The Board has moved!
Please be aware that on August 6, 2007 the Board moved into our new offices. The new address is:
Board of Accountancy
9960 Mayland Drive
Suite 402
Richmond, Virginia 23233
Publications
Advisor, Serving Virginia’s Citizens since 1910
The Virginia Board of Accountancy
ADVISOR Serving Virginia’s Citizens since 1910 |
Volume II, Issue 2
November 1, 2005
Inside this issue:
- 150 Hour Requirement Becomes Effective July 1, 2006
- From The Chairman
- Ethics CPE Ad-Hoc Committee
- BOA Public Relations
- FY05 Finals
- Unlicensed Activity
- In-House Administration of CPA Examination
- Licensure Goes Global
- Disciplinary Actions
- Online Services
- Board Members And Board Staff
150 Hour Requirement Becomes Effective July 1, 2006
Just a few months from now, on July 1, 2006, the 150-hour education requirement will become effective in Virginia. Forty-five licensing jurisdictions have implemented the requirement. The Virginia Board of Accountancy (Board) was granted statutory authority to establish new education requirements in 1999. The Board decided that it would be reasonable to allow students who had no plans to complete 150 hours of education, the time to complete the Uniform CPA exam prior to the effective date of the new requirements. Also, Virginia’s colleges and universities would have sufficient time to review curricula to ensure that the necessary coursework would be available to its students.
Individuals applying to sit for the CPA exam on or after July 1, 2006, must have completed at least 150 semester hours of college education, including a baccalaureate or higher degree conferred by an accredited college or university with the total educational program to include an accounting concentration or equivalent as follows:
- At least 30 semester hours of accounting including courses covering the subjects of financial accounting, auditing, taxation, and management accounting; and
- At least 24 semester hours in business courses (other than the accounting courses described above).
Candidates who apply and qualify for and take at least one section of the CPA examination prior to July 1, 2006, will be allowed to continue under the regulatory requirements in effect prior to July 1, 2006. These candidates must successfully pass all parts of the CPA examination by December 31, 2007. Those who do not successfully complete all parts by the deadline date must begin the application process anew and meet the 150 hour requirement.
To illustrate this, let’s consider a student who completes all requirements for the baccalaureate degree on March 15, 2006, and the degree will not be conferred until July 10, 2006. The official transcript will not be available until sometime after July 10, 2006. In this case, the student may obtain a letter from the University Department Chair or Head of Accounting stating that all requirements for graduation have been met on March 15, 2006, and that the student has completed the following courses at the undergraduate or graduate level to meet the accounting concentration requirement of § 54.1-4409 B 1 of the Code of Virginia:
- At least 24 semester hours of accounting including courses covering the subjects of financial accounting, auditing, taxation, and management accounting; and
- At least 18 semester hours in business courses (other than the accounting courses described above).
Upon receiving the letter from the University Department Chair or Head of Accounting the student will apply to take the CPA examination, receive approval and a Notice to Schedule, schedule at least one section (more than one section may be taken at one time) of the examination and last but not least, arrive at the exam center and take the exam scheduled all prior to July 1, 2006. Questions should be directed to the Board of Accountancy.
OTHER IMPORTANT NEWS: In August 2006, the Board will begin in-house administration of the CPA examination. To read more about this project, please turn to page 3.
From the Chair – Jane M. Little, CPA
Most certified public accountants, or "regulants," as well as most members of the public do not have a complete understanding of the duties and responsibilities of the Board of Accountancy. After spending three years on the Board of Accountancy, including service on various committees, I was elected Chairman in the fourth and final year of my current term. During this period, I have come to realize the true importance of the Board of Accountancy. Prior to my appointment in 2002, I was aware of their regulatory authority, but was unaware of the full breadth of its responsibilities.
Our Board is composed of seven unpaid, volunteer members appointed by the Governor for four-year terms. Four of our members are CPA’s in public practice, one is a CPA working in the nonprofit/government field of practice, one is an educator and one is a member drawn from the public at large. The members are very accomplished in their own right, and divert untold hours from their own businesses to provide their expertise for the good of the profession. Each of these seven members also fills a position on one or more of the Board’s committees. The committees of the Board are the Education/Examination Committee, the Enforcement Committee, the Legislative/ Regulatory Committee, the Executive Committee and the Public Relations/Administration/ Personnel Committee. All of these committees work very hard to ensure the Board performs the responsibilities delegated to it by the Legislature to the highest standard.
When asked what the Board of Accountancy does, most CPAs or exam candidates would identify the Board of Accountancy only with its licensing activities. The Board, in fact, is responsible to receive applications from individuals desiring to sit for the CPA exam, and gather the necessary information to determine if the candidates meet the prescribed qualifications. We also handle renewals of licenses and audits of the Continuing Professional Education (CPE) taken by regulants to ensure the education standard is being maintained.
The Board of Accountancy is also charged with the task of enforcing the statutory scheme set forth by the legislative branch of our state government for the accounting profession. This can be a difficult and onerous task. My two-year period serving on the Enforcement Committee made me aware of the significant increase in complaints submitted by the public (and other regulants) over these years. Unfortunately, much of this increase has been for unlicensed activity. The good news is that these issues are being made public, and that the Legislature has given the Board greater authority in responding to these alleged violations. Enforcement now encompasses a mediation process to assist in resolving disputes that do not rise to the level of statutory or regulatory violations.
Our Legislative Committee has been hard at work trying to simplify the Code of Virginia applicable to the accounting profession, and make it more easily understood by its regulants and the public alike. I am sure anyone who has read (and reread) the Code will agree this is no small task.
The Public Relations Committee is hard at work trying to ensure that the public and the regulants have a greater awareness of what this Board is, what it does and why you should be aware of its activities. We have aggressive goals for the current year, and will work hard to meet them.
New Board members quickly become aware of the National Association of State Boards of Accountancy (NASBA), of which the Board is a member, its purpose and effect on our state. NASBA has many arms but one of the most far-reaching is their development of the Uniform Accountancy Act (UAA). CPA’s from across the United States have come together to develop a model statute to bring the 50 states and the surrounding territories into conformity on the many issues each of the states regulate. Reciprocity, or "substantial equivalency," of licensure is probably the most visible. Certified Public Accountants Examination Services (CPAES), a division of NASBA, is also intimately involved in helping to administer the CPA exam for Virginia CPA candidates.
As you can see, our Board has been tasked with many responsibilities. Our members are dedicated, hardworking and very accomplished. We are proud of our profession, and are willing to work to maintain the integrity the profession has long been known for. We welcome input from regulants and societies involved in this profession. As you follow the activities of the Board of Accountancy throughout the year, feel free to contact our office with your comments or suggestions.
Jane M. Little, CPA
Board Chairman
CPE Ethics Ad-Hoc Committee
2006 is rapidly approaching and the Board decided that additional expertise would be of benefit in creating the Board’s CPE Ethics course outline for the next calendar year.
An invitation was sent to CPAs in Virginia licensed at least ten years to volunteer to assist the Board in preparing the outline. It was not surprising that nearly fifty individuals responded positively.
This special committee, under the direction of O. Whitfield Broome, Ph.D., CPA and member of the Board, will meet on October 28, 2005, and begin this important work.
Members
-
William R. Brown, William R. Brown & Co.
Richmond – Auditing -
William T. McDermott, Martin, Dolan & Holton
Glen Allen – Taxation -
Vivian A. Calkins-McGettigan
Warrenton – Government -
Ruth W. Epps, Virginia Commonwealth University
Richmond – Educator -
Stephen W. Litz, Eastman Chemical Company
Abingdon – Private Industry -
Noel Montesa, American Roentgen Ray Society
Leesburg – Not-for-profit
BOA Public Relations
This year the BOA Administrative, Personnel, Finance and Public Relations Committee is being chaired by Regina P. Brayboy, MPA. Ms. Brayboy was appointed by Governor Warner as citizen member to the Board in 2004.
On October 25, 2005, BOA approved several recommendations from the Committee. BOA will to participate in a noontime radio talk show in the Tidewater area and establish a Volunteer Network including an active Speaker’s Bureau.
Both will be designed to educate the public on BOA’s regulatory role, the role of CPAs and to help citizens know what resources are available to protect them from unscrupulous activities. Additionally, BOA plans to conduct an art contest for high school students for the design of a BOA logo. You will read more about this in the next newsletter.
Monetary Penalties in FY05
BOA imposed monetary penalties in the amount of $15,000 during the past fiscal year. By law, all monetary penalties assessed by BOA go to the Literary Fund. The Literary Fund is used solely for educational purposes, such as school construction, renovation and teacher retirement funding.
Complaints FY05
On July 1, 2004, BOA had 21 pending complaints. During the year, 28 new complaints were filed and 36 complaints were closed. On July 1, 2005, there were 13 complaints pending.
Unlicensed Activity
In 2004, the Board of Accountancy sought and gained statutory authority to impose sanctions and monetary penalties for unlicensed activity. Unlicensed activity includes individuals who have never held a CPA license AND individuals who have held a CPA license but have allowed it to expire, and have failed to renew the license within the grace period.
In years past, the Board found it difficult to seek prosecution of these individuals in the criminal justice system. The public and the profession were critical of the Board’s inability to take action to protect consumers from unlicensed individuals who offered to engage in, or engaged in public accounting, or provided services to the public while identifying themselves as a Certified Public Accountant. The Board felt strongly that these individuals do great harm by deceiving the public into believing that they have the required education, examination and experience, and can legally provide services as a CPA.
§ 54.1-4413.1 of the Code of Virginia provides the Board authority to refuse to renew or reinstate any CPA certificate or permit for a period of not more than five years; reprimand, censure or limit the scope of practice of former licensees; and, notwithstanding the limitations provided in §54.1-4417, impose a monetary penalty on former licensees or other individuals or entities engaged in the unlicensed practice of public accounting or using the CPA title without a license.
§ 54.1-4417 of the Code authorizes the Board to determine the appropriate penalty, including the amount of any monetary penalty for the violation of unlicensed activity. The monetary penalty was increased to a maximum of $100,000 for each violation. Any monetary penalty may be sued for, and recovered in the name of the Commonwealth.
The newsletter will publish the names of the individuals who have been found in violation for practicing without the requisite license. Report any unlicensed activity to the Board office at 804-367-8505 or complete a complaint form on the Board’s website: www.boa.virginia.gov. You may report this information anonymously and it will be investigated immediately.
In-House Administration of the Uniform CPA Examination to Begin August 2006
The Board determined that it would serve the citizens of the Commonwealth more effectively by assisting Virginia’s CPA examination candidates directly from the Board office in Richmond. For many years, administration of the examination has been contracted to the CPA Examination Services, Inc. located in Nashville.
There will be a substantial decrease in the administration fees for candidates, including both initial applications and retakes. The Board is involved in extensive planning and development of the essentials for this major change including staffing, and information technology. The Board has been very satisfied with the Prometric Testing Centers and plans to continue using their services. More information will be coming in the next newsletter.
Licensure Goes Global
The Board recognizes those accounting professionals from other countries whose professional bodies have entered into mutual recognition agreements with the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA). At the present, agreements are in effect with the following:
- Canadian Institute of Chartered Accountants (CICA)
- Institute of Chartered Accountants in Australia (ICAA)
- CPA Australia
- Instituto Mexicano De Contadores Publicos (IMCP)
- Chartered Accountants in Ireland.
Disciplinary Actions
REVOCATIONS
Walter W. Pace
Newport News, VA
Michael S. Edelen
Lake Havasu City, AZ
REINSTATEMENT DENIED & MONETARY PENALTY
John M. Delaware
Woodbridge, VA
SUSPENSIONS
Ryan P. Buchanan
Morgantown, WV
Thomas A. Smith
Newport News, VA
CPE DEFICIENCIES
Eddie D. Hall
Highland Springs, VA
UNLICENSED ACTIVITY
MONETARY PENALTY
Leon Collier
Virginia Beach, VA
CRIMINAL CONVICTIONS
Raul Yllimori
Falls Church, VA
Online Services
BOA has enhanced its online services. You may change your postal and email addresses 24/7. You may download a listing of Virginia’s licensed CPAs and CPA firms-at no charge.
Board Members And Board Staff
Board Members
-
Jane M. Little, CPA
Chairman -
Stephen D. Holton, CPA
Vice-Chairman -
O. Whitfield Broome, Ph.D., CPA
Educator Member -
Dian T. Calderone, MTX, CPA
Member -
Regina P. Brayboy, MPA
Citizen Member -
Lawrence D. Samuel, CPA
Member -
Tyrone E. Dickerson, CPA
Member
Board Staff
-
Board Staff
Executive Director
Nancy Taylor Feldman -
Legal Counsel
Donald R. Ferguson
Senior Assistant Attorney General -
Board Administrator
Mark D’Amato -
Licensing Coordinator
Mary Charity -
Enforcement Coordinator
Jeanne Grant -
Programmer/Database Manager
Darrin Adams -
Client Service Coordinator
Gwen Corprew -
Volunteer
Valeria S. Ribeiro-Quimpo
