ARIZONA STATE BOARD 100 North 15th Avenue, Suite 165 OF

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ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES

MAY 14, 2018

Members of the Arizona State Board of Accountancy (Board) held a meeting at the Accountancy Board Office in Suite 165, 100 N. 15th Avenue, Phoenix, Arizona 85007. Executive sessions were held from 8:42 a.m. to 8:57 a.m. and from 2:38 p.m. to 2:50 p.m.

BOARD MEMBERS: LeRoy M. Gaintner, CPA ....................................................................................... President Julie S. Klewer, CPA .............................................................................................. Secretary

William C. Heimerdinger, CPA.............................................................................. Treasurer

☼ Giselle C. Alexander, CPA ....................................................................................... Member Gary L. Freed .......................................................................................................... Member

☼ Douglas N. Kimball ................................................................................................ Member

Tiffany Young, CPA ................................................................................................. Member

Participated telephonically

☼ Absent

STAFF PRESENT: Monica L. Petersen ............................................................................... Executive Director

Jacki Hancock ..........................................Assistant Director, Registration and Operations

Christopher Rasmussen ........................... Assistant Director, Regulation and Compliance

Andi Byrd .............................................................................. Program Project Specialist 2

John Oyas ............................................................................. Program Project Specialist 2

ASSISTANT ATTORNEYS GENERAL: Scott Donald, Esq. ....................................................................Assistant Attorney General Anne Froedge, Esq. ..................................................................Assistant Attorney General Seth Hargraves, Esq. ................................................................Assistant Attorney General

GUESTS PRESENT AND/OR PARTICIPATING:

David Freeland ........................... Arizona Association of Accounting and Tax Professionals

Eric Klein, CPA ...................................................................................................... Registrant

Sean D. Leahy, CPA .............................................................................................. Registrant

James Burr Shields Esq. ......................................................................................... Attorney

Ed Vogt ........................................................................................................................ Guest

The meeting was called to order at 8:22 a.m. by LeRoy M. Gaintner, Board President. The following order

ARIZONA STATE BOARD

OF ACCOUNTANCY

100 North 15th Avenue, Suite 165

Phoenix, Arizona 85007

Phone (602) 364-0804

Fax (602) 364-0903

www.azaccountancy.gov

http://www.azaccountancy.gov/

ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES May 14, 2018

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of business was then considered: CALL TO THE PUBLIC

David Freeland introduced himself and thanked the Board for the opportunity to be present. PROCEDURAL STATUS UPDATE BY ASSISTANT ATTORNEY GENERAL

File No. 2013.032; Semple, Robert File No. 2015.020; Semple, Marchal & Cooper, LLP Scott Donald, Assistant Attorney General (AAG), provided the Board with procedural updates and stated that administrative hearings are currently set for August 8, 2018 and August 10, 2018 due to unsuccessful settlement negotiations that were entered in good faith. File No. 2017.027; Ibarra, Andres Mr. Donald stated that he expects a complaint and notice of hearing (CNOH) to be filed within the next 30 days. File No. 2018.022; Zanelli, Robert File No. 2018.093; Levine, Deanna Mr. Donald explained that he is still waiting for the hearing date regarding these matters.

ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION Possible Rescindment of Motion to Direct the AAG to Proceed with a Formal Administrative Hearing File No. 2018.109; Paty, Paula Christopher Rasmussen stated that upon information and belief that the Registrant failed to respond to a CPE audit letter, the Board voted to direct the AAG to file a CNOH for revocation of Registrant’s certificate for failure to respond. However, Staff discovered that Registrant had in fact responded to the Board’s letter via fax and a response was not discovered on time due to technical issues involving the fax machine.

In response to William C. Heimerdinger’s inquiry regarding the details of the incident, Monica L. Petersen stated that the fax machine ran out of toner and that Staff had addressed all matters that may have been affected.

A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, that the Board rescind its February 12, 2018 motion to direct the AAG to file a CNOH for revocation of Registrant’s certificate for failure to respond, directs the AAG to vacate the hearing at the Office of Administrative Hearings (OAH), and refers this matter to the CPE Committee for a CPE audit. The motion passed 5 – 0.


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Offer of Conditional Settlement File No. 2017.026; Klein, Eric

Scott Donald underscored that the decision to revoke resulted from the Board’s ability to take action after the Registrant was disciplined in another jurisdiction and that the Board had not gotten involved in retrying the allegations presented to the California Board of Accountancy. James Burr Shields, Attorney for Eric Klein, provided the Board a summary of the Registrant’s experience relating to the events leading up to the revocation of his CPA license in California, and requested that the Board review the underlying details that lead to the California Board’s decision. In response to Gary L. Freed’s inquiry regarding the nature of the Registrant’s practice, Mr. Klein stated that he mostly does tax return preparation.

EXECUTIVE SESSION

A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to go into executive session at 8:42 a.m. to seek legal advice from Seth Hargraves, independent advisor, pursuant to Arizona Revised Statutes (A.R.S.) § 38-431.03(A)(3) regarding File No. 2017.026. The motion passed 5 – 0. After consideration in executive session, the Board reconvened in open session at 8:57 a.m.

OPEN SESSION ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Offer of Conditional Settlement File No. 2017.026; Klein, Eric

Mr. Shields and Mr. Klein stated that the Board’s decision will impact the Registrant’s anticipated professional opportunities and explained that the notice issue was an underlying factor of the California Board’s decision. In response to William C. Heimerdinger’s inquiry regarding Mr. Klein’s attempt to resolve matters in California, Mr. Klein stated that he anticipates he will reinstate with the California Board. A discussion ensued to clarify the timeline of Mr. Klein’s revocation in California. A motion was made by Julie S. Klewer, seconded by Gary L. Freed, that the Board maintains its March 26, 2018 motion whereby it agreed that if a settlement is pursued, the Board agrees to revocation of the Registrant’s certificate and reimbursement of the Board’s fees and costs due to the severity of the circumstances surrounding Registrant’s revocation in California. The motion passed 3 – 2. William C. Heimerdinger and Tiffany Young voted nay.


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Board to Accept, Reject or Modify Administrative Law Judge’s Recommended Decision File No. 2018.121; Carnell, William E., P.C. Scott Donald provided a summary of the file and the matter for consideration to accept or reject the Administrative Law Judge’s (ALJ) recommended decision and requested that the Board modify the order to include Board fees and cost. LeRoy M. Gaintner asked for a roll call vote of each Board member, asking each Board member, one at a time, to answer whether Board members had received and reviewed the administrative record of the formal hearing in the matter:

• Julie S. Klewer: Yea

• LeRoy M. Gaintner: Yea

• Tiffany Young: Yea

• William C. Heimerdinger: Yea

• Gary L. Freed: Yea A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to accept the ALJ’s recommended Findings of Fact. The motion passed 5 – 0. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to accept the ALJ’s recommended Conclusions of Law. The motion passed 5 – 0. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to modify the ALJ’s recommended Order to include reimbursement of attorney’s fees combined with the known costs, to be paid in 30 days. This modification was made as it is a normal part of the process to recuperate costs for enforcement. The motion passed 5 – 0. Inactive Status Denial Appeal Leahy, Sean D. 10040 Jacki Hancock summarized the circumstances surrounding this inactive status request and its denial on March 26, 2018. Sean D. Leahy was present and stated that he understands that the Board based its decision on the job description that was provided and that he is present to provide the Board a broader context on what he does daily. Mr. Leahy provided that the nature of his job is predominantly making business decisions in managing real estate and is not providing accounting services. William C. Heimerdinger noted that the Board’s initial concern was the job description’s mention of reviewing of leasing commissions, legal fees, utility and municipal property tax invoices, and ensuring proper support is provided. Mr. Leahy addressed the Board’s concerns by stating that he is merely in charge of certifying the accuracy of the information and records.


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A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, that the Board approve the Registrant’s request for inactive status. The motion passed 5 – 0.

COMMITTEE RECOMMENDATIONS – INITIAL ANALYSIS FILES Accounting and Auditing Advisory Committee File Nos. 2018.116 and 2018.117 Christopher Rasmussen provided a summary of the files. Ed Vogt was present and provided the Board a background of the Complainant’s allegations. He requested that the Board close the file and urge the Registrant to remediate the issues with the Complainant. LeRoy M. Gaintner stated that the Board’s purview is limited to identifying and addressing departures from professional standards. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, that the Board close File Nos. 2018.116 and 2018.117. The motion passed 5 – 0.

DECLARATION OF CONFLICTS OF INTEREST

Tiffany Young declared a conflict on agenda items XIV.F.6 and XIV.I.5. Gary L. Freed declared a conflict on agenda item VIII.B.2.

COMMITTEE RECOMMENDATIONS – INITIAL ANALYSIS FILES

Accounting and Auditing Advisory Committee File Nos. 2017.100 and 2017.101 Christopher Rasmussen provided a summary of the files and the Committee’s efforts to acquire the relevant documents for the investigation. A motion was made by William C. Heimerdinger, seconded by Julie S. Klewer, that the Board close File Nos. 2017.100 and 2017.101. The motion passed 5 – 0.

DECLARATION OF CONFLICTS OF INTEREST Gary L. Freed declared a conflict on XIV.L.1.

COMMITTEE RECOMMENDATIONS – OPEN INVESTIGATION FILES

Tax Advisory Committee File Nos. 2018.017; Merrell, David G. and 2018.018; Merrell, David G. CPA, PLLC Christopher Rasmussen stated that this matter is back on the Board’s agenda after remanding the files back to the Tax Committee for potential reconsideration and to possibly provide further detail in the Letter of Concern.


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A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, that the Board issue the Letter of Concern as drafted. The motion passed 5 – 0.

DISCUSS, AMEND AND APPROVE MINUTES Open Session Minutes from the January 16, 2018 meeting. A discussion ensued to clarify a motion made by the Board on January 16, 2018. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, that the Board approves the January 16, 2018 Open Session Minutes as drafted. The motion passed 5 – 0. Open Session Minutes from the March 26, 2018 meeting. A motion was made by William C. Heimerdinger, seconded by Tiffany Young, that the Board approves the March 26, 2018 Open Session Minutes as drafted. The motion passed 4 – 0. Julie S. Klewer abstained. Executive Session Minutes from the March 26, 2018 meeting. A motion was made by William C. Heimerdinger, seconded by Tiffany Young, that the Board approves the March 26, 2018 Executive Session Minutes as drafted. The motion passed 4 – 0. Julie S. Klewer abstained.

CONSENT AGENDA Julie S. Klewer declared a conflict on the following agenda items:

• V.D.16 – Braun, Sandra, CPA 5756-S

• V.D.33 – Cordova, Fabian, CPA 5563-S

• V.D.146 – Snider, Don Paul, CPA 6181-S

• V.D.171 – Weinreb, Ronald L., CPA 5947-S

• V.D.176 – Yunk, Loren, CPA 6160-S

• V.H.10 – Hight, Kristie L.

• V.O.1 – Fink, Abigail K. 15814 A motion made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to approve the consent agenda items mentioned by Ms. Klewer. The motion passed 4 – 0. Julie S. Klewer was conflicted and recused from the vote. Tiffany Young declared a conflict on the following agenda items:

• V.D.93 – Later, Jeffrey, CPA 6153-S

• V.D.129 – Perkins, Ellen J., CPA 4003-S

• V.D.174 – Wolf, Richard M., CPA 4718-S


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A motion made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to approve the consent agenda items mentioned by Ms. Young. The motion passed 4 – 0.

Tiffany Young was conflicted and recused from the vote. In response to William C. Heimerdinger’s inquiry regarding the ability to process requests by individuals without a last name, Jacki Hancock stated that National Association of State Boards of Accountancy (NASBA) has historically accepted them for sitting for examination. Mr. Heimerdinger shared that he would like to discuss this topic at the Board’s next meeting. A motion was made by William C. Heimerdinger, seconded by Tiffany Young, to approve the rest of the consent agenda items. The motion passed 5 – 0.

A. Recommended for Registration of Firms for the Following Applicants:

1. BusBooks, LLC Partner: Tracy T. Fickett 18283

2. CMG Financial Consulting, LLC Partner: Clint M. Gossage 18647

3. DR Thomas CPA, PLLC Partner: David R. Thomas 16360

4. Hal J Fessinger, CPA Partner: Hal Jerome Fessinger 2428

5. Heritage Advisors CPA, LLC Partner: Padma Priya Kasturi Rangan 18879

6. JL Littler CPA PLLC Partner: Julie Louise Littler 7642

7. Krey CPA PLLC Partner: Maria Elizabeth Krey 17885

8. Scott Rulon CPA, PLLC Partner: Rulon, Philip Scott 7174

B. Recommended for Reinstatement of Firms for the Following Applicants: 1. William M. Clements, CPA 4653-S

Partner: William Merrill Clements 3034

C. Recommended for Firm Name Change: 1. Scott K. Helfinstine, CPA, PLLC

From: Helfinstine & Associates, CPA's PLLC 2992-L Partner: Scott Karl Helfinstine 2836


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D. Recommended for Firm Cancellation – Do Not Wish to Renew:

1. Accounting Allies LLC 3324-L 2. Andrews, David R., CPA 4758-S 3. Appleby, Jay B., CPA 5841-S 4. Arnett's Accounting 5003-S 5. Asterino, Anthony S., CPA 4730-

S 6. Bahling, Nancy A., CPA 6215-S 7. Bales, RM, Tax Service 5757-S 8. Barchilon, W. H., CPA 4010-S 9. Bays, Donald R., CPA 6061-S 10. Beatty, Dale Robert, CPA 5427-S 11. Beltran, Robert Michael, CPA

5265-S 12. Bennett, Debra H., Accounting

Services 4593-S 13. Berg Jr., Douglas C., LLC 3257-L 14. Bower, David R., CPA 4024-S 15. Bradshaw, J. Blair, CPA 4636-S 16. Braun, Sandra, CPA 5756-S -

Voted Separately 17. Buchanan, Douglas D, CPA

5845-S 18. Carmichael, Jaron D., CPA 4986-

S 19. Chambers, Donald J., CPA 4041-

S 20. Channell, Rosanne, CPA 5786-S 21. Ciolino, Steve, CPA 4052-S 22. Clemens Accounting 6228-S 23. Cohen, Elizabeth R., CPA 4467-S 24. Cohn, Beth S., CPA 4438-S 25. Colaric, Jack A., CPA 4049-S 26. Colby, L. Stephen, CPA 5829-S 27. Collura, Anthony J., Jr., CPA

4918-S 28. Comella, Steven A., CPA 4536-S 29. Companik, Joseph E., CPA 5122-

S 30. Cook, Dale M., CPA 5758-S 31. Coombe, Scott, CPA 6209-S

32. Copeland, Richard T., CPA 4684-S

33. Cordova, Fabian, CPA 5563-S - Voted Separately

34. Covert, Chris M., CPA 4080-S 35. Cozens, Edward, CPA 4056-S 36. Culbert, Wick, CPA 5743-S 37. Custom Professional Accounting

4035-S 38. Daley, James R., CPA 4063-S 39. Danovich, James V., CPA 4867-S 40. Dart Accounting Solutions and

Consulting 4819-S 41. Desiderio, Brian M. 6083-S 42. Diekman, Frank, CPA 4475-S 43. Donaldson, M. L., CPA 4071-S 44. Dubose, Sharon, CPA 4410-S 45. Durazo, Karen Conder, CPA

5268-S 46. Ederer, Dennis R., CPA 4081-S 47. Elggren, Craig, CPA 5652-S 48. Evans, W. Michael, CPA 5865-S 49. Fellin, Lewis J., CPA 5254-S 50. Fessinger, Hal J., CPA PLLC

2780-L 51. Fictum, Paul B. 5668-S 52. Fieber, Sherri A., CPA 4169-S 53. Field, Linda S., CPA 4416-S 54. Fischer, Frederic F., CPA 4430-S 55. Frost, Melvin S., CPA 6236-S 56. Gabaldon, Arturo, CPA 5002-S 57. Gardiner, Todd, CPA 4600-S 58. Garcia, Theresa, CPA 5413-S 59. Garza, Marla K., CPA 4921-S 60. Graham, Courtney B., CPA

4208-S 61. Gross, Sheldon, CPA 4728-S 62. Guilford, Wilbert, CPA 4382-S 63. Gunderson, David J., CPA 4664-

S


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64. Hall, John D., CPA 4118-S 65. Hart, Ryan R., CPA 6097-S 66. Hawkins Jr., Donald F., CPA

5852-S 67. Heher, Mary Jo, CPA, P.C. 165-C 68. Hess, Christopher K., CPA 4429-

S 69. Hill, Jeanine C., CPA CVA 4134-S 70. Holt, Jan 6055-S 71. Holter, Jon, CPA 4754-S 72. Hooper, Debbie, CPA 5811-S 73. Howard, Amy, CPA 4904-S 74. Hrabar, Kate, CPA 6295-S 75. Inzano, Patricia, CPA 4719-S 76. J & R Accounting and Consulting

Services 6074-S 77. Jacobsen, Jann, D., CPA 5735-S 78. Jansen, Laura, CPA 4522-S 79. Johnson, James F., CPA 4209-S 80. Jones, Joey I., CPA 4335-S 81. Jones, Rondal M., CPA 4486-S 82. Jones, Verle M., CPA 5910-S 83. Keegan, Lori, CPA 4431-S 84. Kortsen, Pennie, CPA 5826-S 85. Kovalcik, Sabrina, CPA 5446-S 86. Kraft, Carol Ann, CPA 4183-S 87. Kraght, Susan L., CPA 4078-S 88. KRAUSE, RHONDA R., CPA 5868-

S 89. Kuenzli, Kenneth W., CPA 4186-

S 90. Kurz, Alice U., CPA 5733-S 91. Larson, Chad, CPA 6042-S 92. Larson, Lowell T., CPA 4268-S 93. Later, Jeffrey, CPA 6153-S -

Voted Separately 94. Ledesma, Lisa D., CPA 5313-S 95. Levine, Lawrence, CPA 4880-S 96. Levy, Gerald, CPA 5946-S 97. Lewis, Karen L., CPA 4048-S 98. Lode, Jay, CPA 6049-S 99. Lopez, Myrna, CPA 6009-S

100. Lowe, Gail D., CPA 5235-S 101. Luker, Kathleen M., CPA 5729-S 102. Magnuson, Donald L., CPA

5945-S 103. Maguire, Thomas E., CPA 5705-

S 104. Manero, Tamara A., CPA 5800-S 105. Mann, Lori, CPA 4357-S 106. Mansperger, James A., CPA

5326-S 107. Mapes, Elise, CPA 4341-S 108. Martel, Carol M., CPA 5012-S 109. McBride, David J., CPA 5236-S 110. McGettigan, James Sean, CPA

4025-S 111. McHugh, Brian Charles, CPA

4514-S 112. Mehen, James P., CPA 4020-S 113. Meijome, Daniel A., CPA 5871-S 114. Mills, Jerry L., CPA 4239-S 115. Minyard, Michael 6077-S 116. Mitchell, Susan M., CPA 4808-S 117. Morrison, Daniel John, CPA

5352-S 118. Murray, David B., C.P.A. 4846-S 119. Napolitano, Thomas J., CPA

5860-S 120. Newman, Ann L., CPA 5240-S 121. Nigh, Lynda N., CPA 5241-S 122. Noll, Robert S., CPA 4144-S 123. Norton, Cathy A., CPA 4810-S 124. Pagnillo, Margaret, CPA 5485-S 125. Pearlman, Gary Scott, CPA

4722-S 126. Pedzimaz, Barbara A., CPA

5346-S 127. Pejsa, Paula Bresset, CPA 4496-

S 128. Pellegrini, Chris R., CPA 5262-S 129. Perkins, Ellen J., CPA 4003-S -

Voted Separately 130. Pope, Verna A., CPA 5449-S


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131. Quackenbush, Paul R., C.P.A. 6125-S

132. Ramsier, Barbara A., CPA 5332-S

133. Remley, Jeanine V., CPA 6035-S 134. Reynolds, Diane G., CPA 4602-S 135. Rhinehart, Robert A., CPA 6053-

S 136. Rhoda, Thomas J., CPA 4981-S 137. Rice, Carolyn P., CPA 4406-S 138. Robinson, Diane M., CPA 6092-S 139. Rold, Jay Ryan, CPA 5180-S 140. Schmidt, Stephen P., CPA 4328-

S 141. Scott, Thomas E., CPA 4279-S 142. Sell, James C., CPA 5160-S 143. Sheehan, John J., CPA 4190-S 144. Shufelt, Daniel C., CPA, PLLC

2753-L 145. Simpson, Jim, CPA 4711-S 146. Snider, Don Paul, CPA 6181-S -

Voted Separately 147. Sonken, Scott F., CPA 4351-S 148. Staskey, Jenny, CPA, CFE, CDFA

5672-S 149. Stevens, Sandra J., CPA 5983-S 150. Szpakowski, Raymond J., CPA

5641-S 151. Tainsky, Jennifer A., CPA 5837-S 152. Tang, Bruce W., CPA 5673-S

153. Taplin, Marcia C., CPA 4060-S 154. Theisen, Barbara A., CPA 4339-S 155. Thomas, Brice D., CPA 6080-S 156. Thompson, Loree 6183-S 157. Toogood, Linda, CPA 4304-S 158. Torrella, Carlos R., CPA 4383-S 159. Tracy, David W., CPA 4195-S 160. Trow, James D., CPA 5324-S 161. Trujillo, Joseph J., CPA 5744-S 162. Trushel, Henry T., CPA 5642-S 163. Van Arsdale, Jared, CPA 4221-S 164. Viergutz, Clinton W., CPA 4717-

S 165. Waddell, N. Patrick, CPA 6037-S 166. Waite, Bill D., CPA 5050-S 167. Wall, Eric T., CPA 4648-S 168. Wallace, R.D., Resources 5625-S 169. Wallin, Janette L., CPA 4703-S 170. Walshire, Peggy Jo, CPA 4638-S 171. Weinreb, Ronald L., CPA 5947-S

- Voted Separately 172. Western, Janet E., CPA 4643-S 173. Williams, Gary L., CPA 4415-S 174. Wolf, Richard M., CPA 4718-S –

Voted Separately 175. Young, Michael L., CPA 6135-S 176. Yunk, Loren, CPA 6160-S -

Voted Separately 177. Zukowski, Libby, CPA 6027-S

E. Recommended for Cancellation of Certificate per Registrant’s Request Not to Renew:

1. Carnell, William Earl 570-E 2. Deveau, Brian A. 3608-E 3. Garbarino, David W. 11328-E 4. Glenn, Kenneth John 5296-E 5. Haugh, Kyle T. 12568-R 6. Jones, Pamela J. 13560-R 7. Mindt, Gerald L. 9609-E 8. Myers, Becky L. 7911-E 9. Paulsen, Brenda 9493-E

10. Porter, Judith Fenrich 2821-E 11. Richard, Shari R. 10296-E 12. Sivo, John Anthony 2970-E 13. Soliz-Dominguez, Jesusita M.

17215-E 14. Travers, Robert Edward 987-E 15. Walkovich, Meghan Grace 18628-

E


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F. Recommended for Reissuance of Certificate Because of Name Change: 1. Issued as: Caitlin M. Vass 18480-E ; New Name: Caitlin M. Chamberlain 2. Issued as: Jennifer Anne Tainsky 11613-E ; New Name: Jennifer A. Tainsky 3. Issued as: Jennifer E. Coules 16753-E ; New Name: Jennifer E. Frank 4. Issued as: Melissa Kaye Barker 16534-E ; New Name: Melissa Kaye Diaz 5. Issued as: Michael J. Vaughn 18704-E ; New Name: Michael J Vaughn 6. Issued as: Michael W. Swayda 10859-E ; New Name: Mike W. Swayda 7. Issued as: Tanya Stogsdill-Lees 16840-R ; New Name: Tanya Stogsdill

G. Recommendation of the Certification Committee for Approval of Candidates for the

Uniform CPA Examination: 1. (No Last Name), Pushpanjaly 2. (No Last Name), Ritesh 3. Aggarwal, Shubham 4. Agrawal, Kanak 5. Agrawal, Rahul 6. Asulin, Eitan Daniel 7. Bain, Curtis Russell 8. Batra, Samiksha 9. Bixler, Quinn Erika 10. Bogdan, Martina Lynn 11. Bohra, Adnan 12. Braun, Haley Michelle 13. Burciaga Lugo, Daniela 14. Das, Debopriyo 15. Dutta, Debasis 16. Gangishetty, Mahesh 17. Garcia Munoz, Diana Lizbeth 18. Garlach, Graham Harrison 19. Goswami, Gaurav 20. Gupta, Ankit 21. Hanagodu, Vinayaka 22. James, Misti Lee 23. Jimerson, Alisha Marie 24. Kapoor, Ridhima 25. Kosednar, Andrew Steven 26. Kumari, Megha 27. Malakappa Nuchchi, Annapoorna

28. Malhotra, Harshita 29. Manickavelu, Gayathri 30. Min, Dongkeun 31. Mujahed Ali, Syed Mir 32. Noffke, Ada Lai Shan 33. Oase, Noelia Milena 34. Ott, David Edward 35. Pack, Joshua Wayne 36. Parish, Jason M. 37. Pei, Na 38. Penunuri, Christine Lee 39. Phillips, Chalnsey 40. Raja, Sindhu 41. Ravichandran, Ramkishore 42. Roberts, Julie Celeste 43. Seime, Sarah Nicole 44. Shah, Ritu 45. Shen, Haojie 46. Shreeve, Garrett Morris 47. Shurr, Nathan Donald 48. Si, Yufan 49. Singh, Harmeet 50. Suppal, Sunaina 51. Tuteja, Sonia 52. V, Arvind 53. Wilson, Daniel L. 54. Wilson, Jeremie Robert

H. Recommendation of the Certification Committee for Approval of Certification by

Examination: 1. Baig, Daniyal M. 2. Balasubrahmanyam, Lalith Kumar


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3. Bansal, Amit 4. Chugh, Sakshi 5. Colella, Daniel A. 6. DeSantiago, Paul Nicholas 7. Donnelly, Kenneth 8. Drain, Jason A. 9. Dzafic, Naida 10. Hight, Kristie L. - Voted

Separately 11. Hughbanks, Mallory 12. Jones, Tyler Grant 13. Kagen, Samuel A.

14. Kanniappan, Velmurugan 15. Li, Wei 16. Manuele, Christina Marian 17. Mayper, Rebecca G. 18. Nielsen, Matthew Orr 19. Peterson, Katherine Elizabeth 20. Priano, Adriana Vanesa 21. Reeb, Andrew P. 22. Somerville, Kate 23. Trailov, Trent J. 24. Willoughby, Stephen L.

I. Recommendation of the Certification Committee for Approval of Certification by Grade

Transfer: 1. Butler, Brandon 2. Doshi, Neha

3. Gallinat, Brandon Douglas 4. Kuttikkat, Rajesh

J. Recommendation of the Certification Committee for Approval of Certification by

Reciprocity: 1. Aitken, Brian J. 2. Narayanan, Sajeev

K. Recommendation of the Certification Committee for Approval of Certification by

Reciprocity Based on Substantial Equivalency: 1. Dean, Emily W. 2. Fallon, David J. 3. Giebenhain, Ronald L. 4. Green, John W.

5. Kontos, John C. 6. Lake, Stuart David 7. O’Neil, Kelly K. 8. Oleson, Michele

L. Recommended Approval of Retired Status for the Following Registrants:

1. Ashworth, Teresa Morgan 11884 2. Backus, Robert Douglas 3849 3. Bench, Kathleen M. 8234 4. Berry, Russell B. 2298 5. Blomstrom, Ray A. 1975 6. Brown, Kathye Watkins 2595 7. Chapko, Stephen John 12374 8. Currey, Elizabeth Sprehe 5728 9. Davies, Debra J. 3211 10. Delgado, Leonard J. 1342 11. Derse, Roger A. 4300 12. Doran, Martha Sutton 5081

13. Evans, Pamela Dickey 4710 14. Franco, Jeanne C. 7259 15. Glasscock, J. Phillip 5295 16. Haasis, Keith Edward 7283 17. Harvey, Patrick James 4279 18. Hoey, Elisabeth Joan 6748 19. Hood, Mary-Ellen 11955 20. Hornung, Janet M. 3274 21. Johnson, Galen K. 14997 22. Kanaga, Jacqueline 5692 23. Kidd, Kari Y. 9482 24. Kitterman, Noela J. 6096


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25. Lancaster, Lenore Platt 2531 26. Langstraat, Craig J. 1683 27. Loster, Donald R. 12381 28. Markey, Thomas Adam 6147 29. Mazer, Vickie S. 5134 30. Mitchell, Robert K. 471 31. Nordhagen, Theresa Helen 5550 32. Pany, Kurt 1476 33. Peters, Elizabeth A. 5415 34. Petty, Alisa Batchelor 16196

35. Pickrell, Hollis L. 8592 36. Quain, Joanne Elizabeth 4389 37. Remus, Carl Eugene 2388 38. Rivera, Christina R. 4448 39. Rothwell, Barbara Palien 8273 40. Searls, Barbara Ann 2946 41. Stevens, Floyd D. 1693 42. Tizzard, Roderic Dale 383 43. Wu, Shu-Yun 5255 44. Ziskin, Sara R. 3089

M. Recommended for Reactivation of Certificate from Inactive Status or Retired Status:

1. New, James Robert 6993 2. Tomas, Jessica 13604

N. Recommendation of the CPE Advisory Committee for Compliance of the Following

Registrants regarding CPE Audit: 1. Anderson, Michelle L. 17242 2. Barden, Joyce T. 9528 3. Cowdrey, Sean C. 16210 4. Hamm, Raymond J. 6651 5. Johnson, Elizabeth R. 14311 6. Langdon, Nancy Lee 13073

7. Link, Jr., John Joseph 10369 8. Partridge, Tara 12987 9. Tucker, James Kurt 12975 10. Turner, Christopher L. 12066 11. Walsh, Mary A. 4064

O. Recommendations of the CPE Advisory Committee for Compliance Regarding Request for

Reinstatement: 1. Fink, Abigail K. 15814 - Voted

Separately 2. Nielsen, Peter A. 6602

3. Ortega, Hector A. Jr. 8829 4. Petersen, Larry R. 2170 5. Roberts, Daniel H. 12615

P. Recommendation of the CPE Advisory Committee for Compliance or Partial-Compliance

Regarding Pre-Approval of CPE and/or Verification of CPE Compliance as Required by Decisions & Orders: 1. Hesselschwerdt, David Jon 6697 2. Shelley, Mark A. 3115

Q. Termination of Decision and Order:

1. File Nos. 2017.061; Hesselschwerdt, David and 2017.062; Business Resource Company, P.C.

2. File No. 2018.019; DiMaggio, Patricia 3. File Nos. 2018.106; Hesselschwerdt, David and 2018.112; Business Resource

Company, P.C.


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LEADERSHIP REPORT

Executive Director Update Budget Update Monica L. Petersen stated that the Board was billed expenses relating to investigator training and that the March charges were unusually high due to a change in the state's business procedures and how Central Service Bureau (CSB) functions. Historically, agencies received interdepartmental invoices directly and approved them for payment and then submitted the invoice to CSB for payment. The process changed whereby interdepartmental invoices, in this case the state's mailroom in Arizona Department of Administration (ADOA), posts a transfer in the state's accounting system with a copy of the invoice. Subsequently, CSB was supposed to forward the invoice to the agency to approve the payment. Because of timing issues with CSB, the ADOA mail room billings for January, February and March were paid in the same month. Agency Operations Update Ms. Petersen stated that April Romero resigned. Her position description has been updated and Staff is in the process of recruitment. Temporary staff is covering the front desk in the interim. Ms. Petersen also shared that Staff is in the process of recruitment for the Administrative Services Officer position which was approved for this year's budget. Ms. Petersen provided the Board with an update as it relates to firm cancellations, expiration and deregulation in anticipation of the effective date of the legislation that would affect firm registration. Modernization Update Ms. Petersen stated that Staff has started sending firm renewal reminders through email and has sent correspondence to firms to provide their emails for the Board’s records. In addition, Ms. Petersen shared that the creation of some additional IT reports have assisted in fully streamlining online registrations. Regarding firm suspensions, Ms. Petersen explained that IT was asked to develop a query that would identify firms that should be suspended monthly. Staff would no longer have to manually identify individual CPAs that also have CPA firms, which was the sole task that Staff continued to have to do manually with respect to online registration processing. Legislative Update HB 2184 – Secretary of state; rulemaking Ms. Petersen noted that this this bill does not directly impact the Board but was being tracked as it is important for Staff to be aware of the changing requirements to the rulemaking process and the Secretary of State's duties.


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HB 2207 – Public meetings; recordings; posting; definition Ms. Petersen provided a summary of the bill and stated that the Governor ultimately vetoed it. HB 2238 – Administrative decisions; review; scope Ms. Petersen stated that the bill was passed. It requires the court in reviewing a final administrative decision brought by or against a regulated party to decide questions of law without deference to the agency's determination. HB 2257 – Radiation regulatory boards; repeal; DHS Ms. Petersen stated that she included this on the agenda to simply provide the Board with the information that this agency consolidation action passed into law. SB 1443 – Certified Public Accountants Ms. Petersen stated that the bill has been signed, and it will be effective in August. She stated that Staff will be busy preparing for the anticipated changes. LeRoy M. Gaintner stated that the Board appreciates working with Arizona Society Certified Public Accountants to push the bill forward. Board Membership Update Ms. Petersen stated that Governor’s office staff has concluded interviewing candidates for both CPA and Public Board Members. The Board recessed from 10:14 a.m. to 10:22 a.m. Assistant Director of Registration and Operations Update Crediting of Ethics Jacki Hancock provided a summary of the discussion and motion that took place on August 24, 2017 regarding what may be credited from university/college coursework as a related course. Ms. Hancock requested guidance from the Board relating to the crediting of “general ethics”, in particular, non-accounting-related ethics. A discussion ensued to deliberate the appropriate direction the Board may take considering that ethics is a broad subject matter that translates into various disciplines. A motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to accept any course with ethics in the title as a related course, and to allow accounting ethics to be treated as an ethics or related course. The motion passed 5 – 0. Systems Manager Agency Operations Update Monica L. Petersen stated that there have been over 620 successful renewals submitted which used the improved renewal form. However, Staff identified 30 renewals where CPAs did not answer some


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questions and have reached out to those Registrants to acquire the necessary information to complete their renewal. Additionally, Ms. Petersen noted that Staff has re-engaged the State’s Security Office. The Board’s network vendor addressed issues that were identified by recent scans, which resulted in a security score considered good and acceptable by the State’s standards.

INITIAL ANALYSIS

File No. 2018.119 Christopher Rasmussen shared that Staff identified an unregistered firm issue through the course of a separate investigation. In providing a response, the Registrant stated that that the firm is no longer an operating entity and its website will be shut down, but also stated that the firm had provided accounting services for a period of time while unregistered, which is a violation of A.R.S. § 32-731.

In response to William C. Heimerdinger’s request for Staff to elaborate on the recommended administrative penalty, Monica L. Petersen clarified that the point at issue on this matter is the Registrant’s failure to register the firm when it started to engage in the practice of accounting in this state. Ms. Petersen remarked on the risk associated with an unregistered firm operating, especially if the unregistered firm was to depart from professional standards and complaints were filed with the Board. Ms. Petersen also shared that Staff is in the process of creating disciplinary guidance for the Board.

Julie S. Klewer requested Staff to elaborate on the concept of taking disciplinary action against Registrants who, in retrospect, had non-compliance issues but may have already remediated the matter once the issues were identified and brought to the Board for review. Ms. Petersen stated that while the Board has exercised its discretion in taking disciplinary action on various issues of non-compliance ranging from CPE deficiency to unregistered firms, disciplinary orders ensure that the Board have those issues on record.

File No. 2018.122 Christopher Rasmussen stated that Staff received a complaint regarding a Registrant who was using the CPA designation while suspended for non-registration. Monica L. Petersen stated that the Registrant is also in violation of his suspension order for non-registration. File No. 2018.119 A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to open the investigation file and offer the Registrant a Decision and Order (By Consent) for an administrative penalty of $2,000.00 for violations of A.R.S. §§ 32-731(A) and 32-741(A)(6) for failing to register RPLayton Tax Group LLC with the Board when it was engaged in this state in the practice of accounting, with automatic termination of the order upon receipt of the administrative penalty. The motion passed 5 – 0.


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File No. 2018.122 A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to open the investigation file and offer the Registrant a Decision and Order (By Consent) for a $2,000.00 administrative penalty for violations of A.R.S. §§ 32-741(A)(6), 32-741.01(B) and 32-747(A) for using the CPA designation while on suspended status, to paid within 30 days, with automatic-termination of the Consent Order upon payment of the administrative penalty. The motion passed 5 – 0. File No. 2018.119 A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, that the Board amend the initial motion regarding this matter to include that the administrative penalty be paid within 30 days. The motion passed 5 – 0. File No. 2018.140 A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to close the file. The motion passed 5 – 0. March 22, 2018 Letters from the PCAOB The Board reviewed the letters and took no action.

COMMITTEE RECOMMENDATIONS – INITIAL ANALYSIS FILES

Accounting and Auditing Advisory Committee File No. 2018.082 A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed, to close the file. The motion passed 5 – 0. File Nos. 2018.126 and 2018.127 A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to close the files. The motion passed 5 – 0. Tax Advisory Committee File Nos. 2018.094 and 2018.095 A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to close the files. The motion passed 5 – 0.

Accounting and Auditing Advisory Committee File No. 2017.117 A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to open the file. The motion passed 5 – 0. File Nos. 2018.099 and 2018.100 A motion was made by Julie S. Klewer, seconded by Tiffany Young, to open the files. The motion passed 4 – 0.


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Gary L. Freed was conflicted and recused from the vote. Tax Advisory Committee File No. 2018.068 File Nos. 2018.086 and 2018.087 File Nos. 2018.102 and 2018.157 File No. 2018.156 A discussion ensued to provide the Board an idea of the current stage of the investigation for File No. 2018.068. A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to open the files. The motion passed 5 – 0. File Nos. 2018.066 and 2018.067 A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner, to issue the letter of concern as drafted. The motion passed 5 – 0.

ALLEGED UNLAWFUL USE OF DESIGNATION

File No. 2018.118; Paramount Tax & Accounting CPA’s Christopher Rasmussen stated that this is a matter related to File No. 2018.119. In response to the letter that Staff sent, Registrant provided that the franchise owners were supposed to handle any regulatory responsibilities with the state boards of accountancy. The response also outlined a plan to remediate the concern. Gary L. Freed stated that Registrants who rely on franchises have a responsibility to know the applicable statutes when setting up entities. A discussion ensued to identify the firm’s references to the CPA designation on its website, even if the CPA designation was removed from the firm’s logo. A motion was made by Julie S. Klewer, seconded by Tiffany Young, to direct Staff to draft and send a letter to Respondent Firm requesting that Respondent Firm provide remedial evidence of no longer unlawfully using the CPA designation and an explanation for submitting a name reservation to the Arizona Corporation Commission on March 4, 2018, within thirty days. The motion passed 5 – 0. File No. 2018.132; Jimerson, Alisha A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to close the file. The motion passed 5 – 0. File No. 2018.147; Roach, John L. John Oyas summarized the file and stated that Staff received a complaint regarding John L. Roach’s unlawful use of the designation on Santa Fe Ridge Homeowner’s Association’s official ballot for the Board of Directors election, Respondent’s resume and other internet presences. On the


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Respondent’s response, he stated that all the mistakes were clerical and were made due to the lack of substantive review. He also stated that he was accredited by the National Society of Practicing Accountants and that the CPA designation should have been ACA. As proof of remediation, the Respondent provided a copy of the ballot and resume with handwritten strikeouts of the CPA designation superimposed with the ACA title. A discussion ensued to deliberate whether the situation met a degree of severity to pursue an injunction. Julie S. Klewer stated that the Board may need further evidence and explanation for the use of the CPA designation from the Respondent. William C. Heimerdinger expressed that he had the same concerns as Ms. Klewer. In response, Monica L. Petersen stated that while the Respondent admits his lack of review, the use CPA designation is employed in multiple documents and in varying contexts and that the language was not exactly the same in all instances. Hence, Ms. Petersen and Mr. Rasmussen did not feel confident that the error was made through a copy-paste or an auto-correct function. Ms. Petersen also added that filing an injunction puts the matter on record and can help the Board in addressing these matters in the future. A discussion ensued to deliberate the matter. A motion was made by LeRoy M. Gaintner, seconded by Tiffany Young, to direct the AAG to file an injunction with Maricopa County Superior Court against John L. Roach for unlawful use of the CPA designation, pursuant to A.R.S. §§ 32-747 and 32-750. Mr. Heimerdinger stated that Ms. Petersen fully addressed his initial concerns. The motion passed 5 – 0. Gary L. Freed expressed his concerns that Mr. Roach may have received votes due to representing himself as a CPA and inquired with the AAG regarding the Board’s obligation to notify the HOA. Mr. Donald stated that the Board can notify the Complainant of the Board’s vote. A motion was made by LeRoy M. Gaintner, seconded by Tiffany Young, that the Board share the resolution of this case to the Complainant. The motion passed 4 - 0. Ms. Klewer left the meeting room and was unable to vote.

REVIEW OF COMPLAINT AGING REPORT REVIEW OF ASSISTANT ATTORNEY GENERAL AGING REPORT

The Board reviewed the respective reports.


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ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION Recommended Denial of Registration of Firms for the Following Applicants: Michele R. Souder, CPA Partner: Michele R. Souder 18894

Randy W. Miller CPA Partner: Randy Wendell Miller 18873 In response to LeRoy M. Gaintner’s inquiry regarding the reason for the recommendation of denial, Monica L. Petersen stated that the AAG has advised the Board to not register firms that the Board is not required to regulate in anticipation of the legislation that will be effective in August. Gary L. Freed inquired whether Registrants will be communicated to regarding opportunities to register as a firm in the future. Ms. Petersen stated that Staff is currently researching the impact of the legislation regarding firm registration, modifying business processes to conform with the new law, and will notify Registrants of the changes. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to deny the firm applications and to send letters to each respective applicant. The motion passed 4 – 1. Gary L. Freed voted nay.

Request for Peer Review Extension R & R Consulting, LLC 3088-L A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to grant an extension for the completion of the peer review for good cause through July 31, 2018 to allow time for the Board to receive the complete letter that is signed by CalCPA. The motion passed 5 – 0. Varga, Henry W., PLC 3076-L Andi Byrd summarized the matter for the Board stating that the firm submitted a peer review extension request but did not specify a requested extension date. The original due date from CalCPA was June 30, 2017. There is no evidence of the peer review, but the managing partner reported that he received a rating of pass. The managing partner stated he received an extension from CalCPA and provided a screenshot of his request along with a letter that details multiple good cause reasons. Staff recommended that the Board grant the request for the extension of the peer review for good cause, but defers to the Board to determine the amount of time for the extension. LeRoy M. Gaintner suggested that a 90-day extension may be appropriate. A motion was made by LeRoy M. Gaintner, seconded by Tiffany Young, to grant the peer review extension request for 90 days beginning on the day the Registrant is notified. The motion passed 5 – 0.


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Request for NTS Extension Albelais, Ana Claudia A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to grant the applicant’s request for an NTS extension for good cause, for one full testing window. The motion passed 5 – 0. Chakraverty, Divya Jacki Hancock stated that Staff does not have information on the applicant’s scheduled exams. A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to grant the applicant’s request for an NTS extension for good cause, for one full testing window. The motion passed 5 – 0. Duraiswamy, Akshaya A discussion ensued regarding the applicant’s justification and her request for an extension for only one section of the test. The agenda item was deferred to later in the meeting. Shetty, Mithun Vittal A motion was made by William C. Heimerdinger, seconded by Julie S. Klewer, to grant the applicant’s request for an NTS extension for good cause, for one full testing window. The motion passed 5 – 0. The Board recessed from 12:00 p.m. to 12:15 p.m. Request for Extension of the 18-month Conditioned Period for the Uniform CPA Exam Wagner, Joseph Paul Jacki Hancock stated that the candidate was scheduled to take the AUD exam section on April 30, 2018, but the Prometric Testing Center canceled all exams scheduled on that day. The score conditioned credit expired on May 5, 2018. The first available date at Prometric for the candidate to reschedule is May 17, 2018. A motion was made by Julie S. Klewer, seconded by Gary L. Freed, that the AUD score conditional credit not expire on May 5, 2018; rather, it should expire on May 31, 2018 to ensure that the candidate has the additional time in the current testing window to take the AUD exam section. The motion passed 5 – 0. Request for Reactivation Williams, David Daou 2230 Jacki Hancock shared that the Registrant is applying for reactivation but does not meet the requirement of passing a CPE audit. A discussion ensued to clarify the process and the requirements of reactivation, and the details of the matter that makes the Registrant ineligible for reactivation.


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A motion was made by Julie S. Klewer, seconded by Tiffany Young, that the Registrant’s request for reactivation be denied, in that it has been demonstrated on face value that the Registrant did not meet CPE requirements as a prerequisite to reactivation and $250.00 of the $300.00 registration fee be credited to the Registrant. As a pre-condition to the approval of any future request for reactivation, that the Registrant be required to offer evidence of all 160+ hours of reported CPE through CPE certificates of experience; and, if Board staff cannot determine on face value that the CPE certificates of experience offer clear support for the reported CPE, that the CPE be reviewed formally by the CPE Advisory Committee prior to making a recommendation for approval of reactivation to the Board. The motion passed 4 – 1. Gary L. Freed voted nay. Request for Inactive Status Cancelli, Nicole S. 15941 Christopher, Polly Page 13273 Furlong, Cynthia M. 12901 Grady, Megan 17590 Holland, Tracy Lee 16784 Lal, Ramnendra 18519 Larsen, Sarah 15775 Lavelle, Matthew S. 10459 Marohnic, Michael J. 16878 Monett, Corazon A. 11129 Ounpitakpaiboon, Kiattisak 17607 Ray, David 13390 Ray, Jay 14453 Shaffer, Maureen G. 12532 Todd, T. J. 15906 A motion was made by Tiffany Young, seconded by William C. Heimerdinger, to approve the requests for inactive status. The motion passed 5 – 0. Klein, Gerry 15361 Jacki Hancock summarized the matter and noted that Registrant states he is no longer providing accounting services nor working for a CPA firm; rather, he is running operations for a firm that investigates financial crimes. William C. Heimerdinger expressed his concerns on the Registrant’s job duties and responsibility of supervising and handling project costs such as budgeting, cash flow, invoicing and payments, schedules, and projected margins.


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A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to deny the request for inactive status, as the Registrant is currently providing accounting services for compensation, which is contrary to the provisions of A.R.S. § 32-730.01(B)(2) and that the Registrant complete all registration requirements within 60 days, including payment of the balance of the registration fee, and submittal of at least 80 hours of CPE that meets the requirements of A.A.C. R4-1-453. Further, if the Registrant fails to complete all registration requirements by the specified due date, the Board agrees to offer a Decision and Order (By Consent) for suspension for one year for non-compliance with registration and CPE requirements, pursuant to A.R.S. §§ 32-730(A)(C); 741(A)(6), (9); A.A.C. R4-1-345(C); and A.A.C. R4-1-453(C), with early termination from suspension upon compliance with the requirements of the Order. The motion passed 4 – 0.

Tiffany Young declared a conflict and recused from the vote. Maroney, Hugh 12148 Andi Byrd stated that the Registrant requested inactive status and was on the March Board agenda. The Board requested that the Registrant provide additional clarification of the type of analysis or verification used to determine whether a report is correct. Ms. Byrd shared that Staff received an email with the Registrant's response and defers to the Board if the Registrant qualifies for inactive status. A discussion ensued to contextualize the nature of the Registrant’s employment wherein he does not disclose being a CPA to the public, and whether the execution of Registrant’s job duties require accounting knowledge. William C. Heimerdinger differentiated the reconciliation of information to determine if data matches up versus analysis. A motion was made by LeRoy M. Gaintner, seconded by Tiffany Young, to approve the request for inactive status. The motion passed 5 – 0. Packard, Daniel Abbott IV 8036 Jacki Hancock stated that Registrant is a lawyer and indicated that he is not performing accounting services. His work includes estate planning and major gift restructuring in non-profit organizational law. Gary L. Freed expressed his concerns that the Registrant may be trading on being a CPA through his website.

A motion was made by William C. Heimerdinger, seconded by LeRoy M. Gaintner, to deny the request for inactive status, as the Registrant is currently providing accounting services for compensation, which is contrary to the provisions of A.R.S. § 32-730.01(B)(2) and that the Registrant complete all registration requirements within 60 days, including payment of the balance of the registration fee, and submittal of at least 80 hours of CPE that meets the requirements of A.A.C. R4-1-453. If the


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Registrant fails to complete all registration requirements by the specified due date, the Board agrees to offer a Decision and Order (By Consent) for suspension for one year for non-compliance with registration and CPE requirements, pursuant to A.R.S. §§ 32-730(A)(C); 741(A)(6), (9); A.A.C. R4-1-345(C); and A.A.C. R4-1-453(C), with automatic termination from suspension upon compliance with the requirements of the Order. The motion passed 5 – 0.

Request for CPE Extension/Exemption De Guzman, Trish M. 17980 Jacki Hancock stated that Registrant requested a full CPE exemption due to multiple factors which are detailed in the Registrant’s justification statement. Ms. Petersen noted that the Board has not always considered financial hardship as good cause for an extension. Gary L. Freed suggested that the Board consider not providing a full exemption of 80 hours, but to offer an exemption of 40 hours and offer 6 months to comply with CPE requirements due to good cause. In response to LeRoy M. Gaintner’s inquiry regarding the suitability of the motion, Monica L. Petersen stated that the Board has always used its discretion to assess the appropriate action to take and that it can certainly use that discretion at this time while considering the various good causes factors. Julie S. Klewer stated that although the Board critically analyzes financial hardship when considering whether or not it qualifies as good cause, the Registrant stated that she has presented other matters that qualifies for good cause. A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to exempt the Registrant from 40 hours of CPE, require the Registrant to take the remaining 40 hours of CPE, including ethics, and provide 60 days to comply with this requirement. A discussion ensued to clarify that the Registrant must take the full ethics requirement and take the remainder of the CPE hours on a prorated basis. The motion passed 5 – 0. Guardado, Julio L. 12234 Jacki Hancock stated that the Registrant requested a CPE extension of eight hours. Registrant did not realize he was six hours short upon renewal. A discussion ensued to clarify that the Registrant only needed four hours of CPE in ethics. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to deny the Registrant’s request for a CPE extension for failure to meet the requirement of “good cause” and that the Registrant be offered a Decision and Order (By Consent) for suspension for non-compliance with CPE requirements pursuant to A.R.S. §§ 32-741.02 and 32-741(A)(6), with automatic termination, upon receipt of the required CPE, which includes four hours of ethics. If the offered order is not responded


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to within 30 days to direct the AAG to file a CNOH at OAH for suspension for non-compliance with CPE requirements. The motion passed 5 – 0. Duraiswamy, Akshaya Monica L. Petersen shared that NASBA has confirmed that the Board may approve an NTS extension for a single section. A motion was made by Julie S. Klewer, seconded by Tiffany Young, to approve the applicant’s request for an NTS extension for the REG section only for one full testing window, for good cause. The motion passed 5 – 0. The Board recessed from 1:09 p.m. to 1:24p.m. Request for CPE Extension/Exemption De Guzman, Trish M. 17980 A motion was made by Julie S. Klewer, seconded by Gary L. Freed, to amend the language of the prior motion from responded to accepted. The motion passed 5 – 0. Compliance/Non-Compliance with CPE Requirements Alessi, Joshua Anthony 18486 Monica L. Petersen clarified with the Board that this matter is regarding non-compliance with CPE requirements. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, that the Board offer a Decision and Order (By Consent) for suspension for one year for non-compliance with CPE requirements, with automatic termination from suspension upon compliance with the requirements of the Order; and if not accepted by the Registrant within 30 days, that the Board requests that the AAG draft a CNOH for suspension of the Registrant’s certificate. The motion passed 5 – 0. Christ, C. Janet 10493 William C. Heimerdinger expressed that Registrant’s medical situation may merit good cause for an extension and inquired if the Board has the discretion to provide relief. Christopher Rasmussen stated that, although the situation may be unfortunate, the statutes require that the Board suspend a Registrant’s certificate if he or she fails to provide proof of compliance after a CPE audit. A motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to offer the Registrant a Decision and Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible automatic termination upon completion of the required CPE; and, if not accepted by the Registrant within 30 days, for the Board to proceed to CNOH. If a settlement is pursued, the Board agrees to a suspension for one year for non-compliance with CPE requirements, pursuant to A.R.S. §§ 32-741(A)(6), (9); 32-741.02; and A.A.C. R4-1-453(C), with automatic termination from suspension upon compliance with the requirements of the Order, to include


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reimbursement of the Board's costs of proceedings, including attorney fees. The motion passed 5 – 0. Deaps, Hassan A. 18635 Jacki Hancock stated that Registrant submitted a prorated renewal form without including all of the required prorated CPE. A total of 60 hours was required, and 60 hours were submitted; however, no ethics courses were included. Therefore, the Registrant has not complied with CPE requirements due to be being four hours short of ethics. A motion was made by Julie S. Klewer, seconded by Tiffany Young, to offer a Decision and Order (By Consent) for suspension for one year for non-compliance with CPE requirements, pursuant to A.R.S. §§ 32-741(A)(6), (9) and A.A.C. R4-1-453(C), with automatic termination from suspension upon compliance with the requirements of the Order; and if not accepted by the Registrant within 30 days, that the Board request that the AAG draft a CNOH for suspension of the registrant’s certificate. The motion passed 5 – 0. Guse, Jonathan Peter 18187 A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to offer a Decision and Order (By Consent) for suspension for one year for non-compliance with CPE requirements, with possible automatic termination upon completion of the required CPE; and, if not accepted by the Registrant within 30 days, for the Board to proceed to CNOH; and that, if a settlement is pursued, the Board agrees to a suspension for one year for non-compliance with CPE requirements, pursuant to § 32-741(A)(6), (9); 32-741.02; and A.A.C. R-1-453(C), with automatic termination from suspension upon compliance with the requirements of the Order, to include reimbursement of the Board’s costs of proceedings, including attorney fees. The motion passed 5 – 0. Lyu, Hee Young 18198 A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to offer a Decision and Order (By Consent) for suspension for one year for non-compliance with CPE requirements, pursuant to A.R.S. §§ 32-741(A)(6), (9) and A.A.C. R4-1-453(C), with early termination from suspension upon compliance with the requirements of the Order; and if not accepted to by the Registrant within 30 days, that the Board requests that the AAG draft a CNOH for suspension of the registrant’s certificate. The motion passed 4 – 0. Tiffany Young declared a conflicted and recused from the vote. Tanaka, Yasuo 18537 LeRoy M. Gaintner expressed that he identified issues in timing as it relates to when the CPE requirements are supposed to be taken. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to offer a Decision and Order (By Consent) for suspension for one year for non-compliance with CPE requirements, pursuant


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to A.R.S. §§ 32-741(A)(6), (9) and A.A.C. R4-1-453(C), with automatic termination from suspension upon compliance with the requirements of the Order; and if not accepted by the Registrant within 30 days, that the Board request that the AAG draft a CNOH for suspension of the Registrant’s certificate. The motion passed 5 – 0. Compliance/Non-Compliance with CPE Requirements and Failure to Timely Respond to Board Communication Johnson, Rachel A. 12637 Andi Byrd stated that Registrant was subject to a CPE audit and failed to timely respond. She was given 30 days and was 24 days late in her response. A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to offer the Registrant a Decision and Order (By Consent) for suspension for one year for non-compliance with CPE requirements and that an administrative penalty of $400.00 be imposed for failure to timely respond, pursuant to A.R.S. § 32-741(A)(9) and A.A.C. R4-1-455.03(D), with possible automatic termination upon completion of the required CPE and receipt of full payment of the penalty; and, if not accepted by the Registrant within 30 days, for the Board to proceed to CNOH; and that, if a settlement is pursued, the Board agrees to a suspension for one year for non-compliance with CPE requirements and failure to timely respond, pursuant to A.R.S. §§ 32-741(A)(6), (9); 32-741.02; and A.A.C. R4-1-453(C); R4-1-455.03(D), with automatic termination from suspension upon compliance with the requirements of the Order, to include submittal of the required CPE, payment of a $400.00 administrative fee, and reimbursement of costs of proceedings, including attorney fees. The motion passed 5 – 0. Compliance/Non-Compliance with Decision and Order (By Consent) and Possible Consideration of CPE Certificates of Completion File No. 2016.147; Dusseau, Kenneth Christopher Rasmussen stated that the pre-approved CPE courses that was meant to cure the Registrant’s one CPE deficiency was canceled and that the Registrant has attended the Phoenix Tax Workshop in hoping that the Board would consider the course satisfactory towards the requirements of the Order. LeRoy M. Gaintner acknowledged the Registrant’s intent to resolve the deficiency amidst the situation. Gary L. Freed expressed that the Phoenix Tax Workshop’s has a great reputation and quality instruction. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to accept the Registrant’s CPE as compliant with the Order. The motion passed 5 – 0. Consideration of Misleading Firm Name File No. 2018.139 Gary L. Freed declared a conflict for this matter.


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Christopher Rasmussen explained that this matter is regarding the possible use of a misleading firm name. In response to Staff’s request for further information regarding the matter, the Registrant Firm conceded that it should have submitted to the Board a firm name change application in a timelier manner. Julie S. Klewer expressed that a $500.00 administrative penalty is appropriate in this situation, since it is a registered firm, in contrast to situations involving the operation of an unregistered firm. A motion was made by Julie S. Klewer, seconded by Tiffany Young, to open the investigation file and offer Registrant Firm a Decision and Order (By Consent) for an administrative penalty of $500.00 to be paid within 30 days for violations of A.R.S. §§ 32-741(A)(9), 32-742(B), and A.A.C. R4-1-455.03(C) for using a misleading firm name, with automatic termination upon payment of the administrative penalty. The motion passed 4 – 0. Gary L. Freed was conflicted and recused from the vote. Committee Appointments Continuing Professional Education Advisory Committee: Paul Kern, MBA, CPA A motion was made by Julie S. Klewer, seconded by Tiffany Young, to appoint Paul Kern to a five-year term with the CPE Committee. The motion passed 5 – 0. Law Review Advisory Committee Mark Landy, CPA (Retired) A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to reappoint Mark Landy to a five-year term with the Law Review Advisory Committee. The motion passed 5 – 0. Failure to Respond and/or Failure to Timely Respond to Board Communication File No. 2018.134; Petersen, Melissa John Oyas stated that the Registrant did not respond to the Board’s offered Decision and Order (By Consent). A motion was made by Julie S. Klewer, seconded by Tiffany Young, to direct the AAG to file a CNOH for revocation of the Registrant’s certificate at OAH for violations of A.R.S. § 32-741(A)(9) and A.A.C. R4-1-455.03(D) for failure to respond to the Decision and Order (By Consent) and A.R.S. §§ 32-730; 32-741(A)(6), (9); and A.A.C. R4-1-453(C)(1) for non-compliance with CPE requirements. If settlement is pursued, the Board agrees to a suspension for one year for non-compliance with CPE requirements, pursuant to A.R.S. §§ 32-730; 32-741(A)(6), (9); and A.A.C. R4-1-453(C)(1), with automatic termination from suspension upon compliance with the requirements of the Order, to include reimbursement of the Board’s costs of proceedings, including attorney fees, and a $2,000.00 administrative penalty for violation of A.R.S. § 32-741(A)(9) and A.A.C. R4-1-455.03(D). The motion passed 5 – 0.


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Matters from the National Association of State Boards of Accountancy (NASBA) regarding Alternative Pathway to CPA Licensure Monica L. Petersen stated that this matter was on the agenda for educational purposes. A brief discussion ensued to provide more context on the topic.

REVIEW AND DISCUSSION OF BOARD MEETING PROCEDURES

Compliance with Quorum Requirements A discussion lead by the AAG ensued to refresh the Board on quorum requirements to conduct business. Distribution and Discussion of Pre-Meeting Materials A discussion ensued to provide Staff direction on opportunities to improve the distribution of the Board’s pre-meeting materials. The Board affirmed that distribution of Board packet materials one week before the meeting is sufficient time to review all the material. Compliance with Health Insurance Portability and Accountability Act of 1996 A discussion ensued to clarify any questions the Board had regarding the review and distribution of materials with confidential and identifying medical information.

SUMMARY OF CURRENT EVENTS

Julie. S Klewer and Tiffany Young noted that they will not be present for the September Board meeting. William C. Heimerdinger mentioned that he will not be present for the August Board meeting.

IDENTIFICATION OF FUTURE MEETING AGENDA ITEMS

• Discussion Regarding Applicants Without a Last Name

• Discussion Regarding the Meeting Schedule and Board Member Attendance

• Annual Meeting Possible Guests, Presenters and Topics.

ARIZONA DEPARTMENT OF ADMINISTRATION’S (ADOA) RESPONSE TO BOARD’S COMPENSATION REQUEST FOR EXECUTIVE DIRECTOR

The agenda item was called.

EXECUTIVE SESSION

A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to go into executive session at 2:38 p.m. to consider personnel matters exempt by law from the public, pursuant to A.R.S. § 38-431.03(A)(1), and for the executive session to only include the Board members and the Executive Director. The motion passed 5 – 0. After consideration in executive session, the Board reconvened in open session at 2:50 p.m.


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OPEN SESSION ADJOURNMENT

A motion was made by Tiffany Young, second by William C. Heimerdinger, to adjourn the meeting at 2:51 p.m. The motion passed 5 – 0.

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