MINUTES STATE BOARD OF

CERTIFIED PUBLIC ACCOUNTANTS OF LOUISIANA

601 Poydras Street, Suite 1770 New Orleans, Louisiana 70130

January 22 - 23, 2007

The regular meeting of the State Board of Certified Public Accountants of Louisiana was called to order by Chairman Mr. Tham on Monday and Tuesday, January 22 - 23, 2007 in the offices of the Board at 601 Poydras Street, New Orleans, Louisiana, 70130. The purposes of the meeting were to review information and statistics concerning the CPA Examination, consider applications for certification, and to transact any other business that required the Board's attention. The following Members were present: Michael A. Tham, CPA - Chairman Carol T. Barnes, CPA - Secretary Michael B. Bruno, CPA - Treasurer Susan C. Cochran, CPA - Member Mark P. Harris, CPA - Member Desireé W. Honoré, CPA - Member Letti Lowe-Ardoin, CPA - Member Also present were: Staff: Michael A. Henderson, CPA - Executive Director Clinton J. Cognevich - Director of Administration Jacqueline M. Sylvest, CPA - Director of Practice Monitoring Board Attorney: Albert J. Derbes III, Esq. - Attorney at Law (Jan. 23) Guests: Grady Hazel, CPA - Executive Director, LCPA Diane Jones - CPE Manager, LCPA Albert G. Kroeper - Independent Accountants

January 22 - 23, 2007

The meeting was called to order by Chairman Mr. Tham at 9:12 a.m. on January 22, 2007, upon motion by Mrs. Cochran, seconded by Mr. Harris and unanimously adopted.

The meeting was called to order by Chairman Mr. Tham at 9:03 a.m. on January 23, 2007, upon motion by Mrs. Cochran, seconded by Mr. Harris and unanimously adopted.

I. CHAIRMAN'S REPORT A. Board Employees

1. Gail L. Cotton, who currently holds the position of Administrative Assistant 3,

will accept the Accounting Technician position. Mrs. Cotton will receive a minimum increase of 7% as a result of accepting a higher level position, in accordance with Civil Service rules.

2. There are still three positions in the Board’s office that are or will be vacant:

Administrative Assistant 3 (when the Accounting Technician position is formally assigned to Gail Cotton), Administrative Assistant 2, and Administrative Coordinator 2. The Administrative Assistant 3 position will be filled. Administrative Assistant 2 and Administrative Coordinator 2 will remain vacant pending future restructuring of the Board’s office.

3. Four (4) Westaff temporary employees were hired to assist with the opening and

distribution of the large volume of mail, review and processing of renewal forms, and other clerical duties as may be necessary. Two were hired on November 29, 2006, one on December 6, 2006, and one on January 3, 2007.

B. Office Equipment

Delivery and Installation of New Postage Machine

The U.S. Postal Service mandated the use of a new postage system, which required the leasing of a new postage machine and meter no later than December 31, 2006. A new Pitney Bowes Postage Machine was ordered on September 14, 2006 under State Contract Number 406213. Delivery and installation were completed on November 20, 2006.

C. New Data System

1. Regulatory Licensing Software

Mr. Henderson and Mr. Cognevich previously attended a presentation on regulatory licensing software by CAVU Corporation. Information will also be obtained on regulatory software by GL Suite Corporation.

2. IT Project Manager

Mr. Henderson and Mr. Cognevich previously met with Mr. Keith Horton of Baton Rouge on September 21, 2006. A formal contract may be offered to Mr. Horton.

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January 22 - 23, 2007

II. APPROVAL OF MINUTES

The regular and executive session minutes for the October 2006 Board Meeting were previously sent to all Board members for review. By motion of Mr. Bruno, seconded by Mr. Harris and unanimously adopted, the Board approved the October 2006 regular and executive session minutes as drafted.

III. DEATHS AND RESIGNATIONS A. Deaths (8)

Name Cert. No. Year Issued A / IA Ena D. Balis 800 1946 IA Jeffrey Todd Brister 21767 1994 A Nancy H. Burton 21550 1993 A Glynn R. Dyer 7629 1972 IA Warren R. Hogan 9502 1974 A Charles Patrick Quirk 851 1947 IA Robert J. Silva , Jr. 958 1949 IA Joseph G. Sunseri 9522 1974 IA

A moment of silence was observed in memory of the above. B. Resignations (29)

The Executive Director informed the Board that the following Certified Public

Accountants requested that their CPA Certificate be voluntarily retired. Accordingly, their Certificates were placed in retired status.

Name Cert. No. Year Issued A / IA Jo-Ann C. Adams 16137 1983 A Arthur T. Baehr 3918 1966 IA Douglas E. Beck B25010 2003 A David A. Berenson B4381 1967 IA John L. Carlton 12744 1978 IA Keith Conine B25311 2005 A Elizabeth L. Donaldson 20225 1990 IA Sharon L. Dunn 17990 1986 IA Paul P. Gregg B15650 1981 IA Malcolm D. Harrington 13022 1978 A George W. Hill 3327 1964 A Roger E. Hussey 4426 1967 A Samuel D. Kennedy B24819 2003 IA Pamela J. Leming B21736 1993 IA (continued on next page)

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January 22 - 23, 2007

Name Cert. No. Year Issued A / IA Charles M. Milburn 1102 1952 IA Tommy A. Milhoan B16424 1983 A Warren H. Redden 10065 1975 IA Aubrey Reed 2896 1963 A Saul V. Reibstein B25003 2003 IA John G. Reische B6007 1970 IA C. P. Resweber 11186 1976 IA David Reznick B9680 1974 A Jennie E. Robicheaux 16775 1984 A Anna R. Shoemaker B13784 1985 IA Erik Skie B25300 2005 A Dora S. Summerell 15007 1980 IA John E. Wade, II B12265 1978 A Brad Williams B22744 1996 A Renee R. Wilson 24038 1999 IA

IV. CERTIFICATE AND INACTIVE STATUS REINSTATEMENTS A. Reinstatements of Certificates / Inactive Status That Were Expired May 1, 2006

The Executive Director informed the Board that the following CPAs and CPA Inactive Status Registrants, with expirations on May 1, 2006 for non-renewal, reinstated their CPA Certificates or CPA Inactive Status registrations since the October 2006 Board Meeting, prior to December 31, 2006. (19 Total: 13 Active and 6 Inactive Status):

Certificate 2006 Name Number A / IA Nicole Palozzola Blanchard 12065 A Jennifer Maria Bradley 23932 A Barney Jude Breaux 22515 A Michael F. Byrd 14965 A Beth Anne Casanova 24195 A Terry Ann Croft 17056 A Laurie Roberts Hamner 22097 A Thomas John Heath, Jr. 23040 A Jennifer J. Heffner 24589 A Terry Simon Hightower 24985 A Kelly Liford Melancon 25080 A Andre Serino-Perkins 25206 A Alan J. Winters 10868 A Donna F. Frank 18501 IA David Michael Maggio 17210 IA Christa Riggs Manning 21927 IA (continued on next page)

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January 22 - 23, 2007

Certificate 2006 Name Number A / IA James Frederick Manning, Jr. 20955 IA Joseph Anthony Salpietra, Jr. 17434 IA Joan Carol Siebeling 19373 IA 2. Reinstatements of Inactive Status From Prior Years (7) The Executive Director informed the Board that the following CPA Inactive Status

Registrants, whose status expired in prior years, reinstated their Inactive Status registrations since the October 2006 Board Meeting.

Certificate Name Number

Stephany Gayle Bland 17491 James Andrew Carleton B24425 Amelia Dooley Daniel 21553 Kunal Shashi Mansata 23496 Kelly Colvin Tarricone 24942 Benjamin George Tombaugh 23881 Margaret Williamson Vienne 18382

V. TREASURER'S REPORT

A. Financial statements for the six month period ended December 31, 2006 were presented for the Board’s review.

B. A proposed Amended Budget for the current year ending 6-30-07 was presented. After

consideration, by motion duly made, seconded, and unanimously adopted, the Board approved the Amended Budget for FYE 6-30-07 reflecting Revenues of $776,160 and Expenditures of $851,574.

C. A projected Budget for fiscal year ended June 30, 2008 was presented for the Board’s

review. By motion duly made, seconded, and unanimously adopted, the Board approved the Projected Budget for FYE 6-30-2008 reflecting Revenues of $762,215 and Expenditures of $819,265.

The Executive Director was directed to prepare the required budget forms. The

completed budget forms will be mailed to the appropriate state offices. C. Mr. Henderson reported on the status of the Pan American office lease and the sale of the

building by Pan American. The Board’s lease terms remain in effect, and it is recorded with the appropriate Orleans Parish agency.

By motion of Mr. Bruno, seconded by Mrs. Barnes and unanimously adopted, the Board approved the Treasurer's report.

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January 22 - 23, 2007

VI. CPA EXAMINATION A. CBT Results Compared - Previous Windows and National Rates Performance – All candidates – By section Oct-Nov 2006 - 504 sections; 341 candidates (1.47 sections per candidate): AUD BEC FAR REG No. ____ % No. ___ % No. ___ % No. ___ % Louisiana: Passed sect’s 45 37.2% 50 35.5% 48 40.3% 56 45.5% Failed sect’s 76 91 71 67 121 141 119 123 National pass rate 44.3% 43.2% 44.8% 42.0% Jul-Aug 2006 - 447 sections; 329 candidates (1.36 sections per candidate): AUD BEC FAR REG No. ____% No. _____% No. _____% No. ____% Louisiana: Passed sect’s 59 47.96% 49 40.49% 48 48.97% 53 50.47% Failed sect’s 64 72 50 52 123 121 98 105 National Pass rate 46.7% 46.3% 47.3% 45.2% Apr-May 2006 – 233 sections; 202 candidates (1.15 sections per candidate): AUD BEC FAR REG No. ____% No. _____% No. _____% No. ____% Louisiana: Passed sect’s 28 38.88% 14 29.78% 19 41.30% 27 39.70% Failed sect’s 44 33 27 41 72 47 46 68 National pass rate 43.5% 43.4% 42.9% 42.0% Jan-Feb 2006 – 271 sections; 228 candidates (1.18 sections per candidate): AUD BEC FAR REG No._______% No._______% No._______% No._______% Louisiana: Passed sect’s 33 42.30% 25 38.46% 23 35.38% 30 47.61% Failed sect’s 45 40 42 33 78 65 65 63 National pass rate 40.6% 41.9% 42.2% 39.3%

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January 22 - 23, 2007

Oct-Nov 2005 – 399 sections; 278 candidates (1.45 sections per candidate): AUD BEC FAR REG No._______% No._______% No._______% No._______% Louisiana: Passed sect’s 35 38.88% 32 34.40% 43 44.32% 48 40.33% Failed sect’s 55 61 54 71 90 93 97 119 National pass rate 42.9% 41.8% 42.1% 39.9% B. Candidates Passing Examination Sections – October / November 2006 (46)

The Executive Director informed the Board that the following candidates passed the CPA examination. CPA Examination Services sent to these candidates a final grade letter with a CPA Certificate application enclosed, notifying them that they completed the examination and are eligible to apply for a Certificate if they have met the experience requirements.

Name Name Cassidy H. Albarado Heather N. Alger Calee B. Ashley Kristi U. Bergeron Ashley M. Breaux Kelly M. Broussard Lynn M. Broussard Daniel P. Brown Aimee G. Buchanan Nga H. Bui Benny J. Buras Chad A. Carollo Aimee L. Cook Margaret G. Cox James R. Fairchild Valeri A. Grayson Khalli S. Hagan Jessica M. Hahn Timothy A. Hemphill Marinela F. Hill David M. Huston Danielle M. Hymel Emily S. Interlandt Molly C. Kinchen Kyna B. Larousse Donna A. Lasseigne Raymond G. Lewis Michelle M. Lucas Laura R. McBryde Jennifer A. Monteleone Kenneth L. Myers Jacob C. Roberie Rachel C. Scewbha Betty A. Sibley Collette J. Slavich Adrienne A. Tranchina Amber D. Trett Bradley T. Welch Colby G. Williams Daniel P. Williams Angela H. Williamson Kimberly A. Williamson Katherine R. Willis-Muller Jessica L. Wise Malia M. Wollerson David M. Yellott

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January 22 - 23, 2007

C. CPA Exam Credit Extensions

1. Recent Requests The Executive Director informed the Board that the following exam candidates

submitted requests for credit extensions due to disruption from the effects of Hurricanes Katrina and Rita or from personal circumstances. The requests were then forwarded to Board Members. The following extensions were granted by the Board.

a. Kim Ramagos: AUD, BEC and FAR extended from 11/30/06 to 7/31/07. b. Eugene Ferniz: AUD, BEC and REG extended from 8/31/06 to 11/30/06. c. Roy Taylor: AUD extended from 8/22/06 to 8/31/07; BEC extended from

11/30/06 to 8/31/07; REG extended from 11/9/06 to 8/31/07. d. April Carrell: AUD extended from 10/15/06 to 8/31/07. e. Jessica LeBlanc: AUD extended from 1/18/07 to 8/31/07; REG extended

from 8/27/07 to 8/31/07. f. Ashleigh Flower: AUDF and BEC extended from 11/30/06 to 5/31/07.

2. Previous Actions of the Board (for documentation purposes only)

a. The Board previously approved credit extensions for the following:

Elliot May, Ashleigh B. Flower, Victor Robinson (2), Mandy Colombo, Christine Faris, Alicia Nodier, Chris Cheramie, Liz Baudin, Laura McBryde, Danielle Trahan, Amy Vizinat, Jessica English, Thuy Nugyn, Heather Strulese, Ashlee Lemons, Dan Pattison, Kevin Grace, Randalyn Matthews, Wendolyn Anderson, Richard Tullier, Vynessie Wilburn, Odette Williams, Charles Hebert, Timothy Hemphill, Alejandro Pelaez, Preston Ritchie, Eugene Ferniz, Benjamin Amauwah, Judy Pyeatte, Michael Joseph, Billy J. Rich, Amber Matherne (2).

b. The Board previously denied a credit extension for the following:

Doris Brown

D. Changes in Candidate Fees

The Board reviewed a letter from the CBT Contract Steering Group regarding changes in candidate fees for the Uniform CPA Examination.

E. Requests to Visit Board Regarding the CPA Examination

Mr. Henderson reported that Craig Mills, Executive Director of the AICPA Exam Team, and Ken Bishop, Director of NASBA CPA Exam Services, have requested that they be permitted to visit with the Board. Mr. Mills will be scheduled for the April 2007 Board Meeting. Mr. Bishop may attend a future meeting.

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January 22 - 23, 2007

F. Applicant Requests

Mr. Henderson reported on requests by prospective CPA exam applicants, Walter Saik and Debra White, concerning course requirements and the 150 hour educational requirement. The Board approved the applicants’ requests.

VII. APPROVAL OF CERTIFICATES (Issued / Reissued) A. Certificates to Practice - Ratification of Certificates Issued by the Executive Director

The Executive Director informed the Board that the following individuals passed the CPA examination and submitted applications for CPA Certificates to Practice. The Executive Director evaluated the applications and the applicants’ experience and issued CPA Certificates to Practice, subject to ratification by the Board.

Upon motion by Mrs. Cochran, seconded by Mrs. Barnes and unanimously adopted, the Board ratified the issuance of the following CPA Certificates to Practice (Item A 1 & 2):

1. Current CPA Examination (Passed Exam After June 1999) (40) Certificate 2006 / 2007 Active Name Number Control Number Issue Date Jeanine Smith McCall 25625 6746 November 28, 2006 Valentina Afanasii 25629 6754 December 11, 2006 Landon Michael Estay 25630 6755 December 11, 2006 Julie Armentor Kennedy 25631 6756 December 11, 2006 Wendolyn Wood Anderson 25641 1565 January 2, 2007 Cynthia Pearson Avin 25642 1566 January 2, 2007 Michelle Richard Braud 25643 1567 January 2, 2007 Stanley Russell Bryan 25644 1568 January 2, 2007 Wayne Michael Durr Jr. 25645 1569 January 2, 2007 Yuanyuan Fu 25646 1570 January 2, 2007 Jolie Adelle LeNormand 25647 1571 January 2, 2007 Candice G. Lockwood 25648 1572 January 2, 2007 Cherie Lynn Martin 25649 1573 January 2, 2007 Tiffany Boudreaux Mayeaux 25650 1574 January 2, 2007 Kenneth Michael Morrow 25651 1575 January 2, 2007 Leanne Murray 25652 1576 January 2, 2007 Judy Kay Pyeatte 25653 1577 January 2, 2007 William Clint Reeves 25654 1578 January 2, 2007 Preston David Ritchie 25655 1579 January 2, 2007 Cynthia Lee Sheng 25656 1580 January 2, 2007 Ronald W. Smith 25657 1581 January 2, 2007 Jacob D. Waguespack 25658 1582 January 2, 2007 (continued on next page)

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January 22 - 23, 2007

Certificate 2006 / 2007 Active Name Number Control Number Issue Date Jonathan Patrick Booth 25669 1602 January 16, 2007 Kelli Mayfield Broussard 25670 1603 January 16, 2007 Daniel Paul Brown 25671 1604 January 16, 2007 Amy E. Dell 25672 1605 January 16, 2007 Michael Anthony Joseph 25673 1606 January 16, 2007 Toni LeAnn Ladnier 25674 1607 January 16, 2007 Donna Albert Lasseigne 25675 1608 January 16, 2007 Ashley Nicole Miceli 25676 1609 January 16, 2007 Alicia Reneé Nodier 25677 1610 January 16, 2007 Daniel Jacob Pattison 25678 1611 January 16, 2007 Jay J. Rabalais 25679 1612 January 16, 2007 Holly K. Roberts 25680 1613 January 16, 2007 June Seoh 25681 1614 January 16, 2007 Huong Kha Vu 25682 1615 January 16, 2007 Tory Western 25683 1616 January 16, 2007 Colby G. Williams 25684 1617 January 16, 2007 Jessica Morris Wise 25685 1618 January 16, 2007 Malia Moncrief Wollerson 25686 1619 January 16, 2007 2. Re-issuance of Certificates as Active (Licensed) (13) (Previous CPA Examination - Passed Exam Before June 1999) Certificate 2006 / 2007 Active Name Number Control Number Issue Date David L. Ahee B19658 6672 (Void IA 2321) August 18, 2006 Lynda Smith Jackson 20980 6673 (Void IA 3017) August 18, 2006 Sheri Boell Wootan 23613 6674 (Void IA 3158) August 18, 2006 Patrick Joseph Landry, Jr. 20939 6689 (Void IA 3181) August 22, 2006 Kathleen Jackson David 20261 6715 (Void IA 2937) October 13, 2006 Mark Andrew Shaw 22179 6716 (Void IA 2305) October 13, 2006 Elvin Anderson Bullock B23564 1593 (Void IA N/A) January 2, 2007 Arthur John Price 21207 1594 (Void IA N/A) January 2, 2007 Larry J. Gordon 22088 1625 (Void IA ) January 16, 2007 Brent Joseph Hebert 18807 1626 (Void IA 230) January 16, 2007 Tonya Moran Jacobson 22831 1627 (Void IA 1632) January 16, 2007 Tracy Nobles Palmer 19834 1628 (Void IA 109) January 16, 2007 Julie Stackhouse Sparks 22903 1629 (Void IA 298) January 16, 2007 B. Reinstatements of Prior Active Certificates (Licenses) by Executive Director (20)

The Executive Director informed the Board that the following CPAs who were initially licensed, but later elected not to renew their licenses, submitted applications to reinstate to active status (Reinstatement of License). The Executive Director evaluated the applications

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January 22 - 23, 2007

and the applicants’ experience and re-issued CPA Certificates to Practice (License Reinstatements), subject to ratification by the Board. Upon motion by Mr. Bruno, seconded by Mrs. Cochran and unanimously adopted, the Board ratified the re-issuance of the following CPA Certificates to Practice (License Reinstatements) (Item B):

Certificate 2006 / 2007 Active Name Number Control Number Issue Date Mildred Square Carrethers 12775 6747 (Void IA 3334) November 16, 2006 William Carrere Dodenhoff 16193 6748 (Void IA 2605) November 28, 2006 Louis B. Chryssoverges 20887 6752 (Void IA 2337) December 11, 2006 Greg F. Clapinski 24131 6753 (Void IA 3674) December 11, 2006 Stephany G. Bland 17491 1595 (Void IA N/A) January 2, 2007 Addison C. Carey 23624 1596 (Void IA N/A) January 2, 2007 Denise Howell 24639 1597 (Void IA N/A) January 2, 2007 Cecilia S. Medai 18890 1598 (Void IA N/A) January 2, 2007 Lanny Dale Norwood B12509 1599 (Void IA N/A) January 2, 2007 Thomas Marion Peyton, Jr. 16798 1600 (Void IA N/A) January 2, 2007 Mark Anthony Taylor 18644 1601 (Void IA N/A) January 2, 2007 Wayne Robert Colvin 24228 1630 (Void IA 2188) January 16, 2007 Terry Boudousquié DeLeo 17440 1631 (Void IA 3194) January 16, 2007 Christy Smith Dew B23894 1632 (Void IA 2295) January 16, 2007 David Warren Holeman 16235 1633 (Void IA 0593) January 16, 2007 Karen Green Lawhorne 18512 1634 (Void IA 1950) January 16, 2007 Amanda Aguillard Lo 24403 1635 (Void IA 2794) January 16, 2007 Jack Turner Taylor 9462 1636 (Void IA 1717) January 16, 2007 Benjamin George Tombaugh 23881 1637 (Void IA 2903) January 16, 2007 Margaret Williamson Vienne 18382 1638 (Void IA 2907) January 16, 2007 C. Approval of Reciprocal Certificates to Practice by the Executive Director (27)

The Executive Director informed the Board that the following individuals submitted applications for Louisiana Reciprocal Certificates to Practice. The Executive Director evaluated the applications and approved the Reciprocal Certificates to Practice, subject to ratification by the Board.

Upon motion by Miss Honoré, seconded by Mrs. Barnes and unanimously adopted, the Board ratified the issuance of the following Reciprocal Certificates to Practice (Item C):

Certificate 2006 / 2007 Active Issue Orig. Name Number Control Number Date State Kwabina Appiah B25626 6749 December 5, 2006 NY Joseph Walter Barlass S25627 6750 December 5, 2006 TX (continued on next page)

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January 22 - 23, 2007

Certificate 2006 / 2007 Active Issue Orig. Name Number Control Number Date State Darrell K.B. Giles S25628 6751 December 5, 2006 NJ Paul N. Badgley B25632 6757 December 11, 2006 NC Brandon B. Cradeur S25633 6758 December 11, 2006 TX Frank Douglas Deweese S25634 6759 December 11, 2006 TX Lisa M. Fox B25635 6760 December 11, 2006 FL George J. Gorman B25636 6761 December 11, 2006 NY Linh Khanh Nguyen Ho B25637 6762 December 11, 2006 VA Stuart J. Miller B25638 6763 December 11, 2006 IL Kenneth L. Wills S25639 6764 December 11, 2006 TN Francis D. Wright S25640 6765 December 11, 2006 PA Steven L. Beinlich B25659 1583 January 2, 2007 OH Jeffrey Carr Edwards B25660 1584 January 2, 2007 VA Lauren G. Harrison B25661 1585 January 2, 2007 FL

Ashley Witt Israel B25662 1586 January 2, 2007 NC Brian Ray Jones S25663 1587 January 2, 2007 TX Adam C. Nimmer B25664 1588 January 2, 2007 NV Thomas K. O’Neill B25665 1589 January 2, 2007 OH Mary Lisa Ruparel B25666 1590 January 2, 2007 CO Barry Edwin Stewart S25667 1591 January 2, 2007 TX Shelly Griffin Valiulis S25668 1592 January 2, 2007 TN Brian Robert Archambeault B25687 1620 January 16, 2007 IN Jean C. Findley S25688 1621 January 16, 2007 GA Zebee McCullough S25689 1622 January 16, 2007 TN Michael Francis Slavik B25690 1623 January 16, 2007 NC Kenneth Paul Wood S25691 1624 January 16, 2007 SC D. Applications For Certificate to Practice For Board Consideration 1. Application For Reinstatement of Active Certificate (License Reinstatement) Amelia Dooley Campbell (Executive Session)

Mrs. Campbell was initially licensed, but later elected not to renew her license, and has now submitted an application to reinstate to active status (License Reinstatement). Mr. Henderson reviewed the experience submitted by Mrs. Campbell and determined it to be acceptable. However, Mrs. Campbell also submitted an explanation, which will be considered by the Board in Executive Session.

After considering the matter in executive session, upon motion by Mr. Harris,

seconded by Mr. Bruno and unanimously adopted, the Board approved Mrs. Campbell’s application and instructed the Executive Director to reinstate her CPA Certificate as active and assign a control number as follows:

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January 22 - 23, 2007

AMELIA DOOLEY CAMPBELL CERTIFICATE NO. 21553 ACTIVE CONTROL NO. 6342 2. Application For Reissuance of Certificate as Active (Licensed) (Previous CPA Examination - Passed Exam Before June 1999)

Chandrashekhar B. Thanedar Mr. Thanedar was issued a Certificate as an unlicensed CPA on January 27, 1984, and maintained his registration as unlicensed / Inactive Status since then. Mr. Thanedar submitted an application for Reissuance of Certificate as Active (License) in September of 2006. He submitted a copy of a letter addressed to him from the Donna Independent School District in Donna, Texas, which advised him that he was hired in April of 2005; a copy of a letter from the School District in April of 2006 informing him that his contract will not be renewed; and, a copy of a letter from Pattillo, Brown & Hill, LLP, CPAs, independent auditors of Donna Independent School District for fiscal year ending August 31, 2005. Mr. Henderson reviewed the information submitted by Mr. Thanedar and determined that Mr. Thanedar did not meet the requirements for licensure. Mr. Thanedar requested that the full Board consider his application.

After reviewing and considering Mr. Thanedar’s application, upon motion by Miss Honoré, seconded by Mrs. Barnes and unanimously adopted, the Board disapproved Mr. Thanedar’s application. Mr. Henderson was asked to prepare a letter to Mr. Thanedar for signature by Chairman Mr. Tham.

3. Applications For Initial Certificate to Practice

The Executive Director informed the Board that the following individuals passed the CPA examination and submitted applications for an initial Certificate to Practice.

a. Danna Barrilleaux

Mrs. Barrilleaux passed the CPA examination in May 2004. She submitted experience letters from Atmos Energy: from licensed CPA Charles P. Stiebling III, CPA and Vice President of Operations Kenny Malter.

Upon motion by Mr. Harris, seconded by Mrs. Barnes and unanimously

adopted, the Board determined that Mrs. Barrilleaux had met the experience requirements. The Executive Director was instructed to issue her CPA Certificate and assign a control number as follows:

DANNA BARRILLEAUX CERTIFICATE NO. 25692 ACTIVE CONTROL NO. 6314

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b. Lisa Hymel Hotard Mrs. Hotard passed the CPA examination in September 2004. She submitted experience letters from Diamond Services Corporation and Eugene H. Darnall, III, CPA of Darnall, Sikes, Gardes & Frederick ACCPAs, as reviewer of monthly and yearly financial statements prepared by Mrs. Hotard.

Upon motion by Mrs. Barnes, seconded by Mrs. Cochran and unanimously adopted, the Board deferred action on Mrs. Hotard’s application, pending receipt of additional information on licensee supervision and actual contact and interaction with the auditors. Executive Director Mr. Henderson will contact Mrs. Hotard.

VIII. CPA FIRM PERMITS A. Reinstatement of CPA Firm Permits That Were Expired May 1, 2006

The Executive Director informed the Board that the following CPA Firms, with expirations on May 1, 2006 for non-renewal, reinstated their CPA Firm Permits since the October 2006 Board Meeting, prior to December 31, 2006.

Firm Name Firm Permit Number William N. Iverson, CPA, APC 815 Terry Randazzo, CPA 3810

Stephen G. Orkus, CPA 3547 B. CPA Firm Permit Applications The Executive Director informed the Board that the following Firms submitted applications

for CPA Firm Permits. The Director of Administration and the Executive Director reviewed the applications and determined that the Firms satisfied all requirements. The Executive Director issued the Firm Permits, subject to Board ratification. Upon motion by Mr. Bruno, seconded by Mrs. Barnes and unanimously adopted, the Board ratified the issuance of the following CPA Firm Permits (Items A 1, 2 and 3):

1. New Firm Permits (13)

Firm Name Firm Permit Number Issue Date Heider, Tanner & Dirks, APAC 4548 October 6, 2006 M. Dale Wood, Jr., CPA 4549 October 6, 2006 Sanborn CPA, LLC 4550 November 13, 2006 Glenn A. Engolia, CPA 4551 December 1, 2006 Kovalsky & Matthews, LLP 4552 December 11, 2006 (continued on next page)

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Firm Name Firm Permit Number Issue Date Mitchell & Titus, LLP 4553 December 13, 2006 Frank D. Deweese, CPA 4554 December 14, 2006 David L. Crutchfield, II, CPA, APC 4555 December 21, 2006 Elizabeth A. Gossen, CPA, LLC 4556 December 21, 2006 Mary Sue Stages, CPA, LLC 4557 December 21, 2006 Kenneth M. Farrar, CPA 4558 January 3, 2007 Darin K. Seal, CPA, LLC 4559 January 3, 2007 Brandy Westcott, CPA 4560 January 3, 2007 2. Reissuance of Firm Permits (Due to Change in Legal Entity) (4) Firm Name Firm Permit Number Issue Date Donna M. Ingram, CPA, PC 1105 October 6, 2006 Adler & Pias, LLC 659 November 13, 2006 Moina A. Gray, CPA, LLC 2691 November 13, 2006 Natalie M. Matthews, LLC 3706 December 21, 2006 3. Reinstatement of Firm Permits Expired In Prior Years (2) Firm Name Firm Permit Number Issue Date Cammack Accounting, APC 1764 November 8, 2006 Kenneth J. Rachal, CPA 2577 November 16, 2006 C. Other Firm Related Issues 1. John E. Broussard, CPA

John E. Broussard, CPA is in the process of gradually retiring from his Firm, Broussard & Broussard ACCPAs, and would like to register as CPA Inactive status. Mr. Broussard has submitted some questions concerning disclosing his name on Firm letterhead. After reviewing Mr. Broussard’s letter, the Board determined that Mr. Broussard has the following options: (1) Retire his CPA Certificate, discontinue using the CPA title, change the Firm name and then can continue to work in the CPA Firm; or (2) Register in CPA Inactive status, maintain ownership in the Firm, but cannot work in the Firm. Mr. Henderson will inform Mr. Broussard of the Board’s determination.

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2. North Carolina Board Decision Upheld by Supreme Court

The Board reviewed information concerning a recent decision by the U.S. Supreme Court, which upheld the determination by the North Carolina State Board of Certified Public Examiners that the Firm of McGladrey & Pullen could not include the initials “RSM” in the Firm Name.

IX. RECURRING MATTERS AND DEFERRED ITEMS A. Report of Board Rules Committee 1. Revisions To Board Rules

Mrs. Cochran, Chair of the Rules Committee, reported that the recently enacted revisions to Board Rules became effective December 20, 2006. The Rules, as revised, are posted on the Board website. A new reference copy of all Board rules, including the revisions, was distributed to Board Members.

2. Review of Statement of Position on Advertising

Revisions to the Board’s Statement of Position on Advertising were submitted to the Board for consideration. The revisions included the following: providing examples of statements that are permitted concerning guarantees; allowing use of the term “solutions” in the information technology field; clarification concerning the use of laudatory statements in advertising; and, clarification concerning use of third party statements in advertising.

After discussion, upon motion by Mrs. Cochran, seconded by Mr. Bruno and

unanimously adopted, the Board approved the revisions to the Statement of Position on advertising.

B. NASBA 1. NASBA Education Committee

Mrs. Letti Lowe-Ardoin and Mr. Henderson reported to the Board on issues concerning the University of Phoenix, the LSU Accounting Ethics college course, and NASBA’s Education Committee.

2. NASBA Nominations

Mr. Henderson reported that the Board’s office received an e-mail from NASBA with a list of individuals who are currently eligible to be nominated for Vice Chair of NASBA. The Board decided it would not submit any recommendations this year.

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3. NASBA CPA Mobility Task Force

The Board reviewed an e-mail letter from the NASBA CPA Mobility Task Force. Additionally, LCPA Executive Director Mr. Hazel addressed the Board on this matter, and requested that the Board consider implementing the new UAA Section 23 language. This would allow CPAs to practice in Louisiana without notification or fees.

Mr. Hazel, LCPA Executive Director , presented his views on the new UAA

model language. Mr. Henderson discussed his views with respect to enforcement and the potential effects upon Board revenue if a “no fee” approach was taken

After discussion, upon motion by Mrs. Lowe-Ardoin, seconded by Mrs. Barnes

and unanimously adopted, the Board approved language to be included in the Louisiana Accountancy Act which would allow the Board to enact by rule the “no notification / no fee provision” and to address by rule the license (firm permit) requirements to be applied to out of state CPA firms. This is subject to further review and approval by the Board at the April or subsequent meetings.

C. Substantial Equivalency and Mobility Mr. Henderson informed the Board, as compared to other states, the Board has

progressed very well on the mobility. He pointed out that, to date, the Board has: · recognized 25 states as “substantially equivalent”, so that a CPA, who was

granted an original license from such state, can easily receive practice privileges in Louisiana;

· approved granting practice privileges to individual CPAs from “non-substantially

equivalent” states, who have individual qualifications similar or substantially equivalent to those required of Louisiana licensees;

· adopted a progressive and practical rule, beyond what the UAA provides, that

allows the individual with practice privilege to issue reports in his or her firm name without the need to complete or submit additional CPA firm permit forms or firm fees to the Board; and

· judiciously determined that Louisiana, itself, meets “substantially equivalent” to

Louisiana criteria, thereby allowing certain individuals with an original Louisiana Certificate, who have moved to another state and who maintain a reciprocal license there, to opt to obtain Louisiana “practice rights” and cancel their original Louisiana Certificate.

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January 22 - 23, 2007

D. Society of Louisiana CPAs (LCPA) 1. Report by LCPA Executive Director

Grady R. Hazel, CPA, Executive Director of the LCPA, discussed matters of interest to the Board and the profession.

2. LCPA Recognition Dinners

The LCPA is planning to again have recognition dinners or luncheons for those individuals who pass the CPA exam, as was done in previous years prior to the passage of the current Accountancy Act and the computerization of the CPA exam. The Society would like to have a Board representative at the dinners and possibly give a 10-15 minute address. Dates and information were provided by the LCPA for Board Members to attend if possible. Board members agreed to attend and speak at the events.

E. Board Website

The Executive Director informed the Board of the following future items for the website: Add: Add “Staff” button and/or contact list

Add: Posting regular session minutes after adoption for one year Information on filing complaints List of candidates that sat for / passed the CPA exam.

Links: Add link to the ALD when NASBA is ready Consider: “Employment Opportunities” button and page

X. NEW MATTERS

A. Pending Litigation – Louisiana Department of Agriculture and Forestry

Mr. Henderson informed the Board that the Board has been made co-defendant in a suit filed against the Louisiana Legislative Auditor’s office by the Louisiana Department of Agriculture and Forestry, concerning certain provisions of the Accountancy Act. Board attorney Mr. Derbes discussed the litigation with the Board in Executive Session on Tuesday, January 23, 2007. The Board authorized Mr. Tham and Mr. Henderson to approve Mr. Derbes filing an injunction to enforce the Cease and Desist Order issued in this matter, should it become necessary.

B. Amendment to Professional Service Contract - Albert J. Derbes III

The professional service contract for Albert J. Derbes, III for the fiscal year July 1, 2006 through June 30, 2007, in the amount of $20,000, was approved by the Board at the April 2006 Board Meeting. The Executive Director informed the Board that legal services were required in excess of what was anticipated when the contract was executed. It was

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January 22 - 23, 2007

therefore necessary to amend the Derbes contract an additional $20,000. Chairman Mr. Tham previously approved the amendment to the contract and requested that the Board ratify approval of the amendment.

Upon motion by Mr. Bruno, seconded by Mrs. Barnes, the Board ratified the approval of

the amendment to the professional service contract for Albert J. Derbes, III in the amount of $20,000 for the July 1, 2006 – June 30, 2007 fiscal year.

C. Louisiana Property Assistance Agency (LPAA) 1. Moveable Property & Fleet Audit

The Director of Administration informed the Board that the Board’s office is required to report annually to the Louisiana Property Assistance Agency (“LPAA”), as to all moveable property items costing $1000 and over. The Board’s office received notification on January 12, 2007 that LPAA would be conducting a Moveable Property and Fleet Audit during the week of February 13, 2007.

2. Report on Individuals Using Personal Vehicles For State Business

The Director of Administration informed the Board that the LPAA corresponded with the Board’s office and, even though the Board does not have own any vehicles, a Fleet Manager should be designated and mileage reimbursements related to the agency’s “business use” of personal vehicles is to be reported to the LPAA. In addition, agencies are required to maintain a Louisiana State Employee Driver Safety Program Authorization / Driving History and must confirm valid driver’s licenses. Individual driving records are also subject to being checked annually.

D. Report by Director of Practice Monitoring Mrs. Sylvest

1. 2007 - 2009 Ethics Courses

Mrs. Sylvest reported that all approved vendors except Federal Tax Workshop, Inc. have submitted their proposed ethics course for the 2007-09 CPE reporting period for final review. Federal Tax Workshop, Inc. indicated that their proposed course would be submitted shortly. The information submitted by vendors was forwarded to Board Member Mrs. Barnes for review. Mrs. Barnes reported on the courses and recommended Board approval.

Upon motion by Mr. Bruno, Seconded by Mrs. Cochran and unanimously

adopted, the Board approved the ethics courses subject to any corrections that must be made. All vendors will be notified of Board approval and will be asked to wait until April of 2007 to notify Louisiana CPAs of their course and advertise their course.

Chairman Mr. Tham expressed the Board’s appreciation to Mrs. Sylvest, the

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January 22 - 23, 2007

LCPA, and Diane Jones of the LCPA for their hard work and efforts in developing the ethics courses.

2. NASBA CPEtracking

Mrs. Sylvest reported that on October 12, 2006 the Board’s office received a request from NASBA for approval for a mass mailing to notify Louisiana CPAs of the availability of CPEtracking. NASBA submitted a postcard containing information about CPEtracking. Executive Director Mr. Henderson approved the postcard on November 8, 2006. The postcards were mailed by NASBA in late December 2006. Mrs. Sylvest reported that to date 26 Louisiana CPAs have submitted their CPE via NASBA CPEtracking.

3. Request - Approval of CPE for Reinstatement of Active Certificate

The Board reviewed a request from CPA Certificate Number 24102 for

reinstatement of her Certificate to Active status (licensed) by completing specific CPE courses, in lieu of meeting the experience requirement, pursuant to new Board Rule §1105(D)(2). Mrs. Sylvest reported that the CPA is presently self-employed as a management consultant. The CPA began a full time MBA program with Tulane University in the fall of 2004, completing 156 hours for her MBA in the 2004 – 2006 period. The CPA also completed 23 hours of CPE from the LCPA, including 7 hours of ethics.

After consideration of the information provided by the CPA, upon motion by Mr.

Harris, seconded by Mrs. Barnes and unanimously adopted, the Board approved the courses taken by the CPA as acceptable for reinstatement of her license.

4. CPE Extensions

At the October 2006 Board Meeting the Board approved a policy for CPE extensions, similar to what was done in previous reporting period. Director of Administration Mr. Cognevich was appointed Investigating Officer on these matters.

Mrs. Sylvest reported that to date there have been 19 requests for extensions, with

the following status: 1 extension was granted by Board due to extenuating circumstances; 2 extensions were granted by the Investigating Officer due to extenuating circumstances; 2 requests for extensions due to extenuating circumstances were denied by the Investigating Officer - these 2 CPAs changed their registration to Inactive Status; 1 was forwarded to the Special Investigator to execute a Consent Order in accordance with the Board’s adopted policy; and, 13 requests for extension are pending.

Based on the Board’s anticipation of request for extensions due to hardship

caused by Hurricane Katrina, the Board preferred having a second person look at any request that may be subject to denial. If a person has an extenuating circumstance that the Investigative Officer would deny, Chairman Mr. Tham will

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January 22 - 23, 2007

review the request and concur with or reject his determination. If Mr. Tham denies the CPA’s request, then the CPA would have the option of submitting the request to the full Board, by means of email if the Board is not meeting in the near future. If a CPA requests a waiver of hours, such as reduction in the A&A hours, the request would be brought to the Board for consideration. Individual Board Members and the Investigative Officer do not have the authority to waive CPE hours.

5. Status of CPE Reporting Forms for 2004-2006 Reporting Period

The Board reviewed a report by Mrs. Sylvest on the status of CPE Reporting Forms for the 2004-2006 Reporting Period.

6. Report on Out-of-State Exemptions on CPE Reporting Forms

The Board reviewed a report by Mrs. Sylvest on the number of out-of-state exemptions checked on the CPE Reporting Forms for the 2004-2006 Reporting Period.

Mrs. Sylvest reported that the Board’s office received numerous telephone calls about the new “Exception” check off appearing on the CPE Reporting form. Some CPAs believe that taking the exception on the form means that they are not required to comply with Louisiana CPE requirements, and do not understand that the exception simply means that they are not required to provide a detail listing of CPE they have completed on the reporting form.

The Board affirmed that CPAs eligible for an out of state exception for reporting their CPE are not considered exempt from complying with the Louisiana CPE requirements. The Board also affirmed that if a CPA checks the out of state Exception, but attaches the CPE hours to the CPE form, the CPE should be reviewed for compliance with Louisiana requirements, including completion of the ethics course.

In addition, the Board clarified its ethics requirement for out of state licensees.

Upon motion by Mrs. Barnes, seconded by Mr. Harris and unanimously adopted, the Board determined that if an out-of-state Louisiana licensee also has an active certificate in the state of principal business and such state also has a CPE ethics requirement, then if the CPA meets the ethics requirement of that state, they would be exempt from having to take the Louisiana ethics course. This is effective for the 2004-2006 and 2007-2009 CPE Reporting Periods.

7. Request For CPE for a Publication The Board considered a request by CPA Certificate No. 18227, an assistant

professor of accounting, for 30 hours of CPE for an article in the CPA Journal which the CPA co-wrote with two other professors.

(continued on next page)

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January 22 - 23, 2007

Upon motion by Mrs. Barnes, seconded by Miss Honoré and unanimously adopted, the Board approved the CPA’s request.

8. PROC Report

Mrs. Sylvest reported that Mr. Updegraff provided a quarterly report on the AICPA Peer Review Program administered by the Society of Louisiana CPAs. The subcommittee held three teleconference calls.

XI. INFORMATION ITEMS AND ANNOUNCEMENTS A. Mailing of 2007 Renewal Forms 1. First Mailing

The printing of data on renewal forms, and the stuffing, mailing, sorting and bar coding of the 2007 renewal forms, was outsourced to Direct Mail Plus, LLC. The Executive Director informed the Board that renewal forms were mailed on November 1, 2006, as follows:

6,704 Active Certificate holders (licensees) 3,666 Inactive Status registrants (unlicensed) 2,280 Firm Permit Renewal Forms

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12,650 Total

This is an increase of 80 licensees, a decrease of 124 Inactive status registrants, and a decrease of 25 Firm Permit renewals, from the first mailing of 2006 renewals in November and December of 2005.

2. Second Notices

Second Notice renewal forms were also outsourced to Direct Mail Plus, LLC. The Executive Director informed the Board that second notice renewals were mailed by first class mail, sorted, Active and Inactive status on January 15, 2007 and Firm Permit renewals on January 16, 2007 as follows:

1,768 Active Certificate holders (licensees) 953 Inactive Status registrants (unlicensed) 561 Firm Permit Renewal Forms 3,282 Total

This is an increase of 994 licensees, an increase of 401 Inactive status registrants, and an increase of 211 Firm Permit renewals, from the second notice mailings of 2006 renewals (March 10, 2006).

January 22 - 23, 2007

3. Expiration Notices

The Certificates, Inactive status registrations, and Firm Permits that are not renewed on or before February 28, 2007 will be officially expired. Expiration notices will be mailed by certified mail on March 1, 2007.

XII. REPORTS ON CONFERENCES A. NASBA 99th Annual Meeting October 29 - November 1, 2006 Atlanta, Georgia

Mrs. Cochran, Mr. Harris and Mr. Henderson attended. B. AICPA – BOE - State Board Committee January 4-5, 2007 Ewing, New Jersey Mr. Henderson attended. XIII. FUTURE MEETING / CONFERENCE DATES A. AICPA – BOE - Practice Analysis Oversight Group (PAOG) January 24-26, 2007 - Phoenix, Arizona

Mr. Henderson will attend. B. Tulane Beta Alpha Psi Professional Meeting

Mr. Henderson reported that he was invited to speak on an accounting-related topic at one of the Professional Meetings for Tulane Beta Alpha Psi. Mr. Henderson plans to speak at their March 30 meeting. His presentation will be “CPA Licensing Requirements: The Three E’s…Education, Examination, Experience.”

C. NASBA 24th Annual Executive Directors Conference March 11 – March 14, 2007 - Las Vegas, Nevada Mr. Henderson will attend. D. NASBA 12th Annual Legal Counsel Conference March 11 – March 13, 2007 Held in conjunction with Executive Director’s Conference. Mr. Laborde will attend.

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January 22 - 23, 2007

E. NASBA 2007 CPE Conference March 12 – March 14, 2007 Held in conjunction with Executive Director’s Conference. Mrs. Sylvest will attend. F. NASBA Regional Meetings 1. Western Regional Meeting (Louisiana --NASBA SW Region-- attends) June 20 - 22, 2007 - Colorado Springs, Colorado 2. Eastern Regional Meeting (alternate for members who cannot attend Western) June 6 - 8, 2007 - Williamsburg, Virginia G. NASBA 100th Annual Meeting October 28 - 31, 2007 - Maui, Hawaii XIV. UPCOMING BOARD OFFICE HOLIDAYS February 20, 2007 Mardi Gras April 6, 2007 Good Friday XV. NEXT BOARD MEETING

Wednesday, April 25, 2007 Thursday, April 26, 2007 XVI. EXECUTIVE SESSION MATTERS

In order to convene Formal Administrative Hearings, hear reports on the status of compliance with Board Decisions and Consent Orders, the status of investigations, and to address other executive session matters, an executive session was convened and called to order by Chairman Mr. Tham upon motion(s) made, as follows: Upon motion by Mrs. Cochran, seconded by Mr. Harris and unanimously adopted, the Board went into executive session on January 23, 2007 at 9:03 a.m. Upon motion by Mrs. Barnes, seconded by Mrs. Cochran and unanimously adopted, the executive session adjourned at 12:28 p.m.

A. Formal Administrative Hearing In the Matter of Kenneth Louis Shutt (Certificate No. 19863, Expired) File No. 04-03-133 January 23, 2007

The Board considered testimonial and documentary evidence presented at the Administrative Hearing in Executive Session on January 23, 2007. (continued on next page)

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January 22 - 23, 2007

In regular session, upon motion by Mr. Tham, seconded by Mrs. Lowe-Ardoin, by a vote of 6-0, the Board found the following Findings of Fact and Conclusions of Law, and ordered the following actions:

Findings of Fact

1. Kenneth Louis Shutt was certified as a Certified Public Accountant ("CPA") by the Board as evidenced by CPA Certificate Number 19863, dated July 26, 1989. Mr. Shutt was granted a license to practice as a CPA in 1990. Mr. Shutt’s CPA Certificate and license to practice as a CPA expired effective January 1, 1997 due to non-renewal and have not been reinstated.

2. On March 15, 2004, the Board’s office received, via fax transmission from the

U.S. Attorney’s Office for the Middle District of Louisiana, a copy of a criminal Bill of Information filed against Kenneth L. Shutt. The Bill of Information charged Mr. Shutt with Bank Fraud against Bank One, Regions Bank, and Business Bank in an attempt to obtain monies from those banks by means of materially false and fraudulent pretenses. Mr. Shutt’s alleged actions included a check-kiting scheme, the overstatement of accounts receivables, the submission of false financial statements, and the submission of forged certified public accountants reports. Mr. Shutt was also charged with the Theft of $31,053.15 withheld from wages and salaries of employees, which were intended to pay health care premiums.

3. As a result of the information obtained from the U. S. Attorney’s Office, and investigative file was opened on March 25, 2004. 4. On June 23, 2004, the Board’s Compliance Administrator Clinton J. Cognevich

sent a letter to Mr. Shutt via certified mail informing him that a file had been opened and asking for a response to potential violations of the accountancy act and rules promulgated by the Board.

5. On July 12, 2004, the Board’s communication dated June 23, 2004 was returned to the Board’s office stamped insufficient address. 6. On July 15, 2004, Mr. Cognevich sent another copy of his letter dated June 23,

2004 to the last known address Mr. Shutt had on file with the Board, this time by first class mail. The letter was not returned to the Board’s office.

7. To date the Board’s office has received no response from Kenneth Louis Shutt to Board communication dated July 15, 2004. 8. On September 8, 2004, Board Compliance Administrator Clinton J. Cognevich

sent a letter to Mr. Shutt via certified mail at an updated address informing him that an investigative file had been opened and asking for a response to potential violations of the accountancy act and rules promulgated by the Board. The return receipt indicates that Mr. Shutt received the letter on September 9, 2004.

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January 22 - 23, 2007

9. To date the Board’s office has received no response from Kenneth Louis Shutt to Board communication dated September 8, 2004. 10. On August 19, 2005, Board Investigator Craig Laborde contacted the Clerk of

Court for the United States District Court, Middle District of Louisiana and requested information concerning Mr. Shutt’s guilty plea to the charges contained in the Bill of Information. On April 28, 2005, Mr. Shutt pled guilty to one count Bank Fraud and one count of Theft in Connection with a Health Care Benefit Program. As a result of his plea to the felony charges, Mr. Shutt was sentenced to fifty-seven months in federal prison and ordered to pay $818,739.98 in restitution. Following his release, Mr. Shutt will be placed on supervised release for five years. He is currently incarcerated in the Federal Correctional Institute in Yazoo City, Mississippi.

11. On August 26, 2005, Board Investigator Mr. Laborde sent a letter to Mr. Shutt via

certified mail informing him that a file had been opened and again asked for a response to potential violations of the accountancy act and rules promulgated by the Board.

12. On November 8, 2005, the Board’s office received a letter from Mr. Shutt. The

letter, dated September 22, 2005, requested an extension to respond to the Board’s communication dated August 26, 2005. To date, however, the Board’s office has received no response from Kenneth Louis Shutt to Board communication dated August 26, 2005.

13. The Board’s Investigating Officer reviewed the information obtained in this

matter and authorized the offer of a Consent Order as a possible resolution in this matter. The provisions of the Consent Order called for Mr. Shutt’s CPA Certificate to be revoked and returned to the Board’s office, along with publication of the Board’s action in the newsletter of the Louisiana Society of Certified Public Accountants. On July 7, 2006, the Consent Order was sent to Mr. Shutt via certified mail. The return receipt indicates that Mr. Shutt received the Consent Order on July 12, 2006.

14. To date the Board’s office has received no response from Kenneth Louis Shutt to Board communication dated July 7, 2006.

Conclusions of Law

Based on the foregoing Findings of Fact, the Board concludes as a matter of Law:

15. Kenneth Louis Shutt pled guilty as charged to one felony count of Bank Fraud and one felony count of Theft in Connection With a Health Care Benefit Program

in United States District Court under Docket Number 3:04CR00026-001, in violation of La. Rev. Stat. §37:79.A(6).

16. By his actions, as outlined in the Bill of Information filed by the U.S. Attorney’s

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January 22 - 23, 2007

Office, Kenneth Louis Shutt committed acts of dishonesty and fraud, in violation of La. Rev. Stat. §37:79.A(4).

17. By his actions, as outlined in the Bill of Information filed by the U.S. Attorney’s

Office, Kenneth Louis Shutt committed fraudulent acts, in violation of La. Rev. Stat. §37:79.A(7).

18. By his actions, as outlined in the Bill of Information filed by the U.S. Attorney’s

Office, Kenneth Louis Shutt exhibited conduct reflecting adversely upon his fitness to perform services while a licensee, in violation of La. Rev. Stat. §37:79.A(8).

19. By his actions, as outlined in the Bill of Information filed by the U.S. Attorney’s

Office, Kenneth Louis Shutt engaged in efforts to deceive or defraud the public, in violation of La. Rev. Stat. §37:79.A(11).

20. Mr. Shutt’s conviction for the crimes of Bank Fraud and Theft in Connection with

a Health Care Benefits Program constitute fiscal dishonesty, in violation of La. Admin. Code §46:XIX.1707.A(2).

21. By his actions, as outlined in the Bill of Information filed by the U.S. Attorney’s

Office, Kenneth Louis Shutt engaged in conduct which brought dishonor to the profession of public accounting, in violation of La. Admin. Code §46:XIX.1707.A(11).

22. The Board’s office received no response from Mr. Shutt to Board

communications dated July 15, 2004, September 8, 2004, August 25, 2005 and July 7, 2006, all in violation of La. Admin. Code §46:XIX.1707.H.

23. The violations of the above cited provisions of the Board Rules of Professional

Conduct, rules promulgated by the Board, and the Louisiana Accountancy Act provide grounds for the Board to suspend, revoke, or impose probationary or other restrictions on Kenneth Louis Shutt’s Louisiana CPA Certificate and CPA Firm Permit, or impose administrative fines or any other action the Board may deem appropriate, pursuant to La. Rev. Stat. §37:79.A(5) and La. Rev. Stat. 37:79.B.

Orders

Respondent Kenneth Louis Shutt is found to have violated the above rules and law. In consideration of the foregoing and pursuant to the authority vested in the Board by La. Rev. Stat. § 37:71 et seq., the Board ordered the following:

The Louisiana Certified Public Accountant Certificate number 19863 issued to Kenneth Louis Shutt is hereby REVOKED. Such revocation shall be a full and complete revocation of the Respondent's Certified Public Accountant Certificate.

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January 22 - 23, 2007

Respondent Kenneth Louis Shutt shall return his Louisiana Certified Public Accountant Certificate number 19863 to the Board's office, 601 Poydras Street, Suite 1770, New Orleans, Louisiana 70130, for cancellation, within sixty days of the rendering of this Decision by the Chairman of the Board.

Respondent Kenneth Louis Shutt shall satisfy and pay, or cause to be satisfied and paid, an administrative fine in the amount of nine thousand ($9,000) dollars, due and payable to the Board within sixty (60) days of the rendering of this Decision by the Chairman of the Board.

Respondent Kenneth Louis Shutt shall satisfy and pay, or cause to be satisfied and paid, all costs and expenses incurred by the Board in this matter, within sixty (60) days of the rendering of this Decision by the Chairman of the Board. The total amount of such costs shall be certified by the Executive Director of the Board.

A summary of the Board's findings and action in this matter will be forwarded to the Society of Louisiana CPAs for publication in the newsletter Lagniappe. The publication of this matter will include the Respondent's name.

A summary of the Board's findings and action in this matter will be forwarded to all State Boards of Accountancy, and other appropriate public authorities and private professional organizations.

All fines and Board costs assessed in this matter must be paid in full prior to the Board considering any request for reinstatement by Respondent, Kenneth Louis Shutt. Consideration of any such request for reinstatement to be at the sole discretion of the Board.

Board Member Michael B. Bruno, CPA, Investigating Officer on this matter, took

no part in the Hearing or consideration of this matter. B. File Closed With No Cause For Action 1. File No. 00-09-50

In regular session, upon motion by Mrs. Cochran, seconded by Mrs. Lowe-Ardoin and unanimously adopted, the Board found no cause for action and officially closed the above file.

C. Files Closed With No Cause For Further Action 1. File No. 04-02-43

In regular session, upon motion by Mrs. Barnes, seconded by Mrs. Lowe-Ardoin and unanimously adopted, the Board found no cause for further action and officially closed the above file.

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January 22 - 23, 2007

D. File Closed With the Stipulation that the File May Be Reopened if the Complainant can be located or otherwise contacts the Board concerning the file.

1. File No. 05-05-09

In regular session, upon motion by Mrs. Lowe-Ardoin, seconded by Mrs. Barnes and unanimously adopted, the Board officially closed the above file with the stipulation that it may be reopened if the Complainant can be located or otherwise contacts the Board concerning the file.

E. File Closed With the Stipulation that the file may be reopened if the Respondent can

be located. 1. File No. 06-03-10

In regular session, upon motion by Mrs. Lowe-Ardoin, seconded by Mrs. Cochran and unanimously adopted, the Board officially closed the above file with the stipulation that it may be reopened if the Respondent can be located.

F. Enforcement of Board Decision issued in the matter of Suzanne Hargrove Williams

(Board File 06-02-05), should she fail to comply with the Orders contained in the Board’s Decision by the February 5, 2007 due date.

In regular session, upon motion by Mr. Harris, seconded by Mr. Bruno and unanimously

adopted, the Board officially approved forwarding the Final Decision in this matter to the Board’s attorneys for enforcement after the February 5, 2007 due date for the Respondent to comply with the Orders contained in the Decision.

G. Other Executive Session Actions 1. George Rabb - Request For Reinstatement As CPA

The Board considered information presented by Mr. Rabb in executive session in his request for reinstatement. In regular session, upon motion by Mrs. Lowe-Ardoin, seconded by Mrs. Barnes and unanimously adopted, the Board denied Mr. Rabb’s request for reinstatement.

2. Talmadge E. Mitchel, CPA - Request For Removal of Restriction on Ability

to Perform Attest Engagements

In regular session, upon motion by Mrs. Barnes, seconded by Mr. Harris and unanimously adopted, the Board decided that Mr. Mitchel’s request would be reconsidered after he completes a total of 80 hours of Accounting and Auditing CPE, with at least 24 hours in governmental accounting and 12 hours in compilations and reviews. The Board’s Director of Practice Monitoring, Jacqueline Sylvest, CPA will provide Mr. Mitchel with a list of acceptable courses. Mr. Mitchel will also be subject to post issuance review if he is allowed to return to attest work.

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January 22 - 23, 2007

3. Amelia Daniel - Consideration of Information in Request For Reinstatement of License

After reviewing information provided by Ms. Daniel, in regular session upon Motion by Mr. Harris, seconded by Mr. Bruno and unanimously adopted, the Board approved Ms. Daniel’s request for reinstatement.

G. Reports made by each respective Investigating Officer on the status of their

investigative files and other reports on status of matters provided by Board staff.

Upon motion by Mrs. Barnes, seconded by Miss Honoré, the Board accepted these reports.

XVII. ADJOURNMENT Monday, January 22, 2007:

There being no further business to discuss, upon motion by Mrs. Cochran, seconded by Mrs. Lowe-Ardoin and unanimously adopted, the meeting adjourned at 5:37 p.m. on Monday, January 22, 2007.

Tuesday, January 23, 2007:

There being no further business to discuss, upon motion by Mr. Bruno, seconded by Miss Honoré, and unanimously adopted, the meeting adjourned at 1:15 p.m. on Tuesday, January 23, 2007.

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January 22 - 23, 2007

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