A Brief History of the KSCPA · Kansas Supreme Court concurs with a KSCPA request and orders a May 4 Privity of Contract opinion published. The was the first decision of a Kansas

Brief History of KSCPA as of 12/19/2018 - 1 -

Mission Statement

The KSCPA is dedicated to supporting and developing its

members while promoting the accounting profession.

A Brief History of the KSCPA

1932-2018

Prepared by:

Natasha Schamberger, CPA

President/CEO, 2016 –

Mary R. MacBain, MS, CPA.CITP, CGMA

President/CEO, 2009-2016

T.C. Anderson

Executive Director, 1977-2005




Important Dates in KSCPA History

1932. Society founded on October 17 at the Hotel Jayhawk in Topeka.

1935. Society publishes its first membership directory and 5,000 copies are distributed to county

clerks, clerks of all Boards of Education, District Court judges and others with an interest in the

profession.

1936. As of September 10, the KSCPA financial

statement reflected a balance of $178.07.

1941. Society votes to adopt the AICPA’s “Rules of

Professional Conduct”.

1944. Membership reaches 79 including 19 who were

serving in the Armed Forces.

1951. Kansas legislature creates the State Board of

Accountancy. The Board operates out of the

accounting department at the University of Kansas.

1952. Society hires first Executive Director. He’s Keith

Weltmer, a professor in Accounting at the University of Kansas.

1953. A speaker’s bureau is formed to provide CPA lecturers to local civic and professional

organizations.

1963. KSCPA’s efforts to restrict audits in Kansas to CPAs

and to provide for a dying class of public accountants

was defeated.

1970. Society and State Board of Accountancy join

forces and Kansas Legislature passes bill establishing a

baccalaureate or higher degree with a major or

concentration in accounting to sit for the CPA exam and

eliminated the two-year public accounting requirement

for the CPA certificate for those with a masters or higher

degree.

1971. Board of accountancy moves from KU Campus to

Topeka.

KSCPA membership reaches 650. AICPA reports there are about 120,000 CPAs in the United States as

compared with 50,000 in 1954 and 25,000 in 1944.


1973. Continuing Professional Education becomes a

requirement for permit renewal in Kansas. Legislature

grants State Board the authority to adopt rules for not

more than 40 hours per year to become effective for

renewals on July 1, 1975.

1977. KSCPA Membership reaches 1,000 in April.

KSCPA forms Committee of Members in Industry and

Government to ascertain ways to better serve CPAs

not in public practice.

1978. KSCPA Board of Directors authorizes a Political Action Committee.

State Board ends prohibition on CPA advertising on May 1 after AICPA okays advertising that is not

false, misleading or deceptive

KSCPA holds Member Forum on AICPA proposal to establish Compilation and Review of financial

statements.

1979. Wichita agency selected to lead KSCPA into advertising. First ads

appeared in various professional and general public publications in

November.

KSCPA ventures into group travel by offering an after tax season

Caribbean Cruise. Ship burned a week before departure and group

travel was a thing of the past.

KSCPA leaders make their first trip to Washington, D.C. to meet with

members of the Kansas Congressional delegation.

1980. Legislature grants State Board permission to allow CPE hours to be

carried forward.

CPA firms may conduct audits of federal grants awarded to state agencies. Prior, these audits were

done by the Legislative Division of Post Audit.

KSCPA Educational Foundation undertakes $214,000 fundraising drive to purchase a headquarters

building for the Society.

Society budget for 1980-81 hits $200,000 and membership surpasses 1,300.

1981. Society is successful in blocking efforts by Kansas Department of Revenue and Internal

Revenue Service to have Legislature allow experience by CPAs within those agencies to count for

the permit to practice.

Legislature passes Client/CPA privileged communications.

Educational Foundation purchases building at 400 Croix street in Topeka.


1982. Bill introduced in Legislature to place the Kansas sales tax on fees charged by professionals--

doctors, lawyers, dentists, CPAs and others. Legislation did not get out of committee.

Legislation passes that prohibits the Kansas Municipal Accounting Section from charging

municipalities for accounting services.

Society celebrates its 50th Anniversary. Moves its

offices to 400 Croix in March and membership

reaches 1,500.

1983. Society budget now stands at $560,000.

1984. Board of Directors vote to ask State Board

of Accountancy to repeal ban on direct

uninvited solicitation.

1985. Mandatory report review for KSCPA

membership discussed.

Board of Accountancy repeals ban on direct

uninvited solicitation effective May 1, 1986.

1986. Professional Liability Insurance Crisis Hits Kansas CPA Firms

KSCPA advised that the premium for $1 million coverage of professional liability insurance for a firm

with 10 employees will be $11,288. Such a firm paid $600 for the same coverage in 1984 and $1,800

in 1985. In addition to the premium increase, the policy deductible was doubled and prior acts

coverage was reduced from six to two years.

The Kansas Society seeks a legislative solution. The State Senate passes a bill to place a $1 million

cap on CPA’s professional liability, but the matter was killed by the House Judiciary Committee on a

vote of 9 to 7.

However, the issue will be studies by a Joint Senate/House summer study committee.

Also 1986. Kansas Bureau of Investigation and Kansas County and District Attorneys Association fail in

bid to have Legislature repeal the Client/CPA privileged communications law.

Financial Report Review becomes KSCPA membership requirement.

Legislative summer study committee agrees to introduce in the 1987 session a bill requested by the

KSCPA which would codify case law that embraces privity of contract. If enacted only those

persons having a direct contractual relationship with a CPA could recover against that CPA for

negligence.

1987. Governor Hayden signs Privity of Contract legislation.

Kansas Society joins in celebration of AICPA’s 100th anniversary.


Legislative summer study committee to look at expanding sales tax base to include professionals.

1988. KSCPA wins legislative exemption to keep Department of Revenue from applying the sales tax

to custom software design. This was an important issue since several CPA firms had already be

assessed sales tax on prior software design services from clients.

1989. Legislation passed to permit professionals to incorporate under the General Corporation Act

and to clarify that a professional is only responsible for his or her malpractice, not for the negligence

of others,

Society membership hits 2,100 and 89-90 KSCPA budget reaches $852,000.

KSCPA to administer the AICPA quality review program in Kansas.

Board of Directors adopt policy to support 150-hour education requirement to sit for CPA

examination.

1990. 150-Hour education requirement signed into law effective July 1,

1997.

Society sponsored legislation to prevent discovery of quality review

reports in negligence actions brought against CPAs becomes law.

KSCPA invites elected officers of the state architect, engineering and

legal associations to discuss how best to confront new interest in placing

sales tax on professional services. An outgrowth of this meeting was the

formation of Kansans For Tax Free Services which operated out of the

KSCPA offices.

Kansas Supreme Court concurs with a KSCPA request and orders a May 4 Privity of Contract opinion

published. The was the first decision of a Kansas court upholding the privity of contract statute. By

having decision published, the KSCPA made it possible to cite the opinion as legal precedent.

1991. Governor Finney proposes placing sales tax on professional services and repealing some

existing sales tax exemptions to generate $700 million. The KSCPA led Kansans For Tax Free Services

defeats the measure.

In retaliation legislation calling for a ½ percent gross receipts

tax on Kansas CPAs was introduced after sales tax on

professional services is stalled. This too was defeated.

Legislature approves CPAs participating as Limited Liability

Companies.

KSCPA budget is $894,000 for 1991-92.

1992. State Board of Accountancy votes to permit CPAs to

receive commissions and referral fees.


KSCPA successfully fights of attempt to repeal the Client/CPA privilege communications statute.

However, an amendment is made to the law which will allow state or federal agencies to seek to

subpoena working papers and other documents in the possession of a CPA and use the information

in conjunction with any investigation.

1993. Legislation mandating quality review for Kansas permit renewal is signed into law.

KSCPA sponsored bill to establish GAAP and GAAS as the standards for determining liability of CPAs

providing professional services to financial institutions becomes law.

1994. Limited Liability Partnership Act passes. CPAs now can practice as LLPs.

1995. A KSCPA/Kansas Bar Association effort to replace the Board of Tax Appeals fails, but law

changed so as to create a Small Claims Court where clients can be represented by CPAs and CPAs

can serve on the Board.

1996. KSCPA Directors vote to advance the

concept of non-CPA ownership in Kansas CPA

firms.

1997. Legislation to require CPAs doing business

valuations to become certified or licensed real

estate appraisers killed.

KSCPA website debuts.

1998. Kansas CPE law changed from 40 hours a

year to 80 hours during the two-year period for

renewal of the permit to practice.

1999. KSCPA Board votes to join a coalition of Kansas businesses and associations seeking legislation

to address potential litigation due to technology malfunctions.

KSCPA works with Department of Revenue on major problems during the 1998 filing season arising

from the departments new software and computer system.

2000. Kansas became the 13th state to adopt the concept of substantial equivalency which will

allow for easier movement across state lines for permit holding CPAs and became the 23rd state to

permit non-licensee ownership in CPA firms registered with the Board of Accountancy thus ending a

four-year effort to update our Kansas Accountancy statutes.

2001. KSCPA moves offices to 1080 Wanamaker in Topeka.

Society revenues exceed $1 million for the first time.

Relations with Kansas Department of Revenue hit all time low. KSCPA surveys members and

determines that 95 percent of all collection letters sent by the Department are in error. Secretary of

Revenue Steve Richards CPA calls survey a “drive by shooting at the Department of Revenue”.


2002. Kansas Legislature passes KSCPA drafted Taxpayers Bill of Rights over objections of the Kansas

Department of Revenue.

2003. KSCPA expenses exceed $1million for the first time.

Legislation passed to allow CPA Examination to become computerized in April 2004.

KSCPA heads coalition of 52 organizations called

“Kansans For Tax Free Services” that once again was

successful in informing legislators of the hazards of

expanding the sales tax base to include professional

services.

Strategic plan is crafted by “Leadership Cabinet.”

2004. KSCPA membership stands at 2,601. For the past

seven years membership has been stuck at just above

the 2,600 level, but Society leaders call that a good sign

with the decline in the number of young people sitting

for the CPA exam.

2005. T.C. Anderson retires after 28 years of service to

the KSCPA as its Executive Director.

2006. Governor vetoes legislation that would have required the Board of Accountancy to summarily

accept certain academic credits not previously accepted by the Board.

2007. KSCPA begins discussions on possible “mobility” legislation which if enacted would ease the

ability of CPAs to practice across state lines.

Tom Hood, CPA.CITP, Executive Director of the Maryland Association of CPAs, facilitates Board

Retreat and strategic planning. “Five Bold Steps” are developed.

2008. KSCPA moves into new space at 9th and Kansas, 3 blocks from the Kansas State House.

Linda Snyder marks her 30th year managing Professional Development for the KSCPA.

2009. Membership still at 2,600.

Lynn Jenkins, CPA, member of the KSCPA, becomes

one of 5 CPAs in Congress.

2008-09 KSCPA budget calls for $1.10 million of

expenses. New dues structure is created, and dues

are raised for the first time since 2003.

First electronic newsletter is published. “Skyscapes”

is “born.”


On March 27, 2009, Governor Kathleen Sebelius signed HB 2339,

which, with certain exceptions, enables out-of-state CPAs to

practice in the State of Kansas without first obtaining a Kansas

permit or notifying the Board of Accountancy. Kansas is the 36th

state to adopt practice mobility. The new legislation provides for

“no notice”, “no fee” (for individuals) and “no escape”.

Mary MacBain is selected as the

first woman and permit-holding

Kansas CPA to be the Executive

Director.

Bylaws are changed to enhance affiliate membership and to add

student member program.

Tom Hood continues strategic planning at Board Retreat using

“Insights 2 Action.” Five “big rocks” are identified, and champions

are named who lead task forces at November Leadership Summit.

First “20 up to 40” leadership class graduates.

2010. An era of positive relationships with the Kansas Department of

Revenue, legislature, and Kansas Board of Accountancy continues.

2nd Annual Legislative Reception, hosted by the 2010 “20 up to 40”

participants, is held at the KSCPA offices at 9th and Kansas, newly

decorated with images from local Kansas photographer, Kevin Sink.

Lori Davis, Kathy Mitchell, Amber Goering, and Lisa Trout become the first

women to be honored as AICPA/KSCPA “Women to Watch.”

2011. The “20 up to 40” program enters its 3rd year with the majority of the

participants being female for the first time.

The KSCPA gains greater influence. With a new

Kansas governor and state officials, members of

the KSCPA play a greater role in advocacy. The

Board of Accountancy works with the KSCPA and

the universities to allow for application to sit for

the CPA examination prior to being awarded 150

hours. Gary Allerheiligen testifies about a new

expensing provision in Kansas and is asked to

prepare his recommended amendments that

ultimately become part of the bill that is passed.

Representative Lynn Jenkins requests a CPA Town

Hall to discuss tax simplification.

Board approves change in the titles for the Executive Director and Executive Committee. The

Executive Director becomes President/CEO, and the President and Vice President become Chair


and Vice Chair to align with AICPA and other state societies. A new KSCPA website is launched with

full integration to the membership database. Dues are paid online for the first time.

2012. The KSCPA celebrates its 80th year with ever increasing influence at the Kansas State House

and with the general public. AICPA celebrates 125th year. Despite a generally high unemployment

rate, CPAs are in demand. AICPA completes CPA Horizons 2025 report. The vision for the profession

remains the same: “CPAs … Making Sense of a Changing and Complex World.” Core values have

continued to uphold over time. Members L. Gary Boomer and Richard Mills III serves on the Advisory

Panel for the Horizons project.

Member Gary C. Allerheiligen plays key role in educating state

officials, legislature, and CPAs on bold tax policy changes in Kansas

(HB 2117). Five KSCPA members are appointed to task force to make

recommendations to improve school efficiency. DeAnn Hill is named

one of the “25 Most Powerful Women in Public Accounting,” and L.

Gary Boomer is in top ten of “100 Most Influential in Accounting.” The

4th “20 up to 40” participants create new Vision, Mission, and Core

Values for the KSCPA.

At the 80th annual meeting chaired by Robert J. Schuster at the Hyatt

Regency in Wichita, Gary C. Allerheiligen receives a lifetime achievement

award and T.C. Anderson is unanimously voted to become an honorary

member of the KSCPA. M. Aron Dunn becomes the youngest chair of the

KSCPA and the first Generation X chair of the KSCPA board.

2013. The year started out extraordinarily when the KSCPA began its 5th

year of the “20 up to 40” program by presenting a $300,000 endowment

to the University of Kansas. The endowment funds a doctoral scholar

(CPA) and is named “T.C. and Trella Anderson and James T. and Mary

Ann Clark Doctoral Scholar.” Barry Melancon, the CEO of the AICPA

attended the fifth anniversary celebration of the “20 up to 40” program

and presented the Spring Leadership Professional Issues Update. Two

additional graduates, Chad Allen and Amber Goering, were honored

with acceptance to the AICPA Leadership Academy. A total of 100 graduates of the “20 up to 40”

and five participants in the AICPA Leadership Academy make the “20 up to 40” program an

extremely successful KSCPA leadership initiative. Eight graduates of the program serve on the board

of directors.

Influence at the AICPA continues to grow with DeAnn Hill

elected to the AICPA board of directors and L. Gary Boomer

elected as at large member of council. With Dominic Ortiz,

elected in 2012, Kansas now has two at-large members. These

are historic achievements for representation on the AICPA

council.

KSCPA continued significant influence at the Statehouse with the

implementation of Governor Brownback’s innovative tax policy

initiative with non-wage business income exempt from Kansas income taxes effective January 2013.

Gary Allerheiligen led the Legislative Executive Committee in continuing to provide guidance on

technical corrections to HB 2117 that was passed by the legislature and signed by the Governor in


2012. The KSCPA collaborated with the Department of Revenue in producing a 30-minute video for

community outreach explaining the policy.

Quality of and participation in the KSCPA conferences exceeded expectations as the KSCPA

continued to evolve its professional development to align KSCPA initiatives with trends in technology

and learning.

2014. The fiscal year ended with strong financial results because of the significant engagement of

KSCPA members on the conference steering committees and because the KSCPA team has more

experience in adapting to and managing the evolution of professional development. Video casting

of major conferences and events expanded with a doubling of the number of attendees

participating via video cast at the largest conference. Seminars were held throughout the state to

educate CPAs on the Affordable Care Act provisions. Webinars and self-study programs continue to

expand.

The KSCPA was selected to host the AICPA’s regional Accounting Scholars Leadership Workshop, a

program dedicated to training minority students in leadership concepts and success skills.

Graduates of the “20 up to 40” program served as keynote speakers, panel members, and advisors.

The KSCPA continued a positive relationship with the Kansas legislature on tax legislation. Jay

Langley led the initiative to achieve a statute change which eliminates penalties on amended

returns when tax payer files timely and pays tax. KSCPA executive committee established liaison with

KS Board of Accountancy which resulted in KSCPA member concerns with proposed regulations

being unanimously accepted by the Board.

“20 up to 40” continues strong with graduates of the

program exceeding expectations by serving in the KSCPA

leadership and acceptance to AICPA Leadership

Academy.

Melinda A. Hitz served as 81st chair of the KSCPA. Melinda

has been the Finance Director of the City of Garden City

since 1991. Melinda is the first CPA in government to serve

as Chair. Melinda was honored in August 2014 by the

American Institute of CPAs with their annual “CPA in

Government-Local Government” award. Melinda is the

first KSCPA member to receive this award.

2015. The KSCPA continued to thrive at both the local and national levels. Michelle Schneider, CPA

completed a productive year as the 82nd chair. Ken Selzer, CPA was elected Kansas Insurance

Commissioner, the first CPA to hold this office. Dr. Dan Deines received a special projects award

from the AICPA for his work on the Accounting Pilot and Bridge Project. The AICPA embraced the

initiative and is working with the College Board to include accounting as the first business AP course.

Richard Dinkel, CPA was elected at-large member of the AICPA Council, increasing the number of

Kansas at-large members to two, the first time in the history of the KSCPA, along with DeAnn Hill, CPA

continuing to serve on the AICPA board of directors. The seventh “20 up to 40” group began its

program in July and actively participated in the first Student/CPA Connect at the newly-titled annual

meeting – “Member Value Day.” The KSCPA is proud that almost half of its board of directors

composed of graduates of the program with the first graduate of the program, Jim Boomer,

becoming vice chair of the KSCPA in October. The future of the KSCPA is secure!


2016. For the first time since 2009, changes to the statutes affecting CPAs made their way to the Governor for

signature in March 2016. HB 2536, which expands the definition of attest for SSAE's by striking financial statements

from the statute, and HB 2512, allowing students to begin taking sections of the CPA examination 60 days prior to

earning 150 hours, unanimously passed the Senate.

Aron Dunn, chair of the KSCPA advocacy task force, Jay Langley, chair of the KSCPA legislative executive

committee, Matt List, chair of the KSCPA, Mary MacBain, KSCPA president/CEO, Michelle MacBain, KSCPA

communications and public relations director, and Marlee Carpenter, KSCPA governmental affairs consultant, all

testified in committee hearings in the House and Senate.

After 32 years of service to the profession as a CPA, consultant, volunteer

and visionary leader, Mary Rapp MacBain retired from her position as the

President and CEO of the Kansas Society of CPAs. Mary served the KSCPA

from 2009-2016. During this time, she elevated the KSCPA to become a

nationally respected and admired organization, modernized its

technology, developed a top-quality staff, and led the way in improving

how state societies provide cutting-edge professional development. Mary

will be remembered for her tireless efforts to promote, develop, support

and raise her members and others within the profession.

The Kansas Society of CPAs welcomed Natasha Schamberger, CPA, Lawrence, KS, as

the new President and CEO on June 16, 2016. Previously, Natasha served as Associate

Director of Firm Services at AICPA, where she led the Firm Services Team, which includes

the Private Companies Practice Section (PCPS). Natasha was responsible for strategizing

and driving the development of practice management tools and resources deployed

through the PCPS member section including new initiatives on succession, practice

growth and changing firm business models. She actively engaged with small, medium

and top 500 accounting firms to understand the pain points and priorities, and was

dedicated to enhancing member value and connectivity. Through leadership of the

PCPS Executive Committee and other firm relationship initiatives, she contributed to

monitoring the profession to ensure AICPA members interests were protected through advocacy efforts.

Before joining the AICPA, Natasha spent nearly a decade in public accounting, working with small and medium

firms on audit, accounting and tax engagements. She graduated from Kansas State University with a B.S. in

accounting.





KSCPA Past Presidents & Chairs

1932-33 W. T. Newman Deceased

1933-34 W. H. Moberly Deceased

1934-35 Harley Gifford Deceased

1935-36 Harley Gifford Deceased

1936-37 Irvin Morgan Deceased

1937-38 Cliff Stevenson Deceased

1938-39 M.J. Kennedy Deceased

1939-40 Frederick Kubik Deceased

1940-41 Joseph Acre Deceased

1941-42 Roy Simmons Deceased

1942-43 S.W. Sinderson Deceased

1943-44 Ivan M. West Deceased

1944-45 C.L. Coe Deceased

1945-46 Hugh Hartley Deceased

1946-47 C.L .Paxson Deceased

1947-48 John Bonicamp Deceased

1948-49 Rex Jennings Deceased

1949-50 W.F. Hardesty Deceased

1950-51 Ben F. Kubik Deceased

1951-52 Harry Faris Deceased

1952-53 J.C. Koelling Deceased

1953-54 Homer J. Henning Deceased

1954-55 Charles Rossdutcher Deceased

1955-56 W. A. Richel Deceased

1956-57 Emmett D. True Deceased

1957-58 Edward Shea Deceased

1958-59 Veron Nelson Deceased

1959-60 George W. Sinderson Deceased

1960-61 Glen Smith Deceased

1961-62 Don F. Gresser Deceased

1962-63 D. C. Unrau Deceased

1963-64 George W. Batz Deceased

1964-65 Robert Cory Deceased

1965-66 Ralph Reitz Deceased

1966-67 Kenneth K. Haury Deceased

1967-68 David H. Tripp Deceased

1968-69 Robert S. Mueller Deceased

1969-70 Mike F. Taylor Deceased

1970-71 Jack B. Chism, Sr Deceased

1971-72 John W. Poos Deceased

1972-73 N.E. Yadon Deceased

1973-74 J.F. Kubik

1974-75 Louis R. Regier Deceased

1975-76 Joseph G. Trindle Deceased

1976-77 Clayton C. McMurray Deceased

1977-78 Jack E. Sutton Deceased

1978-79 Alvin M. Marcus Deceased

1979-80 Marvin W. Maydew Deceased

1980-81 Jay C. Westervelt Deceased

1981-82 Randall P. Anderson Deceased

1982-83 Marvin R. Klein 1983-84 J. H. Hay 1984-85 Michael V. McKay 1985-86 James F. Adams Deceased

1986-87 Charles L. Clinkenbeard Deceased

1987-88 Max V. Snodgrass Deceased

1988-89 Herbert E. Bevan, Jr 1989-90 Dale L. Birney Deceased

1990-91 Thomas J. Mullane 1991-92 Robert A. Pfeifer 1992-93 John F. Sanders Deceased

1993-94 Phillip R. Dick Deceased

1994-95 Gary L. Poore 1995-96 Marian S. George Deceased

1996-97 Jere Noe 1997-98 Timothy E. Gottschalk 1998-99 Kurtis G. Siemers 1999-2000 James T. Clark 2000-01 DeAnn A. Hill 2001-02 Leon C. Logan 2002-03 Kathryn J. Mitchell 2003-04 Dan S. Deines 2004-05 Robert R. Crawford 2005-06 Phillip C. Watson 2006-07 Kyle J. Hawk 2007-08 Gary A. Schlappe 2008-09 L. Gary Boomer 2009-10 Gary C. Allerheiligen 2010-11 John H. Bruckner 2011-12 Robert J. Schuster 2012-13 M. Aron Dunn 2013-14 Melinda A. Hitz 2014-15 Michelle Schneider

2015-16 Matthew R. List 2016-17 James K. Boomer

2017-18 Chad M. Allen

Current and 86th Chair of the KSCPA is Jay D. Langley, CPA, CGMA, Summers, Spencer & Company, P.A.

Documents

A Brief History of the KSCPA · Kansas Supreme Court concurs with a KSCPA request and orders a May 4 Privity of Contract opinion published. The was the first decision of a Kansas