The Kentucky CPA Journal - Issue 6 2015

The Kentucky CPA Issue 6 2015

The Journal of the Kentucky Society of CPAs

kycpa.org

Journal

2016 legislative previewTax administration changes on the horizonWatch for these four risks in 2016Tech that’s changing business

The year ahead

Learn from the best faculty, experts in their fields, handpicked from these two exceptional accredited universities. Experience an energizing cohort of mid to C-level executives and gain

significant business contacts to expand your professional network. The convenient every-other-weekend format allows you to get an advanced MBA in only 17 months, advancing your career without interrupting it. Boost your career with an Executive MBA from the University of

Kentucky and University of Louisville. Scholarships are available. Learn more today!

ExecMBA.bizU N I V E R S I T Y O F K E N T U C K Y U N I V E R S I T Y O F L O U I S V I L L E

One Exceptional MBATwo Great Universities

2015 ExecMBA-KYCPA fullpage.indd 2 9/4/15 2:55 PM

The Kentucky CPA Journal / Issue 6 2015 What’s inside

kycpa.org 3

What’s insideThe 2015-2016 KyCPA Board of Directors: Bob Patterson, president, of Patterson & Company, Louisville; Kevin Schwartz, immediate past president, of Myriad CPA Group, Owensboro; William Jessee, president-elect, of Henderman Jessee & Company, Louisville; Kevin Joynt, secretary-treasurer, of Deloitte & Touche, Louisville; Rebecca Phillips, executive committee member, of MCM CPAs & Advisors, Louisville; Elizabeth Woodward of Dean Dorton, Lexington, executive committee member; Jaclyn Badeau of Tempur Sealy International Inc., Lexington; Melissa Buddeke of the Buddeke Company, Louisville; Lori Dearfield of Kelley Galloway Smith Goolsby, Ashland; Jennifer Hughes of Deming Malone Livesay & Ostroff, Louisville; Skip Looney of Rudler, Fort Wright; Wes Omohundro of the Allen Company, Inc., Lexington; Elizabeth Rankin of Creative Retirement Systems, Cincinnati, Ohio; William Stout of the University of Louisville, Louisville; and David Tate of BKD, Louisville2015-2016 Editorial Board: Mark Loyd, chair, of Bingham Greenebaum Doll, Louisville; Brian Breidenbach of Breidenbach Capital Consulting, Louisville; Haley Edin of Stuedle Spears & Francke, Louisville; Renee Fulton of Talis Group, Louisville; Michelle Musacchio of Fit Money CPA, Louisville; Gordon Crowley of Eastern Kentucky University, Richmond; Sheri Henson of Western Kentucky University, Bowling Green; Esther Thompson-Long of LG&E and KU Services, Louisville

CEO - Penelope P. Gold Editor - Lorri Malone Associate editor/Art director - Kimberly Lindsey

Letters to the editor: If you have ideas to share, opinions to express or suggestions for future stories, please email Editor Lorri Malone, KyCPA communications director, at [email protected].

Advertising: If you would like to advertise in The Kentucky CPA Journal, please contact the Society at [email protected]; 502.266.5272.

Please note: this publication is not technically reviewed. Opinions expressed in The Kentucky CPA are those of the authors and do not necessarily reflect Society policy or editorial concurrence. Publication of advertisements does not constitute an endorsement of products or services. The editor reserves the right to accept or reject advertising and editorial material in accordance with editorial judgment and publication guidelines.

Cover and Focus2016 Legislative Preview................................. Page 4Four risks to watch in 2016............................. Page 8Tech’s Big 6........................................................ Page 10

CPEJanuary 2016 highlights................................... Page 16Save the Date: 2016 Spring conferences........ Page 18

TaxKentucky tax administration changes........... Page 19Louisville Metro Revenue Commission........ Page 21

Business and IndustryDigital business model.................................... Page 24

Accounting careers2016 BASE Camp applications....................... Page 27Scholarship applications ................................ Page 27College Leadership nominations................... Page 28Free CPA Exam Workshop............................. Page 28PEAK teams forming....................................... Page 28

Educational FoundationImpacting lives.................................................. Page 292016 Golf Scramble........................................... Page 30Create a Legacy................................................. Page 31

Society2015 Fall Awards Banquet............................... Page 34Congratulations new CPAs............................. Page 36Emerging Professionals networking............. Page 38KyCPA honors 100% Champions.................. Page 392015 ALTAA session........................................ Page 41

MembersWelcome new members................................... Page 42AICPA/CPA-SEA Leadership Conference.... Page 45

ClassifiedsClassifieds.......................................................... Page 46

The Kentucky CPA Journal / Issue 6 2015 Cover

2016 Legislative PreviewBy Charles George

Difficult budget session awaits legislature in 2016.

“We are Kentucky.” Gov. Matt Bevin’s campaign slogan and subsequent victory proved we are a more conservative Kentucky than ever. A Republican tidal wave swept the Bluegrass state on Nov. 3, resulting in an out-of-nowhere landslide triumph for Bevin and strong Republican support for the other four constitutional officer races. In the end, Republicans also picked up the auditor and treasurer seats, easily held on to agriculture commissioner, and narrowly lost the attorney general and secretary of state races.

Though Republicans have momentum on their side, the state House is still controlled by Democrats and a hugely important budget session awaits lawmakers in early January. Indeed, Gov. Bevin has little time to toast his victory. Just more than a month into his new gig, Bevin must hire a new administration consisting of hundreds of key positions, develop relationships and sell his legislative priorities, and write a biennial budget with little new money with which to work. That’s no song and dance, my friends.

The 2016 General Assembly, a 60-day or “long” budget session, kicks off January 4 and is slated to end right around Tax Day. Throughout the session, KyCPA will advocate for our members on tax, license and general business issues, and any other issue that affects the CPA designation. Below is a preview of some of the key issues we’ll be closely watching next year:

State budget and taxesFirst, some good news. State revenues exceeded

budgetary estimates by about $165 million in FY15, and are projected to exceed FY16 estimates by almost $220 million. FY15 was the first year revenues exceeded 5 percent growth since FY07. Kentucky’s

economy has showed a steady upward trajectory, particularly in the manufacturing sector, and its unemployment rate (5.1 percent) is the lowest since 2007.

Now, the really, really bad news. This budget “surplus” and expected revenue growth moving forward does not come close to meeting the Commonwealth’s exceedingly large expenses. The biggest areas of concern are state pension obligations and Medicaid expansion, not to mention normal budget increases for education and public protection.

Although a number of changes to Kentucky’s public employee pension system were made in 2013, pension reform isn’t over. The Kentucky Employees Retirement System (KERS) - which includes almost 120,000 people in non-hazardous jobs - is only 17 percent funded after investment projections were recently downgraded, 4 percent lower than a year ago. The much larger Kentucky Teachers Retirement System - which includes nearly 300,000 people - is 45 percent funded if GASB 68 is used, down slightly from a year ago. As part of its 2013 reforms, the legislature committed to paying the full actuarially required contribution (ARC) for KERS, which it had failed to do previously. However, it did not make the same commitment to KTRS and budget committee members have already acknowledged that its ARC will not be fully funded in the next biennium. Former Gov. Steve Beshear formed a committee to find a funding solution, but its recently-released report contained more information than it did recommendations.

The money needed to fund the ARC is staggering. In a recent legislative committee meeting, Kentucky Retirement System (KRS) officials (who

kycpa.org 5


Continued on p. 6

“We are Kentucky.”

manage KERS) said they needed an additional $130 million over the next biennium to pay the ARC, and KTRS officials requested a Trump-size $1 billion. Where will the General Assembly get the cash?

Apparently not from bonds. KTRS’ legislation last year to issue a $3.3 billion bond - which passed the House - does not have the needed support in the Senate, and Gov. Bevin opposes pension obligation bonding. There will also be a standoff on how to change benefits for existing and new hires. The teachers’ union and most House Democrats want teachers to retain their defined benefit plan, but the Senate is unwilling to budge on any new funding solution without benefit changes, at least for future hires. Gov. Bevin said on the campaign trail he wants to move new teachers to a 401K plan, while the 2013 KRS reforms moved other new state employees to a hybrid defined benefit/defined contribution plan. The so-called “involiable” contract (meaning employees are owed the pensions promised when hired) arguably prohibits the state from making significant benefit changes for existing employees and retirees.

Revenue-raising tax reform is also a longshot. Raising taxes is essentially a non-starter in the Republican-controlled Senate and the new governor’s office, and unlikely in a narrowly controlled Democratic House trying to hold on to its majority. There’s little incentive for Republicans to cut a deal with Democrats on any type

of tax reform since there’s strong belief they’ll be able to carry their 2015 momentum to gain control of the House next year. In general, Gov. Bevin favors transitioning to a consumption-based tax system, ending the inheritance and inventory taxes, and reducing tax expenditures.

However, KyCPA will be keeping a close eye on any tax changes in 2016, particularly during late-session budget negotiations. In order to pay for more modest pension cost increases in 2013, the legislature passed an under-the-radar bill that cut retailers’ sales tax collection compensation, slightly raised corporate taxes through addback of management fees and authorized the state to revoke licenses of delinquent taxpayers. A similar move to use “pay-for” provisions from the 2012 Blue Ribbon Commission on Tax Reform report is also a possibility in 2016. While unlikely to pass in the Senate, the House is expected to consider a bill that implements combined reporting and a throwback rule for corporate taxpayers, with the added revenue used to pay for a state earned income tax credit.

KyCPA also plans to advocate for the following tax changes:• Clarify the ambiguous cost

of goods sold definition in Kentucky’s limited liability entity statute to make it simple, fair and easier for businesses and tax practitioners to comply. This effort has had strong bi-partisan support in the past.

• Simplify Kentucky’s estimated tax rules to mimic federal rules, creating a safe harbor for businesses who make money unevenly throughout the year.

• Return to a balanced interest rate on taxes owed to and by the Commonwealth, eliminating the current 4 percent differential.

• Update Kentucky’s reference date to the internal revenue code. The current reference date is December 31, 2013. The state should also consider the impact of conforming with IRC depreciation rules.

Pension changesIn addition to finding

ways to fund pensions, many lawmakers would also like to make transparency changes to the system, particularly in light of KRS’ recent investment performance. In FY15, KRS’ return on investments was a dismal 2 percent. The Kentucky Chamber and others, including new state auditor Mike Harmon, have called for a comprehensive performance audit of the system. KyCPA has supported the Chamber’s efforts through representation on its Public Pension Task Force. One legislative proposal that has strong bi-partisan support is requiring KRS to disclose its use of and fees to placement agents, middlemen who connect money managers to pension systems. In September, KRS revealed that it spent over $126 million on investment fees alone in 2014.

6


Legislative Preview continued

Taxpayer rightsIn 2015, KyCPA developed

and supported the Taxpayer Rights Enhancement Act (TREA), a bill aimed to strengthen the current Taxpayer Bill of Rights by ensuring transparent, efficient and predictable tax policies and administration. Though the bill didn’t pass, it spurred a constructive dialogue between the Society and the Kentucky Department of Revenue, with multiple meetings this summer. KyCPA thanks the Department for committing to make improvements in certain areas, including the creation of a tax practitioner-only hotline.

However, with the election of Gov. Bevin, there will likely be a number of leadership changes at the Department. KyCPA plans to work with the new administration to determine how both the Society and Department can move forward in implementing TREA’s provisions, whether through regulation or legislation. KyCPA’s number one priority is to increase the level of guidance for taxpayers and tax practitioners.

Medicaid expansion and kynect

First, a quick clarification on these two hotly debated government programs. Medicaid is the federal and state-funded health care program for low-income and disabled citizens, while kynect is Kentucky’s health insurance exchange formed under Obamacare. kynect offers both Medicaid and private insurance plans, both subsidized and unsubsidized by the federal government. Through an executive order in 2013, Gov. Beshear expanded Medicaid to 133 percent of the poverty level and created kynect.

Right now, the federal government is picking up 100 percent of the Medicaid expansion tab, but the state will be responsible for 5 percent of the expanded population’s cost starting in 2017. The state’s portion eventually increases to 10 percent in 2021. A study released from Deloitte earlier this year makes the case that, from a pure state budgeting

standpoint, Medicaid expansion is cost effective for Kentucky. Because of the influx of federal dollars and resulting economic effect, it estimates the state will actually net $919.1 million until FY21 (keep in mind, however, that federal dollars are still our tax dollars).

Created with the help of nearly $240 million from the federal government, kynect’s ongoing operating expenses are funded through a fee paid by insurers to participate. It requires no General Fund dollars. Gov. Bevin has pledged to both roll back the expansion of Medicaid, replacing it with a block grant program similar to Indiana’s, and dismantle kynect, moving current enrollees to the federal exchange. Although he can accomplish this through an executive order, a standoff with legislators looms. While key Senate Republicans back Bevin’s intentions, they want the legislature to have a role in how these programs take shape moving forward.

kycpa.org 7


Want to get involved? Become a Key ContactWhile KyCPA advocates work hard to ensure your voice is heard in Frankfort, nothing influences a legislator more than hearing from a friend or constituent. Key Contacts are crucial to personalizing and localizing the political impact of state and federal legislation. If you have a relationship with a state or federal lawmaker, become a Key Contact and let us know how you can help us. Responsibilities of a Key Contact include:• Contact legislators about key legislation impacting the CPA profession when requested by KyCPA• Maintain and build relationships with your legislators• Keep KyCPA in the loop about issues you’ve discussed with legislatorsTo become a Key Contact, contact Charles George at [email protected] or 502.736.1366

Continued on p. 8

By Kenneth J. Mackunis

As accounting firms move through 2016, they will face a risk landscape that requires

constant vigilance. Emerging risks will challenge firm leaders to get up to speed on new issues and regulations. Traditional risks will take on renewed importance and clamor for more attention.

While this risk landscape is vast, there are four risks that should be near the top of every accounting firm’s watch list for the year.

Reputation and image risks Reputation is more valuable than just about any

other asset an accounting firm possesses. After all, a reputation touches so many aspects of the business, from the services provided to the client roster to employee recruitment and retention, and more.

While reputation risks - both internal and external - have always been present in the accounting industry, there’s a major difference today: the speed at which information spreads, thanks in large part to social media, 24/7 news cycles and a growing citizen journalist movement. As a result, firms now only have a few minutes or hours to respond to a potential reputation issue instead of a few days.

“In the accounting world, your reputation is absolutely everything,” said Alvin Fennell, vice

president, Aon Insurance Services, Inc. “It’s critical to have a structure in place to monitor for those risks and quickly address them. You can’t wait and hope that an issue will disappear -- because odds are it won’t.”

The AICPA Code of Professional Conduct is a valuable resource for firms looking to develop or enhance a reputation risk management strategy. The code even includes a conceptual framework for how a CPA should proceed when there’s no established guidance for a situation.

Increasing complexity of firm management

Now, more than ever, firm management needs to stay abreast of a broad array of issues. New regulations regarding how firms perform services as well as how they treat and compensate their employees continue to evolve. Niches have emerged, tempting firms to expand into new areas of practice or industries. Cybersecurity and big data have become a part of everyday vocabulary. And social issues have reshaped how firms recruit and retain their employees. For example, today’s firm leaders must be aware of religious, LGBT, and generational matters, among others, as they interact with employees and consider internal policies.

8

The Kentucky CPA Journal / Issue 6 2015 Focus

Four risks to watch in 2016

Local option sales taxBacked by some business groups and city and county officials, this proposal would amend the

constitution to local governments to impose a local sales tax, by popular vote, for specific capital projects. Though it passed the House last year, it failed to get a hearing in the Senate, and its prospects look more dim this year. Gov. Bevin has indicated that while he doesn’t favor the approach, he would not block it. Recently, the Council on State Taxation and Ernst &Young released a study showing that businesses paid nearly half of the Kentucky sales tax in FY14. This hidden impact of the sales tax on business causes some lawmakers trepidation. Additionally, the proposal would likely hamper any efforts for the state to increase its sales tax in the future.

Those are just a few of the major issues to be considered by the 2016 Kentucky General Assembly. As always, if you have any suggested legislation that will positively impact the CPA profession, feel free to contact me. I value your input.

About the author: Charles George is the KyCPA director of government affairs. He can be reached at [email protected] or 502.266.5272.

Legislative Preview continued

The AICPA’s practice management section is a good starting point, offering a wide range of publications from a complete business manual to short bulletins on relevant breaking news items. Larger firms are hiring general counsel to navigate the changing landscape.

Cybersecurity Accounting firms face

cybersecurity issues from all sides. They are constantly fending off hackers who always seem to be one step ahead of the latest security patch. They have to deal with employees who inadvertently expose the firm to threats by leaving a laptop behind or clicking on a malicious link from a company computer. And they have to worry about their vendor’s security, which can directly impact their own.

“Accounting firms are an incredibly attractive target for hackers because of the volume of confidential data they have on file,” said Ken Kumor, senior vice president, Aon Insurance Services, Inc. “And this is not just an issue for big firms. Small

and mid-sized firms get hacked just as often as their larger counterparts.”

Anti-virus software should be just one layer of a firm’s cybersecurity strategy. Employee education, vendor security evaluations, Bring Your Own Device (BYOD) policies, cyber liability insurance and more are all tools that can enhance the strength of a firm’s cybersecurity efforts.

Failure to clearly define scope of services

It seems so simple, but not clearly defining the scope of services continues to cause serious issues for accounting firms. In fact, about 40 percent of the professional liability claims of the AICPA Professional Liability Insurance Program each year involve a disagreement about the scope of services. So how can a firm mitigate this risk? It comes down to one simple word: documentation.

“We advise our clients to document everything - from scope of work to informal business conversations,” said Fennell. “If it’s not documented, it’s simply not defendable.”

The first step in any new client relationship should be an engagement letter that clearly outlines the scope of service, the client’s and firm’s respective responsibilities, limitations of service, fee and payment terms, dispute resolution, and termination provision. But remember, writing that initial engagement letter is just the beginning. Teams should revisit it often to ensure they are always within scope and update it any time the relationship changes.

Other types of documentation are also critical to preventing a scope of services dispute. Client memos and follow up emails are good documentation tools when they are thoughtfully written, including such key details as who was present during the conversation, when and where it took place, and a high level overview of any decisions made.

About the author: Kenneth J. Mackunis ([email protected]) is an

executive vice president at Aon

Insurance Services, Inc.kycpa.org 9


Accounting firms will face a risk landscape that requires constant vigilance. Emerging risks will challenge firm leaders to get up to speed on new issues and regulations.

By Mary E. Morrison

Take a look at six far-out technologies changing the very nature of business. Editor’s note: Reprinted courtesy of INSIGHT Magazine, The Magazine of the Illinois CPA Society. For the latest issue, visit www.icpas.org/insight.htm.

The tech world moves at warp speed; categories, companies and products can rise or fall within

the blink of an eye. Knowing which technologies will take hold and change the way we live and work is a bit of a guessing game, so we’ve asked two experts to sound off. With input from Randy Johnston, founder & CEO, Network Management Group Inc., and executive VP, K2 Enterprises, and Paul Edlund, chief technologist-midwest at Microsoft Corp., we’ve compiled a list of six technologies that could have a big impact on finance professionals, business people and consumers alike over the next five years.

1. The Internet of Things You’ve likely heard about the Internet of Things

- the concept of giving everyday objects network connectivity so they can send and receive data. But you’ll hear even more about it over the next

few years. In 2014, there were 3.9 billion connected devices being used in the United States, according to IT research firm Gartner, and by 2020 that number is expected to rise to a flabbergasting 25 billion.

Which begs the questions, what exactly will be connected, and how will it affect each and every one of us?

Connected objects in the home and office already exist. Take the Nest thermostat, which debuted three years ago and allows users to control heat and air-conditioning levels from their smartphones - which of course feeds the bottom line in terms of cutting waste and boosting efficiency. In the coming years, expect to see more connected devices, from security systems to lighting to appliances; really, the sky’s the limit. “It gives you control of home and office from afar - from a browser, from a mobile device, a tablet,” Johnston explains.

Next up, several automakers have announced plans to manufacture connected cars - a segment of the larger Internet of Things category - with enough computing power, sensors and Internet connectivity to optimize their own operation and maintenance, and guarantee the comfort and productivity of their passengers. The number of connected cars is expected to grow significantly - more than sixfold to 152 million by 2020 - according to IHS Automotive. The future holds little escape from the office, it seems.

10


Tech’s Big 6“Wearables of all kinds are going to be much bigger than people believe them to be.”

The Internet of Things is truly paving the way for driverless cars, a development Johnston says could have important implications for businesses. Google’s early driverless car has been well publicized, but other key players in the auto industry also are experimenting with the concept. “Driverless technology could allow UPS and other delivery companies to have human drivers focus their time on delivering packages instead of driving,” Johnston explains. It all comes down to workforce productivity and the bottom line.

2. Digital assistants Many smartphone users have

access to a voice-enabled digital assistant - such as Siri on iPhones, Google Now on Androids and Cortana on Microsoft’s Windows phones. While hardly without its glitches, functional development is improving rapidly, and greater user uptake is sure to follow.

Cortana, for example, is included in Windows 10, the newest version of Microsoft’s operating system, which means the digital assistant is available on PCs and tablets running the OS. Cortana can be set up to deliver calendar appointments and notifications, run Web searches and find locally stored content.

“Today you have all these applications - a sea of apps - but most people use six,” Edlund explains. “What we’d rather be able to do is say, ‘I want to buy

a pair of pants,’ and your digital assistant says, ‘Okay, you can go to Walmart, it’s right around the corner, or Amazon, which has them for cheap, but there’s a store right around the corner that has them in your size, a little place that you like. You should go there,’ and you never have to open an app.”

Digital assistants have many obvious uses for consumers; you can ask them about the best place to buy a burrito for lunch, for example. But there also will be a number of business uses for them. “In the business world, we’re going to be able to say, ‘These are my marketing people, these are my HR people, this is my salesforce,’ and then I can target information to them as a company,” says Edlund. “People in accounting will care about CPA regulations, and they’ll be able to use Cortana to find that information for them. When something new comes out, your digital assistant will say, ‘You need to know about this,’ and you’ll never have to search it out.”

The implications could be significant across industries. Doctors, for example, could use the digital assistant to prioritize their schedules according to the most urgent patients or by how much time a patient will need for treatment, Edlund explains. IT departments could program the digital assistant to answer frequently asked support questions, or to help employees analyze data with business intelligence software.

3. 3D printing When people hear about 3D

printing - also called additive manufacturing - many assume it’s a fluff technology, something that will enable them to produce cheap tchotchkes at home. Yet 3D printing is in reality a complex and very promising ecosystem of technologies that could change most industries - from manufacturing to life sciences - in very significant ways. “It’s going to be a big deal,” says Johnston. “3D is evolving to the point that you can print virtually anything.”

He points to the 3D printing of entire homes, human skin and organ tissue, and airplane parts as examples. In fact, GE already is using the technology to create fuel-nozzle tips for jet engines, and printed a complete engine over the past year.

Last year Gartner forecast that although mainstream consumer adoption may be five to 10 years out, business and medical applications could see wider adoption in only two to five years. While 3D printing for prototyping is already in general use, we’ll see continued acceptance and use of 3D print creation software, 3D scanners and 3D printing service bureaus, says Gartner. The 3D printing of medical devices, for example, will offer “life-altering” benefits and will result in global use of the technology for prosthetics and implants.

Hurdles remain, Johnston concedes, but rapid advances are making the widespread use of

kycpa.org 11


Continued on p. 12

3D printing a reality. “The game around this is how fast can we get the printers to go,” he explains. “You can print things up to about 10 meters by 30 meters in most materials today. The biggest issues are speed, along with heat and toxins. But this is becoming pretty interesting.”

4. Bigger data The term “big data” has

been around for a while, but the gathering and analysis of data will only continue to grow in the coming years. In addition to information about customers and prospects - where they are, how they behave, what they’re likely to do next - more businesspeople will see data pertaining to them as individuals used in the workplace.

Users of Microsoft Windows 10, for example, will log onto the operating system using Windows Hello, the company’s biometric authentication technology that recognizes a user’s fingerprint or facial features. The technology uses a sensor whose camera and multi-array microphone can read depth and heat to identify an individual. The result: More convenient and secure log-in. “You walk up to your screen, it will say, ‘Good morning,’ and log you in automatically,” Edlund explains. With a complementary technology - Windows Passport - users similarly will be able to log into websites that support Windows Hello.

Other data about individual employees is increasingly being used throughout the workplace.

Boston-based startup Humanyze, for example, has developed a system that combines wearable sensors and digital data to collect information about employee behavior. The employee badge measures data points such as employee interactions, tone of voice, and movement throughout the day with the goal of improving business performance. Human resources and financial management software from Pleasanton, Calif.-based Workday Inc., meanwhile, is using data and analytics to predict factors such as which employees are likely to leave the company or exceed their budgets.

5. Mapping technologySmartphone users are already

very familiar with mapping technology that allows them to type in an address and easily pull up directions to their destination - also determining, for example, how long it will take them if they walk, drive or cycle, whether there’s traffic, and more. But that’s only the beginning, says Johnston. “Mapping technology will be used in lots of places we’re not thinking about right now, specifically indoor mapping.”

The idea of indoor mapping is quickly gaining traction, with big tech players forging ahead. Last year, for example, Google released indoor maps created with its new mapping tool, Cartographer. Like the Google Trekker backpacks that collected images for Google Maps’ “Street View,” Cartographer backpacks

are equipped with mapping technology that generates floor plans and information as a wearer walks through buildings such as airports, museums and malls.

Meanwhile, beacon technology, including Apple’s iBeacon, is poised to change the way people navigate their way through indoor spaces. These small, low-cost pieces of hardware emit Bluetooth connections to transmit messages, allowing them to work in indoor spaces where GPS and cell signals might be blocked. While this allows retailers to target shoppers with location- specific offers, the technology’s applications don’t end there. Organizations are testing and using beacon technology extensively - Major League Baseball, for example, has put iBeacons in ballparks around the country.

6. WearablesWearable technology has

gotten a lot of press since the introduction of Google Glass’ optical head-mounted displays a few years ago. Since then, Apple Watch and fitness, and health-tracking devices such as Fitbit and Jawbone, have rolled out and gained a lot of user attention … attention that will grow significantly in the coming years.

“Wearables of all kinds are going to be much bigger than people believe them to be,” says Johnston. “Some of the technologies are good enough that they are going to trick people into thinking they’re seeing things that they’re not.”

12


Tech’s Big 6 continued

Continued on p. 14

www.accountingpracticesales.com

Contact Mark W. Hause:

e-mail: [email protected]: 541-465-9410

877-345-7722

KEEPUS ONYOURRADAR

Accounting Practice Sales is the leader in selling accounting practices. Whether your community is big or small, our sales team partners with you to find the right buyer’s for your practice.

Selling on your own sounds easy but when you make a mistake you will lose a lot of money intended for retirement or to help you start a new career.

Keep us on your radar. We will be there for you and your family when the time is right!

www.accountingpracticesales.com

Virtual reality headsets slated to roll out in the next year include Rift from Oculus VR (the company Facebook purchased last year), Morpheus from Sony, and products from Merge VR and HTC Vive. While these virtual reality headsets are targeted, at least for now, as entertainment and gaming devices, Microsoft is rolling out Hololens, an augmented reality headset that the company says will allow users to tackle productivity related tasks. Where virtual reality headsets show the user an

entirely digital world, Hololens interprets the world around the user, identifying a nearby chair or whiteboard, for example, and then responding to voice commands by projecting images onto that whiteboard.

“Imagine being able to say, ‘I want to teach you what the heart does,’ and you being able to step inside a heart and see not just the valves but go into the capillaries and stand inside them,” Edlund explains.

Businesspeople could use the Hololens for data visualization,

he adds, demonstrating sales by state or by store or within a store. “Holograms initially will be whatever developers can envision,” says Edlund. “We provide the glue, but how that gets leveraged is up to the world.”

Whether it’s wearables and 3D printing or the Internet of Things and digital assistants, be on the lookout for big developments in the world of technology - and therefore in the world in which you do business. Google Glass? It just might be coming to an office near you.

14


Tech’s Big 6 continued

The Kentucky CPA Journal / Issue 6 2015 CPE

16

January 2016 highlights

2-day Vern Hoven Federal Tax Update Jan. 6-7, Lexington - 16 CPE hours

1-day Vern Hoven Federal Tax Update Jan. 8, Louisville - 8 CPE hours

Tax Prep Boot Camp for IndividualsJan. 13, Louisville - 8 CPE hours This hands-on class was designed specifically for KyCPA. It reviews forms and common tax preparation software for new hires and those needing a refresher on individual taxes.

Tax Forms Boot Camp: LLCs, Partnerships, & S-CorpsJan. 14, Louisville - 8 CPE hours This course provides a comprehensive understanding of the preparation of both S corporation and partnership/LLC tax returns, along with the underlying laws, regulations, etc. It is geared toward basic understanding and progresses to complex issues. It includes a valuable reference manual.Save $100 when you register for both these seminars! Please call 502.266.5272 or 800.292.1754 to register for this special offer.

Save the date!KyCPA Government Relations Day at the CapitalJan. 26, FrankfortCome share your thoughts with folks who can really make a difference!Tuesday, Jan. 26 will be your opportunity to meet with legislators and share your thoughts about issues important to your practice, join other CPAs for lunch with members of the Kentucky General Assembly, and hear from key policymakers. Gov. Matt Bevin, Auditor of Public Accounts Mike Harmon, State Budget Director John Chilton, CPA, and Dan Bork, CPA, Kentucky’s new Revenue Commissioner, are all invited to share their predictions for the 2015-16 Session. Don’t miss this memorable and productive day for Kentucky CPAs!

Don’t forget! There are more than 200 courses available online in January. Choose from a wide variety of subjects in 1-8 CPE hour webcasts or self-study programs. See kycpa.org for details.

Vern Hoven Ron Roberson

Get Ready for Busy Season: New Forms, Filing Issues & Other Critical Developments Jan. 15, Louisville - 8 CPE hours This course provides an up-to-date review of important tax form changes, new tax forms, key developments as they are reflected in the IRS forms, and IRS filing issues and deadlines that will be invaluable to attendees who prepare tax returns for individuals, partnerships, and LLCs.

Jan. 19, 2016 Register at kycpa.org

INTERNATIONAL SYMPOSIUM

Global Currency: Learn how to protect your business from global uncertaintiesIdentify the right currency strategies to give your business protection and flexibility in volatile international markets. Drew Collins, Partner – Bannockburn Global FOREX

IC DISC: Tax strategies to increase profitabilityLearn about this hidden gem in the tax code where companies can take advantage of both differed and reduced taxation of their export profits.Kevin Heyde, Partner – MCM, Louisville

Registration: $149 - 4 CPE hours - Register at kycpa.org

Trade Credit Insurance: Protecting your business from political and trade partner riskKnow the tools to guard against contractual default by international counterparties and country/political risks.Nick Fow, Manager – Euler Hermes

Foreign Trade Zones: Not just for the big guys!Foreign Trade Zones provide a secure and profitable platform to compete in both domestic and global markets. Learn how they can positively impact your company and how to get started.Mike Grimm, Partner, MCM, Louisville

The Kentucky CPA Journal / Issue 6 2015 CPE

18

Financial Professionals Conference X April 18 - Gratzer Education Center, Louisville• A & A update to include revenue recognition,

leasing and credit loss• Captive insurance• What’s new in treasury and payment

management• Corporate account take overs (CATO)• How to improve accounting processes• Pivot tables• Health care reform

Nonprofit Conference X April 21 - Gratzer Education Center, Louisville• Industry/Tax update• A&A update• Lobbying• Impact/Measurements/Reporting• Creative fundraising• Fundraising panel

Employee Benefits Conference X April 27 - Gratzer Education Center, Louisville • Department of Labor• Compliance, 820, hot topics• Staff training• Top audit deficiencies • IRS volunteer compliance programs

Governmental Accounting & Auditing Conference May 9-10 - Louisville • GASB update• Audits of grants and contracts• The responsibilities of the governing board• Ethics• Panel on materiality• Uniform grant guidance• Update from the auditor• Note disclosure requirements• APA/school districts• Sampling and single audit reporting• Municipal reporting

Save the Date: 2016 Spring conferencesHealth Care Conference May 18 - Gratzer Education Center, Louisville• Econimic update• Cyber security• ICD-10• Health care reimbursement/cost recovery• Physician compensation• Non-profit reporting• Revenue recognition• Telemedicine

Kentucky Accounting Educators Conference May 19-20 - Gratzer Education Center, Louisville• Flipping the classroom• Exam changes and the impact on the classroom• Online course development• Firm resources for classroom education• Using motivational interviewing to help your

students• Professional issues update• Accounting and auditing update

Retirement Planning for the CPA Conference X May 24 - Gratzer Education Center, Louisville• HSA/Roth 401k overview• Trust and estate planning panel• Long-term care insurance• IRA opportunities and pitfalls• Social Security basics and advanced planning

strategies• The ultimate exit strategy: death & succession

planning• Navigating Medicare Part B

Additional information and registration will be available at kycpa.org in early 2016.

X Live Webcast option

The Kentucky CPA Journal / Issue 6 2015 Tax in the Bluegrass

With Gov. Bevin taking office Dec. 8, 2015, one

can expect changes in the administration of Kentucky

taxes, at the Department of Revenue and at the Board of

Tax Appeals. This is because new administrations inevitably put their stamp on these agencies, in one way or another. While there is no crystal ball to look into, the following represent some predictions for 2016.

New Revenue Commissioner? Nearly every new governor appoints a new Revenue Commissioner, and Gov. Bevin did so Dec. 14. The governor appointed Dan Bork, CPA, a former tax executive at Lexmark. It will be interesting to see how tax administration will change in Kentucky as a result of this new appointment.

New faces at Revenue? One can anticipate that there may be other new faces at Revenue, generally at the highest levels, as many of these are non-merit positions. Many of the current administrators at Revenue have extensive experience; so, many may stay. Again, it will be interesting to see the approach that the new administration will take.

Elevation of Revenue to a Cabinet-level agency? Past governors have experimented with Revenue as a department-level agency and as a cabinet-level agency. There are obviously advantages and disadvantages to each. When it has been a cabinet-level agency, Revenue has had more discretion as to resolution of issues, if only because an additional level of approval was not necessary to resolve a matter, i.e. the Finance and Administration Cabinet.

More resources at Revenue? Revenue has had a lot on its plate. It often takes longer than one would like to resolve a matter, although I have seen progress. Perhaps, the new administration will invest in additional resources at Revenue to assist taxpayers, CPAs and other tax practitioners in resolving tax matters for themselves, their companies and clients.

More regulations and guidance? CPAs and other tax practitioners have been clamoring for guidance. Revenue did away with the old policies and circulars, which many found useful. Revenue promulgated quite a few new regulations in 2005 and 2006. But, many of these have not been updated and additional guidance that can be relied upon is needed. Hopefully, we will see more administrative guidance provided by Revenue.

Resolutions of pending cases? Fresh faces mean new looks. So, perhaps with the new administration, matters that could not previously have been resolved can be.

Kentucky tax administration changesBy Mark A. Loyd,

Esq., CPA

kycpa.org 19

Continued on p. 20

20

New faces at Kentucky Board of Tax Appeals? The Kentucky Board of Tax Appeals has the difficult job of sorting out matters that could not be resolved by Revenue and taxpayers. Most new governors, eventually, appoint new board members to the KBTA. So, one can expect some changes at the KBTA as well.

“The Times They Are a-Changin’” – Bob Dylan (1964)One thing is certain. Things will change at Revenue and the KBTA. Whether the changes are tweeks or significant, is anyone’s guess.

About the author: Mark A. Loyd, Esq., CPA, is a member of Bingham Greenebaum Doll in Louisville and chairs its tax and finance practice group. He chairs the Society’s Editorial Board. He can be reached at [email protected]; 502.587.3552.

kycpa.org/MyKyCPA/KyCPACommunity

KyCPA Tax CommunityA place for KyCPA members to collaborate on tax matters

A members-only online gathering place for KyCPA members to:• form discussion groups on any topic• ask questions• share ideas and news• discuss the latest developments in tax at the state

and federal level

The Kentucky CPA Journal / Issue 6 2015 Tax in the Bluegrass

Tax administration changes continued

By Charles George

Issues discussed for CPAs with Louisville-area clients

In August, representatives from KyCPA met with Louisville Metro Revenue Commission (MRC)

Director Kim Johnson and key members of her staff to address questions and concerns from the KyCPA Tax Committee.

Some of the issues discussed included:What is the status of new regulations?

An update to MRC’s regulations is needed because the Kentucky General Assembly passed legislation in 2008, known as “standardization,” which requires all occupational tax districts to have certain uniform rules. For example, all districts must have the same definitions of “apportionment” and “gross compensation.” The current regulatory update has been in process for years with the County Attorney’s office, and MRC is hopeful that new regulations will be developed this fiscal year. Before a regulation is finalized, it must go through a first reading, a comment period, and a second and final reading. The regulations are approved by the commissioners, not Metro Council. KyCPA has requested to review the regulations prior to the first reading, if possible. Why doesn’t PL 86-272 apply to the net profits tax?

PL 86-272 does apply to the net profits tax, but MRC believes that most activities by out-of-state companies can be categorized as “Unprotected Activities” under 86-272. Whether a company’s activities are “protected” under 86-272 is determined by 86-272 on a case-by-case basis. An out-of-state company can complete a “nexus questionnaire” with MRC to determine what activities will subject the company to the tax.Required schedules / return forms are misplaced, causing correspondence requiring resubmittal

MRC acknowledged that some forms can be misplaced, but they make every effort to prevent it

from happening. Errors are reduced significantly by using the MRC’s e-filing services. Numerous forms can now be submitted online, including OL-3, W-1, and W-2 forms, as well as W-1, W-2, and 1099 bulk filings. MRC is hopeful that once the standard occupational license form is fully implemented, greater use of software to submit these forms will contribute to reduced errors. MRC strongly encourages taxpayers and practitioners to use their e-services.

MRC has also changed the language of some of its notices to reflect a more understanding tone and seek additional information, rather than implying the taxpayer or practitioner made an error. MRC welcomes feedback on any forms or notices to improve communication with the taxpayer. Frequently challenged regarding the situs of our non-Louisville clients’ home address

MRC said the residency of an individual or business is infrequently challenged. Determining a business’ residency primarily affects whether it is subject to the school tax. Their sources for determining proof of residency include the U.S. Postal Service and the Louisville/Jefferson County Information Consortium (LOJIC). MRC said they may inquire about a business filing as an individual (Partnerships, Corporations and S-Corporations all are required to pay the school tax) in Jefferson County that has a very low sales percentage due to it being a rare circumstance.

Residency may also be an issue for the taxpayers who have moved from the jurisdiction, but filed Occupational returns for past tax periods that coincide with the time the individuals were residents of Louisville Metro. If the taxpayer resided in Louisville during the period covered by the return, the taxpayer must file as a resident for the tax period.

If this issue does arise, MRC encourages the taxpayer or practitioner to notify their office in writing, online, fax, etc. to resolve it. Once the issue of residency is resolved, they can update their records to ensure the taxpayer does not get challenged on it in the future.

The Kentucky CPA Journal / Issue 6 2015 Tax

kycpa.org 21

Louisville Metro Revenue Commission

Continued on p. 22

Clients have been assessed penalty on total tax due rather than balance.

MRC said they follow KRS 67.790, which outlines how tax districts are allowed to assess a penalty if a business fails to pay its occupational license fee. The business is subject to a 5 percent penalty of the unpaid tax for each month it fails to file or fails to pay. The minimum penalty is $25 and the maximum penalty is 25 percent of the total tax due. MRC says it assesses the monthly 5 percent penalty until it reaches 25 percent of the total tax due. Therefore, the penalty can sometimes exceed the unpaid tax, but the unpaid balance must have been outstanding over a very long period of time. Large corporate taxpayers are receiving notices asking for support for “other deductions” as part of the Commission’s compliance effort and it is very difficult to get these notices resolved.

MRC acknowledged that they’ve received pushback

from large corporate taxpayers who believe a request for “other deductions” is overly burdensome and unnecessary. They are looking at changing language in current automated notices.

MRC requests the schedule of Other Deductions when it is not included with the federal return supporting documentation. This schedule should have been provided to the IRS when the federal return was filed. Contract labor and professional services are only a portion of the reason MRC reviews Other Deductions. Regarding the Commission’s requests for names and ID numbers to substantiate deductions for payments for services, etc., does the local ordinance require the taxpayer to provide this information for services rendered outside of Metro Louisville?

MRC is interested in services rendered in Metro Louisville. If a 1099 is filed, MRC will assume that 100 percent of the service was rendered in Louisville unless

other information is provided. Most problems occur because the taxpayer simply ignores the notices. If the taxpayer uses contract services for work performed locally, MRC requires that the taxpayer report those payments each year. However, if the taxpayer’s annual contract services are performed outside of Louisville, there is no requirement to provide that level of detail on an annual basis. The taxpayer in this situation may provide a statement annually with their return declaring that the contract services are performed outside of Louisville. What is the Commission’s position on unitary business filings under the old regulations (Section 3.3), and will that be addressed in the new regulations?

MRC said the new regulations on unitary business filings will be tweaked but largely held intact. They cited the 1980 U.S. Supreme Court case, Exxon Corp. v. Department of Rev. of Wisconsin, 447 U.S. 207, as their

22


Metro Revenue Commission continued

Director Kim Johnson and key members of her staff addressed questions and concerns from the KyCPA Tax Committee.

guidepost for the regulation. Exxon held that Wisconsin could apply its apportionment formula to the total operating income of the corporation even though its activities in the state involved only marketing. It was one of a string of cases that widened the state tax net cast under the authority of the unitary business principle (The Silence of Congress: State Taxation of Interstate Commerce, Zimmerman, 2008).

MRC says the entire “net profit” of an entity is subject to apportionment. Therefore, an entity cannot compute net profit of a division that operates only in Metro Louisville – apportionment and net profit must be computed for the entire entity. They will consider alternative apportionment formulas (called a “variance”), but those must be applied for by the entity in advance. Apportionment variances are granted in limited and specific cases and are used only in unusual situations. Are gains from the sale of investments (i.e., stock or partnership interests) taxable by Louisville if the investments are held by an entity (i.e., investment partnership owned by individuals) as opposed to being held directly by an individual?

MRC said such gains are taxable, unless the entity qualifies for an exemption as a Family Limited Partnership or Venture Capital Fund (informational

returns can be found on MRC’s website). The entire net profit of the entity is subject to apportionment and tax.Other notes:• MRC indicated that the new

regulations will state their position that disregarded entities will be disregarded for occupational tax purposes, just as they are treated in the federal tax code. Therefore, in the case of a single member LLC owned by an individual, the LLC’s activities will be treated as if owned by the individual and the LLC did not exist.

• An SMLLC owned by an individual may file either as an individual or an S corporation, but must be consistent in filing the same way every year once a method is selected.

• MRC said that a taxpayer with multiple types of businesses can combine those businesses into one occupational tax form. Multiple business activities owned by the same individual may be combined on one OL-3 as long as each business included in the return has Louisville activity. Any business that is conducted entirely outside of Louisville must be excluded from the return. MRC said that some taxpayers file separate returns for each business. For example, a taxpayer might

file separately for a car wash business and a restaurant. If both are profitable, then there is no tax impact either way. If one is not profitable, then it is to the detriment of the taxpayer to file separate returns (loss could have reduced profit in the other activity). They believe that the separate filing is mostly associated with businesses that have separate payrolls for the separate businesses; therefore, separate occupational license returns work best for that taxpayer.

• MRC noted that husband and spouse Schedule Cs cannot be combined unless both are involved in all businesses.

• KRS 67.750(7) states that net profit is computed using the Internal Revenue Code “in effect on Dec. 31, 2008, as amended.” MRC interprets this to mean “Dec. 31, 2008, and as subsequently amended.” Therefore, MRC believes that an annual update to the IRS reference date is not necessary.

• MRC will issue ruling letters but not on a no-name basis. Rulings are not published.

About the author: Charles George is the KyCPA director

of government affairs. He can be reached at [email protected]

or 502.266.5272.


kycpa.org 23

24

The Kentucky CPA Journal / Issue 6 2015 Business and Industry

How CFOs can support the transformationBy Samantha White

New research into the evolving relationship between the CFO and the CEO reveals that the partnership is becoming increasingly collaborative and CFOs are playing a more prominent role in strategy. However, many CFOs have yet to realize the significance of the shift to a digital business model for their organization, or the role that they can play in supporting that transformation.

An EY study gathered the views of more than 650 CFOs around the world, with 64 percent reporting that the degree of collaboration with their CEO had increased over the last three years.

The most common drivers of this collaboration were new growth opportunities, cited by 34 percent of respondents, changes in strategy (33 percent), and new products and services (27 percent).

In keeping with these objectives, 76 percent of CFOs report greater involvement in corporate strategy.

However, at present, strategic concerns are not the top of the finance leaders’ priority list. The study found that 43 percent of CFOs still consider cost management to be their main focus, as well as their most valuable contribution. In contrast, more strategic tasks, such as setting the agenda for change and ensuring value realization were identified by 21 percent and 20 percent, respectively.

What CFOs perceive to be their most valuable contribution to strategic priorities:Managing costs and profitability 43 percentSetting budgets/costs 39 percentFinancing 33 percentMeasuring performance 27 percentBuilding the business case for new initiatives 23 percent

Resourcing and human capital 22 percentDetermining the level of ambition and risk appetite for new initiatives 21 percent

Setting the agenda for change 21 percentEnsuring value realization 20 percentChange management 17 percent

The authors of the report suggest that CFOs could make a greater contribution to their businesses by acting as growth-focused strategists, with a view to enabling the organization to respond more effectively to potential disruption from technological, economic, and competitive forces.

This evolution is the joint responsibility of both the CFO and the CEO. Finance leaders must develop the strategic skills and mindset necessary to fulfil that role, and build a finance function with the right balance of skills to enable the chief to step away from the detail. Likewise, chief executives must

Digital business model

break down the organizational boundaries that CFOs feel are standing in the way of this development, as well as reconsidering the contribution they expect from their CFOs.

Strengthening the partnership between CEO and CFO

The report refers to an effective partnership between CFO and CEO as “one of the defining characteristics of a well-run, market-leading organization.” Though the survey suggests that the relationship between CEO and CFO has become more collaborative in the last three years, there is still work to be done to strengthen the partnership, as some barriers to a more fruitful relationship remain. Organizational boundaries are the biggest obstacle, cited by 39 percent of those surveyed, followed by lack of demand from the CEO for insight into strategic issues from finance (33 percent).

The lack of effective data analytics with which to provide business insight and lack of resources on the finance team to dedicate to strategic issues each proved problematic for 30 percent of respondents. Further obstacles experienced by finance leaders include geographical boundaries (29 percent) and a lack of appropriate tools and processes (28 percent). Just 12 percent of those polled said they did not perceive any boundaries to their partnership with the chief executive.

Confronting the digital business model

A significant challenge this partnership will have to tackle together is the transformation to the digital business model. The report describes this as one of the most disruptive forces organizations are facing today, and reveals that many CFOs appear to have underestimated its significance. Just 50 percent of the CFOs polled consider it a high or very high priority in the next three years, and 49 percent believe they will make a significant or very significant contribution to the shift.

The report underlines the critical role CFOs can play in confronting this challenge and outlines steps CFOs can take to champion and embed digital in their organization:

Understand new digital business models and how they can be applied to the sector and organization, and explore new ways of raising capital and financing such models.

Leverage digital technologies within the finance function to improve data processing and reporting.

CFOs in low-tech industries should re-evaluate the organization’s corporate portfolio and consider acquiring start-ups or high-tech organizations to fill gaps in the organization’s capabilities.

Ensure that their finance team includes “digital natives”, who have a detailed understanding of the potential of such technologies.

Use divergent sets of internal and external historic data to inform business strategy decisions, allocate capital for investments, and improve the accuracy of financial forecasts.

Work closely with other leaders across the business to ensure that digital investments are coordinated to support the organization’s strategy and do not expose the organization to unmanaged risk.

Monitor the changing tax, legal, and regulatory landscapes as they evolve to catch up with the digital world.

Work with their board to develop a cyber-security strategy that is consistent with the organization’s overall risk tolerance and protects the most valuable assets.

CFOs should also ensure they are working with the CEO in the following areas:

Develop a business strategy that is fit for a digital world, and make the disruptive investment calls required.

Use data analytics to anticipate digital disruption, measure performance, and respond quickly.

Create a governance and oversight framework that puts digital technology at the heart of the business.

Manage the tax, legal, and regulatory risks of digital, and support digital growth plans.

About the author: Samantha White ([email protected]) is a CGMA Magazine senior editor.

The Kentucky CPA Journal / Issue 6 2015 Business and Industry

kycpa.org 25

A 35 year old CPA can apply for $36,000/year

of tax free disability income insurance protection

without an exam or blood test, and without

submitting tax returns*....All for less than $36/month.

CALL OR EMAIL TODAY800-928-6421 [email protected]

www.NIAI.com

*Unless required by medical history. Consult your tax advisor. See full policy contract for complete features and provisions.

The Kentucky CPA Journal / Issue 6 2015 Accounting careers

kycpa.org 27

2016 BASE Camp applications accepted through Feb. 29

KyCPA will accept applications through Feb. 29 for its free Business and Accounting Summer

Education (BASE) Camp program for high school juniors and seniors.

Held June 12 - 16, at Bellarmine University’s campus in Louisville, selected students will stay on campus and learn the basics of business and accounting in a hands-on, interactive format. Tuition, room and board, meals, books, tours and activities at the camp are provided free to selected participants.

BASE Camp is a fully-supervised program open to high school sophomores, juniors and seniors from across Kentucky and southern Indiana. High school students interested in majoring in business-related fields are invited to apply.

There is a minimal, non-refundable application fee, and students may request a needs-based BASE Camp scholarship application to cover that cost at kycpa.org. There is also a transportation fee for students who are accepted into the program. Applications must be postmarked no later than Feb. 29, 2016, and are available at kycpa.org, or contact Becky Ackerman at [email protected]; 502.266.5272.

Scholarship applications accepted through Feb. 19Accounting students attending a Kentucky college or university are eligible to apply for KyCPA Educational Foundation college scholarships. Scholarship levels range between $1,000 and $2,500. Applications will be accepted through Feb. 19, 2016. More info: kycpa.org or contact Vicki Blair at [email protected].

2015 scholarship recipient Cameron Sallee (right) and Past President Kevin Schwartz.

2016 BASE Camp applications

28

The Kentucky CPA Journal / Issue 6 2015 Accounting careers

Nominations accepted Feb. 1 - April 30, 2016

KyCPA will accept nominations for the 2016 College Leadership Institute (CLI) beginning

Feb. 1. CLI is a free, one-day event, to be held July 30, for college accounting majors that helps students develop professional skills and identifies future leaders in the CPA profession. Sessions are designed to provide tools needed to cultivate effective communication and networking skills, and help students perform well during job interviews. Eligibility requirements:• Full-time student at an accredited college or

university in Kentucky or southern Indiana with the intent to (or with an existing) major in accounting.

• Demonstrated leadership potential.

Free CPA Exam Workshop at UofL Feb. 5

KyCPA offers free - yes, free! - workshops to help you prep for the Uniform CPA Exam. The next workshop will be Feb. 5, 2016 5:30-8:45 p.m. at the University of Louisville College of Business, room 106.

Each workshop offers a brief CPA Exam Information Session followed by a Becker CPA Review class. A representative from the Kentucky State Board of Accountancy will provide an overview of the application process to sit for the Exam. All study materials will be provided at no charge. Refreshments will be provided before the seminar and drawings will be held for one free section of the course (AUD-FIN-REG or BUS) and door prizes.

Register online at kycpa.org or call KyCPA at 502.266-5272. For more information, contact Samantha Bourque at [email protected].

• Must be at least a sophomore, have completed two accounting courses and be enrolled in the 2016 academic year for at least one semester.

• Maintain a 2.75 GPA (preferred). If less than 2.75, the nominating educator must provide a short explanation justifying the nomination.

• If nominated by an educator, the educator should be teaching (or have taught) the nominated student.

There are two steps to the nomination process:1. The student completes the online Student

Nomination Form, prints a copy and submits it to the nominating educator (nomination forms available at kycpa.org).

2. The nominating educator completes the online Teacher Recommendation Form. Both forms take just minutes to complete. (nomination forms available at kycpa.org)

More information about CLI can be found at kycpa.org.Interested in sponsoring CLI? Contact Samantha Bourque at [email protected].

2016 PEAK teams forming

PEAK, Promote and Encourage Accounting in Kentucky, is a Jeopardy-style competition that provides college students the opportunity to test their knowledge of the accounting profession by competing against schools from all over the state of Kentucky – and win great prizes including $1,000 scholarships for each winning team member! For more information about forming a team, contact Becky Ackerman at 502.736.1369 or [email protected].

College Leadership Institute nominations

The Kentucky CPA Journal / Issue 6 2015 Educational Foundation

kycpa.org 29

Create a Legacy by donating to the Foundation

The KyCPA Educational Foundation offers several outstanding programs that support high school

and college accounting students. One of the most important ways the Foundation supports future CPAs is through the college scholarship program, and the need is great. On average, 2015-16 tuition and fees at public four-year institutions are 40 percent higher than in 2005-06.

Please help us continue to provide much-needed financial assistance to deserving college students by making a pledge or donation to the Educational Foundation. For more info about the KyCPA Educational Foundation or to make a donation, go to kycpa.org or call KyCPA at 502.266.5272.

“During my college career, KyCPA helped fund my education with three different scholarships. Not only

am I grateful for the financial assistance the

Society provided for me, but they also helped me navigate the abundance of opportunity that is in the accounting profession in Kentucky. Through networking events and different presentations at the University of Kentucky, I had many conversations with members of the Society that helped shape my interest in public accounting and found out more about the technical and soft skills that I needed to go through interviews and begin my career. Today, I am very satisfied with the career path that the Society helped me plan for and follow. The outstanding work that the Society does inspires me to continue developing professionally and give back to an organization that gives so much to the profession.” - Bryan M. Bulkley, CPA, manager of assurance services, Dean Dorton, and past scholarship recipient.

Educational Foundation: impacting lives

Make your year-end donation today.

kycpa.org

PAY IT FORWARD

Sign up to play and/or sponsorName:_______________________________________

Company:____________________________________

Address:______________________________________

City, State, and Zip: ____________________________

Phone:__________________ Fax:_________________

Email:_______________________________________Please register the following from my company to play golf in the scramble at $160 per person or $590 per foursome which includes lunch, golf and the reception that follows.

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Why should you sponsor? All proceeds directly benefit the Society’s Educational

Foundation. All donations are tax deductible. The Foundation is a

501(c)(3) organization.

$500 Level Sponsor (Early bird price before Feb. 29) Signage at registration, hole and reception. You will

receive verbal recognition at the golf reception and recognition in The Kentucky CPA Journal. Hole Sponsor (18 available) Longest Drive Sponsor (2 available) Straightest Drive Sponsor (2 available) Closest-To-The-Pin Sponsor (3 available) Hole-in-One Sponsor (1 available)

$1000 Level Sponsor (Early bird price before Feb. 29) Special signage at registration, lunch and reception.

You will also receive verbal recognition at the golf reception and recognition in the

The Kentucky CPA Journal. Scramble Luncheon Sponsor (3 available)

(Special singular signage at lunch.) Scramble Beverage Cart Sponsor (2 available)

(Special signage on beverage cart.) Reception Sponsor (3 available)

(Special singular signage at reception.)

Total Amount $____________ Company Personal Enclosed is a check Please charge MC/Visa/AMEX

_____________________________Exp. Date_______

Signature_____________________________________

Contact Samantha Bourque to play at [email protected]. Contact Jeanine Panepinto to sponsor at [email protected].

2016 KyCPA Educational Foundation Golf Scramble

June 20 University of Louisville Golf Club, Simpsonville, Ky

Enjoy a round of golf and contribute to the profession’s future, it’s a win-win.

All early bird sponsors will have their company name or logo placed on the KyCPA web site kycpa.org March-June 2016.


kycpa.org 31

Create a Legacy

LegAcY NAmeD SchOLARShIPS

Baldwin CPAs PLLCBKD True Expertise AccountingBlue & Co., LLC Brandon Lloyd Warden MemorialBrown-Forman DiversityCrowe Horwath LLPDave CalziDean Dorton PLLCDeloitte & Touche LLP DMLO CPAsErnst & Young LLPFreibert Bigg PLLCGordon Ford MemorialHenderman, Jessee & Co. PLLCKelley Galloway Smith Goolsby PSCKPMG LLPLouis T. Roth MemorialMCM CPAs and AdvisorsNational Insurance AgencyNeace LukensPapa John’s InternationalPatterson & Company PLLC PricewaterhouseCoopers LLPStrothman & Company AccountingWilliam J. Caldwell (Henderman Family Foundation)

Thank you for supporting the KyCPA Educational Foundation. By doing so, you are truly creating a legacy. If you would like to support the future of the profession by giving to the Foundation, go to kycpa.org or call KyCPA at 502.266.5272 or 800.292.1754. We make every effort to ensure this list of donors to the Create a Legacy or both Create a Legacy and Pave the Way campaigns is accurate. However, if you see an error, please contact Vicki Blair at [email protected].

LegAcY LeADeRS cIRcLe• BKD LLP• Deloitte & Touche LLP• Ernst & Young LLP• KPMG LLP• Louis T. Roth & Co., PLLC• MCM CPAs and Advisors• Patterson & Company PLLC

heRITAge cIRcLe• Baldwin CPAs PLLC• Blue & Co., LLC • Bramco, Inc.• Buetow LeMastus & Dick PLLC• Crowe Horwath LLP • DMLO CPAs• Kelley Galloway Smith Goolsby PSC• Strothman & Company

DeSTINY cIRcLe• Brown-Forman Corporation• Freibert Bigg PLLC• Henderman Family Foundation• Jones Nale & Mattingly PLC• Allen Norvell, CPA• Republic Bank & Trust Company• Rudler PSC• Stock Yards Bank & Trust Co.• Rick Ueltschy, CPA

Continued on p. 32

hONORS cIRcLe• Steve Allen, CPA• Anderson, Bryant, Lasky &

Winslow PSC• Chris Anderson, CPA• Dave Calzi, CPA• William Carroll, CPA• John Chilton, CPA• Christian Sturgeon &

Associates PSC• Cloyd & Associates PSC• David Conway, CPA• Nancy Davis, CPA• Lori Dearfield, CPA• Randy Franklin, CPA• Greg Greenwood, CPA• Rowe Hamilton, CPA• Greg Hintz, CPA• Jennifer Hughes, CPA• International Systems of

America LLC• Steve Jennings, CPA• Joe Johnston, CPA• Steven Kerrick, CPA• John Layne, CPA• Phil Layne, CPA• Steve Lenarz, JD, CPA• Mike Lenihan, CPA• Alan Long, CPA• Mark Loyd, JD, CPA • Stephen Lukinovich, CPA• Jack Lynch, CPA• Colleen Lyons, CPA• Jennifer McGill, CPA• Diane Medley, CPA• William G. Meyer III, CPA• Jennifer Monaghan, CPA• Mike Mountjoy, CPA

• Myriad CPA Group LLC• National Insurance Agency, Inc.• Neace Lukens Insurance• Chris Reid, CPA• Retirement Management

Services LLC• L. Porter Roberts, CPA• Michael Robinson, CPA• Jennifer Sanders, CPA• Mark Schmitt, CPA• David Smith, CPA• Jason Stockton, CPA• Ray Strothman, CPA• Lori Warden, CPA

gRATzeR cIRcLe• Barr Anderson & Roberts PSC• David Bradley, CPA• Tony Brutscher, CPA• Deborah Burcham, CPA• Jennifer Burke, CPA• Jeffrey Calderon, CPA• Jennifer Chinn, CPA• Angela Clark, CPA• Diane Cornwell, CPA• Emily Cox, CPA• Steve Daniels, CPA• Delta Natural Gas Company, Inc.• Ken Drozt, CPA• Dulworth Breeding Karns &

Pleasants LLP• Louis Fister, CPA• Melissa Fraser, CPA• Kevin Fuqua, CPA• Ritu Furlan, CPA• Paula Hanson, CPA• Henry Hawkins, CPA• David Heintzman, CPA• Kevin Heyde, CPA• Margaret Jolly, CPA• Mimi Kelly, CPA

• Dr. Harold Little, CPA• Miller Mayer Sullivan & Stevens LLP• Chris Moore, CPA• David Morgan, CPA• Neikirk Mohoney & Smith CPAs

PLLC• Wes Omohundro, CPA• Becky Phillips, CPA• Earl Reed, CPA• Riney Hancock CPAs PSC• Steve Schulz, CPA• Brad Smith, CPA• Clay Stinnett, CPA• Dr. Bill Stout, CPA• Greg Stump, CPA• Nick Walker, CPA• Joshua Zik, CPA

SchOLARS cIRcLe• Jason Aberli, CPA• Melissa Buddeke, CPA• Thomas Buetow, CPA• Vicki Buster, CPA• Dr. Margaret Combs, CPA• Trish Deatrick, CPA• Frank Farris, CPA• Patricia Featherston, CPA• Geoffrey Griffith, CPA• Quinn Hart, CPA• Bill Jessee, CPA• Kelly King, CPA• Todd Klimek, CPA• Mark Kristy, CPA• John T. Lane & Associates, LLC• Roger Johnson, CPA• Brian Malthouse, CPA• Rebecca Myers, CPA• Kevin Rose, CPA• Rory Satkoski, CPA• VonLehman & Co. Inc.• Melissa Wasson, CPA• Michael Wilson, CPA

Pave the Way Campaign ContributorCreate a Legacy Campaign Contributor

Pave the Way and Create a Legacy Campaign Contributor

32


Legacy continued

cARINg cIRcLe• Robert Abner, CPA• Jaclyn Badeau, CPA• Thomas Baer, CPA• Joseph Baker, CPA• Janet Berry, CPA• Jason Bigg, CPA• Ann Bongiolatti, CPA• Joshua Bramucci, CPA• Gail Broady, CPA• Ellen Budde, CPA• J Robert Buschermohle, CPA• Earl Calhoun, CPA• Michael Caudill, CPA• Philip Ciafardini, CPA• Donya Clark, CPA• Travis Collins, CPA• Donnie Cox, CPA• John Craft, CPA• Carrie Crouch, CPA• Richard Crowder, CPA• James Daugherty, CPA• W. Garrett Dering, CPA• Michael Dicken, CPA• Meaghan Dixon, CPA• Olubunmi Dosunmu, CPA• Timothy Eldridge, CPA• Stephen Elliott, CPA• Dennis England, CPA• Myron Fisher, CPA• David Flanery, CPA• Lisa Foley, CPA• Harry Freibert, CPA• Andrew Gladden, CPA• Jeffrey Gooch, CPA• Joseph Graviss, CPA• Ollie Green, CPA

• John Grider, CPA• Joseph Guelda, CPA• Ralph Hannah, CPA• Danny Hardin, CPA• Christopher Hatcher, CPA• Jeffery Hatfield, CPA• Mark Henderson, CPA• Arthur Henson, CPA• Janet Jackson Hill, CPA• Ben Holbrook, CPA• Laurie Holloway, CPA• David Hostetter, CPA• Catherine Hunt, CPA• Dennis Joseph, CPA• Joseph King, CPA• Charles Kington, CPA• Edward Kirn, CPA• Kari Kollenberg, CPA• Edwinna Lambert, CPA• Joel Lane, CPA• Regina Lankswert, CPA• Stephen Larimore, CPA• G Don Lawson Jr, CPA• Brian Leedy, CPA• Thomas Lirot, CPA • Julie Long, CPA• Thomas Lonnemann, CPA• Barry Lucas, CPA• Jeffrey Mallory, CPA• Leonard Mariani, CPA• Frank McCracken Jr, CPA• William McNeill, CPA• James Medina, CPA• Michael Mills, CPA• Kathleen Mitts, CPA• Charles Moffitt, CPA• David Morgan, CPA


kycpa.org 33

• Donald Morris, CPA• Michelle Musacchio, CPA• Glenn Norvell, CPA• Thomas O’Bryan, CPA• George Owens, CPA• Marilyn Owens, CPA• Tony Page, CPA• David Parks, CPA• Ashley Penn, CPA• Deborah Riley, CPA• Mark Ritter, CPA• Caprice Roberts-Price, CPA• John Rodes, CPA• Suzan Ross, CPA• Laura Stallard, CPA• Beth Stenberg, CPA• Theodore Stiles, CPA• Stephen Stovall, CPA• James Stilz, CPA• Trenton Stover, CPA• Tom Strohmeier, CPA• Kevin Stumbo, CPA• Wayne Sturgeon, CPA• Harvey Thompson, CPA• Mark Thompson, CPA• William Upchurch, CPA• Michael Veneman, CPA• Anne Wells, CPA• Arthur Wissing, CPA• David Wyatt, CPA

IN KIND gIFTS• Becker Professional Education• Brown-Forman Paid Summer

Internships for African-American Students

• Deloitte & Touche LLP• John Hawkins, CPA

KyCPA recognized newly certified public accountants at an awards banquet Oct. 30 at

the Louisville Marriott Downtown. Also recognized in the program were those seeking eligibility for certification whose performance on the Uniform CPA Examination was exemplary.

Ben Long, executive director, Civil and Environmental Law Division, Office of the Attorney General, administered the Oath of the Certified Public Accountant to eligible attendees.

Newly certified CPAs. The following attended the banquet and have met all requirements for certification and have taken the Oath of the Certified Public Accountant:• John Joseph Ackerman, II, of DMLO CPAs,

Louisville• Anthony L. Aymerich of Deloitte & Touche,

Louisville• Natasha Brooke Bales of Cloyd and Associates,

London• Tammy Brown of the City of Frankfort, Frankfort• Megan Davis of Louis T. Roth & Company,

Louisville

• Ross Marc Emerson of VonLehman & Company, Inc., Ft. Mitchell

• Philip Forbis of PricewaterhouseCoopers, Louisville

• Philip Gonzales of Tichenor & Associates, Louisville

• Robert Addison Hobbs of Crowe Horwath, Louisville

• Shelby N. Howell of Crowe Horwath, Lexington• Hongli Huang of the Kentucky Department of

Revenue, Frankfort• Charika Ann Hughes of PharMerica Corporation,

Louisville• Modou Jobe of Atria Senior Living, Louisville• Mark Lowe of Flextronics International,

Louisville• Alexander I. Mashni of RFH, Lexington• Rachel E. Meredith of MCM CPAs and Advisors,

Louisville• Melody Raidy of the Community Foundation of

Louisville, Louisville• Sarah Ann Rasmovich of Strothman & Company,

Louisville

KyCPA Fall Awards Banquet

The Kentucky CPA Journal / Issue 6 2015 Society

34

Congratulations new CPAs.

• Tammy L. Riley of Production Heating Service, Louisville

• Christopher M. Schmitt of Deloitte & Touche, Louisville

• Charles Glendon Stivers of Charles G. Stivers, CPA, Manchester

• Alma F. White of JPMorgan Chase, Louisville

• Christine M. Zolnowski of Humana, Louisville

Candidates recognized. KyCPA also recognized successful candidates who will qualify for certification upon completion of the 2,000-hour experience requirement (equal to one year). • Jian Cai of Tempur Sealy

International, Inc., Lexington• Thomas James Gilkey of

Deloitte & Touche, Cincinnati• Ryan K. Jackson of Ernst &

Young, Louisville• Melissa Marie Kastelhun of

PricewaterhouseCoopers, Nashville

• Joshua Christopher Lord of Deloitte & Touche, Cincinnati

• Alden Ludwick of Deloitte & Touche, Louisville

• Brittany Dean Neaves of Dean Dorton, Lexington

• Merima Sabic of PricewaterhouseCoopers, Louisville

• Christopher M. Veith of BKD, Bowling Green

• Brent Michael Wolfzorn of PricewaterhouseCoopers, Toledo

• Yuan Zeng of MCM CPAs and Advisors, Lexington

CPA exam awards. The Uniform CPA Exam is given in four sections in quarterly testing windows. The exam is administered by the Kentucky State Board of Accountancy in conjunction with the American Institute of Certified Public Accountants, the National Association of State Boards of Accountancy and Thomson Prometric. Licenses are approved by the Kentucky State Board of Accountancy.

Distinguished Performance. This award is for candidates who passed all four sections of the Uniform CPA Examination in Kentucky in one window in the first attempt. Third quarter 2015 testing window:• Melissa Marie Kastelhun of

PricewaterhouseCoopers, Nashville

• Christopher M. Veith of BKD, Bowling Green

Awards of Excellence. These individuals scored the highest on one or more sections of the exam during the quarterly testing window.

Second quarter 2015 testing window:• Randy Brown of BDO USA,

Cincinnati• Ryan K. Jackson of Ernst &

Young, Louisville• Joshua Christopher Lord of

Deloitte & Touche, Cincinnati• Brent Michael Wolfzorn of

PricewaterhouseCoopers, Toledo

Third quarter 2015 testing window• Lauren Michelle Heeman of

Deloitte Tax, Cincinnati• Brent Michael Wolfzorn of

PricewaterhouseCoopers, Toledo

See p. 36 for a complete list of new CPAs and Exam passers.


kycpa.org 35


36

If you know someone on this list - staff, a friend or

co-worker - please be sure to congratulate him or her on this great accomplishment. This list is provided by the State Board of Accountancy and includes the second and third quarter 2015 CPA Exam pass list; also new CPAs from that same time period.• John J. Ackerman, II, CPA,

Louisville• James B. Adams, Bellevue• Tika R. Adhikari, Louisville• Wesley T. Akers, CPA,

Bevinsville• Kyle Allis, CPA, Forney, Texas• Cathryn E. Allison, CPA,

Lexington• Jonathan T. Averette, Hoover,

Ala.• Anthony L. Aymerich, CPA,

Louisville• Michael P. Bach, CPA,

Newport• Natasha Brooke Bales, CPA,

London• Braderick A. Ball, CPA,

Georgetown• Parker M. Banta, Nicholasville• Kyle J. Beaird, CPA, Louisville• Megan M. Biven, Louisville• Rachel L. Blalock, Dawson

Springs• Richard T. Block, CPA,

Covington• Mary M. Booher, CPA,

Lexington• Dan G. Bradley, Jr., CPA,

Edgewood• Michael J. Bramer, CPA,

Louisville• Katelyn L. Brown, Lexington• Phillip A. Brown, CPA,

Louisville

• Randy L. Brown, Southgate• Tammy J. Brown, CPA,

Frankfort• Matthew J. Butsch, CPA,

Alexandria• Susanna E. Byler, CPA,

Bowling Green• Jian Cai, Lexington• Salvador Carmona, Lexington• Justin P. Casey, CPA,

Louisville• Yiwen Chen, Lexington• Hillary K. Clark, Pewee

Valley• Holly M. Claypole, Park Hills• Jesse A. Claypool, CPA,

Lexington• Logan A. Collins, CPA,

Mason, Ohio• Christopher J. Conklin, CPA,

Edgewood• Ian L. Cooke, Lexington• Kimberly N. Coomer, CPA,

Shelbyville• James L. Crawford, CPA,

Murray• Devin L. Davidson, Mount

Vernon• Mary E. Deutl, Louisville• Richard S. Dietz, Villa Hills• Blake E. Ditto, Elizabethtown• Mark S. Donohoe, Jr., CPA,

Villa Hills• Christopher Duffy, CPA,

Louisville• Tessa C. Dyer, CPA,

Matthews, N.C.• Steven L. Edwards, Jr., CPA,

Louisville• Ross M. Emerson, CPA,

Union• Taylor D. Evans, Johnson

City, Tenn.• Eric M. Felty, Lewis Center,

Ohio

• Victor C. Ferguson, II, CPA, Paris

• Sean K. Fightmaster, Union• Eric M. Fink, Chicago, Ill.• Philip L. Forbis, CPA, New

Albany, Ind.• Charles S. Foster, CPA,

Louisville• Lesley C. Francisco,

Lexington• Brian M. Frick, Lexington• Lance Gardner, CPA,

Louisville• Edward T. Garruto, CPA,

Louisville• Kerry M. Gasson, CPA,

Louisville• Jesse L. Gilbert, CPA, Berea• Thomas J. Gilkey, Cincinnati,

Ohio• Louis A. Goffner, III,

Louisville• Philip M. Gonzales, CPA,

Louisville• Nathaniel A. Goodson, CPA,

Louisville• Stephen M. Goodwin, II,

LaGrange• Samuel E. Gough, CPA,

Florence• Aleksey B. Graboviy, CPA,

Prospect• Braden G. Grant, CPA,

Bowling Green• Holly M. Greene, CPA,

Princeton• William S. Haas, Westerville,

Ohio• Richard D. Hall, Jr., CPA,

Lexington• Samuel H. Hampton, III,

Catlettsburg• James W. Hank, II, Lexington• Lauren M. Heeman,

Louisville

Congrats new CPAs and Exam passers

kycpa.org 37


• Stephen O. Heflin, CPA, Flemingsburg

• Robert Addison Hobbs, CPA, Louisville

• Branda N. Horrocks, CPA, Louisville

• Karen A. Horstkamp, CPA, Villa Hills

• Shelby N. Howell, CPA, Lexington

• Hongli Huang, CPA, Lexington

• Charika A. Hughes, CPA, Louisville

• Marco C. Iemmola, CPA, Louisville

• Brenden J. Ingargiola, House Springs, Mo.

• Ryan K. Jackson, Louisville• Kasey A. Jansen, CPA,

Louisville• Jeremy W. Jarboe, Louisville• Modou L. Jobe, CPA,

Louisville• Sherila Jones-Tuggle, CPA,

Memphis, Tenn.• Melissa M. Kastelhun,

Lexington• Marshall F. Kaufman, CPA,

Louisville• Keith E. Kelly, CPA,

Edgewood• Jacob T. King, Bowling Green• Zachary T. King, CPA,

Frankfort• Taylor M. Klein, CPA,

Louisville• Brian C. Koster, CPA,

Huntington, W. Va.• Patrick Krumme, CPA,

Lakeside Park• Jacqueline R. LaFont,

Franklin, Tenn.• Dr. R Michael LaGrone, CPA,

Inman, S.C.

• Phong T. Le, CPA, Louisville• Trang M. Le, CPA, Bowling

Green• Alexandra C. Lewin, Ft.

Mitchell• Yuan Y. Liu, CPA, Louisville• Eleanor A. Livingston, CPA,

Louisville• Joshua C. Lord, Louisville• Mark D. Lowe, CPA, Prospect• Alden B. Ludwick, Prospect• Jade K. Lyons, CPA,

Louisville• Ryan Mahoney, CPA,

Lexington• Alexander I. Mashni, CPA,

Lexington• Terry W. Mason, Tallahassee,

Fla.• Karlie R. McIntyre, CPA,

Louisville• Andrew T. McWhorter,

Louisville• Benjamin D. Meeks, CPA,

Burlington• Rachel E. Meredith, CPA,

Louisville• Stephen T. Meyer, CPA,

Owensboro• Rebekah E. Michael, CPA,

Louisa• Shanon R. Miller, CPA,

Norfolk, Va.• Kira R. Mingua, CPA,

Lexington• Clayton J. Minor, CPA,

Shelbyville• Bruno J. Mirarchi, CPA,

Oreland, Pa.• Michael S. Misiti, CPA,

Huntington, W. Va.• Katherine T. Mitzenmacher,

CPA, Lexington• Shereka M. Moore, CPA,

Greenville, Ind.

• Julie A. Morris, CPA, Dawson• Paul G. Mortell, CPA,

Versailles• Sean E. Murphy, Cincinnati,

Ohio• Brittany D. Neaves, Mt.

Sterling• Clayton P. Netherton,

Louisville• W Edward Newton, CPA,

Charlotte, N.C.• Samuel T. Niehaus, Lexington• Michael J. Nielsen, CPA,

Louisville• Marcy A. O’Connor, CPA,

Dallas, Texas• Xiao F. Ou, Columbia, Md.• Nathan R. Padgett, CPA,

Charlotte, N.C.• Jacob M. Persky, Lexington• Jennifer D. Pope, CPA,

Lexington• Christopher J. Powell, CPA,

Georgetown• Laura E. Pratt, CPA, Crescent

Springs• Maria C. Puche Martinez,

Louisville• Melody Raidy, CPA,

Louisville• Sarah A. Rasmovich, CPA,

Prospect• Nicole E. Rasmussen, CPA,

Lakeside Park• Michael J. Rebholz, California• Jennifer M. Rechtin, CPA,

Louisville• Caleb J. Redding, Frankfort• Robert T. Reed, CPA,

Louisville• Tammy L. Riley, CPA,

Louisville• Tyler J. Roberts, CPA,

Nicholasville

• Alma F. White, CPA, Louisville

• Benjamin T. Wildmon, Milwaukee, Wis.

• Heath M. Williams, CPA, Bowling Green

• John L. Williamson, III, CPA, Canada

• Andrew J. Wise, CPA, Louisville

• Brent M. Wolfzorn, Canton, Mich.

• John D. Wood, III, CPA, Elsmere

• James E. Woods, Jr., CPA, Lexington

• Adam C. Woomer, CPA, Lexington

• Angela S. Wurtenberger, Independence

• Monica E. Youtsey, Wilder• Neha D. Zagda, CPA,

Cincinnati, Ohio• Yuan Zeng, Lexington• Ping Zhu, CPA, Shanghai,

China• Christine Mirai Zolnowski,

CPA, Louisville


38

Emerging Professionals networkingKyCPA’s Emerging Professionals Focus Group recently hosted a networking event and tour of Good-wood Brewing in Louisville. If you are an Emerging Professional - a newly licensed CPA under age 40 - and want to join us for events in the future, contact Samantha Bourque at [email protected].


kycpa.org 39

The following firms and

businesses ensure all eligible CPA employees are members of KyCPA. This demonstrates their commitment to the profession, to the Society’s high ethical standards and a commitment to life-long learning. We appreciate their support of KyCPA and its mission.

The information below is verified annually at the time of membership renewals. Inclusion on this list is an opt-in basis. If your organization would like to join the list of 100% Champions, or you have questions about the program, please contact Heather Hibbs at [email protected] or 502.736.1368.

We make every effort to ensure the accuracy of this list. If you have voluntarily notified us of your 100% Champion status and we have left your name off this list, please let us know immediately, by contacting Heather Hibbs at [email protected].

KyCPA honors 100% Champions

100% Champions as of Dec. 14

��

��

��

��

�

��

��

��

��

��

��

�

��

��

• Addington & Mills, PSC, Lexington• Alexander & Company, PSC, Owensboro• Alexander Toney & Knight, PLLC, Madisonville• Alford Nance & Jones, LLP, Madisonville• Anderson Bryant Lasky & Winslow, PSC, Louisville• Andrews Tackett & Associates, PSC, Flatwoods• Anneken Huey & Moser, PLLC, Ft. Wright• Anneken Huey & Moser, PLLC, Ft. Thomas• Baldwin CPAs, PLLC, Maysville• Baldwin CPAs, PLLC, Louisville• Baldwin CPAs, PLLC, Richmond• Baldwin CPAs, PLLC, Flemingsburg• Bargo Mills & Associates, PLLC, Barbourville• Bennett & Company, CPAs, Louisville• Berry Kington & Utley, PSC, Madisonville• Blandford & McCubbins, CPAs, PLLC, Bardstown

• Blue & Company, LLC - Commercial, Louisville• Blue & Company, LLC, Lexington• Bowden & Wood, CPAs, Louisville• Bramel & Ackley, PSC, Ft. Wright• Bruce & Company, PSC, Madisonville• Buckles Travis VanMeter & Hart, PLLC, Leitchfield• Buetow, Lemastus & Dick PLLC, Louisville• Buschermohle & Company, PSC, Louisville• Calhoun & Company, PLLC, Hopkinsville• Campbell Myers & Rutledge, Glasgow• Carr Riggs & Ingram, LLC, Bowling Green• Carr Riggs & Ingram, LLC, Russellville• Charles T. Mitchell Company, Frankfort• Christian Sturgeon & Associates, PSC, London• Compton Kottke & Associates, PSC, Louisville• Craft Noble & Company, PLLC, Richmond• Crowe Horwath, LLP, Louisville• Crowe Horwath, LLP, Lexington• DMLO CPAs, Louisville• Donald & Company, PSC, Lexington• Duncan Smith & Stilz, PSC, Lexington• Ecken & Smith, PSC, Louisville• Evans Harville Atwell & Company, CPAs, Somerset• Faulkner King & Wenz, PSC, Mt. Sterling• Fister Williams & Oberlander PLLC, Lexington• Flynn Accounting, LLC, Jeffersonville, Ind.• Fowler Durham CPAs and Advisors, PLLC,

Munfordville• Franklin Certified Public Accountants, Madisonville• Freibert Bigg, PLLC, Louisville• The Fyffe Jones Group, Ashland• Garstka Gander & Crabb, PSC, Lexington• Shirley Gifford, CPA, Ferguson• Grover Greweling & Company, PSC, Louisville• Hamilton Thomas & Company, PLLC, Louisville• Harding Shymanski & Company, PSC, Louisville• Harris & Associates PSC, Somerset• Hoover and Morris, PLLC, Livermore• Jaynes and Jaynes, PSC, Richmond• John T. Lane & Associates, LLC, Mt. Sterling• Jones Nale & Mattingly, PLC, Louisville• Kauffmann & Associates, CPAs, Louisville• Kem Duguid & Associates, PSC, Hopkinsville• Kemper CPA Group LLP, Paducah• Kemper CPA Group LLP, Henderson• Louis T. Roth & Company, PLLC, Louisville• Marr Miller & Myers PSC, Corbin• MCM CPAs & Advisors, LLP, Cincinnati• MCM CPAs & Advisors, LLP, Louisville• MCM CPAs & Advisors, LLP, Lexington• Miller Mayer Sullivan & Stevens, Lexington

Continued on p. 40


• Moffitt & Company, PLLC, Paducah

• Monroe Shine & Company, Inc., New Albany, Ind.

• Monroe Shine & Company, Inc., Louisville

• Morgan-Franklin, LLC, West Liberty

• Munninghoff Lange & Company, CPAs, Covington

• Myriad CPA Group, LLC, Henderson

• Myriad CPA Group, LLC, Owensboro

• Tony Page, CPA, Murray• Patterson & Company, PLLC,

Louisville• Peck & Milford, Paducah• RAAM Global Energy Company,

Lexington

• Raisor Zapp & Woods, PSC, Carrollton

• Retirement Management Services, LLC, Louisville

• Vickie C. Richardson, PSC, Mt. Sterling

• Riney Hancock CPAs, PSC, Owensboro

• Riney Hancock CPAs, PSC, Evansville, Ind.

• Robinson Hughes & Christopher, PSC, Danville

• Rueff and Associates, PLC, Louisville

• Smith & Company CPAs, PLLC, Bardstown

• Southern Star Central Gas Pipeline, Owensboro

• Strothman & Company, Louisville

• Stuedle Spears & Company, PSC, Louisville

• Sullivan & Curry, LLP, Greenville• Summit Stragetic Advisors LLC,

Louisville• Tallent & Associates, CPA,

Louisville• Taylor Polson & Company, PSC,

Glasgow• TECO Coal, Corbin• Van Gorder Walker & Company,

Erlanger• Verbeck & Kaleher, CPAs,

Taylorsville• VonLehman & Co Inc., Cincinnati• Welenken CPAs, Louisville• Wendell Foster’s Campus for

Developmental Disabilities, Owensboro

• Williams Williams & Lentz LLP, Paducah

• Wise Buckner Sprowles & Associates, Campbellsville

40

100% Champions continued

YOU’RE A CPA.WHERE CAN AN AICPA C REDENTIAL TAKE YOUR CAREER NEXT?

If you’re a CPA with a specialized interest, you can build on the value of your license by adding an AICPA advisory service credential: Personal Financial Specialist (PFS™), Accredited in Business Valuation (ABV®), Certified in Financial Forensics (CFF®) or Certified Information Technology Professional (CITP®) — developed for the profession by the profession. AICPA credentials make a statement. They set you apart and get you noticed. And, they can seriously boost your career.

© 2

015

Am

eric

an In

stit

ute

of C

PAs.

All

rig

hts

rese

rved

. 17

369A

-326

Explore your opportunities at aicpa.org/aicpacredentials.

17369-326_YCPA Credential Campaign SS Half Page_8.5X5.5.indd 1 4/22/15 5:25 PM


kycpa.org 41

ALTAA (Advanced Leadership Training for Academy Alumni), made up of past KyCPA Leadership Academy participants, recently held its annual training session in Nashville, Tenn. Participants engaged in the session, Mastering Emotional Intelligence. Look for more information soon about KyCPA’s next Leadership Academy, or contact Becky Ackerman at [email protected]; 502.266.5272.

2015 ALTAA session

42

The Kentucky CPA Journal / Issue 6 2015 Members

StudentVanessa Joans Allen, Sullivan UniversityK. Alan Bailey, Campbellsville UniversityThomas N. Blevins, Campbellsville UniversityCandace N. Clark, University of LouisvillePamela J. Cundiff, Campbellsville UniversitySteve K. Dattilo, Jefferson Community & Technical CollegeAaron T. DuVall, University of LouisvilleKyle M. Eisenhauer, University of LouisvilleWhitney Ely, Eastern Kentucky UniversityC. Emmaline Fenner, University of LouisvilleJerad Godsave, University of LouisvilleAdam Tyler Hall, University of PikevilleTaylor Ann Hardin, Campbellsville UniversityTravis Scott Henderson, Sullivan UniversityJoseph G. Hollingsworth, Bellarmine UniversitySarah Huebner, University of KentuckyMohammed S. Jallow, Bellarmine UniversityPaul M. Johnson, University of LouisvilleChristopher Blane Kidd, University of LouisvilleAndrea E. Koester, Campbellsville UniversityDalton J. Olson, Campbellsville UniversityKimberly Quick, University of KentuckyCurtis Riddle, Indiana UniversityYanny Rios, University of LouisvilleJacob A. Smith, Indiana University SoutheastBenjamin E. Stewart, Indiana University SoutheastHobart Brandon Ward, Eastern Kentucky UniversityDena Kaye Weixel, Sullivan UniversityEmily Zeng, University of Louisville

Non-CPA Firm AdministratorMary Ann Phillips, Welenken CPAs, LouisvilleShannon Lea Seltsam, Enderle Besten Dieruf, PLLC, LexingtonMallary Snyder, Monroe Shine & Company, Inc., LouisvilleAngela G. Woods, Shelton CPAs, LLP, Bowling Green Non-CPA AssociateJustin M. Bailey, The Armor Group, Mason, OhioHillary K. Clark, BKD, LLP, LouisvilleJordan Coleman, PricewaterhouseCoopers, LLP, Louisville

Lydia Eltzroth, Buetow LeMastus & Dick, PLLC, LouisvilleEric M. Felty, Deloitte & Touche, LLP, Columbus, OhioThomas James Gilkey, Deloitte & Touche, LLP, Cincinnati, OhioLeah Elizabeth Grace, RFH, PLLC, LexingtonAmelia Higdon, Buetow LeMastus & Dick, PLLC, LouisvilleKyle A. Horn, RFH, PLLC, LexingtonRyan Kenneth Jackson, Ernst & Young, LLP, LouisvillePamela A. Jefferson, Robbins Heating & A/C Company, Inc., LouisvilleNisa Jones, FireKing Security Group, LLC, New Albany, Ind.Jacob Tyler King, BKD, LLP, Bowling GreenMark R. Mick, US Bank, LouisvilleSarah Rasmovich, Strothman & Company, Louisville

Part-time CPADavid E. Forsythe, PaducahWilliam Richard Mills, LouisvillePatricia M. Riggs, Louisville

RegularWesley Tyler Akers, Harris Akers and Associates, LLC, PikevilleChristopher N. Bingham, Alden Resources, LLC, CorbinMary Madeline Booher, Bluegrass Community Foundation, LexingtonJonathan Alan Bridges, ResCare, Inc., LouisvilleCamille M. Crespo Soto, Kentucky Lottery Corporation, LouisvilleRenee M. Croket, RM Croket, CPA, PLLC, LouisvilleJoshua K. Cummins, MetLife, LouisvilleMelissa W. DeArk, Dean Dorton, PLLC, LouisvilleBryan D. Eble, Strothman & Company, LouisvilleSteven Lee Edwards, Jr., Trover Solutions, Inc., LouisvilleSusan Ashley Ewing, Ventas, Inc., LouisvilleMichael Alexander Fallot, Ventas, Inc., LouisvilleKerry Marie Gasson, Humana, Inc., Louisville

Welcome new members

Jacob W. Green, Davis H. Elliot Company, Inc., LexingtonHolly M. Greene, Thurman Campbell Group, PLC, PrincetonJoseph B. Harward, Bluegrass Airport, LexingtonCharles James Hoben, Country Boy Brewing, LexingtonAnne-Marie Hogan, Spalding University, LouisvilleLaura Vaughan Holland, MCM CPAs and Advisors, LLP, LexingtonLevi M. A. Kamer, DMLO CPAs, LouisvilleAlmedina Karamehmedovic, Microsoft Germany, Unterschleissheim, GermanyTrang Minh Le, Housing Authority of Bowling Green, Bowling GreenEleanor Ann Livingston, Catholic Health Initiatives, LouisvilleAndrea Leigh Mattingly, Ventas, Inc., LouisvilleJames Emmett McCullum, Humana, Inc., LouisvilleAmelia Ann Gassert Melton, Vehicle Service Group, Madison, Ind.Rachel Elizabeth Meredith, MCM CPAs and Advisors, LLP, LouisvilleShanon Renee Miller, Optima Health, Virginia Beach, Va.Kira R. Mingua, AECOM, RichmondJerry L. Morris, Southern Star Central Gas Pipeline, OwensboroPaul G. Mortell, Alltech, Inc., NicholasvilleTravis S. Renfrow, South Central Bancshares, GlasgowKaren Renee Ritter, HomeServices of Kentucky, Louisville

Diane C. Ryan, Strothman & Company, Jeffersonville, Ind.James Salerno, KentuckyOne Health, LouisvilleSusan Elizabeth Saylor, Tempur Sealy International, Lexington

Timothy L. Schueler, American Bank & Trust Company, Inc., Bowling GreenNathan K. Smith, Blue & Company, LLC, Louisville

We see healthy this way: family, friends and community members who keep a lookout for each other no matter what. That’s what you can count on with Anthem Blue Cross and Blue Shield (Anthem).

Our roots are strong in the Bluegrass state. In fact, we’ve been here for more than 75 years and have made it our business to be one of the best places to work in Kentucky. You may even know our people personally from your neighborhood, your schools or at the playgrounds. We’re moms, dads and local residents, just like you, who commit daily to bring excellent service delivered with that special Kentucky, down-home feel.

It’s our honor to be good neighbors, supporting organizations that help keep your families and your businesses thriving. So here’s to the healthy state of Kentucky, strong now, stronger tomorrow.

Anthem Blue Cross and Blue Shield is the trade name of Anthem Health Plans of Kentucky, Inc. Independent licensee of the Blue Cross and Blue Shield Association. ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association.

52982KYAENABS Rev. 06/15

We’re here for Kentucky, now and alwaysSee what Anthem can do for your business. Stop in for a visit at anthem.com.

Kentucky pride runs deep at Anthem

T:5”

T:7”

B:5.25”

B:7.25”


kycpa.org 43

William Corbin Smith, MCM CPAs and Advisors, LLP, LexingtonStephanie L. Spencer, BKD, LLP, LouisvilleKelli Dawn Stinnett, 4-MMS Industrial Staffing, LLC, DanvilleTaylor James Stuckey, Stites & Harbison, LexingtonAndrew J. Viers, Ventas, Inc., Louisville

Shannon N. Vormbrock, Rodefer Moss & Company, PLLC, New Albany, Ind.Nicholas W. White, A&R Logistics, LouisvilleJonathan C. Williams, Jonathan C. Williams, PSC, LexingtonChristine Mirai Zolnowski, Humana, Inc., Louisville

Resolution of RespectJ. Kent Kirby, Kirby & Kirby, Bowling GreenLarry E. Wilson, Madisonville

opportunity

talent

future

post your resume or job opening atcareers.kycpa.org

it’s not your grandma’s job search

it’s not your grandma’s job search

The Career

Center is free.

44


KyCPA President-Elect Bill Jessee, second from right, of Henderman Jessee & Company in Louisville, recently attended the 2015 AICPA/CPA-SEA Leadership Conference in Hawaii, along with KyCPA CEO Penny Gold (left), AICPA Vice Chair Kimberly Ellison-Taylor, and Barry Melancon, AICPA president.


kycpa.org 45

Things a CPA cannot do without…

THE AICPA PROFESSIONAL LIABILITY INSURANCE PROGRAM• Designed to cover the unique exposures of CPA firms• All size firms and areas of practice are eligible• CPA NetProtect®— pays for certain costs associated

with privacy breaches and provides liability coverage for network damage claims such as cyber attacks*

ASPIRIN

TABLET

Please contact Jason Wolff at Schwartz Insurance Group at 1.800.366.8177 today!

*CPA NetProtect® is offered for an additional fee as part of the AICPA Professional Liability Insurance Program. Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (TX 13695), (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services, Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency.One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. The statements, analyses and opinions expressed in this publication are those of the respective authors and may not necessarily reflect those of any third parties including the CNA companies. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2015 CNA. All rights reserved. E-11345-1115 KY

COFFEE

SMART PHONE

RED PENCIL

Administered by:Underwritten by:Endorsed by: In Kentucky by:

E-11345-1115 KY.indd 1 9/24/15 1:41 PM

AICPA/CPA-SEA Leadership Conference

Classified ads: Include businesses for sale or volunteer, nonprofit board positions; 50-75 words, max. Cost is $50 for KyCPA members; $100 for non-members. Email Lorri Malone at [email protected] and include your billing information. Employment ads: Information about posting your resume or placing free employment ads online may be found at KyCPA’s new Career Center, careers.kycpa.org.

Classifieds

Selling your CPA firm in 2015? Knowing what your firm is worth is the first step. Contact us TODAY to receive a free no-obligation market analysis of your firm. Accounting Biz Brokers has been offering personalized business brokerage services to CPAs for over 10 years. We know your market and our process is strictly confidential. Visit us at www.AccountingBizBrokers.com. Kathy Brents, CPA, CBI. Cell 501.514.4928 Office 866.260.2793.Email: [email protected].

East End Louisville Area CPA Firm Looking for Growth Opportunities. We are looking for retirement-minded CPAs and firms looking for an exit strategy over the next few years. All size of practices are desirable. Let us help you preserve the long term value you have created and continue the excellent service to your clients. Reply in confidence to Blind Box 1, KyCPA, 1735 Alliant Ave., Louisville, KY 40299.

(KY 1012) Laurel County Area Tax Practice For Sale: This practice is exclusively a tax practice with a heavy client load during tax season with a limited number of extensions for the off season. The firm is almost exclusively a one man show but does have a contract employee to assist with return preparation. The per hour realization rate is excellent due to being able to complete many returns with little professional time. This practice would fit any number of practice owners who seek extra tax season revenue or for a first time owner with close to 70% of revenues returning to the owner. With generous owner financing available for qualified buyers this firm is an ideal opportunity. Visit www.accountingpracticesales.com or call 877.345.7722.

Considering Selling Your Practice? Consider all of your options. We do the work to sell your practice by finding qualified buyers that provide financial security coupled with the utmost in confidentiality. We have buyers actively seeking practices. Visit our web site at www.accountingpracticesales.com or call 877.345.7722. Accounting Practice Sales, we make dreams happen!

(KY 1011) Western Kentucky Tax & Investment Services Practice For Sale: The Seller of this tax and investment services practice is ready to sell and pursue other interests. The revenues are approx. 10% from write-up services, 60% from tax services with the remainder from investment services. The Seller owns the building which will make transition easy for any interested buyer. Visit www.accountingpracticesales.com or call 877.345.7722.

The Kentucky CPA Journal / Issue 6 2015 Classifieds

46

Members and Friends:Thank you for another great year with KyCPA!

Joyous Holiday Season

Happy New Year!

- The leadership and staff of your Kentucky Society of CPAs

we wish you a

and best wishes for a

1735 Alliant AvenueLouisville, KY 40299-6326kycpa.org

PRSRT STDU.S. POSTAGE

PAIDLOUISVILLE, KYPERMIT No. 1410

Scan this QR Code to view The Kentucky CPA Journal instantly! www.issuu.com/kycpa

Neace Lukens is KyCPA’s official partner in health insuranceAnnual renewals Open enrollment Dec. 1, 2015 - Jan. 1, 2016

KyCPA member benefitNeace Lukens is KyCPA’s sole agency of record for your health insurance needs. We chose Neace Lukens to represent the Society’s membership regarding our group health and dental programs because we want the best and we are confident that you will receive great service from Neace Lukens. For more than 20 years, Neace Lukens has helped businesses in nearly every industry develop specialized solutions tailored for their needs, and it has done the same for the Kentucky Society of CPAs group health insurance program. Please contact any member of your Neace Lukens team if you have questions regarding your renewals or would like to enroll in the group health insurance plan.

Your Neace Lukens teamTom Schifano [email protected] (502.259.9217)Brenda Ballard [email protected] (502.259.9210)Cherisse Mitchell [email protected] (502.259.9244)

neacelukens.com

Working together to develop

solutions that fit your health and dental insurance

needs.

Documents

The Kentucky CPA Journal - Issue 6 2015