February 2013 Newsletter

February 1, 2013

President's Message

Bethe Davis, CPA

Budget updates - the good, the bad, and the optimistic.

As most of you know, the board faced a tremendously problematic situation when our first financial reports were reviewed early this fiscal year. At that time, we discovered that our initial budget had a projected shortfall in the $80,000 range. We reacted immediately to begin revamping the existing budget, cutting back where we could, brainstorming potential changes, and challenging ourselves to come up with new ideas about our activities and our future direction, as well as outreach, recruitment, and solicitation of greater CPE support. The new budget came in at about a $50,000 loss.

The issues we face are driven by an unexpected decline in our CPE revenues. CPE offerings are chosen, scheduled, and booked considerably in advance (in the prior fiscal year) and do not allow for quick reactions or changes. While many state societies have seen gradual declines in CPE revenues over the past five years, due largely to the availability of competing online providers and a gradual general acceptance of that form of delivery, our state has held steady during this time frame...except for this year.

Our CPE committees have conducted extensive outreach to the firms in their respective locations to better understand the situation. Those responses indicate the problem may be driven largely by a combination of both class offerings and problematic scheduling. Our committee has made extensive efforts to solicit more feedback and better committee participation to help ensure our next fiscal year’s offerings are on target and better scheduled.

When we revamped the budget, we cut back where we could, curtailing many plans and modifying others. We also found many of our costs are relatively fixed. We are, and have been, making changes and plans that will affect the future. Plans that include more carefully targeted CPE, electronic book delivery for CPE, continuation of board travel reductions (for those traveling to board meetings), and we are in the middle of investigating potential cost saving changes related to our office space. In addition to those measures, and careful live CPE selections, we have been active in pursuing partnerships with quality online CPE providers that allow the society to provide a staggering array of topics, revenue share, and, in many cases, give discounts to our members. We are looking into more creative ways to bundle electronic and live CPE to provide more flexibility to our members. We are making efforts to better promote electronic courses and provide easier access to this information and scheduling.

At our last meeting’s budget to actual review we found we are in a better position than anticipated with our revamped numbers, but we are not at a balanced budget at a projected loss of about $30,000. As we work our way through the next year’s budget development we are guardedly optimistic about forthcoming changes and currently, conservatively, project a loss of around $7,500 prior to additional cost cutting measures we are pursuing. We continue to conduct firm visits and outreach to allow the board to better understand the membership’s needs and thoughts that will allow us to be better able to define and plan our future and are still working on measures to provide a level of comfort and cost cutting in the next year.

So, if this is what the board is doing for the society- what can members do? Members can continue to provide feedback to the board and encourage participation on committees. If you have insights, ideas, or thoughts you want to share, don’t wait for us to come to you, give us a call and let us know. Support our CPE, including investigating our electronic provider partnerships. Encourage younger staff to be a part of our structure. We thank those firms that have graciously provided their time and insights during firm visits and those that already support our committees, activities, and utilize our CPE. We have some exciting changes in the works, and we want you to be a part of our future.

Remember to save the date for the annual meeting May 29th, 30th, and 31st… get a sneak preview from Rita in the article below.

Rita De La Torre, Board Director

Member of the CPE, Meetings, and Financial Literacy Committees.

JOIN US AT THE ANNUAL MEETING…..

While you are making plans for fun activities once the busy season is over, block May 30 and 31 on your calendar. The AKCPA wants you to join the Board in Fairbanks for the annual meeting. This meeting is not just for partners and retired CPAs, or the folks living in Fairbanks, or only CPAs in public practice. The meeting is for all of you from the brand new staff to the seasoned partner, the university professor, big firm or sole proprietor or CPAs now working in the private sector.

I will admit that it had been more than a decade since I had attended an annual meeting when I arrived in Homer last May. I was a newly-elected director and wanted to re-energize and learn what the issues of the day were for the AKCPA. The event was very successful because it was both entertaining, educational and well-attended by professionals from around the state. Yes, CPAs do know how to have fun!

We are at a crossroads at the Alaska Society and need the input of all our members to determine what services are needed or desired by our members. The annual meeting is the perfect forum to have these discussions. As the cost of providing CPE and maintaining office, training & meeting space inAnchoragechallenges our budget, the new board members will need your input, your commitment to involvement in committee activities, and a new generation of members to become part of the process.

The annual meeting provides the perfect forum to share experiences with the various changes in the profession from technology challenges, providing a challenging career path desired by new professionals, or dealing with the ever-faster changing rules and regulations we must master.

The meetings committee is working hard on the plans for this year’s event. Fairbanks wants to share its community with us, so we are planning two different evening social events (Wednesday May 29 and Thursday May 30) to introduce you to some great local cuisine and beverages in a couple of different settings you may not yet have experienced. Where, you may ask? Well, look for the update in upcoming newsletters. As plans are finalized, we will continue to share them with you.

What is the theme of this year’s meeting? Well, it is “confidential” at this time. That is your first clue. Additional clues will be revealed in the following months. As we are given permission from our sources to reveal the details, you will be the first to know.

I can tell you there will be three 4-hour CPE classes, one of which will be the Alaska Ethics course needed for renewal this year.

We challenge every CPA firm in Alaska o send representatives – experienced and new to the profession – to help us set goals for a prosperous future. See you there.

Management of an Accounting Practice

(MAP) Meeting:

The MAP committee met at 7:30 am on Tuesday, January 22, 2013, at City Diner. Seven members attended and the topic was Engagement Letters and Pre-tax season tasks.

The members discussed components that should be included in both an individual and business engagement letter. They looked at new items to include as proposed by the AICPA and CNA (the AICPA Professional Liability Insurance Program carrier).

New items of interest included adding wording regarding foreign bank account and foreign financial asset information, preparation of any local or state tax returns, clearer wording of responsibilities by the preparer and the client, discussion of extension preparation including what notification is required by the client for the preparer to prepare an extension and wording regarding communication to the client in various written and electronic methods. Wording regarding storing data electronically and transmitting data electronically was also discussed.

The next meeting of the MAP committee is scheduled for February 19, 2013 at 7:30am at City Diner.

Leslie Schmitz, Chair

Financial Literacy Committee

Hey Y’all!

Get your spurs sharpened. It’s almost time for “Roundup At The Bear Paw Corral”, and we need your help to promote financial literacy to the community. How, you ask?

First – We need volunteers!! The Bear Paw festival is a fun-filled family-fun event sponsored by the Chugiak-Eagle River Chamber of Commerce. This year’s event will be July 12- 14, noon to 10pm Friday and Saturday, and noon to 6pm on Sunday. With 3 hour shifts, we need just 9-10 people to fill all the time slots.

Second – We need protection! We are looking for a 10’x10’ EZ-Up tent to put up for the weekend to protect us from the inevitable wet stuff that sometimes falls from the sky in July. If you have one, let Linda know.

Third – We need sponsors! When we were at Bear Paw two years ago, several of the local CPA firms came forward to underwrite the US Savings Bonds that we gave away. This year we want to order piggy banks and some other fun promotional items to give away, but as you probably know, we don’t have any money in the budget. Your sponsorship entitles you to prominent signage in our booth during Bear Paw, print recognition in the newsletter, and our undying appreciation!

Our last time at Bear Paw, we spoke with hundreds of people interested in saving money, gave away 500 reminders for “20 Ways to Feed the Pig”, and had over 800 people enter our drawing for “Free Money”. Benjamin Bankes also made several surprise appearances!

You might think July is a long way away, but it will be here before you know it. Call Linda if you have a EZ-Up tent. Sign up now before the best volunteer time slots are taken!! Or write a check and help us order the promotional items early so we avoid the express shipping charges.

Together we can show the community how to ROUND UP their finances at the 2013 Bear Paw in Eagle River! Give Linda a call and Join the fun.