.

LOCAL

▪ SCAM ALERT: W-2 employees should check their wage earnings each year on-line at the Social Security Administration. It is an easy way to make sure all wages are posted, which determines eligibility for disability and retirement benefits. Be warned that "phishing" E-mails encouraging you to create a my Social Security account at a bogus site are circulating. If you receive such an E-mail, DO NOT click on the links. Rather, go directly to the my Social Security.▪ Money Smart for Small Business is a new instructor-led training curriculum developed jointly by FDIC and SBA. The 10 modules provide introductory training for new entrepreneurs on the basics to organizing and managing a business.
▪ FEMA Tip: Businesses can use the IRS Tax Disaster Assistance tools to calculate disaster loss deductions, reconstruct records and update their business continuity plans. http://go.usa.gov/2zxR.

USA.gov blog Tax Refund Thefts On The Rise

▪ Go to BusinessUSA.gov to Connect with business resources. The BusinessUSA network connects you with tools and resources to help your small business succeed.
▪ The Department of Labor has announced the launch of the Business Center, a suite of online resources for employers looking to recruit, train and retain a skilled work force through the department's CareerOneStop Web site.
▪ The Self-Employment Assistance Program is designed to encourage and support unemployed workers in creating their own jobs by starting their own small businesses.
http://sea.workforce3one.org/
▪ SBA-Visa Export Video Contest If you have a success story to tell about the goods or services you sell around the world and have used a federal government program or assistance to get there, enter the SBA-Visa Export Video Contest where your company will have the chance to win up to $10,000. Submit by April 22.
· SBA: Self-Employed? Learn What the Affordable Care Act Means for You
▪ SBA events can be found at http://www.sba.gov/events
▪ The U.S. Small Business Administration (SBA) and AARP are teaming up to host activities targeted for entrepreneurs over the age of 50. Go online to www.sba.gov/encore for a 50+ toolkit. www.aarp.org/startabusiness.
▪ YourEconomy.org is a large time-series establishment data set designed to be a practical tool for researchers, business and community leaders, and economic-growth professionals. http://www.youreconomy.org/

Kennedy and Coe, LLC Announces New Chief Executive Officer

Mon, 29 Apr 2013 12:00:00 EDT

JEFF WALD NOW CHIEF EXECUTIVE OFFICER of KENNEDY AND COE, LLC

Siemers, Former CEO, Retires after 42 Years with the Firm

SALINA – Jeff Wald is named chief executive officer of Kennedy and Coe, LLC, ranked as a Top 100 CPA and consulting firm. The firm serves clients across the country and around the world. Wald succeeds Kurt Siemers who retired March 31 from his 42-year career with the firm, the last 10 of which he served as CEO.

Wald, based out of the firm’s Loveland, Colo., office, joined Kennedy and Coe, LLC in 1995, became a member in 2003 and was elected to the firm’s management board in June 2009. Before his appointment as CEO, he led Kennedy and Coe’s Wealth Creation Group.

“As CEO, Kurt formalized the value-creation approach Kennedy and Coe takes to create the best possible relationships with our clients, Wald said. “This keeps us focused on our clients’ needs and their expectation of value.

“Kennedy and Coe will never stop trying new things to make a positive impact on those around us. We will continue to create value for our clients and our people by being creative and innovative—both in how we help clients and in how we develop as an organization. Our leaders are committed to remaining a firm that people expect to do the unexpected,” Wald shared.

Before becoming CEO, Wald consulted extensively with clients on business transactions, including sales, mergers, and acquisitions. His expertise includes deal structure, organizational structure, tax planning, and estate planning strategies. He is a member of the American Institute of Certified Public Accountants, the Kansas Society of Certified Public Accountants, and the Colorado Society of Certified Public Accountants. Wald earned his Bachelor of Accountancy degree from the University of North Dakota.

FASB Names New Chair

Fri, 26 Apr 2013 12:00:00 EDT

Financial Accounting Foundation Names Russell G. Golden Chairman of the Financial Accounting Standards Board

Norwalk, CT, April 23, 2013—Russell G. Golden today was named as the next chairman of the Financial Accounting Standards Board (FASB), effective July 1, 2013. The appointment was made by the Board of Trustees of the Financial Accounting Foundation (FAF), which oversees the FASB and its sister organization, the Governmental Accounting Standards Board. Mr. Golden will succeed current FASB Chairman Leslie F. Seidman, whose term ends on June 30.

“After an extensive search, which involved the evaluation of many highly qualified candidates from a variety of backgrounds, the Trustees determined that Russ Golden is the best qualified person to take on the role of FASB chairman,” said Jeffrey J. Diermeier, chairman of the FAF Board of Trustees. “I’m very pleased that Russ will be moving into this new role. He will bring to his new position a deep understanding of technical accounting issues informed by a broad appreciation of the larger environment in which the FASB operates, which he developed during his years as both a staff member and as a Board member.

“The Trustees wish to express their deep appreciation to Leslie Seidman for her more than 15 years of service to the FASB as a staff member, board member, and chairman. She has set a high standard as a champion of excellence and independence. During Leslie’s tenure, she worked tirelessly to improve U.S. Generally Accepted Accounting Principles and to dramatically reduce the differences between U.S. GAAP and International Financial Reporting Standards,” Diermeier added.

Mr. Golden has served as a FASB member since his appointment in September 2010. He previously served for six years on the FASB staff. Earlier, he was a partner at Deloitte & Touche LLP.

Mr. Golden’s initial term as FASB chairman will extend to June 30, 2017. At that time, he will be eligible to serve another term of three years. (FASB members are limited to serving a total of ten years on the Board.)

FAF President and CEO Teresa S. Polley said of Golden: “In his years serving on the Board and earlier on the FASB staff, Russ always has put great emphasis on understanding and engaging with investors and taking their issues and concerns into account during the decision-making process. At this historic moment, all of us at the FAF look forward to working with Russ and our new GASB chair, David Vaudt, to build on the important work of their predecessors.”

Mr. Golden said, “In the past three years, I’ve had the privilege of working closely and cooperatively with my talented and dedicated colleagues on the FASB. I’m honored that I’ve been asked to continue that work as FASB chairman. As we address the many critical issues facing the FASB in the coming months, I’ll strive to ensure that we meet the high standard set by Leslie Seidman. That means putting the interests of investors first; working to make financial reporting as clear, transparent and useful as possible; and never losing sight of the balance between costs and benefits.”

From 2008 to September 2010, Mr. Golden was technical director of the FASB, overseeing FASB staff work on standards-level projects, including both major projects and technical application and implementation activities. He also chaired the FASB’s Emerging Issues Task Force (EITF).

Previously, Mr. Golden was director of technical application and implementation activities for the FASB. Appointed to that position in July 2007, Mr. Golden managed FASB activities relating to the application and implementation of accounting standards and other Board pronouncements.

Prior to joining the FASB as a senior technical advisor in 2004, Mr. Golden was a partner at Deloitte & Touche LLP in the National Office Accounting Services department. In this role, he was responsible for providing timely and accurate accounting consultations to partners and clients throughout the United States and globally. Previously, Mr. Golden held various positions within Deloitte & Touche LLP. Mr. Golden earned his Bachelor’s degree from Washington State University. He is a licensed CPA in the states of Washington and Connecticut.

About the Financial Accounting Foundation

The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB). The Foundation is also responsible for selecting the members of both Boards and their respective Advisory Councils.

About the Financial Accounting Standards Board

Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org

Linda Sheppard Appointed to Newly Created Position at Kansas Insurance Department

Fri, 26 Apr 2013 12:00:00 EDT

Sandy Praeger, Kansas Insurance Commissioner, has appointed Linda Sheppard, director of accident and health, to a newly created position as Special Counsel and Health Care Policy and Analysis Director for the Kansas Insurance Department.

Sheppard's previous position will be filled by Julie Holmes, former assistant director.

"Appointing Linda to the new position will allow her to focus on explaining the federal Affordable Care Act to Kansans and working to get them prepared for the changes in health care," Praeger said. "The law is the law, and there is a tremendous amount of work to be done so that Kansans can understand it for their benefit

Online Sales Tax, Marketplace Fairness Legislation

Wed, 24 Apr 2013 12:00:00 EDT

Latest News: Online Sales Tax, Marketplace Fairness 2013

Posted on Avalara's blog on April 23, 2013 by Will Frei

The Marketplace Fairness Act of 2013 (MFA) is picking up steam, and that could mean a major increase the number of businesses that have to collect sales tax. Currently, out-of-state businesses that don’t have a physical presence in a state don’t have to collect tax on sales made to residents of that state. You’ve felt the impact of this if you’ve ever purchased anything tax-free from Amazon, for instance (though you still technically owe the tax).

This arrangement has created controversy between brick-and-mortar stores that have to charge sales tax and ecommerce stores that can offer the same products tax-free. The MFA seeks to “level the playing field” between the two groups by giving states the right to make out-of-state businesses collect sales tax when they don’t have an in-state physical presence. States that want to exercise this power will have to meet certain tax code requirements, and businesses that make less than $1 million a year will be exempt from having to collect.

If the MFA passes, it could dramatically change the sales tax landscape for many businesses. Here is a list of the most recent MFA news. We will continue to add to the list as new developments occur.

Find out more about what businesses need to know about recent developments in online sales tax:

Bright and Carpenter News Clips - Week of 4/15/2013

Mon, 22 Apr 2013 12:00:00 EDT

Click here to view articles from the Topeka-Capital Journal

Economic Development

Kelly Arnold: Brownback, GOP put Kansas back in game
http://www.kansas.com/2013/04/16/2763226/kelly-arnold-brownback-gop-put.html

Kansas ‘wage gap’ between men and women slightly larger than average
http://cjonline.com/news/business/2013-04-08/kansas-wage-gap-between-men-and-women-slightly-larger-average

Tax/Budget

Brownback to tour in support of his higher education budget
http://www2.ljworld.com/news/2013/apr/15/brownback-tour-his-higher-education-budget/?utm_source=twitterfeed&utm_medium=twitter

Brownback plans to visit Wichita State, other universities to talk about funding
http://www.kansas.com/2013/04/15/2762981/brownback-plans-to-visit-wsu-other.html?utm_source=twitterfeed&utm_medium=twitter

Legislature unable to fix the budget with cuts alone
http://www.khi.org/weblogs/budget-blog/2013/apr/15/legislature-unable-fix-budget-cuts-alone/

Analysts, from left and right, call Kansas tax plan worst in nation
http://www.kansas.com/2013/04/14/2761624/analysts-from-left-and-right-call.html#storylink=cpy

There he goes again
http://www.salina.com/Editorials/Brownback-for-Sunday--April-14--2003

What’s wrong with Kansas tax reform?
http://www.governing.com/columns/public-finance/col-whats-wrong-kansas-tax-reform-measure.html

Analysts on both sides agree Brownback tax plan worst in the nation
http://www.hutchnews.com/Editorialblogs/edit-tax-plan

Left and right leaning finance experts agree Kansas tax changes worst in country
http://www2.ljworld.com/weblogs/capitol-report/2013/apr/11/left-and-right-leaning-finance-experts-s/

Extended sales tax or draconian budget cuts?
http://blogs.kansas.com/weblog/2013/04/extended-sales-tax-or-draconian-budget-cuts/

Kansas legislation would hurt poor, critics say
http://www.kansascity.com/2013/04/12/4178974/kansas-legislation-would-cost.html

Legislators will talk tax policy next week at WSU
http://www.bizjournals.com/wichita/news/2013/04/11/legislators-will-talk-kansas-tax.html

Louisiana governor backs off tax plan similar to Brownback’s
http://www.khi.org/news/2013/apr/09/louisiana-governor-backs-tax-plan-similar-brownbac/

Issue of sales tax extension creates odd alliances
http://www.kansascity.com/2013/04/09/4171945/issue-of-sales-tax-extension-creates.html

Which Kansas is that?
http://www.kansas.com/2013/04/09/2752730/eagle-editorial-which-kansas-is.html

Dems criticize Brownback over comments made in radio address
http://www2.ljworld.com/news/2013/apr/08/democrats-criticize-brownback-over-comments-made-n/

Budget in flux until tax plan settled
http://cjonline.com/news/state/2013-04-08/kansas-2014-budget-flux-until-tax-plan-settled

Dems predict House will give in on taxes
http://cjonline.com/news/2013-04-08/democrats-predict-house-will-give-taxes-budget

Tax bills still on hold in Kansas Legislature
http://www.kansascity.com/2013/04/06/4166927/a-scorecard-as-kansas-lawmakers.html

Exemption would have big local impact
http://www.hdnews.net/columnstory/Insight040713

Missouri needs tax reform to remain competitive
http://www.kansascity.com/2013/04/07/4164708/missouri-needs-tax-reform-to-remain.html

House budget negotiators back off across-the-board cuts to higher education
http://www2.ljworld.com/news/2013/apr/05/budget-negotiators-back-across-board-cuts-higher-e/

Health Care

Medicaid expansion advocates setting sights on next year
http://www.khi.org/news/2013/apr/15/medicaid-expansion-advocates-setting-sights-next-y/

Doctor-owned hospitals prosper under health law
http://www.khi.org/news/2013/apr/15/doctor-owned-hospitals-prosper-under-health-law/

Kansas fantasy veto session part 4: Just say no to poor insurance idea
http://www.kansascity.com/2013/04/11/4176572/kansas-fantasy-veto-session-part.html

Is Brownback really looking at possible Medicaid expansion?
http://www2.ljworld.com/weblogs/capitol-report/2013/apr/10/is-brownback-really-looking-at-possible-/

Kansas Fantasy Veto Session Part 3: Flawed bills burden KU Med, taxpayers
http://www.kansascity.com/2013/04/10/4174513/flawed-bills-in-kansas-burden.html

Fewer get insurance through work in MO and KS
http://www.kansascity.com/2013/04/11/4175472/study-fewer-kansans-insured-through.html

Kan. share of $54M in grants to help consumers find insurance capped at $60K
http://www.khi.org/news/2013/apr/10/kansas-share-54m-grants-help-consumers-find-insura/

Candidates praise stripped down health plans
http://cjonline.com/news/2013-04-10/candidates-praise-stripped-down-health-care-plans

Kansas stem cell research bill: meddling or progressive?
http://fox4kc.com/2013/04/10/kansas-stem-cell-research-bill-meddling-or-progressive/

Ongoing concern
http://www2.ljworld.com/news/2013/apr/10/editorial-ongoing-concern/

Brownback says he’s listening to Medicaid expansion proponents, opponents
http://www.khi.org/news/2013/apr/05/brownback-says-hes-listening-medicaid-expansion-pr/

House tussles over ‘mandate lite’ health insurance measure
http://www.khi.org/news/2013/apr/05/house-tussles-over-mandate-lite-health-insurance-m/

More than quarter million Kansans to be eligible for health tax credits
http://www.kansas.com/2013/04/09/2753508/more-than-quarter-million-kansas.html

Brownback says he’s listening to Medicaid expansion proponents, opponents
http://www.khi.org/news/2013/apr/05/brownback-says-hes-listening-medicaid-expansion-pr/

Legislature requires KU Med to add stem cell center, does not include funding
http://cjonline.com/news/2013-04-06/legislature-requires-ku-med-add-stem-cell-center

House tussles over ‘mandate lite’ health insurance measure
http://www.khi.org/news/2013/apr/05/house-tussles-over-mandate-lite-health-insurance-m/

Dental access
http://www.hutchnews.com/Editorialblogs/edit-dental-access

School Finance

Court ordered mediation may not work for state, public education
http://cjonline.com/news/2013-04-06/court-ordered-mediation-may-not-work-state-public-education

Innovative districts bill goes to governor
http://cjonline.com/news/2013-04-05/innovative-districts-measure-goes-governor

Rep defends school finance maneuver
http://cjonline.com/news/2013-04-05/rep-defends-school-finance-maneuver

Immigration

Kris Kobach's deafening silence
http://www.winfieldcourier.com/opinion/editorial/article_e4756c56-a581-11e2-b816-0019bb2963f4.html

Governor Brownback & Administration

Brownback to sign drug-testing, RICO bills
http://www.kansas.com/2013/04/16/2763917/brownback-to-sign-drug-testing.html#storylink=cpy

Kansas governor welcomes new TCF audit
http://cjonline.com/news/2013-04-15/kansas-governor-welcomes-new-tcf-audit

On the move
http://www2.ljworld.com/news/2013/apr/14/editorial-move/

Brownback vetoes home inspection bill; Realtors, inspectors cry foul
http://www.bizjournals.com/wichita/blog/2013/04/brownback-vetoes-home-inspection-bill.html?page=all

Gov's on thin ice, but is he terminal?
http://hutchnews.com/Columns/MON--insight-kansas-rackaway4-15

Brownback isn’t that vulnerable
http://www.kansas.com/2013/04/14/2759348/chapman-rackaway-brownback-isnt.html

Brownback vetoes bill on home inspections
http://www.sfgate.com/news/article/Brownback-vetoes-bill-on-home-inspections-4429551.php

Brownback announces first veto of the year
http://m.cjonline.com/news/2013-04-11/brownback-announces-first-veto-year

State offering prime Capitol parking lot to developers
http://m.cjonline.com/news/2013-04-12/state-offering-prime-capitol-parking-lot-developers

Brownback signs Kansas religious freedom measure
http://www.therepublic.com/view/story/0ae3fd16bdab4ff384e85d316a5edd0a/KS--Religious-Freedom-Act

Governor forms committee to increase recreational tourism on Kansas river
http://www2.ljworld.com/news/2013/apr/10/governor-forms-committee-increase-recreational-tou/?kansas_legislature

Fantasy Veto Session Part 2: Reject extremist gun bills
http://www.kansascity.com/2013/04/09/4171970/reject-extremist-gun-bills.html

Legislature

Proposed wildlife area in Jefferson County part of legislative budget talks
http://www2.ljworld.com/news/2013/apr/15/proposed-wildlife-area-jefferson-county-part-legis/

Budget proposals include new Kansas park
http://cjonline.com/news/2013-04-15/budget-proposals-include-new-kansas-park

Transparency essential to true democracy
http://cjonline.com/opinion/2013-04-14/gwyn-mellinger-transparency-essential-true-democracy

Changing Kansas government
http://www.winfieldcourier.com/opinion/editorial/article_3ee49a6a-a341-11e2-b951-0019bb2963f4.html

Legislators discuss gaming’s future
http://www.morningsun.net/news/x935161200/Legislators-discuss-gamings-future

Legislators say they hope Kansas will turn tide on current policies
http://www2.ljworld.com/news/2013/apr/13/lawrence-legislators-say-they-hope-kansans-will-tu/

Topeka Connection - The marketplace
http://www.thedailyunion.net/newsdetail.asp?article_id=18223

Bill seeks to change human trafficking focus
http://www.sfgate.com/news/crime/article/Kan-bill-seeks-to-change-human-trafficking-focus-4427354.php

Bill would strengthen DUI laws
http://www.kake.com/news/headlines/Kansas-Bill-Would-Strengthen-DUI-Laws-202755941.html

Speaker commissions camera cost study
http://cjonline.com/news/2013-04-11/speaker-commissions-cameras-cost-study

Gun power
http://www.gctelegram.com/opinion/Editorial-4-10-13

Weber viewed as common sense conservative
http://www.dodgeglobe.com/article/20130410/NEWS/130419904/1001/NEWS

KU Chancellor writes that possible state budget cuts would mean loss of at least 38 percent faculty jobs
http://www2.ljworld.com/weblogs/heard_hill/2013/apr/9/ku-chancellor-writes-that-possible-state/

Putting union PACS out of business
http://www.hdnews.net/opinionstory/Hawver040913

House Democratic leader makes stops in Pittsburg
http://www.joplinglobe.com/local/x1340811071/House-Democratic-leader-makes-stops-in-Pittsburg

Legislative spring break a good time to talk to lawmakers
http://ottawaherald.com/opinion/041013guestedit

Shawnee Mission lobbyist identifies gun bill as among the most significant of the session
http://pvpost.com/2013/04/09/shawnee-mission-district-lobbying-identifies-gun-bill-as-among-most-significant-of-session-17245

Elimination of horse and dog racing
http://www.eldoradotimes.com/article/20130409/NEWS/130408937

Knox, Peck schedule listening tour
http://www.arkcity.net/news/local_news/article_ee549e78-a184-11e2-903c-001a4bcf887a.html

Limited highway merger ok
http://cjonline.com/opinion/2013-04-08/editorial-limited-highway-merger-ok

Hensley says Republican leaders delayed wraupup session for ALEC
http://www2.ljworld.com/news/2013/apr/08/hensley-says-republican-leaders-delayed-wrapup-ses/

Your legislators in action
http://www.salina.com/editorials/Norlin-column-for-Monday--April-8--2013

No limits on rape cases
http://www.salina.com/Editorials/Rape-and-DNA-for-Tuesday--April-9--2013

$1.5 billion KPERS bond proposal advances in Kansas Legislature
http://www2.ljworld.com/news/2013/apr/05/15-billion-kpers-bond-proposal-advances-legislatur/?kansas_legislature

Statute of limitations
http://www.hutchnews.com/Editorialblogs/rape1-edit

Congressional

Hero GOP Reps fight back against tyranny of healthy school lunches
http://wonkette.com/512030/hero-gop-reps-fight-back-against-tyranny-of-healthy-school-lunches

Obama could learn a thing or two from Machiavelli
http://www.kansascity.com/2013/04/15/4183714/obama-could-learn-a-thing-or-two.html

Officials waiting for details of Obama visit
http://www.gctelegram.com/news/AP-KS-Obama-KUVisit-4-16-13

Reason for presidential visit to KU still unknown
http://cjonline.com/news/2013-04-15/reason-presidential-visit-ku-still-unknown

Questions abound about Obama's KU visit
http://www2.ljworld.com/news/2013/apr/15/questions-abound-about-obamas-ku-visit/

Bill attempts to take Kelsey Smith Act national
http://cjonline.com/news/2013-04-15/bill-attempts-take-kelsey-smith-act-national

Sen. Moran grateful for emergency responders in Boston
http://www.knssradio.com/2013/04/15/wichitakansas/Sen-Moran-Grateful-for-Emergency-Responders-in-Bos/16057739

Sedgwick County Kansas' biggest recipient of federal dollars
http://www.bizjournals.com/wichita/morning_call/2013/04/sedgwick-county-kansas-biggest.html?ana=twt

Sumner County, Kan., like much of U.S., is a taker of federal money
http://www.kansascity.com/2013/04/13/4180553/sumner-county-kan-like-much-of.html

Rural poverty part of spending equation
http://www.kansascity.com/2013/04/13/4180601/rural-poverty-part-of-spending.html

GOP congressmen continue to push back against new 'healthy' school meal plans
http://dailycaller.com/2013/04/14/gop-congressmen-continue-to-push-back-against-new-healthy-school-meal-plans/

President Obama will visit KU on Friday
http://cjonline.com/news/2013-04-13/president-obama-will-visit-ku-friday

President Obama to visit KU on Friday
http://www.kansascity.com/2013/04/13/4179589/obama-to-visit-ku-friday.html

Obama visiting KU on Friday
http://www2.ljworld.com/news/2013/apr/13/president-obama-visiting-here-friday/

Lab funding boosts state
http://www.kansas.com/2013/04/12/2757712/eagle-editorial-lab-funding-boosts.html

About time for honest gun debate in Senate
http://www.kansascity.com/2013/04/11/4176583/about-time-for-honest-gun-debate.html

Mental health centers need support
http://www2.ljworld.com/news/2013/apr/12/opinion-mental-health-centers-need-support/?opinion

Time to fund NBAF
http://cjonline.com/opinion/2013-04-13/editorial-its-time-fund-nbaf

Brownback, others breathe sigh of relief over NBAF
http://www.kansascity.com/2013/04/10/4173802/brownback-others-breathe-sigh.html

Roberts, Moran hide in the bushes
http://www.winfieldcourier.com/opinion/editorial/article_ea08426e-a19a-11e2-aeb7-001a4bcf887a.html

Sequester takes toll on Kansas head start programs
http://www.khi.org/news/2013/apr/09/sequester-takes-toll-kansas-head-start-programs/

Kansas is watching the White House budget
http://www.kansascity.com/2013/04/09/4171964/kansas-is-watching-the-white-house.html

Kansas senators join pledge to block gun control debate
http://www.khi.org/news/2013/apr/09/kansas-senators-join-pledge-block-gun-control-deba/

Sebelius ‘frustrated’ by relentless political attack on Obamacare
http://cjonline.com/news/state/2013-04-08/sebelius-frustrated-relentless-political-attack-obamacare

Huelskamp fears for motherhood
http://blogs.kansas.com/weblog/2013/04/huelskamp-fears-for-motherhood/

Moran one of the hottest guys in tech?
http://blogs.kansas.com/weblog/2013/04/moran-one-of-the-hottest-guys-in-tech/

Politics/Elections

Kansas GOP's conservative solidarity is holding
http://blogs.kansas.com/weblog/2013/04/kansas-gops-conservative-solidarity-is-holding/

Robust GOP primary likely with insurance commissioner
http://cjonline.com/news/2013-04-12/robust-gop-primary-likely-insurance-commissioner

Kansas slipping away from its people
http://cjonline.com/opinion/2013-04-07/bill-roy-kansas-slipping-away-its-people

What is Your Practice Worth in the 2013 M&A Market?

Mon, 22 Apr 2013 12:00:00 EDT

What is Your Practice Worht in the 2013 M&A Market?
By Gary Adamson, CPA

Tax Season 2013 is over and the M&A frenzy will pick back up again where it left off. So, what is your practice worth? What can you expect whether you are a buyer or seller? One thing is for sure – Baby Boomers are selling at a rate that the profession has never seen before. It is still a sellers market, for now. But the demographics and the thousands of practices that will soon be for sale suggest that may change over the next few years.

We are often asked by our clients about the market and what firms are selling for. Everyone wants to know “what’s the multiple?” Let’s start with a little bit of background and definition. First of all, there are basically two types of deals in the CPA firm M&A world. One is a “merger” transaction where generally, partners of the smaller firm join the larger firm with the key characteristic being that those partners plan to continue with the larger firm on more than a short term basis. Normally no cash changes hands. Rather the incoming partners are brought into the firm’s existing deferred compensation /partner buyout plan.

The second is really a purchase where the partners or sole proprietor of the smaller firm are selling the practice and are not continuing on a long term basis with the larger firm. These tend to be the smaller deals. Often, a single transaction will combine a merger approach for some incoming partners and the buyout of others.

This article is focused on the purchase transaction. At the smallest end of the spectrum are the cash deals. In spite of lots of talk, we just don’t see them. In fact, they are almost non-existent in the firms that we work with. The generally accepted deal structure for most purchases in the profession today is a multiple of revenue approach paid out over a period of time, with no interest.

The first question we get from our clients is usually “what multiple of revenue are practices selling for?” We normally answer that question with another question: As the buyer would you take this deal: a $500,000 tax practice, good rate per hour, located in your back yard, zero or a small down payment, good transition of clients by the retiring sole practitioner, and the price is 15% of collections over ten years. There usually is a short pause and the answer is “yes, absolutely.” So far I don’t think we have heard a no.

In the preceding example, as the buyer you just said yes to paying a multiple of 1.5 times revenue for the practice! What?? Why would you do that? The point is it’s not just about the multiple; it’s about the overall deal structure and terms. The multiple is only one piece of the puzzle.

Although we won’t touch on everything, the important components that go together to make up and influence the structure are:

Size of practice
Profitability of the practice
Location
Down payment
Term (number of years) of the payments
Length of time before the purchase price is fixed
Extent and quality of client transition
And finally, the multiple of revenue being paid

The relative size of a practice being acquired will have an impact on the pricing of a deal. Generally, the larger the target, the fewer potential buyers there will be and the price is lower. Likewise the pricing is impacted by the location of the target. If you are in a major metro area there are more potential suitors and you can command a higher price.

Be careful on analyzing the profitability of the practice. Most of us want to focus on the financials of the target and yes, we do want to review and understand them. But as the buyer, the more important questions should be the margins and profitability in our firm. What is it going to look like in our shop? Cost structures are different and how we staff it may be different.

The down payment, length of payment term and when the price is fixed or locked down all work together to influence the multiple. As you can probably imagine, as the down payment goes up the buyer has more risk and the multiple may go down. A down payment of more than 20% is fairly unusual in this post recession market and we often see any down payment treated as an advance on the first year or two of payments. The length of the payment term is normally in the range of four to six years and the multiple will be higher as the term increases.

The lock down of the price deserves some explanation. In our $500,000 tax practice example there is no lockdown and the seller would have received 15% of collections or $75,000 for ten years, assuming that the revenue stayed at the $500,000 level. Of course, it won’t stay at that same amount. Hopefully the acquiring firm is going to grow it but most sellers are worried that it will shrink. To protect against that shrinkage, sellers want a lock down or fixing of the price after some period of time. We normally see that in the one to three year range. So, if in our example we included a two year lock down, the value would be fixed at the end of two years based on the revenue of the practice at that time. The remaining payments would be adjusted accordingly.

The length and quality of the transition to be provided by the exiting partners or sole practitioner is critical to the retention of clients and the value of the practice. The interplay of the transition and the lock down of the pricing is key.

So, what about the multiple? We see a lot of transactions in the 1 to 1.25 range, with the higher end of the scale in the metro areas. That would assume terms in the “somewhat normal range” such as a down payment of not more than 20%, a five year payout, a two year lock down, good transition, etc.

A few more details to be aware of include:

Furniture and equipment are normally included (the buyer receives them).
Work in process and accounts receivable are normally not included.
As the buyer, always share the upside prior to the lock down with the seller.
Make sure that your transition plan includes two cycles.

For a little bit more information, in a recent article available on our website, we shared what sole practitioners are thinking regarding multiples and terms in the sale of their practices. Our source was the 2012 Succession Survey conducted by the Succession Institute in cooperation with PCPS.

Gary Adamson is the President of Adamson Advisory, specializing in practice management consulting for CPA firms. He is an Indiana University graduate and has extensive hands on experience as the recent managing partner of a top 200 CPA firm. He can be reached at (765) 488.0691 or gadamson@adamsonadvisory.com. For more about Adamson Advisory, visit www.adamsonadvisory.com or follow the company at www.adamsonadvisory.com/blog

Outstanding Exposure Drafts - May 2013

Mon, 22 Apr 2013 12:00:00 EDT

DRAFTS OUTSTANDING - MAY 2013

■ FASB
Proposed Accounting Standards Update, Financial Instruments—Credit Losses (Subtopic 825-15). Comment deadline April 30. ED
Available at tinyurl.com/a3k6h9z.

Proposed Accounting Standards Update, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
Comment deadline: May 15. ED
Available at tinyurl.com/b6getlq.

■ IFAC
Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Elements and Recognition in Financial Statements. Comment deadline: April 30. ED
Available at tinyurl.com/chuyq6h.

Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Measurement of Assets and Liabilities in Financial Statements. Comment deadline: April 30. ED
Available at tinyurl.com/ce8u6u9.

A Framework for Audit Quality. Comment deadline: May 15. Consultation paper available at tinyurl.com/bhncm3j.

■ PEEC (AICPA)
Proposed Revised AICPA Code of Professional Conduct. Comment deadline: Aug. 15.
ED expected to be released April 15 and to be available at tinyurl.com/2ajajwa.

Source: Journal of Accountancy, May, 2013. Copyright c 2013 by the AICPA, Inc. Reprinted with permission.

Washburn University Adds Master of Accountancy Degree

Tue, 16 Apr 2013 12:00:00 EDT

Washburn University Launches Master of Accountancy Program

In the fall of 2013, Washburn University’s School of Business will offer the Master of Accountancy (MAcc) degree in two flexible, education paths, including the region’s only evening program. Applications are being accepted now for enrollment in the 2013 fall semester.

The 3+2 Program gives undergraduate accounting majors the ability to simultaneously work on their undergraduate and master’s degrees and, in the process, add just one additional year of college. The Flexible Program is an evening-based path for working professionals who have a bachelor degree equivalent to Washburn University’s undergraduate accounting degree. The MAcc program can be completed in as little as 12 months or over a period of up to five years. Both paths also offer students the necessary hours to become eligible for the CPA exam. More information about the Washburn MAcc program can be found here.

“The MAcc is a great addition to the Business School’s degree repertoire and consistent with our mission of providing high-quality business education programs. It is affordable option for students seeking to work in the accounting field,” said David Sollars, dean of the Washburn School of Business. “Students enrolled in this program have the ability to expand their marketability and benefit from a high-quality graduate degree in accounting. The MAcc program will also prepare students for the CPA exam and other professional certifications.”

The Washburn University School of Business degree programs are accredited by The Association to Advance Collegiate Schools of Business (AACSB) – a distinction only given to the top 5 percent of business programs in the world. In addition, the School has been named an outstanding business school by The Princeton Review for the sixth consecutive year.

Washburn offered its first business degree program in 1946, and today boasts more than 7,000 Washburn business alumni. The School also hosts the Washburn University Small Business Development Center (WUSBDC), serving small businesses and fledgling entrepreneurs in a nine-county region from offices in Topeka, Manhattan and Wetmore.

KSCPA Conference Schedule of Events Available

Mon, 15 Apr 2013 12:00:00 EDT

KSCPA Conference Schedule of Events Available

2013 6th University of Kansas International Conference on XBRL - April 25-27, 2013 - Lawrence, KS

2013 Financial Planning Workshop - May 6, 2013, Lenexa, KS

2013 Agricultural Taxation Workshop - May 9, 2013, Salina, KS

2013 Estate Planning Workshop - May 10, 2013, Manhattan, KS

Governmental & Nonprofit Accounting & Auditing Conference - June 4-5, 2013, Wichita, KS

2013 Accounting & Assurance Services Conference - June 17, 2013, Wichita, KS

2013 Business & Industry Conference - June 18, 2013, Wichita, KS

2013 Conference on Kansas Taxes - June 25, 2013, Mayetta, KS

KSCPA Announces Strategic Alliance with Avalara

Tue, 09 Apr 2013 12:00:00 EDT

Announcing the addition of our newest Strategic Alliance partner, Avalara, the market leader in cloud-based sales and use tax (SUT) and value added tax (VAT) reporting and compliance with more than 10,000 customers globally. This is strategic alliance is only available to KSCPA Members.

How Avalara Works

Avalara’s Web-based solution integrates with more than 200 global accounting and business applications that span all business transaction platforms, including enterprise resource planning (ERP), ecommerce, point of sale (POS), mobile (smart phone applications), compliance (tax returns), and customer relationship management (CRM) systems. Avalara also provides an Application Programming Interface (API) and software development kit (SDK) for customized integrations to virtually any platform. The resulting “Software as a Service (SaaS)” solution is an inexpensive, easy to use, subscription that requires no complicated, and risky, maintenance of internal tax tables and rules that are constantly changing.

The ARC

A key part of our alliance with Avalara is their Accountant’s Resource Center (ARC), now available at no cost to all KSCPA members. This site is full of important information related to sales and use tax compliance, including updated information on pending legislation, a forms library, rates tables, and links to valuable sales tax and use tax blogs and other information. As Avalara expands its growing international business tax offerings, the ARC will contain increasing amounts of important information regarding VAT regulations and legislation changes.

Members - Click here to sign up for the Accountant's Resource Center

Avalara to Sponsor Session at Conference on Kansas Taxes

Avalara will be sponsoring a session presented by Scott Peterson, Director of Governmental Affairs, Avalara, at the KSCPA Conference on Kansas Taxes on June 25, 2013 at the Prairie Band Conference Center in Mayetta, Kan. The session is entitled, "Emerging Governmental Tax Issues and Trends." The session will focus on the significant changes in transactional taxation that are being considered at both state and federal levels.

Click here to register for the Conference on Kansas Taxes.

Council on State Taxation 2013 Report - What's Wrong with Taxing Business Services?

Thu, 04 Apr 2013 12:00:00 EDT

What's Wrong with Taxing Business Services?: Adverse Effects from Existing and Proposed Sales Taxation of Business Investment and Services

April 4, 2013: COST is a nonprofit trade organization based in Washington, DC formed in 1969 as an advisory committee to the Council of State Chambers of Commerce. This study (What's Wrong with Taxing Business Services?), addresses key policy issues arising in a number of state legislatures that are debating proposals to significantly expand the sales and use tax base to include substantially more business-to-business sales.

Click here to access the report.

Q&A on Employer Shared Responsibility Provisions Under the Affordable Care Act

Thu, 04 Apr 2013 12:00:00 EDT

Many small businesses are on the cusp of having the number of calculated full-time employees to be subject to the provisions of employer shared responsibility. IRS.gov has posted a list of Q&A's in their Newsroom on Employer Shared Responsibility Provisions Under the Affordable Care Act.

Click here for the list.

Kansas Gets an "A" for Small Business Friendliness from the Kauffman Foundation

Wed, 03 Apr 2013 12:00:00 EDT

Kauffman Foundation poll gives Kansas a "A" for small business support

Click here to view the Top 12 states slideshow from the Washington Post

Improving Compliance with Risk Assessment Standards - KSCPA Professional Development Can Help

Tue, 02 Apr 2013 12:00:00 EDT

Improving Compliance with Risk Assessment Standards - the KSCPA Professional Development can Help

In a recent blog posted by James Brackens, CPA, CGMA, common areas of noncompliance with risk assessment standards are identified. Jim is the Vice President of Ethics and Practice Quality for the AICPA. His team compiles information from peer reviews that pinpoint common areas of noncompliance. The KSCPA professional development is responding to help practitioners prevent these mistakes from happening in their audits. Check out conferences, courses, and on-line learning available from the KSCPA on www.kscpa.org.

Alan W. Anderson, CPA, President, AccountabilityPlus, LLC, is a key presenter and instructor for the KSCPA. He will be featured at the Governmental & Nonprofit Accounting & Auditing Conference (June 4/5) and the Accounting & Assurance Conference (June 17) for the KSCPA in June 2013 on the topic of risk assessment.

A live webinar will be held on June 6 when Al will discuss "Improving Risk Assessment Procedures for Your Nonprofit Audit Clients." On June 20, Al will present another live webinar entitled, "Internal Control: A Better Understanding to Enhance Efficiency and Effectivness."

Al has also developed a self-study program available from the KSCPA "Understanding Audit Risks and Discussing Them with Your Client" and other topics about internal control and risk assessment in his 13-part series "Anderson's Audit Express."

For more in-depth training and evaluation, Al is available for infirm training and reality-based learning. Contact Al at aanderson@accountabilityplusllc.com to setup a consultation.

Risk management and internal control implementation begins within the organization being audited. The KSCPA worked with experienced internal auditor, Lynn Fountain, CPA, CGMA, to develop a unique series "Governance, Risk, & Compliance" with 14 self-study sessions. Click here to learn more about the sessions

Lynn is also available for infirm training and consultation. Contact her at lynnfountain1@aol.com.

June courses that will help you avoid this common area of noncompliance include the following:

May 17: Implementation Tools to Achieve Success in the Smaller Audits - Planning and Internal Control - Al Anderson, Wichita

June 11: Internal Control - Essentials for Financial Managers, Accountants & Auditors - Lynn Fountain, Overland Park

June 12: Auditing for Internal Fraud - Fraud Detection and Prevention - Lynn Fountain, Overland Park

June 13: Risk Asssessment and Internal Control - Best Practices for Small Business Audits - Lynn Fountain, Wichita

If you have any questions or suggestions for the KSCPA team to help you enhance your competency in the area of risk assessment or risk management and internal control, please contact the KSCPA office at 785.272.4366 and talk with Danielle or Mary.

KSCPA Member Elijah Watt Sells Award Recipient

Fri, 29 Mar 2013 12:00:00 EDT

Alan Burton Elijah Watt Sells Recipient

Great Bend, KS -- Alan Burton, CPA has been announced as a recipient of the Elijah Watt Sells award for 2012. He is one of 39 winners nationwide -- out of a pool of 92,000 – to be presented with this prestigious award. Burton is a 2005 Fort Hays State University graduate with a Bachelor of Business Administration in accounting, and works for Adams, Brown, Beran & Ball, Chartered.

"I can't even begin to tell you how many hours I put in preparing for it," said Burton, a 2001 graduate of Russell High School. "My initial intent was to go through and not have to retake any section. That was my goal, and I guess I met that."

He said he took the Becker Professional Education CPA Exam Review Course online, which is equivalent to nine hours of graduate work.

"I'm thrilled to be done with it, and kind of dumbfounded," he said. "I never expected to receive anything of this magnitude, and I am humbled. I would never have thought I was anywhere near capable of something like this. Some people might tell you different, but not me."

Ken Beran, CPA, managing partner of Adams, Brown, Beran & Ball will be the first to tell you otherwise. “It comes as no surprise that Alan was a top scorer in his CPA exam testing cycle. He has proven to be a first-class professional, continually focused on enhancing his knowledge and better serving his clients,” said Beran. “We extend our congratulations to Alan and look forward to his growth within the company.”

The Sells award program was created in 1923 to honor Elijah Watt Sells, a founding partner in Haskins & Sells, a predecessor to Deloitte & Touche. In 1896, Mr. Sells became one of the first to qualify as a CPA in New York State. He was active in the creation of the AICPA and served as a member of its governing council.

Between 1923 and 1935, only one Sells Award was given after each examination administration to the candidate who received the highest combined scores in passing all four sections of the Uniform CPA Examination. Between 1935 and 1977, gold and silver medals were awarded to the two highest scorers and, beginning in May 1978, a bronze medal was also awarded to the third highest scorer at each examination administration. At some point after 1978, plaques replaced medals as the means of recognizing award recipients.

In 2004, when the Uniform CPA Examination became a computer-based test (CBT), the Sells award program was restructured and the current award criteria, as described above, were introduced. In the CBT environment, candidates have the flexibility to take sections of the Uniform CPA Examination in any order they wish, and to schedule test sessions in numerous U.S. locations eight out of twelve months of the year.

Ken Selzer, CPA, Featured in Adult Texting & Driving Warning on KMBC.com

Fri, 29 Mar 2013 12:00:00 EDT

Ken Selzer, CPA, Featured in Adult Texting & Driving Warning on KMBC.com

A new study from AT&T shows that while teenagers get the blame for most texting and driving cases, adults admit to doing it even more often than young people.

Ken Selzer is interviewed about an accident that happened while he was reading an email. He smashed into a Kansas Department of Transportation truck. Ken shares his story with anyone who will listen, and he sometimes honks at the many drivers he sees who are distracted behind the wheel.

Click here to read the article and watch a video featuring Ken, a member of the KSCPA and Vice Chair of the Educational Foundation.

AICPA Accepting Applications for 2013 Leadership Academy (9/29-10/3/13)

Thu, 28 Mar 2013 12:00:00 EDT

AICPA Accepting Applications for 2013 Leadership Academy (9/29 to 10/3/13)

The application process is now open for the AICPA's 2013 Leadership Academy. The KSCPA has three graduates of this elite Academy: James Boomer, Dominic Ortiz, and Trisha Cavanaugh. The Academy focuses on attracting the best and brightest young CPAs from a variety of ethnicities, gender, industries and experiences, who have demonstrated a passion for the accounting profession. Individual applications should be submitted on or before May 31, 2013.The Academy will be held at the Washington Duke Inn.

The KSCPA will cover the fee (program material, meals, hotel and 35 CPE credits) for a KSCPA member ($850) selected. To be eligible, the AICPA member must be under age 36 with at least 3 years of experience in the profession. Thirty-four participants will be selected. Nominations come from employer, professor, state society representative, mentor, or other AICPA partner.

For more information, visit www.aicpa.org/LeadershipAcademy, or contact Mary MacBain at mary@kscpa.org, 785.272.4366, if you are interested in being nominated by the KSCPA.

AICPA Technical Practice Aid Released Regarding Naming City and State Where Auditor Practices

Thu, 21 Mar 2013 12:00:00 EDT

AICPA Technical Practice Aid

AICPA resource: Technical Question and Answer 9100.07.

This Technical Practice Aid provides nonauthoritative guidance which states that the auditor may comply with AU-C section 700’s requirement that the auditor’s report “name the city and state where the auditor practices,” by naming that city and state on the firm’s letterhead on which the report is issued. AU-C section 700 is titled Forming an Opinion and Reporting on Financial Statements.

AICPA Offers Additional Q&A on Group Audits

Wed, 20 Mar 2013 12:00:00 EDT

From the AICPA

Sixteen additional Technical Questions and Answers regarding the new group audits standard have been issued, and an existing Q&A has been revised. The new questions address issues, particularly involving equity investments, that practitioners are facing as they implement AU-C section 600. In addition, TIS section 8800.23 has been revised.

AICPA Launches Identity Theft Resources Page

Wed, 20 Mar 2013 12:00:00 EDT

Theft of a person’s identity to falsely claim a tax refund is on the rise and affects thousands of taxpayers who cannot receive their refund until the IRS completes its investigation. You may wish to advise your members about the AICPA’s ID Theft Tools webpage, which offers a convenient source of articles and tips for practitioners and taxpayers to combat identity theft. Resources from the IRS and an update of recent developments, including AICPA advocacy on this issue, are also included.

Representative Lynn Jenkins, CPA, Introduces Tax Due Dates Bill in House (H.R. 901)

Fri, 15 Mar 2013 12:00:00 EDT

Representative Lynn Jenkins, CPA, Introduces Tax Due Dates Bill in House (H.R. 901)

Representative Lynn Jenkins, CPA, introduced H.R. 901 (Tax Due Dates Bill) in the House. Schedule K-1 is used to report each shareholder’s share of income, losses, deductions and credits and must be included with the tax return for partnerships, S corporations and other pass-throughs. Taxpayers and preparers have long struggled with problems created when Schedules K-1 arrive late, making it difficult, if not impossible, to file a timely, accurate tax return. An AICPA-backed bill has been re-introduced in both houses of Congress to alleviate this problem. If enacted this year, it would take effect for tax year 2014 (2015 filing season) and affect filing of Forms 1065, 1120S, 1120 and 1041.

Representative Jenkins is a member of the KSCPA.

For more information on the legislation and proposed due dates, please direct your members to the AICPA’s Due Dates webpage.

Fountain's Governance Express Self Study Available NOW!

Thu, 07 Mar 2013 12:00:00 EDT

Fountain’s Governance Express is a series designed to provide participants the opportunity to peer into the inner workings of the corporate world and Governance, Risk and Compliance (GRC) processes. The series provides participants with ideas and tools to lead their organizations towards the establishment and effective sustainability of GRC programs. Included within the series are critical topics of Enterprise Risk Management (ERM), Fraud and Ethics.

Click here to review and register for self-study programs. An article is associated with each of the self-study programs.

KSCPA News

COSO Releases Updated Internal Control Framework

AICPA Calls for Changes to Home Office Deduction Rule

Bright and Carpenter News Clips - Week of 5/6/2013

KSCPA Spring Leadership Summit Scheduled for June 5-6, 2013 - Register Today!

KSCPA Spring Leadership Summit Scheduled for June 5-6Event Features Barry Melancon, CPA, CGMA, President & CEO, AICPA

Berberich Trahan & Co., P.A. Marks Centenial Anniversary

BT&Co., Celebrates 100 Years in Business

FAF and FASB Mark Anniversary with Updated Branding

BKD Celebrates 90 Years in Business

BKD, LLP Celebrates Anniversary

IRS News from Tax Professionals - May 2013

Kennedy and Coe, LLC Announces New Chief Executive Officer

JEFF WALD NOW CHIEF EXECUTIVE OFFICER of KENNEDY AND COE, LLC

Siemers, Former CEO, Retires after 42 Years with the Firm

FASB Names New Chair

Financial Accounting Foundation Names Russell G. Golden Chairman of the Financial Accounting Standards Board

Linda Sheppard Appointed to Newly Created Position at Kansas Insurance Department

Online Sales Tax, Marketplace Fairness Legislation

Latest News: Online Sales Tax, Marketplace Fairness 2013

Bright and Carpenter News Clips - Week of 4/15/2013

What is Your Practice Worth in the 2013 M&A Market?

What is Your Practice Worht in the 2013 M&A Market?By Gary Adamson, CPA

Outstanding Exposure Drafts - May 2013

DRAFTS OUTSTANDING - MAY 2013

Washburn University Adds Master of Accountancy Degree

Washburn University Launches Master of Accountancy Program

KSCPA Conference Schedule of Events Available

KSCPA Conference Schedule of Events Available

KSCPA Announces Strategic Alliance with Avalara

How Avalara Works

The ARC

Avalara to Sponsor Session at Conference on Kansas Taxes

Council on State Taxation 2013 Report - What's Wrong with Taxing Business Services?

What's Wrong with Taxing Business Services?: Adverse Effects from Existing and Proposed Sales Taxation of Business Investment and Services

Q&A on Employer Shared Responsibility Provisions Under the Affordable Care Act

Kansas Gets an "A" for Small Business Friendliness from the Kauffman Foundation

Kauffman Foundation poll gives Kansas a "A" for small business support

Improving Compliance with Risk Assessment Standards - KSCPA Professional Development Can Help

Improving Compliance with Risk Assessment Standards - the KSCPA Professional Development can Help

KSCPA Member Elijah Watt Sells Award Recipient

Alan Burton Elijah Watt Sells Recipient

Ken Selzer, CPA, Featured in Adult Texting & Driving Warning on KMBC.com

Ken Selzer, CPA, Featured in Adult Texting & Driving Warning on KMBC.com

AICPA Accepting Applications for 2013 Leadership Academy (9/29-10/3/13)

AICPA Accepting Applications for 2013 Leadership Academy (9/29 to 10/3/13)

AICPA Technical Practice Aid Released Regarding Naming City and State Where Auditor Practices

AICPA Technical Practice Aid

AICPA Offers Additional Q&A on Group Audits

From the AICPA

AICPA Launches Identity Theft Resources Page

Representative Lynn Jenkins, CPA, Introduces Tax Due Dates Bill in House (H.R. 901)

Representative Lynn Jenkins, CPA, Introduces Tax Due Dates Bill in House (H.R. 901)

Fountain's Governance Express Self Study Available NOW!

KSCPA Spring Leadership Summit Scheduled for June 5-6
Event Features Barry Melancon, CPA, CGMA, President & CEO, AICPA

What is Your Practice Worht in the 2013 M&A Market?
By Gary Adamson, CPA