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ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES

May 9, 2016 Members of the Arizona State Board of Accountancy (“Board”) held a meeting at 8:16 a.m. on Monday, May 9, 2016, at the Accountancy Board Office in Suite 165, 100 N. 15th Avenue, Phoenix, Arizona 85007. Executive Session was held from 3:15 p.m. to 4:31 p.m. BOARD MEMBERS: Alan R. Augenstein, CPA ................................................................................... President Douglas N. Kimball ............................................................................................. Secretary Layne Reid Simmons, CPA ................................................................................ Treasurer Gary L. Freed ....................................................................................................... Member LeRoy M. Gaintner, CPA ...................................................................................... Member William C. Heimerdinger, CPA ............................................................................. Member Julie S. Klewer, CPA ............................................................................................ Member Participated telephonically Absent STAFF PRESENT: Monica L. Petersen .............................................................................. Executive Director Valli Goss ................................................ Assistant Director, Regulation and Compliance Sophia Varma Van Langen ..................... Assistant Director, Regulation and Compliance Jacki Hancock ......................................... Assistant Director, Registration and Operations Richard Sietz ........................................................................................ Systems Manager Christopher Rasmussen ...................................................... Program Project Specialist II ASSISTANT ATTORNEYS GENERAL: Mona S. Baskin, Esq ............................................................... Assistant Attorney General Marc H. Harris, Esq. ................................................................ Assistant Attorney General Mary D. Williams, Esq. ........................................................... Assistant Attorney General GUESTS PRESENT AND/ORPARTICIPATING: Chris Smith, CPA .............................................................................................. Registrant David Freeland ........................ Arizona Association of Accounting and Tax Professionals Charles B. Mathews, CPA ................................................................................. Registrant Adela E. Jiménez, CPA, CGMA ...................................................COO and CFO, ASCPA Barry Dill ...................................................................................................... First Strategic Marcus Dell’Artino ....................................................................................... First Strategic John Chadwick Todd, II, CPA ....................... Law Review Advisory Committee Chairman

The meeting was called to order at 8:16 a.m. by Alan R. Augenstein. The following order of

ARIZONA STATE BOARD OF ACCOUNTANCY

100 North 15th Avenue, Suite 165 Phoenix, Arizona 85007

Phone (602) 364-0804 Fax (602) 364-0903

www.azaccountancy.gov

http://www.azaccountancy.gov/

ARIZONA STATE BOARD OF ACCOUNTANCY MEETING MINUTES May 9, 2016

business was then considered: OPEN SESSION CALL TO THE PUBLIC

David Freeland of the Arizona Association of Accounting and Tax Professionals (AAATP) was present and thanked the Board for allowing him to participate.

DISCUSS, AMEND AND APPROVE MINUTES

After discussion and amendments, a motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5 – 0 to accept the March 28, 2016 Open Session minutes, as amended. After discussion and amendments, a motion was made by Gary L. Freed and seconded by LeRoy M. Gaintner to accept the March 28, 2016 Executive Session minutes, as amended. Before a final vote was called, William C. Heimerdinger listed an additional amendment and Mr. Freed modified his motion to include Mr. Heimerdinger’s amendment. LeRoy M. Gaintner seconded the amendment. The motion passed 5 – 0.

DECLARATION OF CONFLICTS OF INTEREST Julie S. Klewer declared a conflict of interest with agenda item XIV.L.7&8 – Firm: AXIOM

Financial Advisory Group, LLC, Partner: Armando G. Roman 6951-E; File No. 2016.104. Alan R. Augenstein declared a conflict of interest with agenda item XIV.O.1 – Birtcher, Justin

B. CONSENT AGENDA LeRoy M. Gaintner declared a conflict with the following consent agenda item: N. Request for Reactivation of Certificate from Inactive Status – A.R.S. § 32-731.01(C):

1. Day, David Marlow 5762-E A motion was made by William C. Heimerdinger, seconded by Gary L. Freed and passed 4 – 0 to approve consent agenda item V.N.1. LeRoy M. Gaintner declared a conflict of interest and recused himself from the vote. William C. Heimerdinger declared a conflict with the following consent agenda items: E. Recommendation of the Certificate Committee for Approval of Certification by Examination

– A.R.S. § 32-721(B): 8. Hymas, Jordan 12. Manuel, Alex M. Recommended Approval of Retired Status for the Following Registrants – A.R.S. § 32-


730.04: 20. Kissel, Nicholas 12237-R. A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 4 – 0 to approve consent agenda items: V.E.8, V.E.12, and V.M.20. William C. Heimerdinger declared a conflict of interest and recused himself from the vote. Julie S. Klewer declared a conflict with the following consent agenda items: K. Recommendation of the Peer Review Oversight Advisory Committee for Approval of the Following Firms in Compliance with A.A.C. R4-1-454:

6. Cutler, David S., CPA, P.C. 11. Keegan, Linscott & Kenon, P.C.

A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 4 – 0 to approve consent agenda items: V.K.6 and V.K.11. Julie S. Klewer declared a conflict of interest and recused herself from the vote. Alan R. Augenstein declared a conflict with the following consent agenda item: M. Recommended Approval of Retired Status for the Following Registrants – A.R.S. § 32-730.04:

39. Thorn, Diane E. 7157-E

A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 4 – 0 to approve consent agenda item V.M.39. Alan R. Augenstein declared a conflict of interest and recused himself from the vote. A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 5 – 0 to approve the following consent agenda items: A. Recommended for Registration of Firms for the Following Applicants (Meet the

Requirements of A.R.S. § 32-731): 1. Accounting & Tax Professional

Partner: Richard A. Henkhaus 9570-R 2. Annico Accounting CPA, PLLC

Partner: Anna Niemkiewicz 18018-R 3. Ascensa Business Partners, LLC

Partner: Donald C. Schade 13530-E 4. Benjamin Ramirez

Partner: Benjamin Ramirez 17472-R 5. Carol M. Mount

Partner: Carol M. Mount 18078-R 6. Deborah M. Budnick, CPA, PLLC


Partner: Deborah M. Budnick 12862-R 7. Debra M. Madsen, CPA

Partner: Debra M. Madsen 13985-E 8. Desylina Christensen, CPA

Partner: Desylina Christensen 15229-E 9. Don Paul Snider CPA

Partner: Don Paul Snider 7758-E 10. Kay E. Green, CPA

Partner: Kay E. Green 8112-E 11. Loree Thompson

Partner: Loree Thompson 6613-E 12. N. Terryl Rogers

Partner: N. Terryl Rogers 875-C 13. Nisheeth Bhatnagar CPA, PLLC

Partner: Nisheeth Bhatnagar 16819-R 14. Theresa Simms

Partner: Theresa Simms 8149-R 15. Wahl CPA P.L.L.C

Partner: Tom Wahl 17261-E 16. Wickham Q. Culbert L.L.C.

Partner: Wickham Quinan Culbert 8453-E

B. Request for Firm Cancellation – Do Not Wish to Renew: 1. Benecke, David L., CPA 4607-S 2. Bengis, Clifford T., Professional Services, PC 1224-C 3. Berg, Diane R., CPA, PLLC 3422-L 4. Beswick, Peggy Ann, CPA 5335-S 5. Budnick, Deborah M., CPA 4747-S 6. Burnett, J. A., PLLC 2988-L 7. Casalena, John L., CPA, P.C. 66-C 8. Claypatch, CPA 2520-P 9. Climb Business Services 4148-S 10. Diggins, Cynthia Lyn, CPA 5861-S 11. Faler, Nathan Von, CPA 4029-S 12. Garverick, J. Patrick, P.L.C. 2286-L 13. Landino, Karen Reed, CPA 5300-S 14. Left Mind CPA 3477-L 15. McKay, Robert, CPA 5704-S 16. Mitchell & Erickson, CPAS, L.L.P. 1058-B 17. Paone, Anthony J., CPA 5645-S 18. Petty, Alisa Batchelor, CPA 4748-S 19. Terca, PC 308-C

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

1. Burnett, Jay A. 14403-R 2. Diggins, Cynthia Lyn 11314-E 3. Eriksson, Sofie 13507-E


4. Fox, Edward M. 1862-R 5. Gard, Bendall Kilpatrick 10390-E 6. Haagenson, Beth Nuthals 17543-R 7. Hill, Larry R. 3165-E 8. Krueger, Kathy 15087-E 9. Paone, Anthony Joseph 12639-E 10. Tiefenthaler, Tim J. 11860-R 11. Winhold, Larry M. 2465-E

D. Recommended for Reissuance of Certificate because of Name Change:

1. Issued as: Brianne Gillaspy 17763-R ; New Name: Brianne Appleberry 2. Issued as: Kathryn Reeves 9935-E ; New Name: Kathryn Urban 3. Issued as: Kristen Eleanor Lannes 17598-E ; New Name: Kristen E. Lindstrom 4. Issued as: Lizabeth Wynn Bruni 10097-E ; New Name: Lisabeth Wynn Lane 5. Issued as: Terri McGinnis Sanchez 6833-E ; New Name: Terri Sue McGinnis

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

Examination – A.R.S. § 32-721(B):1. Abbasi, Rida 2. Bright, Curtis 3. Brighton, Kristian 4. Castellani, Jr., Robert T. 5. Coulter, Jesse 6. Hu, Jingcong 7. Huddleston, Tatiana S. 8. Voted on Separately 9. Kaehr, Brandon

10. Lavey, Jack

11. Lobaza, Bethany 12. Voted on Separately

13. Mast, Jacqueline 14. McSpadden, Casey L. 15. Standage, Aaron 16. Wager, Clark E. 17. Wang, Siying 18. Waterworth, Olga Y. 19. Yu, Zhen M.

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

Examination by Grade Transfer – A.R.S. § 32-721(B): 1. Boizelle, Jon P. 2. Casula, Matthew 3. Gupta, Ayush 4. Lowe, Brian 5. Waters, Anthony Byrd

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

Reciprocity based on Substantial Equivalency – A.R.S. § 32-721(C)(1): 1. Abercrombie, Timothy 2. Coley, David M. 3. Curry, Christopher R. 4. Dreyfus, Janell L. 5. Ford, Patrick J.

6. Griff, Anthony Orlando 7. Hardin, Randy 8. Lies, Nicole Rae 9. Prince, Pamela S.

10. Wang, Qing

H. Recommendation of the Certification Committee for Approval of Certification by Reciprocity – A.R.S. § 32-721(C)(2):


1. Flaherty, Ann M. 2. Schneider, Jason William

I. Recommendation of the Certification Committee for Approval of Examination

Candidates for the Uniform CPA Examination – A.R.S. § 32-723: 1. Agarwal, Neha Sanjay 2. Agarwal, Shailesh 3. Anugu, Sai Krishna Reddy 4. Arora, Kapil 5. Arumugam, Suresh 6. Baca, Scott Benjamin 7. Batra, Royally 8. Begum, Rukshar 9. Bellis, Zachary Matthew 10. Bhatkande, Bhujang Laxman 11. Brandenburg, Leah Marie 12. Bv, Sandesh 13. Chakrabarty, Pinaki 14. Chouhan, Rajesh Basant 15. Clipper, Gregory Allen 16. Dang , Tri Cao 17. Desai, Yasha Himanshu 18. Devarla, Sai Charan 19. Drake, Stephanie Celeste 20. Eisel, David Matthew 21. El Hassan, Walid Khaled 22. Gill, Nikki Jean 23. Gujral, Ashima 24. Hays, Patrick S 25. Holter, Shelby M 26. Hussein, Faduma 27. Iyyanukonar Madasamy,

Vigneshwar 28. Jain, Swati 29. Jenkins, Kristin Rebecca 30. Jeter, John Harvey 31. Kabaleeswaran, Vinayak

Athreya 32. Kelkar, Shuchita Anant 33. Khamar, Jinesh Nilesh 34. Kingston, Brooke Zakerwski 35. Kurupati, Kiran Kumar 36. Lahai, Sia Nyama

37. Laliwala, Priyanka Dinesh

38. Lanka, Madhuri Kameswari 39. Lopez Gonzalez, Miguel Angel 40. Lunceford, Reid Nathan 41. Mahipal, Anjali 42. Meyer, Benjamin Gerhard 43. Mishra, Subhasis 44. Murat, Verline 45. Murray, Dusti D 46. Myers, Brian Adam 47. Openshaw, Katsin X 48. Orange, Michael David 49. Pal, Rajender 50. Perez, Yvette 51. Perez Grijalva, Guillermo 52. Phillips, Daniel Douglas 53. Ramachandran, Vinodh

Bharathwaj 54. Raman, Kiran Kaushik 55. Rangaswamy, Arun Kumar 56. Robinett, Kara Ann 57. Rodriguez, Ariel Noel 58. Rogers, William Hollister 59. Rohman, Crystae Coolah 60. Sali, Manoj 61. Sanjay, Shakti 62. Sellars, Kelsey Alicia 63. Sembhi, Priyanka 64. Smith, Peter Ryan 65. Solorzano, Gabrielle 66. Speck, Evan Pierce 67. Stowell, Caitlynn Marie 68. Szilagy, Robert Joseph 69. Tripa, Adrian 70. Virmani, Swati 71. Warren, Brett Michael 72. Willoughby, Stephen Lee 73. Wilson, Bob Emmanuel Adonis

74. Yanuwar, Priya Ganesh 75. Yap, Xiao Qian


J. Recommendation of the CPE Advisory Committee for Compliance of the Following Registrants Regarding Random Audit (A.A.C. R4-1-453):

1. Bachani, Maryalice 13130-E 2. Donaldson, Millard L. 715-E 3. Everroad, Matthew O. 9467-E 4. Fischer, Brian Keith 7952-E 5. Goldberg, William Allen 1334-E 6. Kamienski, Kelly Paige 15975-E 7. Kennedy, Alyson P. 15886-E 8. Kovatcheva, Gergana A. 14794-E 9. Lepird, Jack 11835-E 10. Maney, Patrick T. 10921-E 11. Mullane, Terence P. 16661-R 12. Packard, Robert Lawrence 2414-E

K. Recommendation of the Peer Review Oversight Advisory Committee for Approval of the

Following Firms in Compliance with A.A.C. R4-1-454: 1. Anderson & Scow, L.L.P. 2. Baldwin & Baldwin PLLC 3. Bisceglia, Steiman & Fudeman, LLP 4. Choi, Anthony, P.C. 5. Conrad, Phyllis A., CPA, LLC 6. Voted on Separately 7. Gallacher, Bosen & Goodman, PLLC 8. Herb, Nick, Accounting Service, PC 9. JC Accounting & Consulting, CPA, PLLC 10. Karpinski, Berry, Adler & Company PLC 11. Voted on Separately 12. Kent, Lloyd E., CPA 13. Lohman Company, P.L.L.C. 14. Naylor, John H., CPA, P.C. 15. Olson & Hatcher, P.C. 16. Pereboom, Victor R., CPA, P.C. 17. Ross, Anne, CPA 18. Saunders Company, Ltd 19. Todd, John C., II, P.C. 20. Varga, Henry W., PLC

L. Request for Reinstatement from Expired Status – A.R.S. § 32-730.03

1. Broshears, Robert Scott 7764-E 2. Harris, Annie M. 10528-E 3. Lavin, Elise M. 16941-E 4. Riggs, Charl W. Jr. 10005-E 5. Swayda, Michael W. 10859-E


M. Recommended Approval of Retired Status for the Following Registrants – A.R.S. § 32-730.04:

1. Ashworth, Teresa Morgan 11884-R

2. Askelson, Kenneth Duane 3847-E

3. Backus, Robert Douglas 3849-E

4. Baldwin, Norris A. 1328-E 5. Beatty, Patricia J. 1054-E 6. Brown, Norris A. 1328-E 7. Casalena, John L. 948-E 8. Dooley, Frederick P. 2611-E 9. Dufour, Nancy R. 4119-E 10. Franco, Jeanne C. 7259-R 11. Geele, Michael S. 2312-E 12. Goldstein, Judith Susan

3530-E 13. Harvey, Patrick James 4279-R 14. Hoey, Elisabeth Joan 6748-E 15. Hornung, Janet M. 3274-E 16. Johnson, Galen K. 14997-R 17. Jones, Pamela J. 13560-R 18. Kahn, Norman M. 15512-E 19. Keane, Loretta E. 8477-E

20. Voted on Separately 21. Kitterman, Noela J. 6096-E 22. Loster, Donald R. 12381-R 23. Markey, Thomas Adam 6147-E 24. Mayer, Jean Marie 4383-E 25. Menninga, Sally 3046-E 26. Mihlik, Joseph John Frank 1017-E 27. Morgan, Darcia Linnae 5545-E 28. Mitchell, Robert K. 471-R 29. Peters, Elizabeth A. 5415-E 30. Petty, Alisa Batchelor 16196-R 31. Puchaty, Don J. 15602-R 32. Quain, Joanne Elizabeth 4389-E 33. Quinn, Joseph R. 8345-E 34. Reid, Randall M. 7565-E 35. Rivera, Christina R. 4448-E 36. Rodebush, Alan V. 2596-E 37. Roesler, Tara Ellen 2446-E 38. Rothwell, Barbara Palien 8273-E 39. Voted on Separately 40. Van Egmond, John H. 2649-E 41. Vickers, Virginia Penny 4762-R 42. Wilkes, Dennis Robert 1805-E

N. Request for Reactivation of Certificate from Inactive Status – A.R.S. § 32-731.01(C):

1. Voted on Separately 2. Moffitt, Craig Evan 8615-R 3. Sorrell, Whitney L. 8281-E

LEGISLATIVE UPDATE Barry Dill and Marcus Dell’Artino, Board lobbyists, were present and informed the Board that

the Legislature sine die. Messrs. Mr. Dill and Mr. Dell’Artino proceeded to provide the Board a summary of the legislative session and answered questions for clarification.

HB 2100 – State agency reports; electronic submission Marcus Dell’Artino stated that the bill was sent to the Governor’s Office. HB 2337 – Regulation; deficiencies; opportunity to correct Marcus Dell’Artino stated that the bill was sent to the Governor’s Office. HB 2450 – Expedited rulemaking; outdated rules Marcus Dell’Artino stated that the bill was sent to the Governor’s Office.

ARIZONA STATE BOARD OF ACCOUNTANCY MEETING AGENDA May 9, 2016

HB 2487 – State agencies; pre-application authorization; limitations Marcus Dell’Artino stated that the bill was sent to the Governor’s Office. HB 2517 – Businesses; professions; regulation restrictions Marcus Dell’Artino informed the Board that the bill will most likely be worked on during the

interim. HB 2613 – Regulatory boards; licensing; revisions Barry Dill informed the Board that this was the bill that contained the study that was to be

performed by the Arizona Department of Administration and that the bill was sent to the Governor’s Office. Alan R. Augenstein stated that it was very important that whoever performs the study understand the mission and operations of the Arizona State Board of Accountancy. Gary L. Freed noted that any reliable study would include interviews of at least the Executive Director, a couple of Board members and/or staff. Brief discussion ensued regarding the Board’s budgetary self-sustaining nature.

HB 2695 – General Appropriations Act; 2016-2017 Marcus Dell’Artino informed the Board that this bill is the budget for Fiscal Year 2017. Mr.

Dell’Artino also mentioned that there was nothing of grand significance to note in regard to the Board’s appropriation.

HB 2699 – Agency consolidation; budget reconciliation; 2016-2017 Marcus Dell’Artino noted that this bill was part of the general appropriations discussion and

that it largely had to do with executive departments. A brief discussion ensued regarding the goals of legislative leadership and what they were

able to obtain this legislative session. Alan R. Augenstein inquired as to the status of HB 2501 – Health regulatory boards; transfer;

DHS. Marcus Dell’Artino informed the Board that the bill was held in the Senate Appropriation Committee. Subsequently, a brief discussion ensued among Board members and staff regarding House Bills 2100 and 2337.

ITEMS FOR BOARD REVIEW, DISCUSSION AND POSSIBLE ACTION Recommendations from the Tax Advisory Committee to Open Investigation Files on the

Individual and/or Firm and to Direct the AAG to file a Complaint and Notice of Hearing for the Following Files:

File No. 2016.085 File No. 2016.110 File No. 2016.111 File No. 2016.117 File No. 2016.118 File No. 2016.150 Mary D. Williams was present on behalf of the State. Marc H. Harris was present to provide

independent legal advice to the Board. The Registrant and firm were notified but did not


appear. Sophia V. Van Langen provided the Board with a brief summary of the files and Monica L. Petersen informed the Board that the Office of the Arizona Attorney General is working on filing the Complaint and Notice of Hearing for the original set of complaints that were referred to formal hearing on March 28, 2016. Ms. Petersen noted that Board staff would recommend that these new files be included in the existing Complaint and Notice of Hearing, only if it did not cause additional delay in the finalization of the original Complaint and Notice of Hearing.

A motion was made by Alan R. Augenstein to accept the Tax Advisory Committee’s

recommendation on File Nos. 2016.085, 2016.110, 2016.111, 2016.117, 2016.118, and 2016.150 to open investigation files on the Registrant’s certificate and firm’s registration and to direct the Assistant Attorney General to file a Complaint and Notice of Hearing due to failure to respond. The motion died for a lack of a second.

A motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5

– 0 to accept the Tax Advisory Committee’s recommendation to open investigation files on File Nos. 2016.085, 2016.110, 2016.111, 2016.117, 2016.118, and 2016.150 and to direct the Assistant Attorney General to file a Complaint and Notice of Hearing for revocation of the Registrant’s CPA certificate and firm registration for failure to respond on these six additional files, if it will not cause further delay in the filing of the original Complaint and Notice of Hearing.

A brief discussion ensued regarding potential action under consideration by law enforcement

agencies regarding the Registrant and her firm. Notice of Operation of an Unregistered Firm and Failure to Respond – A.A.C. R4-1-455.03(F) File No. 2016.106 Firm: Ironwood Tax and Accounting Services, PLC Alan R. Augenstein provided a brief summary of the compliance file and informed his fellow

Board members that a response had not been received from the Registrant. A brief discussion ensued on the differences of initial analysis status and open investigation status and what action should be taken on the file. Board staff recommended that the file be placed in open investigation status and that the Board direct the Assistant Attorney General to file an injunction with the Maricopa County Superior Court.

A motion was made by Leroy M. Gaintner, seconded by Gary L. Freed and passed 5 – 0 to

accept Board staff’s recommendation to open the investigation file and to direct the Assistant Attorney General to file an injunction with the Maricopa County Superior Court against the Registrant for the unlawful use of the designation.

Mary D. Williams and Marc H. Harris left the meeting at the conclusion of this matter. Response to Offered Decision and Order (By Consent) File No. 2016.063; Mathews, Charles Charles B. Mathews was present and provided a statement regarding his matter and the

response he provided to the Board when he dissented to the Decision and Order (By


Consent) associated with File No. 2016.063. Alan R. Augenstein inquired of Mr. Mathews as to why the firm was formed. Mr. Mathews

stated that the firm was formed to possibly provide him and his wife, an accountant, a venue to transition clients through accounting systems. Mr. Mathews reiterated that currently his firm is inactive. LeRoy M. Gaintner asked if the firm continues to exist. Mr. Mathews confirmed that it is an existing entity, but that it has no activity nor any website. Gary L. Freed inquired if the firm has any financial activity and Mr. Mathews responded that the firm does not. Discussion ensued among the Registrant, Board members and staff in regard to whether the firm was active and/or engaging in any business.

A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and

passed 5 – 0 to rescind the Board’s February 8, 2016 motion to offer the Registrant a Decision & Order (By Consent) and to close the compliance file. Notice of Operation of an Unregistered Firm File No. 2016.097 Christopher Rasmussen provided a brief summary of the file to the Board. Chris Smith was present and provided an opening statement and explained that he moved swiftly to remedy the suspended firm situation when he was made aware of the issue. Gary L. Freed inquired of Board staff as to whether the Board has offered a Decision & Order (By Consent) with a fine for similar situations in the past. Board staff answered in the affirmative. After discussion, a motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5 – 0 to offer a Decision & Order (By Consent) with a $500 administrative penalty for failure to adhere to a suspension order under A.R.S. § 32-741(A)(9). The Board recessed from 9:30 a.m. to 9:38 a.m. Registration Requirements (A.R.S. §§ 32-701 et seq. and A.A.C. R4-1-101 et seq.) John C. Todd was present and informed the Board that the Law Review Advisory Committee ran into an obstacle involving educational enhancements reviews (EERs). Mr. Todd proceeded to provide the Board of a summary of the May 4, 2016 Committee meeting. Mr. Todd then outlined the recommendations of the Law Review Advisory Committee:

1. Re-examine the definition of “firm” in A.R.S. § 32-701; 2. Re-examine the definition of the “practice of public accounting” in A.R.S. § 32-701; 3. Examine A.R.S. § 32-747.01 to determine whether adding “compilation services”

would get the Committee closer to where they want to be; 4. Reconsider A.A.C. R4-1-455.03(D)(1) for possibly eliminating the phrase “only

practicing public accounting in a firm”; 5. Consider how revisions relating to the above would impact other statutes or rules; 6. Ask the Board for clarification on whether EERs should only be at the firm level or

whether they can be at the individual level; and 7. Ask the Board if there are any other matters the Board would like the Committee to

consider.


Discussion briefly ensued among Boards members, staff, and John C. Todd regarding A.A.C. R4-1-455.03(D)(1). Alan R. Augenstein commented that he does not believe that the Board asked the Law Review Advisory Committee to look into the definition of public accounting. Mr. Augenstein additionally inquired as to the status of the discussion of the Uniform Accountancy Act (UAA) and firms potentially using the CPA designation without being a CPA firm. Mr. Todd noted that he had a feeling from the meeting that no one had reservations in regard to that portion of the discussion, but that the Committee had not thoroughly examined that issue yet, as the Committee was having discussions regarding the EER aspect. Gary L. Freed mentioned that he was of the belief that the definition of “public accounting” should remain the same, but that changes could be made to the portion of the rules in regard to attestation, compilations and reviews. Discussion ensued among Board members and staff in regard to who can perform attestation and the definition of “firm” under A.R.S. § 32-701(14). Alan R. Augenstein reiterated the point that he does not believe that the Board is looking to alter the definition of “public accounting”. LeRoy M. Gaintner stated that he has an issue with firms that must register as a CPA firm if their sole industry is, for example, wealth management. Mr. Gaintner posed the question to the Board if wealth management should be considered public accounting. Board members proceeded to discuss what other states have done, how consistent Arizona’s law is to those states, and if other states had requirements similar to EERs. John C. Todd requested that the Board provide direction to the Law Review Advisory Committee in a form of a motion, and that the Committee be allowed to amend the decision tree to eliminate the requirement that a registrant who is only subject to EERs be required to register as a firm. Mr. Todd reiterated that he believes that that would be consistent with the American Institute of Certified Public Accountants (AICPA). After discussion among Board members regarding EERs, John C. Todd reiterated his request for Board direction in the form of a motion because the proposed rules that were under consideration with the Governor’s Regulatory Review Council, which were recently approved, deviate significantly from the current direction of the decision tree. Mr. Augenstein indicated that the recently-approved rules package was important to him and that the Board has already voted to approve that. Mr. Todd stated that, if he understood correctly, the Law Review Advisory Committee is going to move forward with their discussion under the purview of the recently-approved rules package until the Board recommends something different. Mr. Augenstein stated that he believes that the letter from the Governor’s office was explicit in their exemption from the rulemaking moratorium, and that he was concerned that the conversation regarding firm registration would take some time; therefore, the rules package should move forward as-is. Discussion ensued among Board members, staff and Mr. Todd in regard to operational perspectives of the firm registration topic and potential changes to A.R.S. § 32-731(I). A motion was made by Gary L. Freed, seconded by Alan R. Augenstein and passed 5 – 0 to modify the decision tree and eliminate the concept of practitioners having to practice only through the form of a firm if their highest level of service is performing preparation


engagements. Alan R. Augenstein reminded John C. Todd to ensure that the Law Review Advisory Committee focuses on the UAA, as well.

LEADERSHIP REPORT Executive Director Update Monica L. Petersen provided a summary of the budget update to the Board. Ms. Petersen

brought the Board’s attention to a particular payroll error, which will be resolved in April. Monica L. Petersen introduced Valli Goss to the Board and provided a summary of her

background and the transition plan for the Assistant Director of Regulation & Compliance position. Additionally, Ms. Petersen informed the Board of Jaime L. Shapiro’s recent departure from the Board and ongoing recruitment efforts to fill the vacant Program Project Specialist II position. Lastly, Ms. Petersen mentioned that the current rules package submitted to the Governor’s Office last year was recently exempted from the rulemaking moratorium, and that the rule package may now proceed.

Systems Manager Update Richard Sietz was present and provided a summary to the Board members in regard to two

major projects: 1) the collection of firm registration late fees from sole practitioners; and 2) the development of the Accountancy Regulatory Management Systems (ARMS).

Alan R. Augenstein questioned Board staff as to its progress on the security mandate.

Richard Sietz informed the Board that the security mandate is still an outstanding project, and certain actions are being taken to take inventory of where the agency is at a security level.

Assistant Director – Registration and Operations Update Jacki Hancock informed the Board that the Continuing Professional Education (CPE)

Committee voted for the inclusion of CPE submittals that have surpassed the maximum allowable amount of certain CPE categories into the audit pool through the usage of a CPE Overage Report that would be constructed by Board staff. A discussion ensued among Board members and staff regarding why certain processes of CPE reporting cannot be automated.

Julie S. Klewer questioned whether the status quo for participants in the CPE audit pool is effective. Alan R. Augenstein provided input by reminding his fellow Board members that the Board talked about this issue in the past and noted the fact that the CPE Committee had an additional capacity to complete more audits. Discussion ensued among Board members and staff regarding the potentiality of additional CPE audits contributing to a significant improvement in the process. Ms. Klewer reiterated her point that, if there’s no statistical improvement in the compliance aspect of the CPE audits, there is no case to be made to include additional CPE audits simply based on Committee capacity. Mr. Augenstein stated that he does not see Committee capacity as the impetus for this change, but rather system limitations. Discussion ensued among Board members and staff regarding the inclusion of supplemental CPE audits and the reasoning behind the inclusion. Alan R. Augenstein


recommended that Adela E. Jiménez inform CPAs about the CPE reporting process. A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 5 – 0 to

approve the CPE Committee’s recommendation that they be permitted to supplement the current CPE audit system by including those CPE submittals noted in Board Staff’s CPE Overage Report.

INITIAL ANALYSIS March 21, 2016 Letter from KPMG, LLP regarding the Self-Reporting of a Stipulation and

Order from the Utah Division of Occupational and Professional Licensing Alan R. Augenstein provided a brief summary in regard to the self-reporting letter by KPMG,

LLP and questioned why the State of Utah was involved in the particular matter. Discussion ensued among Board members and staff regarding the difference of PCAOB inspection reports and enforcement reports, and whether the Board would be interested in opening a compliance file on this matter. Mr. Augenstein noted that the firm had been disciplined by the Securities and Exchange Commission, in addition to being censured by the State of Utah.

After discussion, a motion was made by LeRoy M. Gaintner, seconded by William C.

Heimerdinger and passed 4 – 1 to acknowledge that the Board received the Self-Reporting letter and to take no action.

Gary L. Freed opposed the motion. COMMITTEE RECOMMENDATIONS – COMPLAINT/INITIAL ANALYSIS FILES Tax Advisory Committee File No. 2016.055 After brief discussion, a motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner

and passed 5 – 0 to close the file due to no violations of professional standards, as the data was unavailable.

Accounting and Auditing Advisory Committee File No. 2016.066 File No. 2016.067 After brief discussion, a motion was made by LeRoy M. Gaintner, seconded by William C.

Heimerdinger and passed 5 – 0 to accept the Committee’s recommendation to open investigation files related to the Registrant’s certificate and firm’s registration.

File No. 2016.127 After brief discussion, a motion was made by LeRoy M. Gaintner, seconded by William C.

Heimerdinger and passed 5 – 0 to accept the Committee’s recommendation to open an investigation file on the Registrant’s certificate.

Tax Advisory Committee File No. 2016.083 After brief discussion, a motion was made by Gary L. Freed, seconded by William C.

Heimerdinger and passed 5 – 0 to create a file related to the Registrant’s firm and to open


investigation files on the firm’s registration and on the Registrant’s certificate. COMMITTEE RECOMMENDATIONS – INVESTIGATION FILES Accounting and Auditing Advisory Committee File No. 2015.109; HintonBurdick Arizona, PLLC File No. 2016.093; Peacock, Morris A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and

passed 5 – 0 to accept the Committee’s recommendation to close both investigation files. Gary L. Freed noted the importance of the supplemental file packet material provided to the

Board in regard to the compliance files. Tax Advisory Committee File No. 2016.107; H & S Accounting, LLC A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and

passed 5 – 0 to accept the Committee’s recommendation to close the file due to no violations of professional standards.

COMMITTEE RECOMMENDATIONS – PEER REVIEW File No. 2016.124 File No. 2016.125 File No. 2016.126 After brief discussion, motion was made by LeRoy M. Gaintner to approve the Administrative

Letters of Concern for File Nos. 2016.124, 2016.125, and 2016.126. The motion died for a lack of a second.

File No. 2016.124 Gary L. Freed expressed a concern of independence in regard to the actions of the Registrant

and shared the options that the Board had available. Discussion ensued among Board members on whether additional CPE should be added and if there was an independence issue.

A motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5

– 0 to include an additional four (4) hours of CPE in the area of independence and to approve the amended Administrative Letter of Concern.

File No. 2016.125 File No. 2016.126 A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 5 – 0 to

approve the Administrative Letters of Concern as drafted. REVIEW COMPLAINT AGING REPORT Alan R. Augenstein questioned the status of File Nos. 2013.031; Semple, Brian, 2013.032;

Semple, Robert, 2015.020; Semple, Marchal & Cooper, LLP, and 2015.021; Pelliccio, PJ and whether it would appear at the next Board meeting. Discussion ensued on whether the aforementioned files should be placed on the next Board agenda or if a special meeting


should be held, due to the complexity of the matters and the length of time that might need to be devoted to discussing these files at a regularly-scheduled meeting.

Direction was provided from the Board to Board staff to organize a Special Joint Meeting of

the Board and Tax Committee to discuss File Nos. 2013.031; Semple, Brian, 2013.032; Semple, Robert, 2015.020; Semple, Marchal & Cooper, LLP, and 2015.021; Pelliccio, PJ.

In response to Board inquiry, Sophia V. Van Langen informed the Board that File No.

2016.008; Godbehere, Donald had been assigned to an Assistant Attorney General during the transition between counsels assigned to the Board.

ITEMS FOR BOARD REVIEW, DISCUSSION AND POSSIBLE ACTION Statutory and Arizona Administrative Code Guidance Jacki Hancock provided a summary of disability fee waivers and the establishment of uniform

guidance. Ms. Hancock spoke to the statutory foundation of the allowance of fee waivers and the presumptions surrounding fee waivers for inactive and retired status. LeRoy M. Gaintner questioned if this topic revolved around disability, and Ms. Hancock responded that the topic revolved around certificate statuses. Extensive discussion ensued among Board members and staff in regard to A.R.S. § 32-730(B).

Jacki Hancock referenced the Board’s recent decisions in regard to fee waivers and provided

a detailed explanation and brief example of a situation when the Board would approve or deny a fee waiver, pursuant to A.R.S. § 32-730(B).

Mona S. Baskin questioned why an initial waiver would be approved for an individual going

into retired status, when the language of the statute indicates that it would apply to individuals that are actively practicing. Discussion ensued among Board members, staff, and the Assistant Attorney General in regard to the specific language of A.R.S. § 32-730(B).

Alan R. Augenstein noted the potentiality of receiving multiple fee waivers due to reoccurring

diseases, and recognized the rare situation in which an individual may claim a disability fee waiver for the two years preceding the request for retired status. Mr. Augenstein mentioned that inactive status is supposed to be reserved for those who are temporarily leaving the workforce. Jacki Hancock provided examples of previous Board decisions in regard to the approval and denial of disability fee waivers. Monica L. Petersen highlighted that the goal of this discussion is to maintain consistency in the Board’s decisions in regard to disability fee waivers. Discussion ensued among Board members and staff in regard to the definition of Certified Public Accountants and the differing statutes that are available to Registrants.

Gary L. Freed noted that, if an individual is on inactive status, they are inactive and therefore

should not be practicing. Mr. Freed explained that the moment they do practice, they have an obligation to report this information to the Board immediately, and that if a registrant is active and earning income, he/she must pay dues. Discussion ensued among Board members and staff in regards to examples and counter-examples of A.R.S. § 32-730(B).

Alan R. Augenstein recommended that, for now, the Board proceed with the way intended


under its statutes and rules, and that a registrant under active status technically may ask for a disability fee waiver as many times as he/she may qualify.

Julie S. Klewer noted that the Board may not be able to standardize every decision, as some

fee waivers may need to be handled by a case-by-case basis. Jacki Hancock stated that, in reality, a registrant does not have to provide any information in regard to his/her disability and simply must provide a doctor’s note as supporting documentation. Discussion ensued regarding hypothetical examples of approving or denying disability fee waivers.

Alan R. Augenstein recommended that Board staff follow the language provided in A.R.S. §

32-730(B). Jacki Hancock noted that there is nothing in that statute that requires the Board provide a full waiver. Mr. Augenstein concurred with Ms. Hancock’s assessment and noted that the Board should err on the side of conservatism.

Monica L. Petersen stated that the collective approach is that a registrant requesting a

disability fee waiver may do so if the circumstances are in accordance with A.R.S. § 32-730(B). Additionally, Ms. Petersen noted that, if a registrant is on inactive or retired status, he/she may be granted a disability fee waiver for the first period of that status, but subsequent requests should be denied, as the registrant would no longer meet the statutory requirements for a disability fee waiver because he/she would not have been “precluded from practicing” due to the disability in subsequent periods.

Mona S. Baskin requested that the Board allow the Attorney General’s Office to look into this

matter further before taking legal action, as it appears the legal action would constitute a substantive policy statement. Jacki Hancock concurred that advice from the Attorney General’s Office can be placed on next month’s Board agenda. Discussion ensued among Board members and staff in regard to the potentiality of offering standardized forms for disability fee waivers.

After brief discussion, the Board recessed from 12:38 p.m. to 12:48 pm.

Investigator Contract Alan R. Augenstein provided a brief summary of why this matter is on the agenda. Monica L. Petersen noted that there is capacity for additional investigators. Ms. Petersen additionally noted that a request for proposal is planned for this fall and that there are a few individuals that may be interested in bidding. Gary L. Freed noted that mentoring from senior investigators assisted him when he was an investigator. Ms. Petersen concurred and mentioned the professional courtesy that the investigators tend to offer to less-experienced investigators. Mr. Freed additionally inquired of Board staff as to how investigators would be selected. Ms. Petersen provided insight to the Board on the procurement and evaluation process that will occur. AICPA’s Discussion Paper Entitled, “Proposed Evolution of Peer Review Administration” Alan R. Augenstein provided a brief summary of this matter to his fellow Board members and noted that he requested staff to obtain Timothy R. Coffey’s thoughts on the AICPA’s discussion paper. Mr. Augenstein mentioned that he believes that the State of Arizona’s


affiliation with the California peer review administrative entity, CalCPA, has worked well and shared that he believes it would not be necessary to change peer review administrative entities if California remains the same. Mr. Augenstein inquired of Adela E. Jiménez if there is any pressing reason why the Board should change from California. Ms. Jiménez noted that the ASCPA believes that the relationship with CalCPA is going well. Discussion ensued among Board members and staff in regard to any issues that may exist with CalCPA and who decides who administers the peer review program. Chartered Global Management Accountant (CGMA) Designation Alan R. Augenstein provided a brief summary to his fellow Board Members in regard to why this matter is on the agenda. Mr. Augenstein noted that it would be valuable for the Board to weigh in on the compatibility of the CGMA designation with A.R.S. § 32-747. Monica L. Petersen informed the Board that in terms of other states who have a similar statute, one of the main concerns of this discussion are those individuals who are solely a CGMA and not a CPA. Ms. Petersen posed the question of whether the Board would consider this hypothetical situation an unlawful use of the designation under the statute. Julie S. Klewer acknowledged the link between the CGMA designation and A.R.S. § 32-747 and questioned the validity of separate titles such as Certified Tax Accountant (CTA) and Certified Management Accountant (CMA). Discussion ensued among Board members and staff as to whether similar titles may constitute a violation of A.R.S. § 32-747. Valli Goss noted that A.R.S. § 32-747(B) provides specific examples of what constitutes unlawful use of the designation, but also provides for other designations that may be similar or likely to be confused with CPA. Monica L. Petersen mentioned that some sort of recommendation from the Board would help Board staff in knowing how to address these situations. Alan R. Augenstein considered making a motion to interpret the statute in regard to the CGMA designation. Adela E. Jiménez shared her concern that the Board may make similar motions to other designations. Discussion ensued among Board members and staff regarding whether a list of designations that may fall under the purview of A.R.S. § 32-747 should be constructed. William C. Heimerdinger inquired of Monica L. Petersen how such recommendations may affect the operations of Board staff. Ms. Petersen noted that it would mainly change what the Board is doing when they are deciding these cases and asked the Board if they were concerned with any of these titles. Gary L. Freed noted that the Board should be cautious when deciding this matter due to the North Carolina State Board of Dental Examiners v. FTC case. Mona S. Baskin noted that differing situations may exist, where judgments may be applied differently. LeRoy M. Gaintner, Julie S. Klewer, and William C. Heimerdinger stated that the Board should take no action. Alan R. Augenstein noted that the designation can be deemed misleading if the individual is using it to deceive members of the public. A motion was made by Gary L. Freed to state that the Board considered the CGMA issue and believes that it may violate A.R.S. § 32-747(B) as it relates to the intent of its usage and


that the Board would consider such matters if complaints come forward in relation to the usage of the CGMA designation by non-CPAs. The motion died for a lack of a second. Alan R. Augenstein requested that the minutes reflect that he believes that the use of the CGMA designation alone constitutes a violation of A.R.S. § 32-747(B), but that the Board did not reach a consensus on the matter. Discussion ensued among Board members and staff on whether a list should be composed regarding all designations that may be a violation of A.R.S. § 32-747(B). LeRoy M. Gaintner expressed concern over the composition of such a list. A motion was made by Gary L. Freed to prepare a letter for the AICPA that explains that the Board believes that the designation of CGMA, if used by a non-CPA, is contrary to A.R.S. § 32-747(B). The motion died for a lack of a second. Alan R. Augenstein stated that the Board considered this matter and believes that the usage of the CGMA designation by a non-CPA may be in violation of A.R.S. § 32-747(B). Discussion ensued among Board members and staff on whether other designations should be considered. Monica L. Petersen asked if someone would volunteer to provide a list of various other designations. Mr. Augenstein reiterated that the Board did not reach a consensus that the CGMA designation used by a non-CPA may constitute a violation of A.R.S. § 32-747(B). Review, Discussion and Possible Action Regarding Committee Membership Alan R. Augenstein informed his fellow Board members that Douglas L. Ball has offered to serve another term on the Peer Review Oversight Advisory Committee. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 5 – 0 to approve the appointment of Douglas L. Ball to another term on the Peer Review Oversight Advisory Committee. Review of Non-Compliance with Decision and Order (By Consent) File Nos. 2015.074 and 2015.094; Renberg, Mark Sophia V. Van Langen provided a brief summary of the matter to the Board and spoke to the standardized deadline system that could be contained in a Decision & Order (By Consent) and its advantages. A motion was made by Alan R. Augenstein, seconded by William C. Heimerdinger and passed 5 – 0 to accept the Registrant’s response and to take no action. Application for Registration of Firm – A.R.S. § 32-731 – and Notice of Operation of an Unregistered Firm Firm: AXIOM Financial Advisory Group, LLC Partner: Armando G. Roman 6951-E File No. 2016.104 After brief discussion, a motion was made by Alan R. Augenstein, seconded by William C. Heimerdinger and passed 4 – 0 to approve the firm registration and close the compliance file.


Julie S. Klewer declared a conflict and recused herself from the motion.

Firm: Simplified Financial Solutions P.C. Partners: Oluwatofunmi T.I. Fakoya 17810-E File No. 2016.086 Firm: Trace Wengert CPA Partner: Trace Wengert 11208-E File No. 2016.099 Firm: Deborah A. Tutrone, CPA Partner: Deborah A. Tutrone 7349-E File No. 2016.103 Firm: Fischer Management and Consulting, LLC Partners: Brian K. Fischer 7952-E and Susan L. Fischer 7888-E File Nos. 2016.140 and 2016.141 Firm: Guill, Blankenbaker & Lawson, Certified Public Accountant, A Sole Practitioner Partner: Thomas L. Willis 15565-R File No. 2016.098 A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 5 – 0 to approve the aforementioned firm registrations and to close their respective compliance files. Termination of Decision and Order File Nos. 2013.106; S.E. Clark & Company, PC and 2015.054; Clark, Steven Edward Christopher Rasmussen provided a brief summary of the matter to the Board. The Board reviewed the Registrant’s letter. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 5 – 0 to approve the termination of the Registrant’s Decision & Order based on compliance. Application for Uniform CPA Examination, Recommended Denial by Certification Committee – A.R.S. § 32-723 Adavikolanu Venkata, Anish Gary L. Freed questioned whether the use of the word “baccalaureate” was indicative to a degree being conferred on an individual. Discussion ensued among Board members and staff as to whether the applicant met the qualifications to apply for the Uniform CPA Examination. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 5 – 0 to deny the application for examination for not meeting the educational


requirements. Application for Certification by Exam/Grade Transfer, Recommended Denial by Certificate Committee Birtcher, Justin B. LeRoy M. Gaintner questioned the purpose of a settlement conference being offered to the applicant. Monica L. Petersen replied that it is an opportunity for Board staff to discuss any disagreements with the applicant prior to going to a hearing, as the applicant retains the right to contest the denial of certification through an administrative hearing. A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 4 – 0 to deny the application for certification for failure to meet the education requirements, but to allow the Executive Director and/or Assistant Director to conduct a settlement conference, if requested by the applicant. Alan R. Augenstein declared a conflict and recused himself from the vote. Forsberg, Spencer Hee, Mary Jane Woodruff, Rachal Marie A motion was made by LeRoy M. Gaintner, seconded by Alan R. Augenstein and passed 5 – 0 to deny the application for certificate for failure to meet the education requirements, but to allow the Executive Director and/or Assistant Director to conduct a settlement conference, if requested by the applicant. Moffitt, Benjamin M. Alan R. Augenstein provided a brief summary of this matter to his fellow Board members. Gary L. Freed inquired as to whether the applicant had been adversely affected by the Board’s inadvertent delay. Jacki Hancock confirmed that there was no adverse impact, and that the applicant is in the process of gaining the requisite experience hours for certification. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 5 – 0 to deny the application for certificate for insufficient qualifications and experience of the person signing the Certificate of Experience, but to allow the Executive Director and/or Assistant Director to conduct a settlement conference, if requested by the applicant. Request for Reactivation of Certificate from Inactive Status, A.R.S. § 32-731.01(C); and CPE Extension Request, A.R.S. § 32-730(C): Ong, Sylvia 13387-E Alan R. Augenstein made Board staff aware of the fact that the Registrant may be using the CPA designation in her role as a professor while on inactive status and requested that Board staff follow-up on that matter. Monica L. Petersen provided a brief background of the situation to the Board. Alan R. Augenstein reaffirmed the fact that the Registrant is asking for a CPE extension. Discussion


ensued among Board members and staff regarding the CPE that a registrant would need before they were reactivated from inactive status versus expired status. A motion was made by Alan R. Augenstein, seconded by William C. Heimerdinger and passed 5 – 0 to deny the Registrant’s request for a CPE extension for lack of good cause and to expire her certificate. Request for Inactive Status – A.R.S. § 32-730.01 Badalamenti, Kera 12468-E Benton, Kathleen Patrice 9316-E Doran, Martha Sutton 5081-R Firestone, Barry L. 2217-E Flory, David Michael 1820-E Grady, Megan 17590-E Holland, Tracy Lee 16784-E Johnston, Ryan 17030-R Kravec, David J. 15238-E Kunasek, John 11491-R Larsen, Sarah 15775-E Monett, Corazon A. 11129-E New, James Robert 6993-E Stockford, Joanna L. 13328-E Terracciano, Angela L. 16147-E Wilde, Jaron Harp 14231-E A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 5 – 0 to approve the request for inactive status for the aforementioned Registrants.

Maroney, Hugh 12148-E Gary L. Freed shared that by definition, communicating tax deficiencies to people equates to “public accounting”. David Freeland requested to speak on the matter and was initially granted permission by Alan R. Augenstein. Mona S. Baskin raised a concern regarding allowing David Freeland to speak on the Registrant’s matter. Subsequently, Mr. Freeland was not allowed to speak on the matter. After discussion, a motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 3 – 2 to approve the Registrant’s request for inactive status. Alan R. Augenstein and Gary L. Freed opposed the motion. Request for a CPE Extension Espinosa, Alejandro B. 17423-E After brief discussion, a motion was made by Alan R. Augenstein, seconded by LeRoy M. Gaintner and passed 5 – 0 to deny the request for a CPE extension for lack of good cause and to offer the Registrant a Decision & Order (By Consent) for suspension for one year for


non-compliance with CPE requirements, with early termination possible upon completion of the CPE. Hansen, Leigh M. 12334-E Discussion ensued among Board members and staff regarding the CPE that the Registrant had completed and the potentiality of a CPE audit being conducted. A motion was made by Alan R. Augenstein, seconded by LeRoy M. Gaintner and passed 4 – 0 to table the extension request and to advise the Registrant that the Board would like the Registrant to submit supporting documentation for her CPE. Gary L. Freed abstained from the motion. Request for NTS Extension – R4-1-226.01 Hussain, Ali Majed, Belal Alan R. Augenstein noted that both individuals were requesting an extension to the Notice of Schedule. A motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5 – 0 to grant both individuals an extension to the Notice of Schedule, as both have offered good cause. Review of Compliance/Non-Compliance with Peer Review Requirements – A.A.C. R4-1-454 Debenedetti & Co., PC 1118-C Alan R. Augenstein provided a brief summary of the matter. Jacki Hancock discussed on what would constitute a reasonable time for the firm to complete the peer review. After discussion, a motion was made by William C. Heimerdinger, seconded by Alan R. Augenstein and passed 5 – 0 to accept Board staff’s recommendation that the Board subject the firm to a peer review, and grant a one(1) year extension to complete the review, based on good cause; and, to consider an extension, if requested,. Review Non-Compliance with Educational Enhancement Review and Failure to Respond – A.A.C. R4-1-454, R4-1-455.03(F) and A.R.S. § 32-741(A) Pappas, L. Sam, PC 2014-C After brief discussion, a motion was made by Gary L. Freed, seconded by Alan R. Augenstein and passed 5 – 0 to file a Complaint and Notice of Hearing for revocation of the firm’s registration for failure to respond. Application for Reinstatement from Expired Status, Recommendation or Denial by Continuing Professional Education Committee – A.R.S. § 32-730.03 Kinzey, Scott Kent 4801-E After brief discussion, a motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger and passed 5 – 0 to approve the request for application of reinstatement.


Review of Compliance/Non-Compliance with Random CPE Audit Requirements – A.A.C. R4-1-453 Bell, Deborah K. 8045-E Alan R. Augenstein provided a brief summary of the matter to his fellow Board members. Jacki Hancock requested that the Board review a letter from the college that was provided by the registrant, in which the college attested that the registrant attended a specified number of hours while auditing a class that was included as part of her CPE in the previous renewal cycle. This review was based on the applicability of A.A.C. R4-1-453(A)(2)(c), in which each noncredit class hour is worth one CPE credit hour. Alan R. Augenstein questioned if the matter should be remanded to CPE Committee. Monica L. Petersen noted that when the CPE Committee was discussing the matter, they were also unfamiliar with the matter. Ms. Petersen noted that the Board’s rules allow for the Board to count non-credit classes as CPE credit. A motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5 – 0 to find the Registrant to be compliant with the CPE requirements. Ray, Theodore R. 8395-E After extensive discussion in regard the matter and A.R.S. § 32-741.02, a motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5 – 0 to offer the Registrant a Decision & Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and if not accepted by the Registrant within thirty (30) days, for the Board to proceed with a formal hearing. Rusinski, Susan D. 8817-E Jacki Hancock provided a brief summary of the matter to the Board. A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed 5 – 0 to offer the Registrant a Decision & Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and if not accepted by the Registrant within thirty (30) days, for the Board to proceed with a formal hearing. Stinnett, Melinda F. 9629-E A motion was made by Gary L. Freed, seconded by Julie S. Klewer to offer the Registrant a Decision & Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and if not accepted by the Registrant within thirty (30) days, for the Board to proceed with a formal hearing. The motion was ultimately withdrawn. Alan R. Augenstein questioned as to why the Registrant was short 40 CPE hours and stated that he believes that the innovative forecasting course should have been counted. A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed 5 – 0 to remand the matter back to the CPE Committee to re-evaluate the Registrant’s CPE hours


and provide a map as to how they reached their conclusion, and to look at the innovative forecasting course for potential inclusion in CPE for consulting credit. Review of Compliance/Non-Compliance with CPE Requirements and Failure to Respond – A.A.C. R4-1-453 and A.R.S. § 32-741.02 Holzhauer, Robert E. 9433-R Jacki Hancock provided a brief summary of the matter to the Board. After discussion, a motion was made by Alan R. Augenstein, seconded by Julie S. Klewer and passed 4 – 1 to give the Registrant until May 31, 2016 to complete his CPE. Gary L. Freed opposed the motion.

SUMMARY OF CURRENT EVENTS – A.R.S. § 38-431.02(K) There were no current events at the time.

IDENTIFICATION OF FUTURE MEETING AGENDA ITEMS Julie S. Klewer requested that the CMA/CGMA issue be placed on the agenda for the next available Board meeting. Gary L. Freed requested that Board staff communicate to the two absent Board members and investigator in regard to the proposed Special Joint Meeting.

ITEMS FOR BOARD REVIEW, DISCUSSION AND POSSIBLE ACTION Executive Director Performance Evaluation The Board recessed from 3:08 p.m. to 3:14 pm. EXECUTIVE SESSION

A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed 5 – 0 to go into executive session at 3:15 p.m. to discuss confidential information pursuant to A.R.S. § 38-431.03(A)(1) relating to the Executive Director Performance Evaluation. After consideration in executive session, the Board reconvened in open session at 4:31 p.m.

ADJOURNMENT A motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed 5 – 0 to adjourn at 4:32 p.m.

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