1101 Oberlin Road, Suite 104 • PO Box 12827 • Raleigh NC 27605 • (919) 733-4222 • Fax (919) 733-4209 • nccpaboard.gov North Carolina State Board of Certified Public Accountant Examiners The North Carolina State Board of CPA Examiners will conduct its July 26, 2021, meeting via WebEx. To request an invitation to the WebEx meeting, send your full name, email address, telephone number, and firm/employer name to [email protected]by 3:00 p.m. on Thursday, July 22, 2021.
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July 26 2021 Meeting of the NC State Board of CPA Examiners
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North Carolina State Board of Certified Public Accountant Examiners
The North Carolina State Board of CPA Examiners will conduct its July 26, 2021, meeting via WebEx. To request an invitation to the WebEx meeting, send your full name, email address, telephone number, and firm/employer name to [email protected] by 3:00 p.m. on Thursday, July 22, 2021.
PUBLIC SESSION AGENDA NORTH CAROLINA STATE BOARD OF CPA EXAMINERS
JULY 26, 2021 10:00 A.M.
1101 OBERLIN ROAD RALEIGH, NC
I. Administrative ItemsA. Call to Order
In accordance with North Carolina General Statute 138A-15(e), it is the duty of every Boardmember to avoid both conflicts of interest and appearances of conflict. Does any Boardmember have any known conflict of interest or appearance of conflict with respect to anymatters coming before the Board today? If so, please identify the conflict or appearance ofconflict and refrain from any undue participation in the particular matter involved.1. Public Hearing Case No. C2020059 – Scott C. Coyle, NC CPA No. 34816 (ACTION)2. Acceptance of Proposed Decision by Consent – Leon L. Rives II,
Case No. 20 CPA 02840 (ACTION)B. Welcome and Introduction of GuestsC. Approval of Agenda (ACTION)D. Minutes (ACTION)E. Financial/Budgetary Items
1. Financial Statements for June 2021 (ACTION)
II. Legislative & Rule-Making Items
III. National Organization ItemsA. NASBA Annual Meeting (FYI)
IV. State & Local Organization Items
V. Committee ReportsA. Professional Standards (ACTION)B. Professional Education and Applications (ACTION)C. Audit Committee (ACTION)
VI. Executive Staff and Legal Counsel ReportA. Operational Metrics (FYI)B. Executive Staff Report (FYI)
VII. Public Comments
VIII. Closed Session
IX. Adjournment
PUBLIC SESSION MINUTES North Carolina State Board of CPA Examiners
June 28, 2021 Via Videoconference 1101 Oberlin Road Raleigh, NC 27605
MEMBERS ATTENDING: Barton W. Baldwin, CPA, President; Bernita W. Demery, CPA, Vice President; Gary R. Massey, CPA, Secretary-Treasurer; Michael S. Massey, CPA; Wanda B. Taylor, Esq., and Jennifer Van Zant, Esq. (all by simultaneous communication).
STAFF ATTENDING: Robert N. Brooks, Executive Director; David R. Nance, CPA, Deputy Director; Frank Trainor, Esq., Staff Attorney; Lisa R. Hearne, Communications Officer; Buck Winslow; Licensing Manager; and Noel L. Allen, Esq., Legal Counsel (all by simultaneous communication).
GUESTS: Sharon Bryson, CEO, NCACPA; Mark Soticheck, CPA, COO, NCACPA; and Arleen Thomas, NCACPA Board of Directors (all by simultaneous communication).
CALL TO ORDER: President Baldwin called the meeting to order at 10:07 a.m.
AGENDA: Mr. M. Massey moved, and Ms. Demery seconded the motion to approve the revised agenda. Motion passed with six (6) affirmative votes and zero (0) negative votes.
MINUTES: Mr. G. Massey moved, and Ms. Van Zant seconded the motion to approve the May 24, 2021, meeting minutes as submitted. Motion passed with six (6) affirmative votes and zero (0) negative votes.
FINANCIAL AND BUDGETARY ITEMS: Mr. G. Massey moved, and Mr. M. Massey seconded the motion to approve the May 2021 financial statements as submitted. Motion passed with six (6) affirmative votes and zero (0) negative votes.
Mr. Nance informed the Board that Bernard Robinson & Company, L.L.P. completed the 2020-2021 audit. The Audit Committee will review and discuss the audit before adding it to the Board’s July 26, 2021, meeting agenda for Board approval.
Mr. Nance stated that as of Friday, June 25, 2021, the Board had received one response to the Request for Proposal (RFP) for Selection of an Investment Advisory Firm. He anticipates receiving one or two additional responses by the June 30, 2021, deadline.
NATIONAL ORGANIZATION ITEMS: The Board members discussed the NASBA Regional Virtual Meeting held on June 22-23, 2021. President Baldwin said that he found the meeting interesting and informative, especially the discussion of the future of accounting education and coursework and the developments in college and university accreditation.
ITEM I-D
Public Session Minutes June 28, 2021
Page 2
Mr. Nance provided an overview of the CPA Exam transition policy presented by Colleen Conrad, NASBA Executive Vice President, and Michael Decker, AICPA Vice President, Examinations, at the Regional Meeting. Mr. Nance stated he was pleased that the policy does not create additional hurdles for Exam candidates. He surmised that the Board might see an increase in the number of candidates who attempt to pass BEC before the January 1, 2024, Exam launch. Mr. Nance said he felt that NASBA, the AICPA, and all other parties involved in the policy put a great deal of effort and time into creating a fair transition policy.
Mr. G. Massey moved, and Ms. Taylor seconded the motion to approve the amended response to the AICPA Exposure Draft, Proposed interpretations and definition - Responding to Noncompliance With Laws and Regulations (Appendix I). Motion passed with six (6) affirmative votes and zero (0) negative votes.
President Baldwin disclosed that a survey at the Regional Meeting revealed that most people plan to attend the 114th NASBA Annual Meeting in person. Because of lingering concerns about COVID and some jurisdictions' travel restrictions, NASBA will offer a concurrent virtual version of the meeting. Mr. Nance said he would provide information about the October 31-November 3, 2021, meeting when it is available from NASBA.
STATE AND LOCAL ORGANIZATION ITEMS: President Baldwin asked Ms. Bryson to share any NCACPA-related information that might be of interest to the Board. Ms. Bryson said about 300 people viewed the online 2021 CPA Inauguration/New CPA Celebration. Ms. Bryson thanked President Baldwin and Vice President Demery for recording remarks for the event and expressed her appreciation to the Board for its ongoing support.
Ms. Bryson and Mr. Soticheck updated the Board on the work of the NCACPA’s succession planning task force. Ms. Bryson stated that the expanded task force is more diverse and includes members from more geographic areas. The task force will meet monthly and initially focus on education and awareness. Mr. Soticheck explained that the NCACPA would incorporate succession planning information into its CPE offerings and other programs. Expanding the network of professionals available to provide practice continuance assistance is a priority. Ms. Bryson and Mr. Soticheck emphasized that CPAs are passionate about succession planning and its importance to the profession.
REPORT OF THE PROFESSIONAL STANDARDS COMMITTEE: The Board approved with six (6) affirmative and zero (0) negative votes the following recommendations of the Committee as presented by Ms. Van Zant.
Case No. C2021054 - Pauline K. Chan - Approve the signed Consent Order (Appendix II).
Case No. C2021046 - Carrie B. Hutton - Approve the signed Consent Order (Appendix III).
Case No. C2021008 - Close the case without prejudice.
Case No. C2021028 - Close the case without prejudice with a Letter of Warning.
Public Session Minutes June 28, 2021
Page 3
Case No. C2021029 - Close the case without prejudice.
Case No. C2021049 - Close the case without prejudice.
Case No. C2021066 - Close the case without prejudice.
REPORT OF THE PROFESSIONAL EDUCATION AND APPLICATIONS COMMITTEE: The Board approved with six (6) affirmative and zero (0) negative votes the following recommendations of the Committee as presented by Ms. Taylor.
Reciprocal Certificate Applications - Approve the application for reciprocal CPA certification submitted by Lei Wang.
Temporary Permits - Approve the following temporary permits approved by the Deputy Director:
Jason M. Klein, T12494 Brianna Nicole Roberts, T12495 Jacqueline Eileen McArdle, T12496 Daniel Phillip Domonkos, T12497 Chandler Victoria Dew, T12498 Peter M. Zaccheria, T12499 Yasmine Laura Misuraca, T12500 Dominique Wever, T12501 Jaclyn Susanne Sokulski, T12509 Kendall Rae Breshears, T12510 Michael James Baudhuin, T12511 Sam Harry Bachstein, T12512 Leah Marie Hackworth, T12513 Charles N. Conibear, T12514
C’Ara Kisha McCrea, T12515 Ryan Patrick Marlar, T12516 Kyle Patrick Nevins, T12517 Peter Rutkowski, T12518 Ashley Scott Hogan, T12519 Jeffrey Howard Lewis, T12520 Stacy Mark Sessom, T12521 Kaley Marie Pellingra, T12522 Brian Lee Swann, T12523 Chad Westley Cottrill, T12524 Elizabeth Christine Krikke, T12525 Monica Herrera Rodriguez, T12526 Mohammad M. Bishawi, T12527
Reinstatements - Disapprove the application for certificate reinstatement submitted by Aaron Louis Blackmor.
Firm Registrations - Approve the following firm registration applications approved by the Deputy Director:
J. Acob, CPA, PLLCEsser CPA, PLLCPatricia Hyldburg, CPA, PLLC
A. Shin, CPA PLLCAmanda L Wolfe CPA, PLLCCollette Woodruff, PC
Rescind Letters of Warning - Approve rescinding the Letter of Warning issued to Jamison Walter Buehler, #40081.
Rescind Probationary License Status - Approve the request for rescinsion of probationary license status submitted by Erica Ariana Propst, #44600.
Public Session Minutes June 28, 2021
Page 4
Examinations - Approve the following applications to sit for the Uniform CPA Examination:
Bryan Adams Jennifer Adams Alexander Ade Jeremiah Akinsola Safiya Ali Michael Allan Daniel Allwurden Matthew Andrade Justin Appley Austin Atkinson Eva Azmoudeh Isadora Bailer Shinika Bailey Jason Baird Douglas Baker Prem Balakrishnan Amanda Baltrucki Rhett Barnett Jennifer Barrow Erin Beaird Jonathan Beck Kristin Beck Victoria Best Maureen Binter Daniel Bodenhamer Kristen Boley Aaron Braud Emily Breazeale Collin Brooks Ethan Brotherton Kaitlin Brown Scott Buckstad Christopher Burdick Chelsea Burney Justin Byrd Rudy Cabral Logan Caldwell Nolan Cambio Tyler Campbell Rocio Carbajal Brianna Cardwell Ryan Carson Sydney Carter Zachary Carver
Jonathan Cauble Kathleen Chambers Elaina Chen Nicholas Chilcutt Shane Choi Moses Chung Jessica Cianfrocca Anna Ciraco Marlon Clair Sharp Nicole Colmenares Bobbie Colomb Lenvil Coltrane Jake Compton Kassandra Cook Callie Copeland Amanda Crnic Addison Crowley Chase Crump Vincent Cuozzo Carson Cutright Stefan Davies Ashlyn Day Derik Dean Madison Dean Daniel Deas Anthony DeMarco Heidi Diegelman Brandon Dillingham Scott Douglas Allison Ducote Derek Duin Richmond Dunaway Jason Edelmann Tracie Edens Sara Ellis Alec Esoda Stacy Feldman Elizabeth Ferguson Shane Ferrero Austin Fishel Ryan Forbes Molly Foster Shane Fox Rohsaan Francis
Public Session Minutes June 28, 2021
Page 5
Samantha Frink Amanda Gadd Tracettia Gaither Jessica Garver Anatasha George John Gibson Kyle Gilman Lee Grantham Nicole Griffes Rachel Grote Andrea Guenther Mary Guest Olivia Guidone Connor Haggarty Zachary Halsey Donnetta Hanson Tanikya Harmon Blake Harrington Karen Harshman David Hartley Brett Hederick Anna Hendrick Callie Hendrick Megan Higgins Gabrielle Hoang Kathryn Hollis Molly Holloman Tiffany Hough Myisha Hoyle Marcus Hughes Christopher Hui Ayokunle Ilesanmi Henley Irby Ibreta Jackson Joshua Jackson Timothy Jackson Anish Jagath Justine James Mekeia Jenkins Cassandra Johnson Matthew Kalaf Jonathan Kane Jenny Kerley Ashley Kerr Lauren Kirkpatrick Julian Klein
Ginamarie Klos William Knabe Nicholas Koller Barrett Krimminger Brooke Lane Joshua Lane Benjamin Lasovsky Camie Le Megan Leasure Hannah Leskovec Yunuem Leyva Bedolla Ben Liboon Courtni Lincke Jessica Louros Zachary Lowman Samuel Main Matthew Mardjanov Caroline Martin Sonja Martin Juan Matamoros Grijalba Isamar Mateos-Valle Timothy Mauss Conor McCraw Roy McDonald Kristi McGaha Maura McKinney Diamond McKoy Morgan Merrill Jack Mock Alex Moore Andrew Moore Kelly Moore Jose Morales Rivera Adam Morris Hannah Moyles Abbey Mullen Alexandra Murphy Kathryn Nelson Henson Nguyen Thu Nguyen Anton Norris Taylor Norris Anne Nutter Daniel Ogbamichael Taylor Parks Hemangini Parmar
Public Session Minutes June 28, 2021
Page 6
David Pascual Aishni Patel John Pearce Tyler Pellarin Gail Perkins Samantha Petrelli Kalejah Pierce Joseph Pollard Caroline Ponchock Sally Jeanne Probst Laura Purdy Samantha Raburn Jana Reeve Olivia Richardson Sophie Ricks Katelyn Roberts William Roberts Rachel Roeth Precious Rogers Sierra Rolon Tyler Roten Steven Sasser Heather Shamblin Jill Shaw Heather Shelton Audrey Sigmon Rose Sims Rakita Sledge Patrick Stewart Teresa Striblin Andrew Strickland Ashley Strickland Daniel Sullivan Kensley Sutton Sean Tait Abigail Tenaglia Benjamin Thompson Matthew Tipton Sarah Todd
Stephen Tousignant Jeremy Truhel Ethan Tuby Matthew Tyndall Matthew Vaden Samuel Van Heukelom Julianne Vanderkwaak Jill Vang Christopher Vaughn Thomas Vaughn Alex Vazquez Laura Vega Tejada Emilie Vincitorio Malorie Virovets Angela Vite Linsey Wade John Walkowski Rusty Walser Damita Washington Lewis Watson Ella Webster Courtney Wells Rachel Wells David Wheeler Margaret Wheeler Brian White Matthew White William White Vandeth Wingo Carly Wolk Nathan Wonsch Kiersten Woodring Annie Woodward Caitlin Yarberry Jonathan Yavorsky Derek Zealy-Wright Anna Zhao Liudmila Zill
Requests for Extension of Exam Section Credits - Approve five score extension requests until the date requested, not to exceed 60 days. The extension requests focused on the COVID-19 pandemic closure of the Prometric Exam Centers.
Internal Policy on Extension of Exam Section Credits - Approve an internal policy on the extension of Exam section credits. To be eligible, 1) the candidate must request a section credit
Public Session Minutes June 28, 2021
Page 7
extension, and 2) the extension must be based on losing part of their 18-month credit window for a section due to the pandemic-related closure of the Exam centers. The credit expiration date would be extended to the requested date, not to exceed 60 days.
Other - Approve a request from a potential CPA Exam candidate for pre-determination of their Exam qualifications in light of the individual’s criminal history in accordance with NCGS 93B-8.1(b6).
REPORT OF THE STRATEGY COMMITTEE: Mr. M. Massey informed the Board that the Strategy Committee met on June 11 and discussed the modernization of technology for efficient engagement with stakeholders. The Committee concluded that consulting outside resources to improve the Board’s technology, including the database/licensing software, is necessary. Mr. Massey stated that the Board staff is reviewing the paper-based and PDF forms and applications to determine which documents to convert to an online format.
The Committee reviewed the Uniform CPA Exam voucher program’s 2015-present response rate. Mr. Massey stated that although the response rate is high, there is always room for improvement. Ms. Demery will develop a model presentation to use when communicating with universities about the voucher program.
Mr. Massey said the Committee would meet on the third Friday of each month to discuss the strategic plan.
REPORT OF THE EXECUTIVE COMMITTEE: The Board approved with six (6) affirmative and zero (0) negative votes the Executive Committee’s decision to approve Friday, June 18, 2021, as a paid holiday for the observance of Juneteenth National Freedom Day (“Juneteenth”). Mr. Nance explained that in 2007, the State of North Carolina enacted legislation recognizing June 19 as Juneteenth National Freedom Day effective upon its designation as a federal holiday. On Friday, June 18, 2021, President Biden signed the Juneteenth National Independence Day Act, establishing June 19 as a federal holiday. Mr. Baldwin stated that current North Carolina statutes allow a maximum of 12 paid holidays. Unless the General Assembly increases the number of paid holidays, the Board must eliminate one of the remaining 2021 holidays to comply with the statutes. Mr. Nance will apprise the Board of any action taken by the General Assembly on this matter.
EXECUTIVE STAFF AND LEGAL COUNSEL REPORT: The Board reviewed the monthly operational metrics and Executive staff report. Mr. Nance pointed out that the number of Exam applications was up significantly from last year when testing was limited because of the pandemic.
PUBLIC COMMENTS: Ms. Bryson shared that she found Dr. Yvonne Hinson’s NASBA Regional Meeting presentation on accounting education informative, especially since it included the most current information about the CPA pipeline.
Ms. Thomas, a former AICPA vice president, stated that she was encouraged by the increase in applicants for the Uniform CPA Exam.
Public Session Minutes June 28, 2021
Page 8
CLOSED SESSION: Ms. Van Zant moved, and Ms. Demery seconded the motion to enter Closed Session to discuss legal matters. Motion passed with six (6) affirmative and zero (0) negative votes.
PUBLIC SESSION: The Board re-entered Public Session and Ms. Van Zant moved, and Ms.Taylor seconded the motion to authorize Board staff to proceed with a proposed settlement offer for the Rives matter before the Office of Administrative Hearings. Motion passed with six (6) affirmative and zero (0) negative votes.
ADJOURNMENT: Ms. Taylor moved, and Ms. Demery seconded the motion to adjourn the meeting at 11:19 a.m. The motion passed with six (6) affirmative and zero (0) negative votes.
Respectfully submitted: Attested to by:
David R. Nance, CPA Barton W. Baldwin, CPA Deputy Director President
North Carolina State Board of Certified Public Accountant Examiners
June 28, 2021
Brian S. Lynch, Chair AICP A Professional Ethics Executive Committee 220 Leigh Farm Road Durham, NC 27707-8110
Dear Committee Members:
The North Carolina State Board of CPA Examiners (Board) has reviewed the Exposure Draft, Proposed interpretations and definition - Responding to Noncompliance With Laws and
Regulations prepared by the American Institute of Certified Public Accounts (AICP A) Profession Ethics Executive Committee (PEEC). The draft re-exposes for comment revisions to new interpretations for members "Responding to Noncompliance with Laws and Regulations" that would be added to the AICPA Professional Standards. The proposal seeks to provide specific guidance for members who encounter noncompliance with laws or regulations (NOCLAR) or suspected NOCLAR. The Board offers the following comments:
The Board agrees with PEEC's decision to separately identify the responsibilities for members who provide financial statement attest services and members who offer services other than financial statement attest services. When conducting a financial statement attest service, the highlevel objectives of the member include obtaining reasonable assurance as to whether a client's financial statements are free from material misstatement, thereby allowing the member to express an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework (such as generally accepted accounting principles). This higher-level expectation should require more direct interaction with those charged with governance to address any suspected NOCLAR matters.
The Board agrees with PEEC's decision to exclude litigation and investigation engagements from being subject to the interpretation. For a litigation engagement, the member will be providing professional assistance to lawyers in a litigation process. The objective of an investigation engagement involves systemically gathering and reviewing evidence to document the presence of specific wrongdoing or noncompliance and provide a conclusion to the engaging party. Both situations could include services to be perfonned that specifically address possible known or suspected NOCLAR. As such, the Board agrees compliance with the interpretation would be inconsistent with its intended purpose.
AICPA Professional Ethics Executive Committee June 28, 2021 Page 2
Finally, the Board agrees that a one-year transition period for the effective date of the interpretation is appropriate. This exposure of the interpretation appears to address many of the concerns with the March 2017 exposure expressed by the profession. It also seems that this presentation adequately addresses any concerns about member confidentiality requirements. The guidance appears relevant, and the interpretation's lengthy previous exposure period suggests that most practitioners should be aware of the interpretation's implications. As such, a one-year transition period should be sufficient.
The Board appreciates the opportunity to provide comments related to the proposed revisions and clarifications in the AI CPA Code of Professional Ethics.
Sincerely,
���A#� Barton W. Baldwin, CPA President
NORTH CAROLINA WAKE COUNTY
IN THE MATTER OF: Pauline K. Chan, CPA, #30536
Respondent
BEFORE THE NORTH CAROLINA STATE BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS
CASE #C2021054
CONSENT ORDER
THIS CAUSE, coming before the North Carolina State Board of CPA Examiners ("Board") at its offices at 1101 Oberlin Road, Raleigh, Wake County, North Carolina, with a quorum present. Pursuant to N. C. Gen. Stat. § 150B-41, the Board and Respondent stipulate to the following:
1. Pauline K. Chan, CPA (hereinafter "Respondent"), is the holder of North Carolinacertificate number 30536 as a Certified Public Accountant.
2. The Respondent informed the Board on her 2019-2020 individual certificate Renewal("Renewal") that between January 1, 2018, and June 30, 2019, she had obtained therequisite forty ( 40) hours of continuing professional education ("CPE") to meet the2018 CPE requirements.
3. Based on the Respondent's representation, the Board accepted her Renewal.
4. Board staff requested that the Respondent provide certificates of completion for theCPE reported to meet her 2018 and 2019 requirements.
5. The Respondent was unable to provide documentation for all of the forty (40) hoursof 2018 CPE hours that she claimed on her 2019-2020 annual renewal.
6. Pe;: Section 3.20 0f Session L:w; 2020-97, the Ncrth Carolina Genera•. Assembly hasauthorized State agencies to exercise regulatory flexibility during the Coronavirusemergency in order to protect the economic well-being of the citizens and businessesof North Carolina. The Board finds that allowing the Respondent to retain an activeCPA certificate, under the facts set forth above, furthers that goal.
7. The Respondent wishes to resolve this matter by consent and agrees that the Boardstaff and counsel may discuss this Consent Order with the Board ex parte, whetheror not the Board accepts this Consent Order as written. The Respondent understandsand agrees that this Consent Order is subject to review and approval by the Boardand is not effective until approved by the Board at a duly constituted Board Meeting.
NC BOARD (_)F
MAY 2 1 202\
CPA EXAMINERS
Appendix II
Consent Order - 2 Pauline K. Chan, CPABASED upon the foregoing, the Board makes the following Conclusions of Law:
1. The Respondent is subject to the provisions of Chapter 93 of the North CarolinaGeneral Statutes and Title 21, Chapter 08 of the North Carolina Administrative Code, including the Rules of Professional Ethics and Conduct promulgated and adoptedtherein by the Board. 2. The Respondent's actions as set out above constitute violations of 21 NCAC 08N.0202(a), .0202(b)(3), and .0202(b)(4).3. Per N.C. Gen. Stat. § 93-12(9) and also by virtue of the Respondent's consent to thisorder, the Respondent is subject to the discipline set forth below.
BASED on the foregoing and in lieu of further proceedings, the Board and the Respondentagree to the following Order: 1. The Respondent's CPA certificate is suspended for one year.2. In light of the aforementioned State policy to exercise regulatory flexibility, theRespondent's suspension is stayed. The stay shall be lifted if the Board finds that theRespondent has engaged in further violations of the Board's Rules of ProfessionalEthics and Conduct. 3. The Respondent shall pay a one thousand dollar ($1,000) civil penalty, to be remittedto the Board with this Consent Order.
CONSENTED TO THIS THE -�l_S_1'h __ DAY OF ___ w]�O&{..........._ __ �(Day) (Month) e£!AAfu� ck� rRespondent
APPROVED BY THE BOARD THIS THE 2-( (Day) DAY OF___,� ____ _, � 0,2,/
(Year) (Month)
NORTH CAROLINA STATE BOARD OF CERTIFIEDPUBLIC ACCOUNTANT EXAMINERS
President NC BOARD OF
MAY 2'1 2021
CPA EXAMINERS
NORTH CAROLINA WAKE COUNTY
IN THE MATTER OF:
BEFORE THE NORTH CAROLINA STATE BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS
CASE #C2021046
Carrie B. Hutton, CPA, #17782 Respondent
CONSENT ORDER
THIS CAUSE, coming before the North Carolina State Board of CPA Examiners ("Board") at its offices at 1101 Oberlin Road, Raleigh, Wake County, North Carolina, with a quorum present. Pursuant to N. C. Gen. Stat. § 150B-41, the Board and Respondent stipulate to the following:
.l. Carrie B. Hutton, CPA (hereinafter "The Respondent"), is the holder of North Carolina certificate number 17782 as a Certified Public Accountant.
2. The Respondent informed the Board on her 2019-2020 individual certificateRenewal ("Renewal") that between January 1, 2018, and June 30, 2019, she
had obtained the requisite forty (40) hours of continuing professionaleducation ("CPE") to meet the 2018 CPE requirements.
3. Based on the Respondent's representation, the Board accepted her Renewal.
4. The Board staff requested that the Respondent provide certificates of
completion for the CPE reported to meet her 2018 requirements.
5. The Respondent failed to provide documentation of all 2018 ethicsrequirements.
6. The Respondent wishes to resolve this matter by consent and agrees that theBoard staff and counsel may discuss this Consent Order with the Board
ex parte, whether or not the Board accepts this Consent Order as written. TheRespondent understands and agrees that this Consent Order is subject to
review and approval by the Board and is not effective until approved by the
Board at a duly constituted Board Meeting.
NC BOARD OF
MAY 2 4 2021
CPA EXAMINEF?S
Appendix III
Consent Order - 2 Carrie B. Hutton, CPA
BASED upon the foregoing, the Board makes the following Conclusions of Law:
1. The Respondent is subject to the provisions of Chapter 93 of the NorthCarolina General Statutes and Title 21, Chapter 08 of the North CarolinaAdministrative Code, including the Rules of Professional Ethics and Conductpromulgated and adopted therein by the Board.
2. The Respondent's actions as set out above constitute violations of 21 NCAC08N .0202(a), .0202(b)(3), and .0202(b)(4).
3. Per N.C. Gen. Stat.§ 93-12(9), and also by virtue of the Respondent's consentto this order, the Respondent is subject to the discipline set forth below.
BASED on the foregoing and in lieu of further proceedings, the Board and theRespondent agree to the following Order:
1. The Respondent's failure to provide adequate documentation of CPE rendersthe Renewal insufficient and untimely. The Respondent's failure toadequately renew her certificate results in a forfeiture pursuant to N.C. Gen.Stat. § 93-12(15).
2. The Respondent must return her certificate to the Board within fifteen (15)days of her receipt of the Board's notification of its approval of this ConsentOrder.
3. The Respondent may apply for the reissuance of her certificate after one (1)year from the date the Board approves this Consent Order as long as the civilpenalty required in number five (5) of this Order has been timely received bythe Board.
4. The Respondent may apply to return her certificate to acbve status bysubmission and approval of a reissuance application which includes:
a. Application form,b. Payment of the application fee,c. Three (3) moral character affidavits, andd. Forty (40) hours of CPE in the twelve (12) months preceding the application
including an eight (8) hour accountancy law course as offered by the NorthCarolina Association of CP As.
NC BOARD OF
MAY 2 4 2021
CPA EXAMINERS
Consent Order - 3 Carrie B. Hutton, CPA
5. The Respondent shall pay a one thousand dollar ($1,000) civil penalty, to beremitted to the Board prior to submitting a reissuance application.
6. The Respondent agrees that failure to timely comply with any terms of thisagreement and Consent Order shall be deemed sufficient grounds forrevocation of her certificate.
CONSENTED TO THIS THE dlJ DAY OF � , r:i!il21. �ii� �ear)
espondent
APPROVED BY THE BOARD THIS THE z.( DAY OF(Day)
-.
J"'-a,- --� �o.;J,,,/
(Year) (Month)
NORTH CAROLINA STATE BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS
President
NC BOARD OF
MAY 2 4 2021
CPA EXAMINERS
Financial Highlights
For the Three Month Period Ended June 30, 2021 Compared to the Three Month Period Ended June 30, 2020
IIncreaseQ)e� Net Assets for Period I $ 994,045.40 $ 973,605.00 $ 20,440.40 !Total Checking and Savings $ 3,190,206.38 $ 2,180,766.76 $ 1,009,439.62 [Total Assets $ 5,334,775.28 $ 5,119,314.471$ 215,460.81
I II !Full-Time/Part-Time Employees 11/1 12/2 !I
Budget: ■ Operating revenue was $418,000 over budget. Certificate fees increased ($399k), primarily due to the
timing of collection. Received more June payments normally collected in July.
❖ Non-Operating revenue was $800 over budget due to interest earnings.
0 Expenses were under budget by $19,500. Key variances individually were increased exam costs ($15k), offset by reduced operational expenses including travel office expenses (-$10k), legal and investigative (-$9k), and postage/printing (-$8k) due to the timing of their payment.
Actual: ■ Total operating revenue increased from prior yeai: by $56,000. Increase related to increased certificate
fee revenue (+$18k) and higher exam fee reven_u.e (+$39k).
•!• Total net non-operating revenue decreased this period compared to prior by $8,700 primarily due decreased interest income as Board seeing significantly lower earning rates.
0 Total expenses increased from prior period by $27,000. The majority of the increase can be explained by increased costs related to the exam fees (+$24k) and Dues/Subscriptions (+$5k), the latter due to 3-year renewal of data software licenses.
I
07/02/21
NC Board of CPA Examiners
Statement of Net Position As of June 30, 2021
Long Term Liabilities 2020 · Accrued Vacation
Total Long Term Liabilities
Total Liabilities
Net Assets·. 3010 · Net Assets Invest in Cap Assets 3020 · Designated for Capital Assets 3031 · Designated-Operating Expenses
- 3040 · Designated for- Litigation3900 · Net Assets Undesignated Change in Net Assets
Per Diem - Board 5110 · Per Diem - Board Meetings 2,000.00 5111 · Per Diem - Prof Meetings 0.00 5112 · Per Diem - NASBA Annual 0.00 5113 · Per Diem - NASBA Regional 0.00 5114 · Per Diem - NASBA Committees 0.00
. - 5115 .-Per Diem : AICPA CoUncff -ffoo-
5116 · Per Diem - NCACPA Annual 0.005117 · Per Diem - NCACPA/Board 0.00
5118 · Per Diem - AICPA Committees 0.00
5119 · Per Diem - Miscellaneous 0.00
Total Per Diem - Board 2,000.00
Postage 5345 · Postage - UPS 52.51
5340 · Postage - Other 550.00
5341 · Postage - Newsletter 1,875.00
5342 · Postage - Business Reply 150.00
5343 · Postage - Renewal 180.00
Total Postage 2,807.51
Printing 5330 · Printing - Other 0.00
5331 · Printing - Newsletter 5,744.43
5332 · Printing - Certificates 600.25
Total Printing 6,344.68
Repairs & Maintenance 5380 · Repairs - Misc. 0.00
5381 · Maintenance - Copiers 0.00
5382 · Maintenance - Computer 0.00
5383 · Maintenance - Postage 752.00
Total Repairs & Maintenance 752.00
Salaries & Payroll Taxes 5040 · State Unemployment Tax 0.00
5010 · Staff Salaries 240,768.80
5020 · Part-Time Staff Salaries 0.00
5021 · Temporary Contractors 0 00
5030 · FICA Taxes 18,407 77
Total Salaries & Payroll Taxes 259,176 57
Scholarships 5535 · Scholarship 0 00
Total Scholarships 0.00
Budget
500.01
12,151.36 ..
57,418.10
3,463.64 624.99
0.00 0.00 0.00 0;00
800.00 200.00
0.00 200.00
-- - - ..
5,288.63
3,289.49
1,500.00 2,625.00
875.01 624.99
8,914.49
1,500.00 5,839.03
642.40
7,981.43
0.00 575.01
0.00 705.82
1,280.83
0.00 237,527.89
0.00 0.00
18,272.96
255,800.85
0.00
0.00
$ Over Bu ... -
-11.64
632.11
-10, 142.03
-1,463.64-624.99
0.00 0.00 0.00
·o.oo
-800.00-200.00
0.00 -200.00
-3,288.63
-3,236.98
-950.00
-750.00-725.01
-444.99 - - - -·
-6,106.98
-1,500.00-94.60-42.15
-1,636.75
0.00 -575.01
0.00
46.18
-528.83
0.00 3,240.91
0.00 0.00
134.81
3,375.72
0.00
0.00
Page 4
NC Board of CPA Examiners
07/02/21 Statement of Revenues & Expense - Budget v. Actual April 2021 through June 2021
Apr - Jun 21 Budget
Staff Travel 5060 · Staff Travel - Local 84.00 0.00
5061 · Staff Travel - Prof Mtgs 0.00 150.00
5062 · Staff Travel - NASBA CPE 0.00 0.00
5070 · Staff Travel - NASBA Annual 0.00 0.00
5071 · Staff Travel - NASBA Regional 0.00 0.00
5072 · Staff Travel - NASBA ED/Legal 0.00 0.00
5073 · Staff Travel - NASBA Committee 0.00 0.00
5074 · Staff Travel - AICPA 0.00 0.00
5075 · Staff Travel - NCACPA Meetings 0.00 0.00
_5_076�StafLTraveJ�.NCACPA1Board. .. -- o .. oo 0,00
Executive Directors’ Meeting: On June 8, Bob and David participated in a virtual meeting of boards of accountancy executive directors. This monthly meeting allows executive directors to discuss issues of interest to boards of accountancy.
CBT Exam Administration Committee: Bob attended the June 9 meeting of NASBA’s CBT Exam Administration Committee.
State Board Remote Testing Webinar: On June 10, David and Bob participated in the State Board Remote Testing webinar. The webinar provided an update on CPA Exam remote testing and the pilot program.
CPA Evolution Model Curriculum Launch: David attended the June 15 and June 16 webinar that discussed the CPA Evolution Model Curriculum (CPAEMC). The CPAEMC outlines suggested courses colleges and universities can offer to align their accounting programs with CPA Evolution.
NCACPA Business Meeting: On June 16, David attended the NCACPA’s virtual board meeting.
NASBA Regional Meeting: Bob, David, Frank, and Lisa participated in NASBA’s virtual regional meeting on June 22-23.
NCACPA Meeting: On June 24, Bob and David met virtually with the NCACPA’s Sharon Bryson and Mark Soticheck.
NCACPA Meeting: On June 30, David met virtually with Sharon Bryson and Chris Jenkins from the SCACPA to discuss CPE reciprocity between the states.