NEW JERSEY STATE BOARD OF ACCOUNTANCY

1 NJ STATE BOARD of ACCOUNTANCY Public Session Minutes September 28, 2017 Page 1 NEW JERSEY STATE BOARD OF ACCOUNTANCY PUBLIC SESSION MINUTES SEPTEMBER 28, 2017 HUDSON ROOM 6TH FLOOR I Call to Order and Roll Call - 9:30 A meeting of the New JERSEY STATE BOARD of ACCOUNTANCY was convened in accordance with the provisions of the Open Public Meetings Act. Pursuant to those provisions, the appropriate notifications were made to the Office of the Secretary of STATE , the Camden Courier-Post, the Trenton Times, the Asbury Park Press, the Record, and the Star-Ledger. President, Sara DeSmith called the meeting to order at 9:35 The following roll call was taken: John Dailey, CPA Present Allison Dunko, CPA Present Sara L. DeSmith, CPA Present Daniel J.

2 Geltrude, CPA Present Rajeev Malhotra, CPA Excused David J. Milkosky, CPA Excused Harold Model, CPA Present Joan Paciga, CPA Present Eileen Poiani, Present Ainsley A. Reynolds, CPA Excused Michael H. Runge, CPA Present Maria Vallejo, Esq. Present Also present at the meeting were Michela Ross, Acting Executive Director; Tobey Palan, Deputy Attorney General; Melba Rodriguez, Secretarial Assistant; Marie Lisa, Staff; Rachel Glasgow, Regulatory Analyst; Ralph Thomas, Executive Director, NJCPA; Mike Polito, NJCPA and Jeff Kaszerman, Director of Relations, NJCPA. NJ STATE BOARD of ACCOUNTANCY Public Session Minutes September 28, 2017 Page 2 II Minutes of the Meeting of July 20, 2017 On a motion made by Daniel Geltrude, seconded by Allison Dunko, the BOARD voted to approve the July 20, 2017 Public Session minutes with corrections.

3 The vote of the BOARD was unanimous. III President s Remarks BOARD President DeSmith informed the BOARD that Dan Dustin from NASBA had reached to her. Mr. Dustin travels to all the STATE Boards providing briefings of things that go on at NASBA. He last visited the BOARD about two years ago. BOARD President DeSmith felt that it would be a good idea to invite to Mr. Dustin to visit the BOARD in the near future. IV Executive Director s Remarks Executive Director Ross had no report for the BOARD . Ralph Albert Thomas of NJCPA initiated a discussion regarding the current requirement for licensees to submit significant documentation in order to receive triple CPE credit as an instructor for CPE courses. It was suggested that New JERSEY s requirements are more onerous than any other STATE and that other states automatically award instructor credits if the course was delivered by a NASBA-approved or STATE BOARD -approved sponsor of CPE.

4 John Dailey will contact NASBA to understand the nature of other STATE BOARD requirements and how NASBA ensures that instructor credits are not duplicated. An update will be provided at the October meeting. On a motion made by Daniel Geltrude, seconded by Maria Vallejo, the BOARD voted to enter into Executive Session at 9:58 for some legal advice. The vote of the BOARD was unanimous. V Substantial Equivalency Endorsement DAG Palan provided a brined regarding Endorsements. On September 2016 in accordance with the Uniform Enforcement Act regulating endorsement licensure for all BOARD in New JERSEY . The BOARD of ACCOUNTANCY had voted that as long as the applicant for endorsement from another STATE in which they are active and in good standing, only required six months in the other STATE .

5 NJ STATE BOARD of ACCOUNTANCY Public Session Minutes September 28, 2017 Page 3 After discussion, review and legal advice, the BOARD voted to change their previous determination in Executive Session. In accordance with 45 , the BOARD has determined that as long as the applicant has the education, experience and examination and they are from a STATE which is substantial equivalent to New JERSEY , they will no longer be required to work the additional six months. The applicant must have an active license in good standing in their initial STATE . On a motion made by John Dailey, seconded by Daniel Geltrude, the BOARD voted to amend a previous determination in 45 that if an applicant applies for endorsement through a STATE that has substantial equivalent education, experience and exam, as long as the applicant is active in the initial STATE , may be approved for endorsement and that the six month requirements no longer be necessary.

6 The vote of the BOARD was unanimous. VI Miscellaneous A John Litman, CPA of Litman Associates, LLC Correspondence was received from Mr. Litman wherein he requests to find language regarding referral fees. Mr. Litman would also like to know if he may have a non-CPA as a partner in either firm structure. On a motion made by John Dailey, seconded by Allison Dunko, the BOARD voted to send a letter to Mr. Litman and enclose the BOARD s Referral Fee rule, 13 Mr. Litman is to be informed that he does not qualify as a non-CPA firm since he owns the firm and is also a licensed CPA. Mr. Litman is also to be sent rule 45 Private accounting firms; ownership by non-licensed individuals; requirements for his review. The vote of the BOARD was unanimous. B Erin O.

7 Millar, Associate Vice President and Deputy General Counsel of the University of Maryland University College Correspondence was received from Ms. Millar wherein she would like the BOARD to verify certain information regarding the online Bachelor of Science Degree in Accounting, Master of Science Degree in Accounting and Financial Management and Master of Science Degree in Management with an Accounting Specialization. On a motion made by Allison Dunko, seconded by Michael Runge, the BOARD voted to inform Ms. Millar that the rules and regulations are available online for her review. The vote of the BOARD was unanimous. NJ STATE BOARD of ACCOUNTANCY Public Session Minutes September 28, 2017 Page 4 C Eileen Marron from Aksman & Marron Correspondence was received from Ms.

8 Marron wherein she has questions regarding CPA firm ownership. On a motion made by John Dailey, seconded by Daniel Geltrude, the BOARD voted to send Ms. Marron rule 45:2B-54 regarding firm ownership. Ms. Marron is also to be informed that is she needs corporation structure, she must contact her own legal counsel. The vote of the BOARD was unanimous. D Eliezer Florans Correspondence was received from Mr. Florans wherein he informs the BOARD that he has passed all four parts of the CPA exam but he no longer has the number of credits required to become licensed. Mr. Florans has a total of 192 credits which consist of Bachelors 159, Masters 33, 24 Accounting and 9 Business Law. On a motion made by John Dailey, seconded by Daniel Geltrude, the BOARD voted to send Mr. Florans a letter and request that he submit his transcripts for review.

9 The vote of the BOARD was unanimous. VII Committee Reports A CPA Examination Committee Harold Model had no report for the BOARD . On a motion made by John Dailey, seconded by Harold Model, the BOARD voted to extend the 18 month rule until 06/30/2018. If anyone has a special case, they are to provide it to the BOARD for review. The vote of the BOARD was unanimous. B CPE & Ethics Committee Michael Runge reported that the Committee reviewed 17 individual requests for credit. On a motion made by Michael Runge, seconded by Eileen Poiani, the BOARD voted to approve Borek Group and Office of the STATE Auditors for this triennial only, their in house course. The vote of the BOARD was eight voting in favor with John Dailey abstaining. NJ STATE BOARD of ACCOUNTANCY Public Session Minutes September 28, 2017 Page 5 C Education & Reciprocity Committee No report was provided.

10 D Monitoring the Profession Committee The Committee report was moved to Executive Session. E Nominating Committee Daniel Geltrude had no report for the BOARD . F Peer Review Oversight Committee Allison Dunko reported that the Committee met on August 28, 2017 to review a number of items. Ms. Dunko reported that Larry Gray attended the AICPA peer review conference. The conference stressed that if work is not documented, it is not done. The enhanced oversight program was discussed where the AICPA has hired experts to specific areas such as ERISA & Broker Dealers and they are randomly selecting peer reviewers to see if the experts agree with the peer review opinion. DOL limited scope audit issues were discussed and an exposure draft of the new opinion will be rolled out this fall.