2010 cpa report fourth edition
DESCRIPTION
2010 CPA Report Fourth EditionTRANSCRIPT
South Carolina Association of Certified Public Accountants
F o u r t h E d i t i o n 2 0 1 0
SCACPA Celebrates 95 Years!
1915 - 2010Reflecting Back, Looking Forward
CPA ReportCPA Report
n Reflecting Back -- Looking Forward
n Member Profiles: Our Oldest and Youngest CPAs
Also, don’t miss South Carolina Tax Changes!
South Carolina CPA Report 2 (888) 557-4814 | www.scacpa.org
Charleston 2430 Mall Drive, Suite 360 Greenville
843-884-3912 Charleston, SC 29406 864-245-8788
www.american-pensions.com
South Carolina CPA Report 3(888) 557-4814 | www.scacpa.org
1915 - 2010Reflecting Back, Looking Forward
SCACPA Celebrates 95 Years
In This Issue
In Every Issue5 From the President
6 Association News
8 On Your Behalf
27 Board of Accountancy News
31 Chapter Connections
32 Member News
33 Welcome New Members
34 Upcoming CPE
38 Classifieds/Advertiser Index
11 Reflecting Back -- Looking Forward
14 Member Profiles: Oldest and Youngest
16 CPA-PAC Report and Contributors List
18 South Carolina Tax Changes
22 2010-2011 Health Care Reform
24 Health Care Reform Act
26 LLR News: Positive Enforcement Programs
28 Emerging Leaders Conference Review
36 A&A Conference Preview
Officerscharles e. “eddie” Brown, cPA, President
Timothy L. Baker, cPA, President Elect
Michael r. Putich, cPA, Vice President
sharon e. Mann, cPA, Secretary-Treasurer
charles M. redfern iii, cPA, Past President
BOArD Of DirecTOrsClarence Coleman Jr., CPA, Ph.D.
Alys Anne Dennis, CPAJ. Bratton Fennell, CPA
Malynda M. Grimsley, CPAPenny A. Lewis, CPA
A. D. “Dave” Masters, CPAJ. Patrick McDermott, CPA
James W. McIlrath, CPAWilliam C. Robinson, CPA
L. Kent Satterfield, CPAPhilip R. Snipes, CPA
Michael J. Targia, CPA, CFARobert M. Tilton, CPAJada C. McAbee, CPABeth T. Zamorski, CPA
eXecUTiVe DirecTOr Erin P. Hardwick, CAE
MANAGiNG eDiTOrAllison K. Caldwell
GrAPHic DesiGNer Lisa S. McGee
cONTriBUTiNG wriTersReva Brennan, MPA, CAE, IOM
Allison CaldwellK. Todd Dailey, CPA, CVA
William M. Grooms, PhD, CPA Erin P. Hardwick, CAE Mark T. Hobbs, CPA
James M. Holloway, Jr., CPAAmanda W. Koehler, CPA
Mark RileyJason Sweatt, CPA
2010 eDiTOriAL BOArDMargaret L. Lattimore, CPA, Chair
Ellen K. Adkins, CPA, MBACharles E. Alvis, CPA, MPA, MBA
John B. Brantley, CPAJackie F. Breland, CPA
Neil A. Brown, CPA, MAcc, CFPAmanda S. Colgate, CPA
Lisa S. Cooke, CPAMalynda M. Grimsley, CPA
Karen A. Hursey, CPALesley H. Kelly, CPA
Marsha G. LePhew, CPAA. D. “Dave” Masters, CPA
Derrick B. Stark, CPACatherine B. Stoddard, CPAVictor C. Webster, CPA, MBA
South Carolina Association of Certified Public Accountants Magazine
Volume 40, Fourth Edition 2010
Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of the SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or the SCACPA.
CPA ReportSouth Carolina Association of CPAs
South Carolina CPA Report 4 (888) 557-4814 | www.scacpa.org
Maybe Itʼs Time to Audit Your Health Plan? Healthcare is changing these days; maybe your benefit plan should too. Southeastern Insurance Consultants can help. Because when it comes to understanding the new healthcare landscape, nobody knows more than SIC. From working with state and federal government to help shape new legislation, to understanding legal compliance and benefit administration, the benefit pros at SIC are at the forefront of the industry. And as one of the largest benefit companies in South Carolina, SIC has the ability to back it up, providing first-class service to keep you in informed and in control. Call us today for a free audit of your plan.
Southeastern Insurance Consultants, LLC
PO Box 1396, Irmo, SC 29063 | Toll Free: 866-567-2227 | Office: 803-732-7284 | Lowcountry Office: 843-342-5018
Southeastern Insurance Consultants… Our knowledge, your benefit!
The Exclusive Provider of Health and Dental Insurance Programs to SCACPA
Why Southeastern Insurance Consultants? Multiple Plan Options (POS, HMO, HSA, etc.)
Sole Proprietor Coverage – SCACPA plan (offered through SIC) is one of the only plans to allow sole proprietors to take advantage of group plan options.
Dental Insurance
Life Insurance – Medical plan participants receive $20,000 Life & AD&D coverage.
Additional benefit options – Short/Long Term Disability, Retirement Plans (401k, SEP, etc.), Wellness Plans, Benefit Consulting, Supplemental benefits, Individual/Child Plans
South Carolina
CPA
South Carolina CPA Report 5(888) 557-4814 | www.scacpa.org
From the President
Reflections on the CPA profession, life, love and just about anything else that captures the interest of SCACPA’s 2010 President Eddie Brown
• TheCentralChapterincreaseditsscholarshipendowmentby$20,000.
• OurExecutiveDirectorwasnamedExecutiveoftheYearbytheS.C.AssociationofAssociationExecutivesandwasalsoelectedbyherpeerstoserveassecretary-treasureroftheCPASocietyExecutivesAssociation,representing54CPAsocietiesnationwide.
• Threenewconferencesheldthisyear:Nonprofit,EmergingLeadersandWomeninLeadership.
• Federal-statetaxconformitylegislationsuccessfullypassedonMarch31,settingthestageforevenearlierpassageinthefuture.
• TheBoardcreatedaRapidResponseTeamtorespondquicklytoadvocacyrequestsfromtheAICPA.
• MorefirmsthanevercontributedtotheCPA-PAC,raising$15,000thisyear.
• WecelebratedourfirstSouth Carolina CPA Report magazinewithalllocallygeneratedcontent.
Maybe Itʼs Time to Audit Your Health Plan? Healthcare is changing these days; maybe your benefit plan should too. Southeastern Insurance Consultants can help. Because when it comes to understanding the new healthcare landscape, nobody knows more than SIC. From working with state and federal government to help shape new legislation, to understanding legal compliance and benefit administration, the benefit pros at SIC are at the forefront of the industry. And as one of the largest benefit companies in South Carolina, SIC has the ability to back it up, providing first-class service to keep you in informed and in control. Call us today for a free audit of your plan.
Southeastern Insurance Consultants, LLC
PO Box 1396, Irmo, SC 29063 | Toll Free: 866-567-2227 | Office: 803-732-7284 | Lowcountry Office: 843-342-5018
Southeastern Insurance Consultants… Our knowledge, your benefit!
The Exclusive Provider of Health and Dental Insurance Programs to SCACPA
Why Southeastern Insurance Consultants? Multiple Plan Options (POS, HMO, HSA, etc.)
Sole Proprietor Coverage – SCACPA plan (offered through SIC) is one of the only plans to allow sole proprietors to take advantage of group plan options.
Dental Insurance
Life Insurance – Medical plan participants receive $20,000 Life & AD&D coverage.
Additional benefit options – Short/Long Term Disability, Retirement Plans (401k, SEP, etc.), Wellness Plans, Benefit Consulting, Supplemental benefits, Individual/Child Plans
South Carolina
CPA
• BroadcastedthefirstSCACPA-generatedwebcast:ProfessionalIssuesUpdate(October1).
• Startedandmaintainedourfirstblog,KeepingBalanced.Ihopeyouhavetakentimetoreaditoccasionally.
• TheITCommitteeandfinancedirectorworkeddiligentlytoensureSCACPA’s
creditcardprocessisPCIcompliant.
• OurinauguralSustainabilityTaskForceestablishedanddevelopedinformationandprogrammingthatbecameourfirstconcertedeffortonbehalfofSouthCarolinaCPAsandtheiremployers.
• ASouthCarolinaCPAwasinterviewedandvideotapedbytheJournal of Accountancy relativetosettingupaninternationaltaxniche.ThevideoispostedontheJOA’swebsite.
• Approximately25percentofSCACPAmembers(800)attendedoneofnineProfessionalIssuesUpdatesaroundthestate.
• OurPeerReviewCommitteetransitionedto apaperlessprocessfortheReportAcceptance
Bodies.
AsIwritemylastcolumnaspresidentofSCACPA,it’shardtobelievethisexcitingyearwillsooncometoanend.ManyofmyfellowCPAsandtheSCACPAstaffsuperstarshaveandcontinuetoachievethe“WOWs”thatIchallengedthemtoinJanuary,withthegoalof
establishingourselvesasanemergingleaderintheprofession.
MyWOWchallengeswerenotclearlydefined,butlefttotheimaginationandindustriousforethoughtofagreatteamthatworkshardtopolishandmaintainthereputationofallCPAsinSouthCarolina.AlthoughI’llprobablybeintroubleformissingsomeofthem(towhichIoffersincereapologiesinadvance),here’sanattempttorecognizeour2010milestones:
C.E. “Eddie” Brown, CPASCACPA member since 1976
As shareholder of Swaim Brown, PA, Eddie practices in the areas of corporate and individual tax planning and strategy, international tax, business consulting, estate planning, business planning, M&A, succession planning; manufacturing, real estate and construction.
Eddie is actively in involved with AICPA; SCACPA; Estate Planning Council of Spartanburg and serves as trustee of the South Carolina Baptist Foundation.
Follow Eddie Brown as he blogs weekly.
http://scacpa.org.wordpress.com
ThesearejustafewoftheWOWswe’veaccomplishedthisyear,forthebenefitofSCACPAmembersandtheprofessionasawhole.Ithasbeenmyprivilegeandhonortoserve,andIlookforwardtocontinuedmomentumandprogressaswemoveforwardtogether.n
South Carolina CPA Report 6 (888) 557-4814 | www.scacpa.org
Going GreenInourcontinuedeffortstoincreasesustainabilityanddorightbytheenvironment,SCACPAheadquartersrecentlyfulfilledLexingtonCountyCouncil’sGreenBusinessCertificationrequirements.Formoreinformationonsustainabilityandtolearnhowyourfirmcangogreen,visitwww.scacpa.org/sustainability.
PiU replayMisstheProfessionalIssuesUpdateinColumbiaonOctober1,2010?Watchare-broadcastofthewebcast.Formoreinformationandtoregister,visitwww.scacpa.org/PIU.YOUR ROAD TO SUCCESS
2010 Professional Issues Update Series
scAcPA welcomes April BlakeAsOfficeandMemberServicesCoordinator,AprilBlakeisthefirstpointofcontactforSCACPAmembers,non-members,vendorsandguestsintheoffice.Sheprocessesmemberinformationandrenewals,assistsstaffmemberswithspecialprojectsandoverseesofficeoperations.Aprilisa2008graduateoftheUniversityofSouthCarolinaSchoolofJournalismwithadegreeinPublicRelations.Outsideofwork,sheisinvolvedwiththeCayce-WestColumbiaJayceeschapterandenjoyscooking,bicyclingaroundtownwithherhusbandandreading.
Happy Birthday to scAcPASCACPAcelebratesits95thanniversaryin2010.Foundedin1915byasmallgroupofvisionaryCPAs,SCACPAhasaproudhistoryofprovidingadvocacy,memberservicesandcontinuingeducationtothegrowingpoolofCPAsinthestate.Tocelebratethismilestone,pleaseconsideragenerousdonationtotheEducationalFundatyourmembershiprenewaltime.Whetheryoudonate$10or$100,yourgiftwillbegreatlyappreciatedandistax-deductible.WhatbetterwaytohelpstrengthenthefutureoftheprofessioninSouthCarolina?Staff Contact: GlennaMinor
Let Us Hear from YouThe South Carolina CPA Report andtheSCACPAEditorialBoardwelcomeslettersfromreadersinresponsetoarticlespublishedinthemagazineaswellasthoseconcerningissuesofgeneralinteresttotheaccountingprofession.Alllettersreceiveconsideration.Theeditorsreservetherighttoeditlettersforclarityandlength.Writersshouldincludetheircontactinformation,includingadaytimetelephonenumberande-mailaddress,ifpossible.Lettersmaybeaddressedto:LetterstotheEditor;TheSouth Carolina CPA Report;570ChrisDrive;WestColumbia,[email protected] Contact:ErinHardwick
Association News
South Carolina CPA Report 7(888) 557-4814 | www.scacpa.org
SOUTH CAROLINA ASSOCIATION OF CPAs570 Chris Drive, West Columbia, South Carolina 29169(803) 791-4181 or Toll-free (888) 557-4814Fax (803) 791-4196 | www.SCACPA.org
OUR MISSIONTo support all CPAs – whether in public practice, industry, government or education – with lifelong learning opportunities necessary for their success and to promote high ethical standards and legislative advocacy for both the public good and the profession. We accomplish this mission through the following activities:
n Advocacyn Certification & Licensingn Communications
SCACPA STAFFErin P. Hardwick, CAE, Executive Director Ext. 104, [email protected]
Reva E. Brennan, MPA, CAE, IOM, Associate Director Ext. 103, [email protected]
Karen M. Hancock, CPA, Finance Director Ext. 108, [email protected]
Glenna P. Minor, Peer Review & Member Services Manager Ext. 107, [email protected]
April C. Cox, Education Manager Ext. 110, [email protected]
Emily M. Allen, Communications Coordinator Ext. 106, [email protected]
Sandra P. Oxner, CMP, CMMM, Chapter & Special Events CoordinatorExt. 112, [email protected]
April Blake, Office and Member Services Coordinator Ext. 100, [email protected]
n Recruiting & Educationn Standards & Performance
educational fund Announcements
TheCentralChapterofSCACPAannouncesasecondcontributionof
$20,000toestablishanadditionalendowedscholarshiptoSCACPA’sEducationalFund.TheCentralChaptercurrentlyfundsa$2,500scholarshiptobeawardedtoastudentwhosepermanentaddressiswithinthechapterareaandwhoisattendingacollegeoruniversityinthechapterarea,preferablyboth.Thesecondscholarshipwillgotoagraduatestudentwhomeetsspecifiedcriteria.
TheSeaIslandChapterofSCACPAhascontributed$6,500totheEducationalFund,allowingthechaptertoreachatotalcontributiongoalof
$10,000—creatinganendowed,namedscholarshipforthechapter.
New Peer reviewers & e-mailed formsTheSCACPAPeerReviewCommitteeispleasedtoannouncethefollowingnewpeerreviewers:
Brandon HoffmanHoffman&HoffmanCPAPA,Charleston
Tom ChildersElliottDavis,LLC,Greenville
Michael BoliekElliottDavis,LLC,Greenville
Joseph BeckJones,Pounder&Associates,P.C.,Charleston
John HortonJohnC.Horton,CPA,PC,Conway
Lynn MedlinLowery&Medlin,P.A.,CPAs,Surfside Beach
Foster McKinneyHamiltonMoss&McKinney,Columbia
Sout
h C
arol
ina A
ssociation of CPAs•Educational Fund
Investing in the Future
Thesenewscholarshipfundsestablishedbychaptersshowleadershipandvisionfortheprofessionanditsfuture!The2011-2012scholarshipapplicationwillbeavailableonlineinJanuary.ThedeadlinetoapplyisJune1,2011.Staff contact: GlennaMinor
Tosavetimeandmoney,peerreviewschedulingformswillnowbesentviae-mail.Pleasebesuretoupdateyourfirm’speerreviewcontactande-mailaddresswiththeAICPAorSCACPA.Visit www.scacpa.org foralistofcurrentpeerreviewers.
Staff contact:GlennaMinor
ThePeerReviewProgramisinneedofteammembersinanumberofspecialtyareas.Ifyouareinterestedinbeingaconsultantbutnotnecessarilyperformingpeerreviews,weneedyou!Staff Contact:GlennaMinor
South Carolina CPA Report 8 (888) 557-4814 | www.scacpa.org
On Your Behalf Third Quarter Report
For the profession, by the profession—that’s what the South Carolina Association of CPAs is all about. SCACPA’s board of directors, committees and task forces and Young CPAs Leadership Cabinet are hard at work making decisions, providing guidance and embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills. South
Car
olin
a A
ssociation of Certified Pub
lic Accountants
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Since
Association GovernanceEveryAugusttheSCACPABoardofDirectorsgathersforatwo-dayplanningretreattodiscusschallengesandissuesfacingmembers,theprofessionandtheAssociation,endingwithgoalsandprioritiesidentifiedforthefuture.Thisyearsome27associationleaders,includingrepresentativesfromtheeightchaptersandtheYoungCPALeadershipCabinet,joinedtheSCACPABoardintheplanningsession.
President-electTimBakerorganizedtheplanningretreatandchoseMarylandAssociationofCPAsCEOTomHoodtofacilitatethemeeting.Inpreparation,TomaskedplanningretreatparticipantstoreadanarticlecalledBuilding Your Company’s VisionbyJimCollinsandtocompletearelatedworksheet.Attheplanningsession,participantscontributedtoareviewofprofessionissuesandtrends,anenvironmentalscan,anevaluationofstrengthsandchallengesoftheAssociationandultimatelyidentifiedfivegoalsfor2011-2016.Thegoals,whichwilldriveSCACPA’sfocusandresources,are:
1. Study and generate innovation aroundcontinuingprofessionaleducation;
2. Enhance advocacyeffortsfortheprofessionandincreasetheeffectivenessofourcollectivevoice;
3. Grow and support theroleofyoung CPAs asleadersintheAssociation;
4. Increase the value of membershipthroughcommunication;and
5. Restructure theAssociation’sgovernancestructuretoenhancememberinvolvementandmemberservice.
Taskforcesarebeingformedaroundeachgoaltodefineactionstepsforthenext18monthsandbeyond.Lookformoredetailontheworkofthesetaskforcesinthemonthstocome.
South Carolina
CPA
2010 BOArD PLANNiNG reTreAT PArTiciPANTsEddie Brown, SCACPA president
Tim Baker, SCACPA president-elect
Amy Cain, Central Chapter president
Pat Carey, Sea Island Chapter president
Clarence Coleman, SCACPA board member
Alys Anne Dennis, SCACPA board member
Rick Ett, Coastal Chapter President
Malynda Grimsley, SCACPA board member
Mandy Hallman, Grand Strand Chapter president
Melanie Hill, Piedmont Chapter president
Penny Lewis, SCACPA board member
Dave Masters, SCACPA board member
Pat McDermott, SCACPA board member
Suzanne Merritt, Catawba Chapter President
Michael Putich, SCACPA vice-president
Bryan Rabon, Pee Dee Chapter president
Charlie Redfern, SCACPA past-president
Bill Robinson, SCACPA board member
Kent Satterfield, SCACPA board member
Leigh Schaefers, chair, Young CPA Leaders Cabinet
Kara Shealy, Foothills Chapter President
Mike Targia, SCACPA board member
William Thiem, Young CPA Leadership Cabinet
Beth Zamorski, SCACPA board member
South Carolina CPA Report 9(888) 557-4814 | www.scacpa.org
Erin P. Hardwick, CAE has served as SCACPA’s executive director since 2005. She has more than 25 years of experience in association and non-profit executive leadership and is one of 18 Certified Association Executives in South Carolina, the highest credential
in the association management profession. She currently serves on the SC Secretary of State’s Nonprofit Advisory Council, the Saluda Shoals Park Foundation Board of Directors and the SC Council on Economic Education Board of Directors.
Board of Directors Meeting
TheSCACPABoardofDirectorsmetAugust6immediatelyfollowingtheplanningretreat.Amongseveralitemsofbusiness,theboardreceivedandapprovedafavorable2009auditreportfromitsauditorElliottDavis.
Thetwo-yearprojectofupdatingtheSCACPAbylawshasbeencompleted,andthefinaldraftwasreviewedandapproved.Forcompletecongruencethroughouttheorganization,chapterbylawswillsoonbeconformedtothesechanges.
TheNominatingCommitteepresenteditsrecommendationsforthe2011boardslate,andtheslatewasapproved.ThisslatewasalsopresentedtoSCACPAmembersinthethirdedition(August)oftheSouth Carolina CPA Report.Memberswillhavetheopportunitytovoteonthisslateattheannualbusinessmeetingatthe2010CPASummit,November11.
TheboardheardareportoneffortstoreviewCPEoperationsofSCACPAandchapters.AfterdiscussiontheboardcommissionedanewtaskforcetoexaminethefullspectrumofmemberservicesofferedbythestateAssociationaswellasitschapters.
TheCPA-PAChasmadeatotalof$17,500incontributionstostatecandidatesforgovernorandcertainHouseseats.ContributionstocandidateshelpSCACPAandtheprofessionmakevitalconnectionswithkeypolicymakers.It’spartofcrucialrelationship-buildingforatimewhenthoserelationshipsmaybeneededtoprotectandadvancetheCPAprofession.AsincerethankyougoestothemanyCPAswhoserveas“KeyPersonContacts”andhand-deliveredcontributioncheckstotheirlocallegislator.General Election Contribution RecipientsBothgubernatorialcandidates:Rep.NikkiHaleyandSen.VincentSheheen
Representatives: ListonBarfield(Conway),EricBedingfield(Mauldin),DonBowen(Anderson),JoanBrady(Columbia),RobertL.Brown(Hollywood),GildaCobb-Hunter(Orangeburg),DanielCooper(Anderson),TracyEdge(NorthMyrtleBeach),BobbyHarrell(Charleston),ChipHuggins(Columbia),HerbKirsh(Clover),DeborahLong(IndianLand),PhillipLowe(Florence),VidaMiller(PawleysIsland)HarryOtt,(St.Matthews),SteveParker(BoilingSprings),GenePinson(Greenwood),BillSandifer(Oconee),GarySimrill(RockHill).
Candidates: ToddAtwaterforHouseSeat87(Lexington),TommyPopeforHouseSeat47(YorkCounty),RickQuinnforHouseSeat69(Lexington)
GenerousdonationsgivenbyindividualmembersaswellasCPAfirmsarethesolemeansbywhichtheAssociationcanshowitssupportofcertainlegislatorsbysupportingtheircampaigns.Some240(or7percent)ofSCACPAmembershavedonatedover$13,000totheCPA-PACin2010.
Firms which have donated or pledged a total of $10,000 in 2010 include:DerrickStubbs&Stith,DixonHughes,ElliottDavis,McAbeeTalbertHalliday,theSchmoyerCompany,ScottMcElveen,WebsterRogers,Ernst&Young,GrantThornton,PriceWaterhouseCoopers,KPMG.
Thankyoutoeachandeverymemberandfirmwhoacknowledgesandsupportsthisimportantprocess!n
cPA-PAc Makes candidate contributions
Professional issues Update report 2010 PiU AttendanceSCACPAcompleteditsthirdannualPIUserieswithnineregionalmeetingsthisfall.EachmeetingcarriedapotentialoffourhoursoffreeCPE(avalueof$140)andfeaturedanoverviewofissuesimpactingtheprofession,aprimerontheissueofcorporatesustainabilityandalocallegislativepanel.Attendancewasoutstandingandthecommentsfromparticipantsfavorable.
Anderson 34 Charleston 153 Columbia 147 Florence 38 Greenville 141 Myrtle Beach 65 Rock Hill 50 Sea Island (Hilton Head) 61 Spartanburg 65 Total Attendance 754
South Carolina CPA Report 10 (888) 557-4814 | www.scacpa.org
ATTORNEYS AND COUNSELORS AT LAW
Joseph D. (Joe) Clark, Esq., 1201 Main Street, Columbia, SC 29201 803.779.3080 jclark@hsblawfi rm.com
WWW.HSBLAWFIRM.COM CHARLESTON COLUMBIA FLORENCE GREENVILLE MYRTLE BEACH WASHINGTON, DC
HELPING OUR CLIENTS NAVIGATE THROUGH GOOD TIMES AND BAD
Haynsworth Sinkler Boyd has one of the largest and most experienced corporate and business law practices in South Carolina.
Our corporate and business attorneys meet the needs of business clients, both large and small, for advice and counsel with organization and governance, mergers and acquisitions, fi nance and securities, tax and commercial transactions.
Let us help you prepare for the economy’s next bullish market.
TRANSFORMING THE BUSINESS LANDSCAPE
South Carolina CPA Report 11(888) 557-4814 | www.scacpa.org
As we reflect back and look forward
to the future, we will strive as always to uphold
the high standards of quality,
excellence and ethics established
by our founders some 95 years ago.
Reflecting Back --Looking ForwardSCACPA Celebrates 95 Yearsby Al l i son Caldwel l
Itallbeganwithasix-membermeetinginColumbiaonSeptember2,1915,whereaconstitutionandby-lawswereadoptedandthefirstofficerselected.ArecesswastakenuntilSeptember16,whenSecretaryLouisA.Searson,CPApresentedanofficialcharterandseal.
Thatsecondmeetingwasconsideredthefirstregularannualmeeting,andtheSouthCarolinaAssociationofCertifiedPublicAccountantswasborn.
ItsestablishmentmarkedtheemergenceofaccountancyasaprofessioninSouthCarolina(NewYorkpassedthefirstCPAlawin1896,followedbyPennsylvaniaand33otherstatesby1914).Accordingtoa50-yearhistorycompiledin1965bymemberandformerPresidentNoahE.Derrick,CPA,WWIhinderedanyrealgrowthinmembershipuntil1921,whenaninvitationwassenttoallSouthCarolinaCPAs.ThefirstmembershipcertificatewasissuedtoSearson,whofirstinitiatedtheplanforastateassociation.
TodaySCACPAisastatewideprofessionalorganizationrepresentingmorethan3,850CPAsandaccountingprofessionals,governedbya20-membervoluntaryBoardofDirectorsandfacilitatedbyan10-memberprofessionalstaff.AlthoughtheprofessionandSCACPAitselfhasseenmanychangessince1915,manyarestillreapingthebenefitsofthosehumblebeginnings.
Forour95thanniversary,SCACPAaskedseveral“outstanding”memberstosharetheiruniquemembershipexperiencesandmessagestofellowmembers.ScatteredthroughoutareafewtimelinehighlightstowhetyourappetiteforSCACPA’scentennialcelebrationin2015.Aswereflectbackandlookforwardtothefuture,wewillstriveasalwaystoupholdthehighstandardsofquality,excellenceandethicsestablishedbyourfounderssome95yearsago.
ATTORNEYS AND COUNSELORS AT LAW
Joseph D. (Joe) Clark, Esq., 1201 Main Street, Columbia, SC 29201 803.779.3080 jclark@hsblawfi rm.com
WWW.HSBLAWFIRM.COM CHARLESTON COLUMBIA FLORENCE GREENVILLE MYRTLE BEACH WASHINGTON, DC
HELPING OUR CLIENTS NAVIGATE THROUGH GOOD TIMES AND BAD
Haynsworth Sinkler Boyd has one of the largest and most experienced corporate and business law practices in South Carolina.
Our corporate and business attorneys meet the needs of business clients, both large and small, for advice and counsel with organization and governance, mergers and acquisitions, fi nance and securities, tax and commercial transactions.
Let us help you prepare for the economy’s next bullish market.
TRANSFORMING THE BUSINESS LANDSCAPE
1915 South Carolina passes CPA lawSCACPA chartered with 6 members
1927Columbia Chapter first organized
1927First Association scholarship awarded ($50)
1945S.C. Certificate #100 issued
1958 Central and Piedmont Chapters organized
1959Coastal Chapter organized
South C
arol
ina
Ass
ociation of Certi ed Public A
ccountants
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Since
1915 - 2010Reflecting Back, Looking Forward
SCACPA Milestones
South Carolina
CPASouth Carolina CPA Report 12 (888) 557-4814 | www.scacpa.org
1964First $500 scholarship awarded
1969 Pee Dee Chapter organized
1975Membership reaches 600
1979Catawba Chapter organized
1980Membership reaches 1100
1982Foothills and Sea Island Chapters organized
SCACPA Milestones
FORMER PRESIDENT (1959) AND SON OF A FORMER PRESIDENT (1922)
crawford clarkson, cPASCACPA member since 1948
Your father received the first CPA certificate awarded
in South Carolina. In choosing your own profession, what made you want to follow in his footsteps? Hehadaverysuccessfulbusiness.Iworkedforhimeverysummerinhighschool,butthenWWIIcamealongandIspentsixyearsintheNavybeforejoininghimatA.C.ClarksonCompany.
What have been some of your proudest accomplishments as a CPA and a member of SCACPA? Thereareseveral.Frommyfather,IinheritedafirmwithoneCPA,anassistantandmyself—andwewentontohaveasmanyas75peopleworkingalloverthesoutheastandinternationally.WhenIfirstbeganservingwiththeAICPA,therewerenorulesregardingauditing.IservedontheAICPAcommitteethatproducedthefirstrulesofauditingandProcedureNo.1.AspartoftheSecurityTaxCommission,Iwasalsopartofthegroupinstrumentalinrevampingthestatetaxcode.AndaspresidentofSCACPA,Istartedafourorfivepagenewsletterthatwastheforerunnerofthemagazineyounowholdinyourhands.I’mveryproudofthispublicationandwhatithasbecome.
What’s your message to today’s CPAs regarding the future of the profession? Twothings:1)Beveryflexible.Thingsarechangingrapidly,andifyou’regoingtosucceedyoumustbewillingtochangeandgrowaswell.2)Donotforgetethics.Allofussometimesrunroughshodovertherules,butnowmorethaneverweneed
torememberandupholdthestrongsenseofethicsourprofessionwasbuiltupon.It’sjustoneman’sviewpoint,butIseeoursandotherprofessionsdriftingawayfromwhatweoncehad.
LONGEST CONSECUTIVE RECORD OF SCACPA ANNUAL MEETING ATTENDANCE
Bob cooper, cPASCACPA member since 1965
How many consecutive annual meetings have you attended?
ThiscomingNovember,Iwillbeattendingmy45thconsecutiveannualmeeting.IreceivedmySouthCarolinaCPACertificate(#394)inSeptember1965.IbecameamemberofSCACPAinDecemberofthatyearandattendedmyfirstannualmeetingin1966. What do you enjoy most about SCACPA’s annual meetings?IalwaysenjoyseeingmyCPAfriendsandtheSCACPAstaffeveryyear,andIespeciallylookforwardtotheCPEsessions. What’s your message to new members or those who have never attended an annual meeting?Hopefully,ifyouwillmakeitapointtoattendoneofourannualmeetings,Ibelieveyouwillreallyenjoyandbenefitfromtheexperience.YoumightevengethookedlikeIdidafterattendingmyfirstmeeting!
LONG-TIME KEY PERSON CONTACT
Harry Gregory, cPASCACPA member since 1967
When and how did you first become involved in the SCACPA’s Key Person
Contact program? NooneknowsexactlywhenSCACPA’sprogramgotstarted,butIwasinvolved.Ispentmorethan26yearsastheFederalKeyPersonCoordinatorfortheAICPAandservedmorethan35yearsontheLegislativeCommittee,whichledtothecreationofSCACPA’sKPCprogram.
Can you share a KPC success story? Thesuccessisinbuildinglasting,one-on-onerelationshipswiththeselegislators.Theyarepeople,justlikeus.OneofmyfavoritestoriesisanexperiencewiththeFederalKeyPersonprogram.The“bigsix”hadtheirownorganizationbackthenthatmetanddiscussedissuesonstateandnationallevels—whatwashappeninginWashington.WhenthingsstartedtocomeupinSouthCarolina,IsomehowgotinvitedtojointhesebigboyseventhoughIcamefromasmallfirm.Theyneverlookeddownonmeandlistenedtomycomments.WhenthevotefortortreformcamethroughintheU.S.Congress,Iknewtheminuteitpassed.IcalledArthurAnderson’sofficeandspokewithanExecutiveAssistant—whowaselated,butdidn’tbelievemeandcalledWashingtontofindoutwhatIalreadyknewwastrue.ThereareotherstorieswherelegislatorshavebrokenwiththeirpartyandvotedoppositetheirPresidentbecauseofameetinginsomebody’slivingroom.That’swhentheserelationshipsreallymakeadifference.
What’s your message to others on the importance of Key Person Contacts? PersonaladvocacyiscriticaltohelpingSCACPApromoteoropposelegislationthat
“The time you spend getting involved in SCACPA has a great return on investment.”
South Carolina
CPASouth Carolina CPA Report 13(888) 557-4814 | www.scacpa.org
2001Membership reaches 3000
2007Peer review became mandatory by the state for all firms providing attest services
2008CPA mobility legislation passed the state legislature
2009 The SCACPA Young CPA Leadership Cabinet was created
affectsourprofession.Myhopeisthatmanyotherswillgetinvolved.ServingasaKPCshouldn’tbejustaresume-builder.Whetheryouagreeordisagreewiththeirvote,it’saboutbuildingafriendshipwhereyoucancallandsay,“Thisisourposition—seewhatyoucando.”
SCACPA’S FIRST FEMALE PRESIDENT (1991)
Anne rossSCACPA member since 1975
What year did you first become a member of SCACPA, and how long after
that did you serve as president? IjoinedinAugust1975andworkedmywaythroughtheCentralChapteroffices—IwaspregnanttheyearIwas[chapter]president,sothatwouldhavebeen1983.Aschapterpresident,IservedontheSCACPABoardandbecamepresidentin1991.
What were the most challenging AND the most rewarding experiences during your tenure? ThemostchallengingwasbeingconsideredjustaCPA,andnotafemaleCPA.ThemostrewardingwereallthecontactsIhadthechancetomakewithinthestate,nationwideandacoupleofinternationalonesaswell.Allweretheresultsofmygettinginvolved.
What would you say to other women members with aspirations of leadership? Ihadexcellentmentors—J.W.Hunt,Sr.andWillHuntinauditandtax,andAustinSheheenandLollieCowardHarperinaffairsoftheassociationandtheprofession.Getinvolvedearlyinyourcareer.Listenandlearnatfirst,anddon’thesitatetotakeanactiveroleintheprofession.
BOARD MEMBER AND ACTIVE CHAPTER MEMBER
J. Bratton fennell, cPASCACPA member since 1989
What year did you become a member of SCACPA, and how has your service
actively increased over the years?IfirstjoinedSCACPAin1989andparticipatedinregularCPEandotherfunctions.Iincreasedmyactivitysignificantlyin2003byparticipatingwiththeTechnicalStandardsCommittee,teachingCPEattheA&AconferenceinCharleston.Sincethatdate,I’vebeenactivelyinvolvedasaChapterOfficerintheCoastalChapterandtheBoardRepresentativefromtheGrandStrandChapter. What have you learned about SCACPA and the benefits/challenges of active membership that perhaps you didn’t realize before?Weneedtotakeanactiverolepoliticallytoprotectourprofessionandourmembers.WithoutSCACPA’sactiveinvolvement,legislationcouldbepassed(ornotpassed)thatcouldimpactourmembersinaverynegativeway.ActivemembershiphasallowedmetobetternetworkwithotherCPAsinourstate,andtheserelationshipshavebeenhelpfultomeinbusinessoverthelastfewyears.Asanactivemember,Iamnotonlyawareofeventsthatmayimpactourprofession,Iamalsoabletoimpacteventsthatmayimpactourprofession.
What’s your message to new, young or long-time members who have yet to get involved? ThetimeyouspendgettinginvolvedinSCACPAhasagreatreturnoninvestment.Benefitsincludeexpansionofyourprofessionalandpoliticalcontactsinthe
state;continuingeducationthatkeepsyouuptodate;andtheabilitytoactivelyprotecttheCPAprofessionsoitwillcontinuetoadequatelyprotectthepublic,providesoundadvicetoclientsandbeasourceofgoodjobsforthenextgeneration.
FIRST CHAIR OF SCACPA’S YOUNG CPA LEADERSHIP CABINET
Amanda colgate, cPASCACPA member since 2006
What year did you become a member? Any other leadership roles/SCACPA involvement of note?
IbecameamemberofSCACPAin2006andamcurrentlyamemberoftheEditorialBoard.
What excites you most about leading the Young CPA Leadership Cabinet?AschairoftheYoungCPACabinet,IenjoygettingtoknowotheryoungCPAsfromaroundthestateanddevelopingmyprofessionalnetwork.IthasbeengreattoseesomanyenergeticyoungCPAswantingtobeinvolvedinSCACPAthroughtheCabinetanddevelopingtheskillstobecomeleadersoftheprofession.
What’s your message to young CPAs who have yet to get involved? Justdoit!BeinginvolvedinSCACPAisavitalcomponentofbuildingyourprofessionalnetworkandstayinginformedaboutissuesimpactingtheprofessionandyourcareer.n
2010Membership reaches 3875
South Carolina CPA Report 14 (888) 557-4814 | www.scacpa.org
Focus On Membership Member Profiles
Compiled by Al l i son Caldwel l
SCACPAiscomprisedofnearly4,000members,eachvaluedfortheirownuniqueperspective,areasofexpertiseandcapacityforservicetotheAssociationandfellowmembers.Tocommemorateour95thanniversary,wedecidedtoprofilesomeofouroldestandyoungestmembers(bybirthdate).Followingareinterviewswithfivemembers—ranginginagefrom24to89—onwhattheyenjoymostaboutbeingaCPA.
SCACPA’s Oldest & Youngest Members
AMY GRAYBILL, CPAMember since 2008
Hometown: Hilton Head IslandCollege: Clemson UniversityCurrent employer: Robinson Grant & Co., P.A.SCACPA involvement: Member of the Sea Island Chapter
EVAN M. HOBBS, CPAMember since 2009
Hometown: ColumbiaCollege: Wofford College, University of South Carolina (Masters of Accountancy)Current firm/employer: The Hobbs Group, PA, Staff Accountant
DAN MCKNIGHT, CPA Member since 1948(member no. 88; CPA certificate no. 129)
Hometown: CharlestonCollege: The Citadel1st employer: George G. McKnight, CPAMost recent employer: McKnight, Frampton & Co., P.A. , Retired managing partnerSCACPA involvement: Former president and “a little bit of everything.”
Erica Nanke, MaCCMember since 2007
Hometown: Marion, SC College: Charleston Southern University, University of South Carolina (Masters of Accountancy)Current employer: Dixon-Hughes, PLLC (Charleston office), Tax Associate
Warren “Dusty” Schulze, CPAMember Since 1951 (Member no. 115)
Hometown: Mason, TXCollege: Texas A&M University1st employer: Peat, Marvick, Mitchell & Co. (now known as KPMG)Most recent employer: Elliott, Davis & Co., (Greenville), RetiredSCACPA involvement: Secretary/treasurer; active member of the Piedmont Chapter
Dan McKnight, cPA
why did you become a cPA, and when did you receive your license? IalwayswantedtobecomeaCPA,andmyunclemayhavehadalittlebitofinfluenceinthatchoice.IbecameaCPAin1948attheageof27andjoinedSCACPAthatsameyear.in your opinion, what has changed the most about the cPA profession? Technology.Inmyday,everythingwasdonebyhand.
evan M. Hobbs, cPA
why did you become a cPA, and when did you receive your license? IbecameaCPAbecauseIenjoyaccountingandthecomplexitiesandchallengesitbringsonadailybasis.IreceivedmylicenseinMarchofthisyearattheageof23.IjoinedSCACPAin2009andhaveenjoyedtheabilitytonetworkwithotherprofessionals.
what are you looking forward to the most about the cPA profession? Iamlookingforwardtothecontinuingtechnologicalchangesthatwillaffectourprofession.Technologyalwayschanges,anditwilladdvaluetotheservicesweperform.
To date, what has been your most rewarding experience as a cPA? It’srewardingtohelpprovideclientswithreliableinformationtohelpthemmakecurrentandfuturebusinessdecisions.
Personally or work-related: what motivates and inspires you? Gettingthingsdonewhenyoutellpeopletheywillbedoneinatimelymanner.
“Technology always changes, and it will add value to the services we
perform.”
To date, what has been your most rewarding experience as a cPA? Becomingoneinthefirstplace,andthenbecomingmanagingpartnerandowningmyownfirm.Personally or work-related: what motivates and inspires you? Thesimplesatisfactionofgettingthejobdone.
“I always wanted to become a CPA.”
Page 15
Title SCACPA’s Oldest & Youngest Members………?
South Carolina CPA Report 15(888) 557-4814 | www.scacpa.org
Focus On Membership Member ProfilesAmy Graybill, cPA
why did you become a cPA, and when did you receive your license? IchosetobecomeaCPAbecauseitisadesignationthatconveyscredibilityandacommitmenttocompetence.Assuch,itprovidesalotofopportunitiesindiversefields.IreceivedmylicenseinJuneofthisyearwhenIwas23.IjoinedSCACPAin2008andhaveenjoyedtheopportunitytoattendnumerousCPEandnetworkingeventsaswellasaccesstovariousprofessionalresources.
what are you looking forward to the most about the cPA profession? Igrewupwithcomputersandcannotimagineaccountingwithoutthem.Iamlookingforwardtoseeinghowtechnologywillcontinuetoadvanceandaffectthewaythingsaredoneintheprofession.
To date, what has been your most rewarding experience as a cPA? ItwasveryrewardingtoseetheresultofalloftheeffortthatIhadputintoattainingtheCPAdesignationwhenIfinallyreceivedmylicenseinthemailthisyear.
Personally or work-related: what motivates and inspires you? Ihaveawonderfulfamily.Theirsupporthasalwaysmotivatedandinspiredmetoachievemygoals.
warren c. “Dusty” schulze, cPA
why did you become a cPA and when did you receive your license? Asafreshmanincollege,IchoseacareerinpublicaccountingandintendedtoobtainaCPAcertificate.Thedayaftergraduation,IwascalledupandcommissionedasasecondlieutenantininfantryandservednearlyfouryearsinWWII.UponcompletionofthatserviceinMarch1946,IbeganmyaccountingcareerandlaterreceivedmyCPAcertificate(no.164)inMarch1951.in your opinion, what has changed the most about the cPA profession? ThemostsignificantchangesIhaveobserved(andtherearemany)aretherapidgrowthinthepublicaccountingsectorinSouthCarolina(evidencedby[thenumberof]myCPAcertificatewhencomparedtothoseissuednow),thenumberofwomennowservinginthisfield,theimpactofhigh-techproceduresandtheever-increasingoversightimposedupontheprofession.
erica Nanke, Macc
why did you become a cPA, and when did you receive your license?IofficiallypassedallfourpartsoftheCPAexaminFebruary2010,andwillbecomelicensedinJanuary2011aftermeetingmyyearlyrequirement—Iwillbe24.IjoinedSCACPAafterapplyingforascholarshipduringmysenioryearatCharlestonSouthernUniversity.IwassogratefultobechosenasarecipientofthePastPresidentsScholarship.ItmademerealizethatotherpeoplebelievedinmychosencareerpathasmuchasIdid.what are you looking forward to the most about the cPA profession? Whetherit’snewclientsituationstoresearchorthegovernmentpassingnewlaws,theprofessionisalwayschanging.Ilookforwardtolearningaboutnewchangesandbeingabletoeducateothersaroundmeonthetaxlawimplicationsofeachchange.
To date, what has been your most rewarding experience as a cPA? ThefirstandgreatestexperienceofmycareerwillalwaysbepassingtheCPAexam.Likemanyothersbeforeme,wecanallrememberthenumberofactivitiesandspecialeventswegaveuptoaccomplishpassingtheexam.AnotherclosesecondhasbeentheawesomepeopleIgettoworkwithinmyoffice.IhavebeenabletolearnfromotherCPAswhohavebeenintheprofessionformanyyears,andhopetobecomeavaluableassetinthespecialtyareasIhavebeenworking.Personally or work-related: what motivates and inspires you? Whetheritisinmypersonalorworklife,Ialwaysstrivetohelpandbeofservicetoothers.Inmyworklife,IenjoyprovidingthepeopleIworkwithavaluableproductwhichisbeneficialtoourclients.
To date, what has been your most rewarding experience as a cPA? Theopportunitytoworkwiththeentirespectrumofthebusinessworld.Personally or work-related: what motivates and inspires you? Althoughnowretired,Ihaverecentlyfoundrenewedinterestinthefirmthathasmeantsomuchtomeformanyyears.Inrecentyears,volumesofrecordswerefoundsupportingtheorganizationofthefirmElliott,Davis&CompanyinBoston,MAin1921.Theserecords,foundinthebasementoftheGreenvillefounder’soffice(MerrillC.Patten,nowdeceased),revealmuchinformationnotpreviouslyknownandisnowbeingcompiled.
“It was very rewarding to see the result of all of the effort that I had put into attaining the CPA designation ...”
editor’s Note: In addition to those featured here, an interview was also planned with Irving T. “Buck” Welling, who passed away in October while we were planning this issue. All of us at SCACPA extend sincere condolences to the Welling family. Please see Buck’s obituary in Member News (page 32).
“I always strive to help and be of service to others.”
“I have recently found renewed interest in the firm
that has meant so much to me for many years.”
South Carolina CPA Report 16 (888) 557-4814 | www.scacpa.org
SCACPAhasoneofthestrongestgrassrootsnetworksinSouthCarolina,andtheCPAPoliticalActionCommittee(CPA-PAC)isanimportantpartofthateffort.Anon-partisancommitteecomprisedoffiveSouthCarolinaCPAswhoserveas
trustees,theCPA-PACworkstocombinefinancialresourcesforgreaterinvolvement,impactandresults.Formedin1993,theCPA-PACinvestsinstatepoliticalleadershipbycontributingfundstostatelegislatorsandcandidateswhosupporttheinterestsofCPAsandthebusinesscommunity.Theprofessionhasenjoyedalonglistoflegislativevictories,butnoneofthosesuccesseswouldhavebeenaccomplishedwithoutlegislatorswholistentoandsupportourposition.TheydosobecauseofthepersonalrelationshipsformedthroughourKeyPersonContactprogram,andbecauseofdonationsmadethroughtheCPA-PAC.Onbehalfofallmembersandtheprofessionatlarge,SCACPAofferssincerethankstotheseindividualsandfirmswhocontributedtotheCPA-PACin2010.
William E. Abernethy Jr., CPA Claudia W. Adams, CPA Paul K. Aikman, CPA T. D. Ainsworth, CPA Travonte Aldrich Judy P. Alexander, CPA Michael G. Barb, CPA Joseph H. Barber, CPARobert W. Bass, CPAPatrick L. Beasley S. C. Beckwith, CPAAmy T. Bennett, CPA Nat B. Benson III, CPA, MSAJennifer M. Bernard, CPA Robert F. Berry, CPA Lois R. Blanco, CPA Karl D. Bohnstedt, CPAAllan G. Bolden, CPA Joseph A. Boyle, CPAGerald D. Broome, CPAChristopher A. Brown, CPAWilliam W. Brown, CPAThomas J. Bryson, CPA David S. Buch, CPA Orvis B. Buie, CPA John C. Butler, CPA Kevin H. Cain, CPA John F. Camp, CPA Anne M. Campbell, CPAPatrick P. Carey Jr., CPA L. B. Carson Jr., CPA Christine E. Cassidy, CPA JD, LLM
Douglas P. Clark, CPA Tonia J. Clemmons Clarence Coleman Jr., CPA, Ph.D. Vickie M. Cox, CPA R. D. Crowley, CPA, CVA Robert A. Curtis, CPA, PFS, MST0John A. Davis, CPA J. William Davis Jeffrey L. Deason, CPA, CFE Alys Anne Dennis, CPA Wanda J. Diggs, MBA, MAFM-CPAR. K. Dooley, CPA, PFS Rodney Dooley Jr., CPADonald L. Ellis, CPA MBA Amy S. Ely, CPA Barry A. Emerson, CPAMary L. Enright, CPA Alleen S. Ernst, CPA Barbara J. Evans, CPA MBAMichael R. Evans, CPA A. L. Fee, CPA Ryan F. Finklea, CPALarry J. Finney, CPA Charles R. Fliflet, CPADonald A. Floyd, CPA Jennifer S. Floyd, CPA Brian E. Ford Ronald E. Franks, CPA Jennifer N. Gahl, CPAJohn F. Georger Jr, CPA, CIA Ransom H. Gibson III, CPA
Ben M. Goldson, CPA Dennis L. Gore, CPA Richard L. Gray, CPAWilliam M. Grooms, CPA Angela W. Hamilton, CPA Cara T. Hamilton, CPA John F. Hamilton, CPADavid J. Haney, CPA Martha M. Hartley, CPAJ. Harry Haslam Jr., CPAAlice B. Hazel, CPA Robert M. Heil, CPA Linda H. Helms, CPADouglas W. Henderson, CPARonald I. Hendrix, CPA Dan B. Herrinton, CPA Melanie C. Hill, CPA J. C. Hincher, CPA, MAKatherine W. Holmes, CPASamuel G. Holtzclaw, CPA Leonard A. Hoogenboom, CPA John C. Horton, CPA Cynthia L. Howle, CPAM. Timothy Hucks, CPADonna K. Hudson, CPA Donald L. Hunter, CPA Richard A. Hutto, CPA Steven L. Hyatt, CPA Leona L. Hydrick, CPA Arthur L. Jayroe Jr., CPAGary J. Johnson, CPA
G. Michael Johnston, CPAW. Kelly Jones, CPA Robert P. Jordan, CPA Channing S. Joye, CPAKevin C. Kern, CPA Michael J. Kerscher, CPA James D. Kidd, CPA Dick W. King, CPAW. J. Kitchens Jr., CPAJoycelynn S. Knight, CPADavid M. Knoble, CPA MACJoseph J. LaNunziata, MBACarol C. Lawlor, CPAPaula J. Lawrence, CPARobert A. Leichtle IIElizabeth I. Leitner, CPAHarold E. LeMaster, CPAMarchant L. Lesley, CPAPaul V. Lewis, CPACarol M. Libby, CPAGregory M. Lipe, CPADaniel E. Livengood, CPAPatrick M. Luciano, CPARoger F. Luttrell, CPA, MBALarry B. Mack, CPAGlenn G. MacNeil, CPA, BBA, CA, CMALeon W. Maginnis, CPA CFE, CFFBobby T. Mardis, CPAGlenn J. Matthews, CPATravis L. Matthews, CPARenee O. McCall, CPA
Christine A. McCarty, CPAGordon L. McCay, CPA MBADustin L. McCoyChris A. McCraw, CPAC. Stephen McDonald, CPAAnn A. McDuff, CPAHenry A. McFaddin, CPASheila C. McKinney, CPADaniel L. McKnightMark A. Milnac, CPADavid H. Mims, CPA John W. Molony, CPAThomas P. Monahan, CPADonald S. Moody, CPAC. Clarke Moore III, CPAConnie G. Morris, CPAEdward W. Muller, CPAAlbert A. Munn IV, CPARobert J. Nagy, CPAAdam NeelyWilliam S. Nelson, CPAJames R. Newell, CPACarla M. Nicholson, CPAGina S. Noble, CPAJames M. O'Cain, CPA, CFP,CLU,ChFCSherry N. Ouzts, CPARenita M. Owens, CPAGregory D. Padgett, CPAPhilip G. Palmer, CPAJames A. Parrish, CPAMargaret J. Passailaigue, CPA
2010 CPA-PAC Donors and Recipients
FEATURE
PAC - BACKERS, Contributions Up to $99
South Carolina CPA Report 17(888) 557-4814 | www.scacpa.org
Bernadette C. Phelps, CPABarbara G. Pierce, CPALloyd E. Pitts, CPASamuel H. Plexico III, CPAJeffery S. Powell, CPACharles C. PrevostWilliam R. Price, CPARobert B. Privette, CPA MBAJoseph E. Pruitt, CPAMichael P. Ravan, CPAMonica E. Richardson, CPAG. Randy Rish, CPAAlan M. Robinson, CPADeborah M. Rose, CPAAnnette H. Ross, CPAW. T. Rubenstein, CPAJames N. Ruff, CPACharissa D. Saunders, CPAMarc L. Saunders, CPAMichael W. Saunders, CPADouglas P. Schmieding, CPAErnest M. Sewell III, CPAJennifer E. Shechter-Liss, CPAAustin M. Sheheen, Jr., CPA David W. Siddons, CPAHelen Z. Sieger, CPA, JDTeodor D. Simeonov, CPANancy F. Simonetti, CPAClifford C. Simunek, CPARobert M. Sisk, CPAGeorge P. Smith III, CPA
Lisa N. Smith, CPAWilliam R. Smoak, CPAPhilip R. Snipes, CPAJames B. Snoddy, CPADouglas A. Sparacino, CPAGregory W. Stephan, CPA MPAcc Curtis C. Stewart, CPA, JD Tammera Stewart, CPA Eugene F. Svatek, CPA Clayton E. Tapp Jr. Michael J. Targia, CPA, CFA George F. Taylor Jr., CPARobert T. Theodore, CPA Hartwell H. Traylor Sr., CPAO. L. Turner, CPA Michael S. Upton, CPAEdgar A. Vaughn, CPA David R. Veldman, CPAThomas J. Way, CPA Mark W. Webster, CPA Susan O. Weesner, CPAIrvine T. Welling, III, CPAGary L. Wheeler, CPA Darrell E. Whitaker, CPA Maurice A. White, CPA David L. Whitehead, CPAJohn R. Wilson, CPAJacqueline C. Wirszyla, CPAAmy L. Wood, CPAYulien Yuan, CPA
Sharon E. Mann, CPA
Steven M. Mann, CPA
Linda L. May, CPA
Leigh A. Marks, CPA
Sheryl G. McAlister, CPA, CFP
J. P. McDermott, CPA
James W. McIlrath, CPA
Sara B. Penn, CPA
Michael R. Putich, CPA
Charles M. Redfern III, CPA
William C. Robinson, CPA
Amy H. Rubin, CPA
Douglas A. Snyder, CPA
Jason C. Sweatt, CPA
William A. Thiem, CPA
Robert M. Tilton, CPA
Victor C. Webster, CPA, MBA
Walda C. Wildman, CPA
Beth T. Zamorski, CPA
cANDiDATe DONATiON DeLiVereD BY
Nikki Haley (Governor) $3,500 Erin Hardwick
Vincent Sheheen (Governor) $3,500 Doug Snyder
Don Bowen (District 8) $500 Nancy Upton
Daniel Cooper (District 10) $500 Nancy Upton
Gene Pinson (District 13) $500 Denise Ogletree
Eric Bedingfield (District 28) $500 Gary Wheeler
Steve Parker (District 37) $500 Chuck Talbert
Deborah Long (District 45) $500 Farris Cauthen
Gary Simrill (District 46) $500 Suzanne Merritt
Herb Kirsh (District 47) $500 Bernie Ackerman
Tommy Pope (District 47) $500 Charlie Redfern
Liston Barfield (District 58) $500 John Horton
Phillip Lowe (District 60) $500 Arden Gatchell
Timothy L. Baker, CPA
Brian J. Brady, CPA, CFF CFE CIA
Charles E. Brown, CPA
William L. Byrd, CPA
Charles G. Carpenter, Ph.D., MS
The Honorable Converse A. Chellis III
Deanna L. Cochran, CPA
Bobby R. Creech Jr., CPA
Zoe M. Davis, CPA
Richard H. Ett, CPA, CFM, CFP
John B. Fennell, CPA
Tammy M. Flowers, CPA
Sherri L. Freudiger, CPA
Harry B. Gregory Sr., CPA
Malynda M. Grimsley, CPA
Amanda T. Hallman, CPA
Erin P. Hardwick, CAE
Kathryn G. Heeney, CPA MBA
Mark T. Hobbs, CPA
Allen A. Hodges, CPA
Amanda B. Koehler, CPA
Rebecca M. Lee, CPA
Penny A. Lewis, CPA
$500 - $1,000Derrick Stubbs and Stith, LLP
Schmoyer and Company, PC
Scott & Company, LLP
McAbee Talbert Halliday & Company
Elliott Davis, LLC
Ernst & Young, LLP
PricewaterhouseCoopers, LLP
WebsterRogers, LLP
Dixon Hughes, PLLC
FEATURE
INVESTORS, Contributions $100 to $249 LEADERS, CPA Firms $500 and up
GeNerAL eLecTiON cONTriBUTiONs (Challengers noted in blue, incumbents in black)
cANDiDATe DONATiON DeLiVereD BY
Gilda Cobb-Hunter (Dist. 66) $500 Doug Snyder
Joan Brady (District 78) $500 Harry Gregory
Chip Huggins (District 85) $1,000 Sharon Mann
Harry Ott (District 93) $500 Don Rickenbaker
Tracy Edge (District 104) $500 Bratton Fennell
Vida Miller (District 108) $500 Jeff Kinard
Bobby Harrell (District 114) $1,000 Pat McDermott
Robert L. Brown (District 116) $500 Caprice Atterbury
Todd Atwater (District 87) $500 Erin Hardwick
Bill Bowers (District 120) $250 Bratton Fennell
Rick Quinn (District 69) $500 Steve Mann
Bill Sandifer (District 2) $500 Mike Stancil
Robert C. Cooper, CPA
PARTNER, Contributions $250 to $499
VISIONARY, CPA Firms $2500 and up
South Carolina CPA Report 18 (888) 557-4814 | www.scacpa.org
iNTerNAL reVeNUe cODe secTiONs NOT ADOPTeDFournewprovisionshavebeenaddedtoCodeSection12-6-50,whichlistsspecificInternalRevenueCodesectionsnotadoptedbySouthCarolina.CodeSections12-6-50(4)and(16)havebeenamendedtospecificallynotadoptInternalRevenueCodeSections85(c)and6654(d)(1)(D).CodeSections12-6-50(5A)and(5B)havebeenaddedtospecificallynotadoptInternalRevenueCodeSections108(i)and163(e)(5)(F).InternalRevenueCodesectionsenactedaspartoftheAmericanRecoveryandReinvestmentActof2009,PublicLaw111-5,butnotadoptedbySouthCarolina,providethefollowingforfederalincometaxpurposes:
1.InternalRevenueCodeSection85(c)excludes$2,400ofunemploymentcompensationfromgrossincomefor2009.
2.InternalRevenueCodeSection6654(d)(1)(D)decreasesrequiredestimatedtaxpaymentsfor2009byallowingquarterlyestimatedtaxpaymentsbasedon90percent(ratherthan100percent)ofthetaxdueonthe2008individualincometaxreturnforqualifiedindividuals.Note:SeeProviso81.8(ActNo.291)summarizedbelowforpenaltywaiverinformationforqualifyingindividuals
whocompliedwithInternalRevenueCodeSection6654(d)(1)(D).
3.InternalRevenueCodeSection108(i)relatestothedeferralandratableinclusionofincomearisingfrombusinessindebtednessdischargedbythereacquisitionofadebtinstrument.
4.InternalRevenueCodeSection163(e)(5)(F)relatestooriginalissuediscountoncertainhighyieldobligations.
Effective Date:March31,2010
PeNALTY AND iNTeresT wAiVer fOr QUALifieD iNDiViDUALs fOr 2009 esTiMATeD TAX PAYMeNTsUnderthistemporaryproviso,theDepartmentwillwaiveinterestandpenaltiesforstateestimatedquarterlyindividualincometaxpaymentsforqualifyingindividualswhocomplywithSection1212offederalPublicLaw111-5,codifiedasInternalRevenueCodeSection6654(d)(1)(D).AnindividualisconsideredaqualifiedindividualforpurposesofSouthCarolinapenaltywaiveriftheindividualmeetstheadjustedgrossincomerequirementandthe50percentofgrossincomefromasmallbusinessrequirementcontainedinSection1212,PublicLaw111-5forSouthCarolinaorfederalpurposes.
Effective Date: EffectiveforStatefiscalyearJuly1,2010throughJune30,2011.ItwillexpireJune30,2011,unlessreenactedbytheGeneralAssembly.
PeNALTY wAiVer fOr feDerAL cHANGes TO cOrPOrATe esTiMATeD TAX PAYMeNTs
1.CodeSection12-6-3910(E)hasbeenaddedtoallowtheDepartmenttowaiveestimatedtaxpenaltiesforcorporationsthatcalculateSouthCarolinaestimatedtaxpayments,basedonafederallawthat(a)increasesestimatedpaymentsinoneperiodanddecreasesestimatedpaymentsinanotherperiodor(b)changesthedatesofestimatedtaxpaymentsareduefornotmorethanonemonth.
2.Inrelatedamendments,Section49ofAct110of2007andSection3ofAct16of2009arerepealed.ThesesectionsprovidedforSouthCarolinaestimatedtaxpenaltywaiversassociatedwithchangesinfederalestimatedtaxpenaltiesforlargecorporations.Thefederallawswererepealedbeforethechangesweretotakeeffect.
Effective Date:March31,2010
FEATURE
by K . Todd Dai ley, CPA, C VA and Jason Sweatt , CPAS C AC PA m e m b e r s s i n ce 1 9 9 3 a n d 1 9 9 7
South Carolina Tax Changes: DON’T BE CAUGHT UNAWARE
Asweapproachthecloseofthe2009taxreturnfilingseasons,itistimetobeginpreparingforyear-endplanningandthe2010seasons.Asusualwehavemanychangestocontendwith,somesmallandsomeverysignificant.It’simportanttoknowthese
changesandhowtheyaffectyourclient-base.SCACPArecentlyreceivedaletterofcomplaintaboutaCPAwhodidnotinformaclientaboutchangesfrom2003thatmademaintenanceservicesfortangiblepersonalpropertytaxableforsalestaxinSouthCarolina.ThetaxpayerblamestheCPA.OurclientsexpectCPAstounderstandtheirbusinessandbeonthelookoutforchangesthatwouldhelpthemorcausethemtohaveincreasedrisk.Followingisasummaryofthechangesthatmayimpactmanyofourclients,asreportedintheS.C.Legislativeupdate.
19(888) 557-4814 | www.scacpa.org
MANUfAcTUrers Of reNewABLe eNerGY sYsTeMs AND cOMPONeNTs – New creDiTCodeSection12-6-3588hasbeenaddedtoprovideanincometaxcredittocompaniesinthesolar,wind,geothermalandotherrenewableenergyindustrieswhoareexpandingorlocatinginSouthCarolina.Toqualify,acompanymust(1)manufacturerenewableenergysystemsandcomponentsinSouthCarolinaforsolar,wind,geothermalorotherrenewableenergyuses;(2)investatleast$500millioninnewqualifyingplantandequipmentintheyearthetaxcreditisclaimed;and(3)createoneandone-halffull-timejobsforevery$500,000ofqualifyingcapitalinvestmentthateachpaysatleast125percentoftheState’saverageannualmedianwageasdefinedbytheDepartmentofCommerce.AtaxpayermayseparatelyqualifyfornewfacilitiesinseparatelocationsorforseparateexpansionsatexistingfacilitiesinSouthCarolina.
ExpendituresqualifyingforthiscreditmustbecertifiedbytheStateEnergyOfficebyJanuary31forqualifyingexpendituresincurredinthepreviouscalendaryear.ByMarch1,theStateEnergyOfficemustnotifythetaxpayerofthequalifyingexpendituresandtheallocatedcreditamount.ThecreditisclaimedforthetaxyearwhichcontainsDecember31ofthepreviouscalendaryear.
Thecreditisequalto10percentofthecostofthecompany’stotalqualifyinginvestmentinplantandequipmentinSouthCarolinaforrenewableenergyoperations.Ataxpayer’stotalcreditforallexpendituresallowedmustnotexceed$500,000foranyyearand$5milliontotalforallyears.Unusedcreditscanbecarriedforward15yearsafterthetaxyearinwhichaqualifiedexpenditurewasmade.Thiscreditisinlieuofanyotherapplicableincometaxcreditsorabatementsallowedbystatelaw.Intheeventofanoverlaporconflictinavailablecreditsorabatements,thetaxpayermayselectthecreditorabatementdesiredinthemannerprescribedbytheDepartment.
Note Expiration: “Theincometaxcreditprogramisforafive-yearperiodbeginningJanuary1,2010andendingDecember31,2015.”
cAPiTAL iNVesTMeNT TAX creDiT – rePLAciNG ecONOMic iMPAcT ZONe iNVesTMeNT TAX creDiTRepealofCertainCodeSectionsintheEconomicImpactZoneActinChapter14ofTitle12andRepealofCreditforHiringDisplacedWorkersinCodeSection12-6-3450Chapter14ofTitle12containstheEconomicImpactZoneCommunityDevelopmentActof1995.Chapter14hasbeensubstantiallyamended.Amongthechangesarethefollowing:
1.CodeSection12-14-20,containingthepurposeoftheEconomicImpactZoneCommunityDevelopmentActof1995,isamendedtoprovidethatthepurposeofChapter14istoestablishaprogramofprovidingtaxincentivesforthecreationofcapitalinvestmentinordertorevitalizecapitalinvestmentinSouthCarolina,primarilybyencouragingtheformationofnewbusinessesandtheretentionandexpansionofexistingbusinesses;andtopromotemeaningfulemployment.
2.CodeSection12-14-60,providingfortheeconomicimpactzoneinvestmenttaxcredit,hasbeenamendedtodeleteallreferencesto“economicimpactzone”andtoprovideforacapitalinvestmenttaxcreditasfollows:0.5percentoftotalaggregatebasesofallqualifyingthree-yearmanufacturingandproductiveequipmentproperty;1.0percentoffive-yearproperty;1.5percentofseven-yearproperty;2.0percentof10-yearproperty;and2.5percentof15-yearorgreaterproperty.
ThedefinitionofqualifiedmanufacturingandproductiveequipmentpropertyinCodeSection12-14-60(B)wasamendedtoreplacereferencesto“economicimpactzone”with“thisState.”Also,certaincodesectionsthatconflictedwiththechangesorwerenolongerneededwererepealed.
Effective Date: January1,2011,excepttherepealofCodeSections12-14-30,12-14-40,12-14-50,12-14-70,and12-6-3450areeffectiveJune23,2010.
JOB TAX creDiT – AMeNDeDCodeSection12-6-3360,dealingwiththejobtaxcredit,hasbeenamendedbythisAct.Amongthechangesarethefollowing:1.Thecountyrankingshavebeenchangedfromfivedesignationstofour“tier”designations,basedonacombinationofunemploymentrateandhighestpercapitaincomedata.
2.ThedollaramountofthebasicjobtaxcreditforeachnewjobcreatedbasedonthenewcountydesignationsofTierI,II,III,andIVare$1,500peryearforeachnewfulltimejobcreatedinaTierIcounty;$2,750inaTierIIcounty;$4,250inaTierIIIcounty;and$8,000inaTierIVcounty.Therulesrelatedtoclaiming50percentoftheamountbysmallbusinessesclaimingthesmallbusinesscreditforlowerincomeemployeesstillapplies.
3.Severaltypesofbusinessesqualifyingforthecredithavebeenaddedorchangedasfollows:
a.Ataxpayerthatoperatesan“agribusinessoperation”cannowqualifyforthejobtaxcredit.CodeSection12-6-3360(A).
b.Ataxpayerthatoperatesaretailfacilityorservice-relatedindustrycanqualifyforthejobtaxcreditonlyinaTierIVcounty.
c.Thedefinitionof“processingfacility”hasbeenexpandedtoinclude“meat,poultry,andanyothervarietyoffoodprocessingoperations.”Processingfacilitycontinuestomeananestablishmentthatprepares,treatsorconvertstangiblepersonalpropertyintofinishedgoodsoranotherformoftangiblepersonalproperty.Thetermincludesabusinessengagedinprocessingagricultural,aquaculturalormariculturalproductsandspecificallyincludesmeat,poultry,andanyothervariety
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South Carolina CPA Report
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offoodprocessingoperations.Itdoesnotincludeanestablishmentinwhichretailsalesoftangiblepersonalpropertyaremadetoretailcustomers.CodeSection12-6-3360(M)(6).
4.Specialprovisionshavebeendeletedthatqualifycertainareasandcountiesforanincreasedcreditdesignation.Therestrictionthatacounty’sdesignationcannotbeloweredincreditamountmorethanonetierinthefollowingcalendaryearhasalsobeendeleted.Previously,rankingsweredonewithequalweightgiventounemploymentrateandpercapitaincomeandthenadjustedinaccordancewithspecialrulesinSection12-6-3360(B)and(L),asapplicable.CodeSection12-6-3360(B)andformerCodeSection12-6-3360(L).
5.Section38oftheActrepealedCodeSection12-6-3450concerningataxcreditforpersonsterminatedasaresultofclosingorrealignmentoffederalmilitaryinstallations.CodeSection12-6-3450(A)(1)(b)wasreferencedinCodeSection12-6-3360(F)(2)(d)andCodeSection12-6-3360(M)(3).Thegeneraldefinitionof“newjob”inCodeSection12-6-3360(M)(3)continuestoprovidethat“thisexclusionofanewjobcreatedbyanemployeeshiftingdoesnotextendtoajobcreatedataneworexpandedfacilitylocatedinacountyinwhichislocatedan‘applicablefederalfacility’asdefinedinSection12-6-3450(A)(1)(b).”
Effective Date:January1,2011,excepttherepealofCodeSection12-6-3450iseffectiveJune23,2010.JOB DeVeLOPMeNT creDiT AMeNDeDCodeSection12-10-80providesacreditagainstemployeewithholdingtaxestoneworexpandingbusinessesmakingqualifyinginvestmentsandcreatingaminimumnumberofnewjobsinSouthCarolinaandenteringintoarevitalizationagreementwiththeCoordinatingCouncilforEconomicDevelopment(“Council”).CodeSection12-10-80hasbeenamendedasfollows:
1.Aprovisionhasbeenaddedtoprovidethatacompany’sjobdevelopmentcreditsaresuspendedduringanyquarterthecompanyfailstomaintain100percentoftheminimumjobrequirementsetforthintherevitalizationagreement.Acompanycanonlyclaimcreditsonjobs,includingarangeofjobsapprovedbytheCouncil,assetforthinthecompany’sfinalrevitalizationagreement.ThiscodifiesanexistingguidelineoftheCouncil.CodeSection12-10-80(A)(6).
2.AprovisionhasbeenaddedtoclarifythatcreditsmaybeclaimedbeginningwiththewithholdingquarteraftertheCouncil’sapprovalofthecompany’sdocumentationthattheminimumjobandcapitalinvestmentrequirementshavebeenmet.ThiscodifiesanexistingguidelineoftheCouncil.CodeSection12-10-80(A)(7).
3.Subsection(C)(3),whichprovidesfortheeligibleexpendituresthatcanbereimbursedfromjobdevelopmentcreditshasbeenamended:(a)toclarifythatrealpropertyacquiredbycapitaloroperatingleasewithatleasta5yearterm,mayqualifyasaneligibleexpendituresifapprovedbytheCounciland(b)toprovideonlyemployeerelocationexpensesforthoseemployeestowhomthecompanyispayinggrosswagesofatleasttwicethelowerofthepercapitaincomeofthestateorthecountyinwhichtheprojectislocated,qualifyaseligibleexpenditures.
Effective Date:January1,2011siNGLe fAcTOr APPOrTiONMeNT – reLATeD AMeNDMeNTs effecTiVe UPON fiNAL PHAse iN Of siNGLe sALes fAcTOr APPOrTiONMeNT MeTHODEffectivefortaxyearsbeginningafter2006,ActNo.384of2006amendedCodeSection12-6-2250toenactasinglefactorapportionmentfactorforbusinessesdealingintangiblepersonalpropertyusingthethreefactor(withdoubleweightedsales)apportionmentmethod.Thesinglefactorapportionmentfactorisbeingphasedinand
willreplacethethreefactor(withdoubleweightedsales)apportionmentmethodfortaxyearsbeginningin2011.
Thefollowingamendments,effectivefortaxyearsbeginningafter2010,updatecrossreferencesfromCodeSection12-6-2250(the3factorapportionmentmethodwithdoubleweightedsalesandphaseinprovisionsofthesinglesalesfactor)toCodeSection12-6-2252(thesinglesalesfactorapportionmentmethod)forthefollowingcodesections:
1.CodeSection12-6-1130(6)dealingwithcomputationofthedepletiondeduction;
2.CodeSection12-6-2240dealingwithapportionmentofincome;and
3.CodeSection12-6-2290dealingwithgrossreceiptsfactor.
Thefollowingcodesectionswillberepealedoncethesalesfactorisfullyphasedineffectivefortaxyearsbeginningafter2010:
1.CodeSection12-6-2250(the3factorapportionmentmethodwithdoubleweightedsalesandphaseinprovisionsofthesinglesalesfactor);
2.CodeSection12-6-2260(3factorapportionmentmethodpropertyfactordefinition);
3.CodeSection12-6-2270(3factorapportionmentmethodpayrollfactordefinition).
Effective Date: Taxyearsbeginningafter2010.
MANUfAcTUrers’ reAL PrOPerTY UseD fOr wAreHOUsiNG AND wHOLesALe DisTriBUTiON - cHANGes TO reQUireMeNTs fOr ALTerNATiVe cLAssificATiONCodeSection12-43-220(a)concernstheclassificationofrealandpersonalpropertyownedbyorleasedtomanufacturersandutilitiesandgenerallyprovidesforanassessmentratioof10.5percentonpropertyusedintheconductofthebusiness.Item(4)hasbeenamendedtoprovide
FEATURE
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thatrealpropertyownedbyorleasedtoamanufacturerandusedprimarilyforwarehousingandwholesaledistributionisnotconsideredusedintheconductofthemanufacturingbusiness.Previously,thisexceptionwasavailableonlyforpropertyusedexclusivelyforwarehousingandwholesaledistribution.Realpropertythatfallsoutsidethemanufacturersandutilitiesclassificationisgenerallytaxedbasedonasixpercentassessmentratio.
Theamendmentfurtherclarifiesthatrealpropertysubjecttothisexclusionmustnotbephysicallyattachedtothemanufacturingplantunlessthewarehousingandwholesaledistributionareaisseparatedbyapermanentwall.
Effective Date:January1,2011
BOATs cLAssifieD As A PriMArY Or secONDArY resiDeNce – reViseDCodeSection12-37-224,allowingcertainboatsorwatercrafttobetreatedasaprimaryorsecondaryresidenceforpropertytaxpurposes,andassessedatafourorsixpercentassessmentratio,respectively,hasbeenamended.Theamendmentspertainingtotheassessmentratioandvaluationoftheseboatsandwatercraftareasfollows:
1.Newsubsection(B)wasaddedtoclarifythataboatorwatercraftthatqualifiesforclassificationasaprimaryorsecondaryresidenceisonethatcontains(a)acookingareawithanonboardpowersource,(b)asleepingquarter,and(c)atoiletwithexteriorevacuation.Previously,CodeSection12-37-224providedforprimaryorsecondaryresidencestatusiftheboatorwatercraftqualifiedfordeductionoftheinterestexpenseonaqualifiedprimaryorsecondaryresidencepursuanttotheInternalRevenueCode.
2.Newsubsection(B)allowsonlyanindividualtoclaimonequalifyingboatorwatercraftthatheownsasaprimaryresidence(fourpercentassessmentratio).Inaddition,anindividualmayclaimasecondqualifyingboatorwatercraftthatheownsasasecondaryresidence(sixpercentassessment
ratio).Finally,apersonotherthananindividualmayclaimaqualifyingboatorwatercraftthatthepersonownsasasecondaryresidence(sixpercentassessmentratio).A“person”isdefinedtoincludeanindividual,asoleproprietorship,apartnership,anScorporation,andalimitedliabilitycompanytaxedasasoleproprietorship,apartnershiporanScorporation.AnindividualclaimingaboatasaprimaryresidencemustmakethesamecertificationrequiredtoobtainthefourpercentassessmentratioforanyotherlegalresidenceunderCodeSection12-43-220(c)(2)(ii).
3.Newitem(B)(1)ofCodeSection12-37-224providesthatthefairmarketvalueofqualifyingboatsandwatercraftmustbedeterminedinthemannerthatmotorvehiclesarevaluedforpropertytaxpurposes(i.e.,byreferenceannuallytonationallyrecognizedpublications,exceptthatthevaluemaynotexceed95percentofthepreviousyear’svalue).Theamendmentrestatedbutdidnotchangethemethodofvaluation.
Inarelatedamendment,CodeSection12-37-220(B)(38)(b),providingthat,byordinance,alocalgoverningbodyofacountymayexemptfrompropertytax42.75percentofthefairmarketvalueofawatercraftanditsmotor,hasbeenamendedtoclarifythattheexemptiondoesnotapplytoaboatorwatercraftclassifiedforpropertytaxpurposesasaprimaryorsecondaryresidenceunderCodeSection12-37-224.AcorrespondingamendmentwasmadetoCodeSection12-37-224.
Effective Date: June16,2010
ADDiTiONAL 1% reDUcTiON ON iNTeresT rATe ON TAX refUNDsThisnewtemporaryprovisodecreasesbyonepercenttheinterestratefortaxrefundspaidduringthecurrentfiscalyear,inadditiontothetwopercentreductionreauthorizedintemporaryProviso72.17(foratotalthreepercentinterestratereduction).Oftherevenueresultingfromthisonepercentreduction,$250,000mustbeusedbytheSenateforoperatingexpensesofthe
JointCitizensandLegislativeCommitteeonChildren.TheremainingrevenuemustbeusedbytheDepartmentofJuvenileJusticeforprogramsformentoringorotheralternativestoincarceration.TherevenueresultingfromthetwopercentreductioncontinuestobeusedforoperationsoftheState’sGuardianadLitemProgram.
Effective Date: ThistemporaryprovisoiseffectiveforStatefiscalyearJuly1,2010throughJune30,2011.Wehopethatyoufindthesesummarieshelpful.Ifyouhaveotheritemsthatyouwouldliketoseediscussedindetail,pleasenotifytheSCACPAofficeswithsuggestionsforfuturearticlesorblogs.n
IRS Activates New PTIN SystemThe IRS has recently launched a new preparer tax identification number (PTIN) system, a major step in its planned system of registration, qualification and oversight of all paid tax return preparers. To learn how this affects you, visit irs.gov/tax pros or call the IRS PTIN Helpline at 1-877-613-PTIN (7846).
K. Todd Dailey, CPA, CVA is partner of taxation and business valuation with Derrick, Stubbs & Stith, L.L.P. Todd received his B.S. degree in Accounting from the University of South Carolina and has been practicing public accounting since 1989. A member of the AICPA and past president of SCACPA’s Central Chapter, he currently serves on SCACPA’s Business Valuation Task Force, CPE Business Market Task Force, as chair of SCACPA’s State and Local Tax Committee and as an instructor for CPE courses in business valuations and tax issues.
Jason Sweatt, CPA is the Director of State and Local Tax (SALT) services for Elliott Davis, is the Chairman of the Firm’s Tax Committee, and leads tax quality control. He has 20 years of taxation experience in public accounting. Jason has a deep knowledge of tax advisory and tax compliance processes, tax quality controls and methodologies as well as extensive experience in federal, state and local tax planning, structuring, and IRS & state DOR representation. His focus is in transaction taxes (especially sales & use taxes) and tax incentives. He is a graduate of Berry College, serves on the SC Chamber of Commerce Tax Committee and chairs SCACPA’s Legislative and Advocacy Committee.
South Carolina CPA Report 22 (888) 557-4814 | www.scacpa.org
2010-2011 HEALTHCARE REFORM: What to Expect
The South Carolina CPA Report First Edition 2011 will feature a special section dedicated
to healthcare reform legislation and its impact on CPAs and South Carolinians. Leading up to that issue, the Editorial Board is seeking contributions on little-known special provisions of the legislation and how they affect the CPA profession. Special thanks to Dr. Bill Grooms and Mark Riley for contributions to this issue.
FEATURE
by Mark R i leyPres ident , S C A s s o c i a t i o n o f H e a l t h U n d e r w r i t e r sAmerican Benef i t Ser v ices
Aseveryoneisaware,backinMarchPresidentObamasignedintolawthePatient
ProtectionandAffordableCareAct(PPACA).Thisextremelydetailedandfar-reachinglawtouchesalmosteveryaspectofHealthcareinAmerica.Thisarticleprovidesdetailsonportionsofthelawthattakeeffectin2010and2011,andthatwillhaveadirectimpactoncurrentbenefitofferings.ThoseportionsincludeDependentChildcoverage,SmallBusinessTaxCredits,MedicalLossRatio,EliminationofLifetimeLimitsonPlans,WellnessCoverageenhancements,GrandfatheringofPlans,ChangestoHSAs,ChangestoFSAsandnewEmployerreportingrequirements.
GrANDfATHeriNG PrOVisiONTheGrandfatheringprovisionwillhaveaneffectonallotherprovisionsdependingonthestatusofeachemployerandtheirplan.ItallowsanyplanthatwasinplaceonMarch23,2010toremaininplacegoingforward,andtobeexemptfromcertainportionsofthelegislation.Therearesomeadvantagestobeinggrandfathered,aswellassomeprovisionsthatyoumustcomplywithtoremainasagrandfatheredplan.Eachemployergroupandplansponsorwillbedifferent,sotheadvantagesmayormaynotbenefiteveryone.
Possible Advantages of Maintaining Grandfathered Status:• AbilitytoremainunderIRSCode105(h),whichallowsplantodiscriminateinfavorofhighlycompensatedemployees(example:managementcarveoutplan).
• Planwillnothavetocomplywithcertainmandatedbenefitssuchasthoserelatingtoproviders,emergencyservicesandclinicaltrials.
• Planwillnothavetocomplywithprovisionrequiringallpreventivecarebenefitsbecoveredwithnocostsharing.
Provisions Applying to Grandfathered and Non-Grandfathered Plans:• Limitsonlifetimeandannualdollarmaximumsonbenefitplans.
• Dependentagecoverageuptoage26.
• Rescissionsofplansareprohibitedexceptinthecaseoffraud.
• Plansmustprovidecoveragetochildrenunderage19withnopre-existinglimitationsclause.
Benefit Changes that cause the loss of Grandfathered Status:• Purchasingaproductfromanewcarrierorexchangewillresultinthelossofgrandfatheredstatus,evenifthebenefitsremainthesame.
• Anychangesthatsubstantiallyreducebenefitswillresultinthelossofgrandfatheredstatus.
• Changestofixed-dollarcostsharingsuchasdeductibles,co-paymentsandout-of-pocketmaximumswillresultinthelossofgrandfatheredstatus.
• Employerswillbelimitedintheirabilitytodecreasetheemployercontribution.Anysubstantialchangeincontributionwillresultinthelossofgrandfatheredstatus.
• Anyplanthatimposesanewannualorlifetimelimitonnon-essentialbenefitsafterMarch23,2010willlosegrandfatheredstatus.
DePeNDeNT cHiLD cOVerAGeTherearetwodifferentitemsthatchangethewaychildrenarecurrentlycovered.BeginningoneachplanrenewalafterSeptember23,2010,alldependentchildrenmustbeallowedtoremain
Mark formed American Benefit Services, LLC in 2003 after 10 years in the insurance industry. He serves as current president of the South Carolina Association of Health Underwriters and is one of 11 members nationwide serving on the National Legislative Council. Contact him at (803) 404-5970 or [email protected].
“The Grandfathering provision will have an effect on all other provisions depending on the status of each employer and
their plan.”
South Carolina CPA Report 23(888) 557-4814 | www.scacpa.org
ontheirparents’plansuptoage26.Thisprovisionappliestoallplans,includinggrandfatheredplans,anddoesincludeadependentchildthatismarried.Thespouseand/orchildrenofthatdependentchildisnoteligibleforcoverage,butthedependentchildwouldbeeligible.Also,thisprovisiononlyappliestoindividualswhodonothaveaccesstocoverageelsewhere.MostinsurancecarriersarenotwaitinguntiltheSeptemberdatetomakethisbenefitavailable.
TheotherprovisionapplyingtochildrenisthatbeginningonSeptember23,2010allchildrenundertheageof19mustbecoveredwithnopre-existinglimitationsbeingplacedonthatcoverage.Whiletheintentionofthisprovisionappearstohavebeentosimplymakethecoverageavailabletothechildrenwithpre-existingconditions,theregulationsbeingwrittenbytheDepartmentofHealthandHumanServices(DHHS)clearlymakethisaproductthatmustbeofferedasguaranteeissueforchildren.Thismeansthatnochildcanbedeniedcoverage,butitdoesstillallowforratingfortheriskuntil2014.Thisprovisionalsoappliestoallplans,includinggrandfatheredplans.
sMALL BUsiNess TAX creDiTsTheSmallBusinessTaxCreditisactuallyretro-activebacktoJanuary1,2010.Eligiblebusinessesaredefinedasemployerswithfewerthan25employeesandanaveragesalaryoflessthan$50,000annually.Thebusinessmustalsopayatleast50percentofthepremiumforemployee-onlycoverageunderthehealthplan.Ifabusinessmeetstheserequirements,theyareeligibletoreceiveamaximumcreditof50percentofpremiumspaidforuptotwoyearsifclaimedby2014.Businessesdonothavetohaveataxliabilitytobeeligible,andnon-profitsareeligibleforthecredit.Formoreinformation,includingacreditcalculator,visitwww.irs.gov.
eLiMiNATiNG LifeTiMe LiMiTsThisprovisionappliestoallplans,includinggrandfatheredplans,andmakeshealthplans
doawaywithalllifetimedollarvaluelimitsonplansbeginningwithplanrenewalsafterSeptember23,2010.PlanswillstillbeallowedtoplaceannuallimitsoncertainbenefitsnotdeterminedtobeEssentialBenefits,butthoselimitswillalsogoawayin2014.ThelistofEssentialBenefitsshouldbereleasedbyDHHSlaterthissummer.
MiNiMUM LOss rATiOThisprovision,settotakeeffectonJanuary1,2011,statesthatallinsurersmustspendatleast80percentofthepremiumrevenueonclaimsexpensesforIndividualandSmallGroupPlans,andatleast85percentforlargegroupplans(planswithover100employees).Howdoesthisaffectyouasanemployerorconsumer?Theanswerisonethatisyettobewhollydetermined.AformulatobereleasedbyDHHSinthelatterpartof2010willdetermineexactlywhatisdefinedasaclaimsexpense.Thedeterminationoftheseexpenseswillhaveagreatdealtodowiththeservicesthatinsurancecompaniescontinuetooffer.Forexample,isaNurselineaclaimsexpense?DiseaseManagement?WhataboutOnlinePre-NatalCare?Thelistcangoonandon,soitisvitalthatthisformulaincludethecorrectthingsinorderforemployersandconsumerstocontinuetoreceivealotoftheextrasthatarecurrentlyavailabletothem.
weLLNess AND PreVeNTATiVe cAreThisprovisionappliestoallplanswiththeexceptionofgrandfatheredplans,andistoalsotakeeffectbeginningwithrenewalsafterSeptember23,2010.Thisprovisioneliminatesallcostsharingonalistofspecifiedbenefitsthataredeterminedtobeforpreventiveorwellnesspurposes.ThislistisbeingdevelopedbyaNationalWellnessCoalitionandwillbereleasedlaterthisyearthroughDHHS.Thecostsharingincluded
inthissectionmeansthatnoco-payments,deductiblesorout-of-pocketchargescouldapplytotheseservices—theymustbecoveredat100percent.
2011 cHANGesOncewegetthrough2010changesdonotcomeasrapidlyagainuntil2014,butthereareafewalreadyinplacefor2011.Firstistheeliminationofover-the-countermedicationsasanallowableexpenseunderSection213(d)oftheInternalRevenueCode.Theseexpenses,whicharenowbeingallowedforFSAs,HSAsandHRAs,willnolongerbeeligiblebeginningJanuary1,2011unlessyouhaveaprescriptionfromyourhealthcareprovider.Forexample,ifyouarecurrentlybuyingamedicationsuchasClaritinandusingyourFSAaccounttopayforit,youwillnotbeallowedtodothisstartingnextyear.AnotherchangebeginningonJanuary1,2011hastodowithHSAs.Startingnextyear,anyineligibleexpensepaidoutofyourHSAaccountwillcomewithanewtaxpenaltyof20percentinsteadofthecurrent10percenttaxpenalty.
Thelastthingtomentionfor2011isthatthereisanewemployerreportingrequirementthatallgroupsshouldbeawareof.BeginningwiththeW-2formsthatareproducedin2012forthe2011taxyear,employersmustbeginprovidingthevalueofbenefitstheyprovidetoemployees.Whilethisisnotataxablebenefit,itistobereportedforinformationalpurposes.Thebenefitvalueistobereportedonbenefitsthattheemployerpaysforandistobedoneinanaggregatemanner.
Asyoucansee,thelandscapeofourhealthcaredeliveryandfinancingsystemissettoundergomajorchangesoverthenextfewyears.Tostayabreastofthechangesandhowtheywillaffectyouandyourclients,continuetoreadtheinformationmadeavailablebySCACPA,variousgovernmentaldepartmentsandtheinsuranceindustry.n
“The landscape of our healthcare delivery and financing system is set to undergo major changes over the
next few years.”
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FEATURE
HEALTH CARE REFORM ACT:Changes for 2011-2013
by Dr. W.M. “Bi l l ” Grooms, CPAS C AC PA m e m b e r s i n ce 1 9 6 7
William M. Grooms, CPA, PhD Bill Grooms is a sole practitioner in Columbia, South Carolina with more than 40 years experience in his field. He was previously a partner of Ernst & Young, LLP, and a CPA with Clarkson, Harden & Gantt, Arthur Young &
Co., and the Internal Revenue Service. Mr. Grooms has been president of both the Central Chapter of SCACPA and the Columbia Estate Planning Council as well as past chairman of the SCACPAs Tax Committee and a past member of the AICPA Tax Division’s Executive Committee.
Inanearlierarticle,theramificationsoftheHealthCareReformActandthePatientProtectionand
AffordableCareAct(referredtoasHCRA)wereaddressedthrough2010.ThisActsetsforthlegalorstatutorychangesapplicabletoinsurancecompanies,healthcareproviders,andtheInternalRevenueCode(IRC),withthosechangestakingeffectindifferentyears.Thisarticlemovesforwardtothechangeseffectiveintheyears2011,2012and2013.
2011 cHANGesIn2011,thereisachangewithrespecttotheHealthReimbursementAct,HealthSavingsAccounts,FlexibleSavingsAccountsandHealthSavingsAccounts.Intheseprovisions,theterm“medicalexpense”willthenexcludethecostsforover-the-counterdrugsnotprescribedbyadoctorfrombeingreimbursedthroughtheseplans,unlesstheywereprescribedbyadoctor.
InadditionindividualswhohaveHSAsorFSAsandgetdistributionsfromtheseplansbeforeage65,whicharenotusedformedicalcosts,willseethepenaltyrisefrom10percentto20percentnextyear.
PartDofMedicarecoverage(prescriptiondrugplans)deductionbyanemployerwillnolongerbeallowed.Smallbusinesshowever,mayadopta“SimpleCafeteriaPlan.”Itcouldincludeaself-employedindividualasaqualifiedemployee.Shouldyouraccountingfirmadopta“simplecafeteriaplan?”Thiscafeteriaplancouldprovideforretirement,healthcoverage,dependentcareandotherhealth-relatedneeds.
2012 cHANGesIn2012,stillmorechangeswilltakeplace.Eventhoughithasnothingtodowithmedicalissues,thenewlawstatesthatanypaymentforservicesormerchandisemadeintheamountof$600
ormoreforservicestoanindividualotherthananemployeeoracorporationinthecourseofyourtradeorbusinesswillrequirethepayertoissueaform1099totherecipient.Accordingly,paymentstocorporations,inadditiontoindividualsandpartnerships,willrequiretheissuanceofaform1099.Thus,ifyouvisitBestBuythreetimesin2012forthreepurchasesatdifferenttimes—forinstance,onceinJanuaryforinkforyourbusinesscomputer,theninAprilforyourhome/personalcomputerpaper,againinNovemberforyourbusinesstopurchasesupplies—ifthosebusinesspurchasestotalmorethan$600,youmustsendBestBuyaform1099.However,besuretoexcludetheAprilpersonalcomputerpaper,sincethispurchasedidnotarisefromyourtradeorbusinessoperation.Thus,youmustsecurethecorrectcorporatenameoftheseller,theiraddress,andFINtosendthemandtheIRSaform1099.
Thisiswheretheprovisionstandstoday.However,theIRShassaidthattheydonotbelievethischangeisneeded.Indeed,theTreasuryDepartment'sNationalTaxpayerAdvocate,NinaOlson,saysthecostswillbe“disproportionateascomparedwithanyresultingimprovementsintaxcompliance.”TheAmericanChamberofCommercehasaskedthatthisberepealedandCongresshasalsotriedtorepealthischange,butbothHousesoftheCongresshavenotaddressedthisprovision.ThemajorityoftheHousevotedtorepealthisfeatureandtheSenateissettovoteonitonSeptember14.Thismeasuremayindeedberepealedbefore2012,butitistheretoday.Shoulditbecomeeffective,ourprofessionmustbepreparedtoassistclientsinchangingtheirreportingrequirementsaccordingly.
Alsoeffectivein2012willbeanewprovisioninwhichtheeconomicsubstancedoctrineisclarifiedandenhancedbywayofanewuniform
South Carolina CPA Report 25(888) 557-4814 | www.scacpa.org
Auditor Malpractice IssuesLitigation Consulting/ Representation
Peer Review & InspectionsOver 425 system Reviews
Conducted Nationwide
D i r e c t ( 8 0 3 ) 6 0 8 - 8 0 6 6 E m a i l J o h n f h @ a o l . c o m
John F. Hamilton, CMA, CPA
definitionofeconomicsubstance.Inshort,ifabusinesstransactionisenteredintowhichdoesnothave“economicsubstance,”thetaxpayermayfaceapenaltyifthetaxpayerowesadditionaltaxbecauseofthelackofthetransactionhavingeconomicsubstance.Thepenaltymayrangefrom20-40percentoftheadditionaltaxowed.
Atransactionistreatedashavingeconomicsubstanceonlyif—apartfromFederalincometaxeffects—(1)thetransactionchangesinameaningfulwaythetaxpayer’seconomicpositionand(2)thetaxpayerhasasubstantialpurposeforenteringintosuchtransaction.Manypenaltiesmaybewaivedifthetaxpayerhas“reasonablecause.”Thispenaltymaynotbewaivedforreasonablecause.
2013 cHANGes2013istheyearinwhichtaxlawchangeswillhitmanytaxpayersandcauseourprofessiontobecomefamiliarwithalotofnewmaterial(it’salsothefirstyearafterthenextPresidentialelection).Someofthechangesareasfollows:
• Medicalexpenseswillonlybedeductibleaftertheyexceed10percentofAGIinsteadof7.5percent.However,forthoseage65oroveritwillremainat7.5percentthrough2016.
• Marriedtaxpayersfilingjointly(MFJ)withwagesinexcessof$250,000(singles$200,000)willpayanadditionalMedicaretaxof.009(.9percent)foratotalof2.35percent.Theadditional.9percentonlyappliesontheincomeoverthethresholdamount.Theemployee
paysallofthistax,theemployer’sshareisnotincreased,anditappliestotheself-employedaswell.
• TheIRSwillissueregulationstohandlethesituationwhereneitherhusbandnorwifemakesover$250,000butjointlytheydo.
• Theemployerwillhavenowithholdingresponsibilitywheretheemployeeandspouseisjointlyliablebutnotontheirownwages.
• Nopartoftheadditional.9percentisdeductibleforincometaxpurposes,buthalfofthe2.9percentremainsdeductible.Thisadditionaltaxmustbeconsideredindeterminingestimatedincometaxdeclarations.
• Thethresholdamountswillnotbeadjustedforinflation.Rememberwhen
AMTcamein,onlyfewpaiditbecauseofthe“high”exemption?Theexemptionwasnotindexedforinflationandnowwehaveamessthere.Willthathappenhere?
• IfanindividualhasMAGIoverthethresholdamounts,someofwhichcomesfrom“investmentincome”(generallydividends,interest,netrents,capitalgains,etc.),theexcessovertheMAGIwillalsobesubjecttoanadditionaltax.Thetaxwillbe3.8percentoftheexcessorthenetinvestmentincome,whicheverisless.
• Thistaxwillnotapplytoincomefromaqualifiedretirementplan.
• Thisadditionaltaxisnotapartofthe50percentdeduction,whichappliestothebasicself-employmenttax.
• FlexibleSpendingAccounts(FSAs)willbecappedat$2500beginningin2013,butthisnumberwillbeindexedforinflation.
• Thedefinitionofmedicalexpensesforemployercoveragewillbedefinedtoexcludeoverthecountermedicinesunlessprescribedbyadoctor,withtheexceptionofinsulin.Thus,thedefinitionforreimbursementwillbethesameasforitemizeddeductions.n
“In 2012, still more changes will take place. Even though it has nothing
to do with medical issues, the new law states that any payment for
services or merchandise made in the amount of $600 or more for
services to an individual other than an employee or a corporation in the
course of your trade or business will require the payer to issue a form
1099 to the recipient.”
South Carolina CPA Report 26 (888) 557-4814 | www.scacpa.org
Quality Counts: Positive Enforcement Programs of the South Carolina Board of Accountancy
LLR
TheBoardofAccountancyhastwoprogramsthatmonitorthequalityofattestengagementsoflicenseesin
SouthCarolina.Oneisthelocalgovernmentqualityassuranceprogram,andthesecondisthereviewofselectedfinancialssubmittedforlicensurefortheSouthCarolinaBoardofContractors.
POsiTiVe eNfOrceMeNT PrOGrAM EachMayweassemble15to20experiencedreviewersforthePositiveEnforcementProgram(PEP).LocalgovernmentandotherspecialpurposeentitiessendtheirfinancialstatementstotheBoardwheretheyaresortedbytype.Weapproachtheprojectasalearningexperienceforthereviewers,whocompletetheapplicableFinancialStatementDisclosureChecklist,A133supplementalchecklistandothersasappropriate.Asuper-visoryreviewisperformedonstatementsdeemedasdeficientorsubstandard.Lettersaresenttofirmswithdeficientreportsandcomplaintsareopenedagainstfirmswithsubstandardreports.
Inordertoincreaseourcoverageandtoencouragegreaterparticipationbylicensees,weareplanningonasecondreviewsitein2011.SitesbetweenSpartanburgandGreen-villearecurrentlyunderconsideration.Wearecurrentlyseekingreviewerswithatleastfouryearsexperienceauditingandprepar-ingfinancialstatementsofgovernmentsandpoliticalsubdivisionsandcontractors.OnehourofCPEisgivenforeach50minutesre-viewingstatements,andparticipantsarealsoeligibleforreimbursementfortravelcostinaccordancewithinagencyguidelines.
cONTrAcTOr’s fiNANciAL sTATeMeNTs sUBMiTTeD fOr LiceNsUre Asyouprobablyknow,theContractorsBoardislocatedinthesameumbrellaagen-
cy—Labor,LicensingandRegulation—astheS.C.BoardofAccountancy.ThisprovidesanexcellentopportunityfortheBoardtomonitorcompliancewithlicenseesservingcontractors.Thisyear,10percentofthefinancialstatementsofcontractorswerevieweddidnotcomplywithstatelaw.Twofinancialstatementssubmittedweredeemedsubstandardandhavebeenforwardedforfurtherinvestigation.
Awordaboutrequirements:forlevelsoflicensure1-4,acontractormayselfpreparefinancialstatementsforlicenserenewal.Atlevel5,theinformationmustalwaysbepre-paredbylicensedaccountants;asmustinitiallicensureapplicationsatlevels3and4.Thetypeofattestservicevariesbybothleveloflicensebeingappliedforandwhethertheap-plicationisaninitialapplicationorrenewal.ExactrequirementsareprintedintheS.C.Code,Section4-11-260,andafreedown-loadonline.
Thelawrequiresthatthefinancialstatement(singular)beinaccordancewithGenerallyAcceptedAccountingPrinciples(GAAP).Thatmeansataminimum,thereisabalancesheetwithfootnotes.Financialstatementspreparedinaccordancewithincometaxba-sisorcashbasisarenotinaccordancewithGAAPandrepresentfinancialspreparedonanOtherComprehensiveBasisofAccount-ing(OCBOA).AbalancesheetthatomitsdisclosureisnotGAAP.IfacompletesetoffinancialstatementsaresubmittedtotheBoard,obviouslytheBoardwillacceptthem.Butthefinancialinformationsubmit-tedabovetheminimumissubjecttoreviewfordeficienciesandsubstandardreports.
Thedateofthebalancesheetcanbeanydayoftheyear.TheBoardwillacceptadatewithinthelastyear.Thebalancesheet
shouldincludeGAAPitemsincludingcostsandestimatedprofitsinexcessofbillings,billingsinexcessofcostsandestimatedprofitsanddeferredincometaxes.Inmanyinstances,theyearendstatementmaybethemostefficientfromareportingstandpoint.Pleaserefertotheindustryaccountingandauditguideforconstructioncontractorstoassurethatthefinancialstatementorstate-mentsareincompliancewithindustryspe-cificguidance.AcontractormusthavetherequirednetworthonaGAAPbasis.ThereportinghasbeencomplicatedbychangesinGAAP(specificallyFinancialAccountingInterpretation46)sincethelawwaspassed.
Contractorsoftenhaveaseparatecompanythatownsthewarehouse,whichhasdebtthatthecontractorguarantees,andthiscon-ditionresultsinconsolidation.TheContrac-torsBoardisonlyinterestedinthenetworthofthecontractor.Ifyouconsolidate,thenaddasupplementalscheduleoftheconsoli-datingamountssotheBoardcanseethenetworthofthecontractorcomponent.Asanalternative,theBoardwillacceptanopinionqualifiedfornotconsolidatinginaccordancewithGAAP.
Thisyear,lettersweresenttocontrac-torswithnon-compliantstatements,andcopiestothepreparinglicensee’sfirm.Hopefullythisinformationwillhelpyouadviseyourcontractorclientsofthecorrectfinancialstatementrequirementsrelatedtolicensure.n
Jim Holloway, CPA is an Investigator/Consultant for the South Carolina Board of Accountancy. Additional editorial commentary was provided by Mark T. Hobbs, CPA, Vice Chair and Communications Director of the Board of Accountancy. Contact him at [email protected] or (803) 315-1991.
by James M. Hol loway, J r. , CPAS C AC PA m e m b e r s i n ce 1 9 8 5
South Carolina CPA Report 27(888) 557-4814 | www.scacpa.org
Board of Accountancy
South Carolina Department of Labor, Licensing and Regulation
www.llr.state.sc.us
Board of Accountancy(803) 896-4770, phone
[email protected], email
Administrator Doris Cubitt, CPA (803) 896-4770, [email protected], email
Board of Accountancy Newsby Mark T. Hobbs, CPAS C AC PA m e m b e r s i n ce 1 9 8 1
ThehistoricalbusinessmodelforthetraditionallocalCPAFirmisnolongeravalidbusinessmodelfor
licenseesinthe21stCentury.TheoldmodelistoconcentrateontaxandcomplianceworkfromJanuarytoApril,andthenserveafewauditclientsinthesummerandfalltostaybusyandcoveroverhead.Thistraditionalmodelonceservedtheprofessionwellbutisnotacceptabletodayduetothefollowing:• Publicexpectationsofresponsibilitiesforauditengagementsandauditorstobetheexpertsoninternalcontrolandtodetectfraud.
• Additionalprofessionalstandardsthatrequireauditorstobeafull-timeprofessionalandnotapart-timeplayer.
Complexityofthebusinessenvironmentandexpandingaccountingandauditingstandardsrequirefull-timedevotioninordertodeliverqualityservicestothepublic.Examplesincludefairvalueaccounting,internationalstandards,accountingforvariableinterestentitiesandderivatives.
Today’senvironmentforceslicenseestopracticeintheirareaofexpertisetomitigatethebusinessriskofpublicpracticeandtobestservethepublic.Licenseesshouldbequicktoadviseclientstoseeklegalconsultationorotherassistanceiftheclient’srequestisbeyondthescopeofserviceofferedbythefirm.Firmsmustfocusontheirstrengthsandreferclientrequeststotheappropriateauthority.
TheBoardhasbeenbusyoverthepastseveralmonthsandwillhaveaplanningsessioninDecembertoreviewtheCPEregulationthathasgeneratedmuchdiscussionwithrespecttothe50percentlimitonself-study.WealsoplantodiscussamandatoryethicsCPErequirementandotheroperationalaspectsattheBoardofAccountancy.Thestaffisbackatfullspeed,
andwefeelblessedtohaveDorisCubitt,CPA,backinthesaddle.DorisdoesanexcellentjobasourexecutivedirectoratLLR.
IampleasedtoreportthattheGeneralAssemblydidnottakeanymoneyfromtheBoardofAccountancyduetotherecentbudgetcrisisinourstate.IhavebeeninformedthatsomeotherlicensingBoardswereimpacted,buttheBoardofAccountancywasnot.Asyourecall,theumbrellaagencyfortheBoard,LaborLicensingandRegulation(LLR)wasfightingtokeepthelegislatorsfromraidingcertainBoardswithintheLLRumbrella.TheaccountancyprofessionisindebtedtotheleadershipofLLRfornotallowingourfundstobeusedtoshoreupbudgetshortfalls.ThesefundsarelicensefeesthatyoupaytoassistintheregulationofourprofessioninSouthCarolina,andshouldnotbeusedasgeneralfundtaxrevenuetosupportunrelatedprogramsofstategovernment.
PleaserememberthattheBoardexpectslicenseestoobtain40hoursofCPEineachcalendaryear.Thisistrueeventhoughwehavegonetoabiennialrenewalprocess.ThestaffattheBoardhasbeenrequestedtograntleniencyifalicenseefailedtoobtain40hoursin2009,buthad80hoursfor2009and2010combined.Thisisaone-time
transitionalreliefthatshouldnotbeviewedtobeachangefromthe40-hourperyearrequirement.
IamalsopleasedtoreportthatpeerreviewisworkingtoimprovethepracticeofS.C.licensees.TheAICPArecentlycompletedtheiroversightoftheAdministrationofthePeerReviewPrograminSouthCarolina.TheresultwasanexcellentreportfromtheAICPAstatingthattheprogramisincompliancewithAICPAguidelines.InadditiontotheAICPAoversight,JimHolloway,CPAprovideslocaloversightonbehalfoftheBoardofAccountancy.Mr.HollowaysubmitsanannualreporttotheBoardandhispreviousreportshavebeenverypositiveasitrelatestotheperformanceofSCACPAasareportacceptancebody.n
Mark Hobbs, CPA is the managing partner of The Hobbs Group, PA in Columbia. A past president of SCACPA, Mark currently serves on SCACPA’s Nominating and Investment Committees as well as the Long Range Planning Task Force. He may be reached at [email protected].
“The AICPA recently completed their
oversight of the administration of
the Peer Review Program in South
Carolina. The result was an excellent
report from the AICPA stating that
the program is in compliance with
AICPA guidelines.”
South Carolina CPA Report 28 (888) 557-4814 | www.scacpa.org
“Cloud”AccountingandSaaS,PoliticsandCPAs,ExcelTipsandTricks,FinancialPlanningforYoungProfessionals,ThePolishedProfessional—that’snot
exactlythelistofpresentationsyoumightexpectfromatraditionalSCACPAseminar,butasthetypicalaccountantchanges,sodotheirexpectationsincontinuingeducation.Withtherisingnumberofyoungaccountantsenteringtheprofession,SCACPAhasaddedconferencestomeettheneedsoftomorrow’sleaders.
TheinauguralEmergingLeadersConferencetookplaceinCharlestononSeptember23-24,2010,hostedbySCACPA’sYoungCPAsLeadershipCabinetwith37participants.Thepacewasfastandspiritswerehighastheconferencestartedwitha“new-age”accountingpresentationbyJasonBlumer.JoyRollins,ControllerwithAmericanServices,Inc.,sharedherthoughtsaboutBlumer’spresentation.“Ilikethisguy.Hereallymakesmethink!”
TheconferencehaditstraditionalpresentationsincludinganAuditandTaxupdate,butmostpresentationsallowedplentyofroomforparticipationandideasharing.“IlefttheEmergingLeadersConferencewithatonofnewideasandknowledge
thatIwasexcitedtosharewiththerestofmyfirm.Iwilldefinitelyattendthisconferenceagainnextyear,”saidAmandaColgate,CPA,partneratGodshall&Colgate,LLC.
Duringdowntime,youngprofessionalshada“NotSoTaxing”trivianight.Withthought-provokingchallengessuchas,“NamealloftheGoldenGirlsandtheactresswhoplayedeach”and“NametheonlymajortournamentArnoldPalmerhasnotwon,”everyonegainedsometrivialnon-accountingknowledge.
AlsoincludedintheconferencewasaclasstaughtbyCynthiaGrosso,ofCharlestonSchoolofProtocolandEtiquette,Inc.,onbusinessetiquettewhiledining.Youngprofessionalsweretaughteverythingfromtheimportanceofposturetowhichforktheyshoulduseandhownottooffendvisitingdiplomats.JenniferFloyd,TaxManageratWebsterRogers,LLPreflects,“Itwaspersonally
Emerging Leaders Conference Reviewby Amanda W. Koehler, CPA, YCPA’s Leadership Cabinet Vice Chairman S C AC PA m e m b e r s i n ce 2 0 0 7
FEATURE
ABOUT THE YOUNG CPAs
The South Carolina Association of Certified Public Accountants (SCACPA) created the Young CPAs Leadership Cabinet to prepare young professionals for positions of leadership in the profession, the association, the community and the world. As young staff embark on their CPA career path, the Leadership Cabinet offers an enriching environment where participants learn new skills, access resources and shape ideas for the future. This unique two-year program combines in-person meetings, the opportunity to interact with CPAs across the state, and online shared experiences. For more information on becoming a member of the Young CPA Leadership Cabinet contact Communications Coordinator Emily Allen at [email protected] or visit our web site at www.scacpa.org.
“I left the Emerging Leaders Conference with a ton of new ideas and knowledge that I was excited to share with the rest of my firm. I will definitely attend this conference again next year,” - Amanda Colgate, CPA,
partner at Godshall &
Colgate, LLC
beneficialforme,andIknownexttimeIsitdowntoeatwithclientsorotherbusinessassociates,Iwillhavemoreconfidencebecauseofthatclass.”
Eventhoughitmayhavenotbeenyourrun-of-the-millconference,theyoungprofessionalslearnedagreatdealfromtheseminar.“Itwasn’tyourtypicalCPE,butitwasprobablytheonethatIgotthemostoutofasfaraspersonaldevelopment,”addedFloyd.n
Aon Insurance Services is a division of Affinity Insurance Services, Inc.; in CA, MN & OK, (CA License #0795465) Aon Insurance Services is a division of AIS Affinity Insurance Agency, Inc.; 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. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2010 CNA. All rights reserved. E-5929-0910 SC
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• A risk control hotline with specialists who provide advice
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South Carolina CPA Report 30 (888) 557-4814 | www.scacpa.org
wHO is eLiGiBLe?Firms with at least 10 CPAs on staff, all of whom are SCACPA members. 100 percent membership applies to CPAs only, although membership is available to CPA candidates, students and other professionals on staff.
BeNefiTs n10% discount on annual dues for all employees.
nFirm name recognition the The South Carolina CPA Report, on SCACPA’s web site and other publications and at SCACPA events like the Annual Summit.
nRegistration discounts on CPE seminars and other SCACPA events (when registering five or more employees for one event).
HOw TO eNrOLL Send your staff roster to [email protected]. We’ll verify membership for your staff and send applications for those employees who are not members. Firms may enroll anytime for this program, but won’t receive dues benefits until the dues billing cycle following their enrollment. New CPAs joining after the enrollment may take advantage of the 10 percent discount.
We’re All In! SCACPA 100% Membership Program
Show your firm’s support of SCACPA, the only association in South Carolina representing the interests of CPAs!
QUesTiONs Or cOMMeNTs?April BlakeOffice and Member Services Coordinator (888) 557-4814, toll free in SC (803) 791-4181, ext. [email protected], email
Serving South Carolina CPAs since 1915.
South Carolina
CPAwww.scacpa.org
South Carolina CPA Report 31(888) 557-4814 | www.scacpa.org
Chapter Connections
South Carolina
CPA
South Carolina
CPA
South
Carolina Association
Certi�ed Public Accountants
QUALITY CHAPTER AWARD
CENTRAL, COASTAL, FOOTHILLS, GRAND STRAND, SEA ISLAND
2010 CHAPTER PRESIDENTSsuzanne Merritt, cPA, CatawbaAmy cain, cPA, Centralrichard ett, cPA, cfM, cfP, CoastalKara shealy, cPA, FoothillsAmanda Hallman, cPA, Grand StrandBryan rabon, cPA, Pee DeeMelanie Hill, MPA, cPA, cMi, fLMi, PiedmontPatrick carey Jr., cPA, Sea Island
CHAPTER SPOTLIGHTAMY cAiN, cPA2010 President of the Central Chapter of SCACPA
SCACPA member since 1988
Chapter members please note: Register on or before the early bird discount deadline (three weeks prior to each event) to receive free or discounted registration fees.
what have you learned—about our association, fellow members or yourself—by serving as a chapter leader? IhavelearnedthatmyCentralChapterBoardmembersandtheSCACPAstaffaremymosttrustedadvisors.WehavehadaveryfullandproductiveyearwithstillmoreCPEandsocialeventsremainingonthecalendar.Iwouldhaveneverbeenabletoarrangeafractionoftheeventswithoutmydedicatedandever-presentBoardmembersandtheuntiringsupportofSCACPAstaff.ItishardtorealizeorexplainallthediscussionandresearchthatgoesonbehindthescenestomakesureeverydetailofeveryeventiscarefullyplannedtobesureCentralChapteriswellrepresentedandprudentinitschoices.Ihavelearnedmyownlimitationsarenumerous,andthisyearwouldnothavebeenpossiblewithouttheassistanceofmany.
what has been your proudest accomplishment during your tenure? Thefundingofanewfully-endowedscholarshipof$2,500foragraduatestudent.ToknowthattheCentralChapterwillbeabletogivesupporttoastudenteveryyear
CHAPTER EVENTSCATAWBANovember 19: Annual Tax Update (8 hours, CA111910)
winter 2010: Family/Networking Event
CENTRALDecember 1: Annual Tax Update (8 hours, CE120110)
february 10: Professional Night
May 21: Annual BBQ at the Zoo
COASTALJanuary 14: CPA (4 hours)
January 20: Student Night
FOOTHILLSNovember 18: Annual Tax Update (8 hours, FO111810)
December: Social Event (Charity)
GRAND STRANDDecember: Holiday Dinner/Social Event
PEE DEENovember: Chapter/Student Bowling Night
PIEDMONTDecember 6: BPEN: 1099, Employer Tax and Federal Income Tax Update for Small Business
December 9: A&A Update and Review (8 hours, Anderson University)
December 16: Annual Holiday Charity Luncheon
SEA ISLANDDecember 14: Federal Tax Update with Walter Nunnallee (8 hours, 60110FH). Sea Island Chapter members receive a $50 discount, email [email protected] for details.
staff contact: Sandra Oxner
fromnowtoeternityisanawesomefeeling.Withtheeverincreasingcostsofschool,Ifeeldeeplygratifiedthatwewereabletocreatethislegacyforthecontinuedsupportofstudentsnewtoourprofession.
what advice do you have for those considering getting involved and engaged in scAcPA and their local chapter? Ibelievepeoplewhoaremoreinvolvedgetmoreoutoflifethanthosewhositonthesidelines.Icannotevenbegintotellyouhowmuchithasmeanttometobeachapterofficer.Beingachapterofficerhasbeenacommitmentoffiveyears,ofwhichIhavecompletedthefirstfour.Thejobsrotateattheendofeachyear,soinCentralChapterwestartasCPECoordinator,thenmovetoTreasurer,VicePresidentandPresident.Iamlookingforwardtonextyear,buthavetoadmititwillbebittersweettocometotheendofmytermasPresident.IhavegrowninwaysIneverdreamedofbeforetheselastfewyears.Ichallengeotherstodothesame.Getinvolved.LeavetheTVremoteonthecouch.Becomealeader.Youwillbesurprisedhowfarittakesyou.n
Amy works in the Property Management Division of Russell & Jeffcoat Realtors, Inc., one of the largest residential real estate firms in the Southeast and the number one real estate company in the Midlands. Originally from Sumter and a graduate of the University of South Carolina, she also serves as Properties Committee Chair at Forest Lake Presbyterian Church and is president-elect of the Forest Acres Rotary Club.
2010
South Carolina CPA Report 32 (888) 557-4814 | www.scacpa.org
Focus On Membership Member News IN THE NEWSSCACPA’sEducationalFundTrusteesannouncedintheGaffneyLedgerthatAnnaMillwoodofBlacksburg,arisingsenioratLimestoneCollege,wasawardedtheBurkett, Burkett and Burkett, CPA, PAScholarship.
Carroll Webster, CPA,hasbeenelectedtoserveonthe2010-2011AICPANominationCommittee
AWARDS AND CERTIFICATIONSAmanda Colgate, CPA,Godshall&Colgate,LLC,wasselectedfrommorethan120applicantstoparticipateintheAICPA’ssecondannualLeadershipAcademy,comprisedof30youngCPAsfromaroundthecountry.
Toby Eskew, CPA,ElliottDavis,LLC,hasearnedtheCertifiedinFinancialForensics(CFF)credentialfromtheAICPA.
Erin E. Gilbert, CPA,MooreBeauston&WoodhamLLP,receivedherCPAlicenseforSouthCarolina.
Stephen Kirkland, CPA andW. Dale Dyches, CPAandfinancialforensicexpertswithKirkland,Thomas,Watson&Dyches,LLC,haveearnedtheCertifiedinFinancialForensics(CFF)credentialfromtheAICPA.
Jim Manley, CPA,ElliottDavis,LLC,wasnamedamongGreenwood’sUnder40StarsandhonoredatanawardsceremonyatGreenwoodCountryClub.
Robert Tilton, CPA,WebsterRogersLLP,receivedtheBoldStepsinLeadershipAwardattheSCACPAYCPA’sEmergingLeadersConferenceinCharleston.
PROMOTIONSStephen K. Keene, CPA,MooreBeauston&WoodhamLLP,waspromotedtoSeniorAccountantintheauditandassurancepracticeinthefirm’sWestColumbiaoffice.
Christopher E. Mauney, CPA,MooreBeauston&WoodhamLLP,waspromotedtoSeniorAccountantintheauditandassurancepracticeinthefirm’sWestColumbiaoffice.
ElliottDavis,LLCproudlyannouncesthefollowingpromotionsinitsColumbia,GreenwoodandGreenvilleoffices:
• Brittany Owen, CPA,hasbeenpromotedtomanagerinthefirm’staxpractice.
• Matt Clark, CPA,hasbeenpromotedtomanagerinthefirm’sassurancepractice.
•Josh Garvin, CPA,hasbeenpromotedtoseniormanagerinthefirm’sassurancepractice.
• Howie Houston, CPA,hasbeenpromotedtoseniormanagerinthefirm’sassurancepractice.
• Drew Rogers, CPA, PFS,hasbeenpromotedtomanagerinthefirm’staxpractice.
FIRM NEWSElliott Davis, LLC,wasrankedNo.7inNorthAmericainthe2011editionoftheVaultGuidetotheTop50AccountingFirms.Thefirmalsorecentlycelebratedfourconsecutiveyearsofbeingnamedamongthe“BestPlacestoWorkinS.C.”bytheS.C.ChamberofCommerce,S.C.SocietyforHumanResourceManagementandSCBIZ.
Scott and Company LLPopenedanewofficeat702PettigruStreetindowntownGreenville,thefirstexpansionbeyondColumbiaforthe15-year-oldfirmwhichrecentlyexpandedtosevenpartnersandwasrenamedfromScottMcElveen,LLP.
CONDOLENCESGeorge O. Short, III, CPA,diedAugust15,2010afteranextendedillness.BornFebruary19,1957inMontgomery,Alabama,hewasagraduateofWadeHamptonHighSchoolandTheUniversityofSouthCarolina.GeorgewasaCertifiedPublicAccountantfor27years,servingasShareholderandCEOofGeorgeO.ShortandAssociates,PC(2007-2009),partnerinGeorgeO.ShortandAssociates(1980-1996)andCFOofCommunityLaborAdministrativeServices(1996-2006).Mostrecently,hewasassociatedwithhissuccessorfirm,RenitaOwensCPA,LLC.GeorgewasapageintheSouthCarolinaStateSenate(1976-1980)andaninternintheUnitedStatesSenate(1977).HeandwashonoredasanOutstandingYoungManofAmericain1988.GeorgewasamemberoftheAICPAandSCACPA.HewasagraduateofLeadershipGreenville(1987),MemberoftheBoardofDirectorsAccess,Inc.(1992-1996),GreenvilleAmericanCancerSociety,BigBrothers/BigSisters,andmanyothercivicgroups.MemorialsmaybemadetotheFirstPresbyterianChurchVisitationMinistry
at200WestWashingtonStreet,Greenville,SC29601ortothecharityofone’schoice.
Irvine Twitty (Buck) Welling, Jr., CPA,diedOctober5,2010athishome.BorninDarlington,S.C.onJune9,1918,hewasthesonofthelateLylLaGroneandIrvineT.Welling.HeattendedSt.JohnsHighSchoolwhereheplayedfootballandwassalutatorianofhisclass.HegraduatedsummacumlaudefromtheUniversityofSouthCarolinain1939.DuringWorldWarII,BuckservedasanavalofficeraboardtheUSSElectrainthesouthPacific.HewasapartnerwithElliottDavis,LLCandwasassociatedwiththefirmfor61years.HewasacloseadvisortoindustrialistJohnD.Hollingsworthforover35years,andwasinstrumentalintheestablishmentofTheHollingsworthFunds.UponMr.Hollingsworth’sdeath,BuckbecameitsfirstChairmanandserveduntilhisretirementinFebruary2010.
Bucklovedhisfamily,beginningwithhiswife,Margaret,whodiedinApril2010after68yearsofmarriage.Buckissurvivedbythreechildren:IrvandEleanor(Lankford)WellingofGreenville;BobandElizabeth(Wooten)WellingofColumbia;LylW.andBillParkerofMontgomery;eightgrandchildrenandfivegreat-grandchildren.Bucklovedhischurch,FirstBaptistGreenville,whereheservedformanyyearsasaSeniorDeaconandaschairmanoftheFinanceCommittee.HealsoenjoyedmeetingwiththeyoungHollingsworthScholarsatFurmanandvisitingwithmanyoftheagenciesfundedbyHollingsworthFunds.RecentawardsincludeanhonoraryDoctorofHumanitiesdegreefromFurmanUniversityandthe2009DistinguishedCitizenAwardfromtheBoyScoutsofAmerica.TheMarchofDimeshadalsochosenBuckasoneofitshonoreesforitsupcomingRealEstatebreakfastonNovember3.BuckservedaspastpresidentofSCACPAandtheAmericanBusinessClub.HewasaformermemberoftheCounciloftheAICPAandalsoamemberofthePoinsettClub.
MemorialsmaybemadetotheFaithFundofFirstBaptistGreenville,847ClevelandStreet,Greenville,29601;UnitedMinistriesprogramOurEyesWereOpened,606PendletonStreet,Greenville,29601;orTheCommunityFoundationofGreenville,27ClevelandStreet,Greenville,29601.n
South Carolina CPA Report 33(888) 557-4814 | www.scacpa.org
Focus On Membership Welcome New Members
Columbia Charlotte Charleston Greenville Raleigh Myrtle Beach
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ACADEMIC AFFILIATEWilliam R. Koprowski, PhD, J.D., CMCollege of Charleston School of Business and EconomicsCharleston, SC
Philip L. Little, CPA, DBAConway, SC
Linda B. McKee, CPA, MS, PhDCollege of Charleston School of Business and EconomicsCharleston, SC
AFFILIATE (non-CPA)Kenneth G. EverhamSpartanburg, SC
ASSOCIATEStacey L. BarberSherman Capital Markets, LLCCharleston, SC
Kimberly BrodyLexington, SC
Mitzi H. McCall, CPAGreenville, SC
Valerie K. Mitchell, CPAIrmo, SC
CPA CANDIDATEMichelle L. CarlMt. Pleasant, SC
Bradford HammackJ.W. Hunt & Company, LLPColumbia, SC
Marie W. HefnerBonneau, SC
Stephen C. HetheringtonScott & Company, LLPColumbia, SC
Joshua T. NexsenColumbia, SC
Meagan M. RichardsLexington, SC
John VannMyrtle Beach, SC
Katherine C. VinsonJ.W. Hunt & Company, LLPColumbia, SC
FELLOWSusan E. Bailey, CPANorth Charleston, SC
Christian P. Bassily, CPAMount Pleasant, SC
Jesse M. Carleton, CPA, MACCAugusta, GA
Christopher S. Cauley, CPAAnderson, SC
Rachel A. CheneyWebsterRogers LLPSummerville, SC
Charles R. Cserny, CPAHartsville, SC
Jessica T. Cummins, CPALexington, SC
Colleen E. Daniel, CPACharleston, SC
Miriam M. Delamar, CPAJohns Island, SC
Amy E. Edwards, CPATaylors, SC
Susie F. EdwardsMUSC Controllers OfficeCharleston, SC
Susan R. Egerdahl, CPATaylors, SC
Carla D. Gentry, CPAEasley, SC
Kimberly R. Getz, CPAHilton Head Island, SC
Stephen A. Gimbel, CPAColumbia, SC
Lindsay A. GosnellInman, SC
Allyson B. Hancock, CPAGreer, SC
Lisa M. Heise, CPAPacolet Milliken Enterprises, Inc.Spartanburg, SC
R. H. Hunnings II, CPAIsland Management ServicesHilton Head Island, SC
David M. Knoble, CPA MACCharlotte, NC
William K. McKinney, CPAGreenville, SC
Adam R. McKnight, CPAGreer, SC
Kathleen H. Oliver, CPAUCI Medical AffiliatesColumbia, SC
Lora W. Prevatte, MSAMount Pleasant, SC
James B. Reese, CPAColumbia, SC
Benjamin A. Riggins, CPALancaster, SC
Jeanne G. Seckinger, CPAHampton, SC
Ashleigh M. Sutter, CPASimpsonville, SC
Jeremy E. Tibbs, CPAGrant Thornton, LLPColumbia, SC
Judann M. Tine, CPAFort Mill, SC
Herbert J. Walker, CPA, MAColumbia, SC
Jack L. Waters, CPASpartanburg, SC
Dara S. Williams, CPAColumbia, SC
Kathleen A. Williams, CPACharleston, SC
FIRM ADMINSTRATORJudy M. AllenErnest W. Rabon, CPA, PAMyrtle Beach, SC
Catherine L. BrooksSC Department of TransportationColumbia, SC
Michelle GrahamJ.W. Hunt & Company, LLPColumbia, SC
Steve KellyCherry Bekaert & Holland, LLP*Greenville, SC
Diana WoodCharleston, SC
LEAVE OF ABSENCELauri L. Klugh, CPAAnderson, SC
STUDENTOpeyemi J. AkeleJersey City, NJ
Jacob D. ClaryColumbia, SC
Kelly A. DamianoColumbia, SC
Bridget M. DolinarColumbia, SC
Jessica A. DupeeMyrtle Beach, SC
David C. Erickson II, CPAGreer, SC
James D. GuffeyAnderson, SC
Huei-Jyan JhangColumbia, SC
Jason C. KneeseGreenville, SC
J A. McDermottCharleston, SC
Dee Batlis MastersFlorence, SC
Mark E. MenezesIsle of Palms, SC
Harrison J. MillerIrmo, SC
Michelle M. NugentColumbia, SC
Arnold K. OwinoCentral, SC
Kimberley S. ParkerMyrtle Beach, SC
Wesley M. PaulGreenville, SC
Summer D. RippyColumbia, SC
Cynthia M. StriegelFort Mill, SC
Marla A. WomackColumbia, SC
*100% Membership Firm
South Carolina CPA Report 34 (888) 557-4814 | www.scacpa.org
Upcoming CPE Focus On CPE Focus On CPE Upcoming CPE
Withanarrayofnewtaxbreaks,expiringtaxbenefits,loomingtaxincreases,newRothIRAconversionopportunities,repealoftheestatetax(2010only)andamodifiedcarry-overbasisrulefordeathsoccurringin2010,it’smoreimportantthanevertobeup-to-dateonthelatesttaxdevelopments.Attendthisseminarandlearnhowtomaneuverthemazeoftaxes.
DeceMBer 29, 2010
recent compilation and review issues (60510AM)SSARS19effectivelyrewroteandcodifiedmostofthecompilationandreviewstandards.Thisisanentirelynewprogramdesignedtoaddressthenewstandards.Field of Study: Accounting(2hrs)
what’s New with Quality control and Peer review (60510N)Beginningin2009,firmswereexpectedtorevamptheirqualitycontrolsystemsinordertocomplywiththeStatementonQualityControlStandardsNo.7,AFirm’sSystemofQualityControl.Inaddition,peerreviewswillundergodramaticchanges.Thisprogramwillkeepparticipantsontopofthelatestchangestoqualitycontrolpoliciesandproceduresandthepeerreviewprocess.Field of Study:Auditing(2hrs)
New! case studies in compliance Auditing (60510PM)TheAICPAhasrespondedtothecriticismleveledatitandotherorganizations(GAOandOMB)inthePCIE’sReportontheStatisticalSampleofComplianceAudits.Asaresult,additionalguidanceisbeingprovidedonmanyofthedeficienciesfoundduringthestudy.Thisfour-hourmodulewilltakealookatthechangesthenewSASNo.117andauditguidewillmaketocomplianceauditing,aswellasotherpuzzlingaspectsofcomplianceauditingusingacasestudyformat.Thecoursewillalsoaddressissuesarisingasaresultofthenearly$300billioninfundingfromtheAmericanRecoveryandReinvestmentAct(ARRA).Field of Study:Auditing(4hrs)
2010 Federal Tax Update with Walter Nunnallee December 2010 | Four Locations Across the State
Sponsored by CAMICO
seMiNAr LOcATiONsDecember 13 (florence) – Southeastern Institute of Manufacturing & Technology (60110FF)
December 14 (Bluffton) – USC Beaufort at Bluffton (60110FH)
December 15 (columbia) – Embassy Suites (60110FC)
December 16 (Greenville) – Embassy Suites (60110FG)
ABOUT THis eVeNTcPe credit: 8 hours cLe credit: 6.67 hours Area: Tax Level: Intermediate to Advance
Last Chance CPE Frenzy! December 29-30, 2010 | Columbia, SC
DeceMBer 30, 2010
New! fair Value Accounting in the 21st century (60610AM)Fairvalueaccountinghasbecomeafrequenttopicofdiscussionforaccountants,usersandgovernmentregulatorsduringthepastfewyears.ASCTopic820(previouslyFASB157),FairValueMeasurementsandFSPFASB157-4(DeterminingFairValueWhenVolumeandLevelofActivityfortheAssetorLiabilityHaveSignificantlyDecreasedandIdentifyingTransactionsThatAreNotOrderly)havecausedconfusion,frustrationandangeramongmany.Thisprogramwilladdressthisnewfairvaluerealityasitappliestofrequentlyencounteredsituationsinfinancialreporting.Field of Study: Accounting(4hrs)
New! international Accounting standards – Differences with U.s. GAAP (60610N)WiththeincreasinguseofInternationalAccountingStandardsintheU.S.bybothpublicandprivatecompanies,manyaccountantsfindtheyhavetodevelopanunderstandingoftheInternationalFinancialReportingStandards(IFRS)andhowtheydifferfromU.S.GAAP.Field of Study: Accounting(2hrs)
New! Accounting standards Update (60610PM)ThissessionwillprovideanoverviewofchangesmadetopronouncementssincetheFASBCodificationwasadopted.Onlypronouncementswhicharerelevanttolocalaccountingfirmsorprivately-heldcompanieswillbecoveredindetail.Forotherissues,aquicksynopsiswillbeprovided.Note:Thisisatwo-hourversionofourfull-dayprogram,Loscalzo’sAnnualFASBandAICPAUpdate.Field of Study: Accounting(2hrs)
for details or to register visit www.scacpa.org.
for details or to register visit www.scacpa.org.
South Carolina CPA Report 35(888) 557-4814 | www.scacpa.org
Focus On CPE Upcoming CPE
DeceMBer 2010
12/02 - Effectively and Efficiently Reviewing Tax Returns in the Busy Season (69610) Credits: 8 Leader: Susan Smith
12/03 - The Complete Guide to Payroll Taxes and 1099 Issues (69810) Credits: 8 Leader: Susan Smith
12/07 - 2010 Individual Tax Review Series: Beyond the Basics (60310A) Credits: 8 Leader: Wendy Kravit
12/15 - Advanced Technical Tax Forms Training: Form 1040 Issues (69710) Credits: 8 Leader: James Vastarelli
12/16 - Advanced Technical Tax Forms Training: LLCs, S Corporations and Partnerships (69910) Credits: 8 Leader: James Vastarelli
12/20 - Preparing Individual Tax Returns for New Staff and Para- Professionals (61510) Credits: 8 Leader: Anne Wilkins
Tax Season Survival Guide December 2010 & January 2011 | West Columbia, SC
JANUArY 2011
01/04 - South Carolina Tax Overview (70511AM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino
01/04 - Sales & Use Tax Update (70511PM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino
01/05 - State Individual Income Tax Update (70611AM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino
01/05 - State Corporate Income Tax Update (70611PM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino
01/11- Limited Liability Company & Partnership Tax Return Preparation Workshop (70111)Credits: 8 Leader: Bart Carson
01/12 - Guide to Understanding the Key Issues in Preparing S Corporation Tax Returns (70211)Credits: 8 Leaders: Bart Carson
Event Facility: SCACPA Office570 Chris DriveWest Columbia, SC 29169(803) 791-4181
Hotel Accommodations:Hampton Inn - I26 1094 Chris Drive West Columbia, SC 29169(803) 791-8940Room Rate: $79
12/21 - Preparing C Corporation Tax Returns for New Staff and Para- Professionals (61610) Credits: 8 Leader: Anne Wilkins
12/22 - The Complete Guide to Preparing LLC Partnership and S Corp. Federal Income Tax Returns (61710) Credits: 8 Leader: Anne Wilkins
01/18 - 1040 Tax Season Survival Guide (70311)Credits: 8 Leader: Bill Grooms
01/19 - Advanced Individual Income Tax Return Issues (70411)Credits: 8 Leader: Bill Grooms
2011 MULTI-STATE CPE & SKI CONFERENCE • JANUARY 11-12, 2011Lion Square Lodge & Conference Center in Vail, CO
Supportedby21stateCPAsocieties,thisannualeventofferssixfour-hourCPEsessionsatthenumberonesnowskiresortintheU.S.,withinstructorsthatrankamongthetopinthenation.Coursestitlesinclude:Lean,CleanandAllThingsGoogle;ExcelPivotTables;FederalTaxUpdate;AccountingandAuditingUpdate;TechUpdate;andTenThingsYouMayHaveMissedinExcel.Toreceiveaninformationpacketwithdetailedcoursedescriptions,instructorbiographies,full-colorfacilitiesbrochuresandinformationaboutVail,pleasecallK2Enterprisesat(888)542-9390orvisitwww.k2e.com/co.ski.htm.
For details or to register visit www.scacpa.org.
South Carolina CPA Report 36 (888) 557-4814 | www.scacpa.org
the cpa report - south carolina 4th edition 4c page ad live: 8 x 10.5 trim: 8.5 x 11 bleed: 8.75 x 12.5
Special Offer for State Society Members*.ADP gives you the choice of doing business the way that best fits your firm. Whether you want to refer payroll or process it yourself, ADP provides world-class payroll and beyond payroll services, so you can focus on what matters most: growing your business and helping your clients be successful. In addition, your state society membership means that you will be rewarded with the following special benefits when you partner with ADP:
Contact your local ADP representative today.* Discount/free payroll applies to companies with 1 to 49 employees that sign complete ADP sales order and to all features of standard payroll processing invoiced on client’s
regular processing cycle and does not include additional non-payroll services; excludes pass through costs, courier and other delivery fees, including off cycle fees, hardware, or penalty and interest fees. Only available to new ADP Clients using EasyPaysm or RUN Powered by ADP® in the continental U.S. Must be set-up for direct debit of fees (“DDF”) as the payment method.
© 2010 ADP, Inc. The ADP Logo is a registered trademark of ADP. EasyPay is a service mark and RUN Powered by ADP is a registered service mark of ADP, Inc. All other trademarks are the property of their respective owners.
■ Payroll for your firm — FREE for up to 50 employees with discounted solutions to meet the needs of larger businesses
■ Special discounts for your firm’s clients
■ Free access to our Accountant HR Helpdesk
■ Free Master Tax Guides from CCH, a Wolters Kluwer business
■ 30% discount on all CCH tax and accounting publications
2610_CPAtrade_ad cpa report sc v2.indd 1 9/15/10 2:06:47 PM
Registrationisnowopenforthe2010AccountingandAuditingConference,December9-10inbeautifuldowntown
CharlestonattheFrancisMarionHotel.SCACPAmemberssave$125whenregisteringbyNovember18.
OurconferencefeaturesseveraldynamicspeakersthatwilldiscussChangesontheHorizonintheareasofaccountingandauditinginaformatthatallowsyoutheflexibilitytochoosethesessionsthatbestmeetyourneeds.TheA&A Conference spans two days with 16 CPE credits,twotracksandtenconcurrentsessions.
Thekick-offgeneralsessionisanA&AUpdatefrompastconferencefavoriteBradley Newkirk, CPA.ThissessionwillreviewnewlyissuedaccountingprinciplesandotheractivitiesoftheFinancialAccountingStandardsBoard(FASB),includingemergingissuesinrevenuerecognition,leaseaccountingandcontingencies.Also,discussionandreviewwillbeheldontheactivitiesoftheAccountingandReviewServicesStandards(SSARs)andtheAuditingStandardsBoard(ASB),includingtheclarityprojectandthemovetowardglobalauditingstandards.
Technologyguru Carlton Collins, CPAofAdvisorCPEwilloffertwosessions:ExcelDataAnalysis&FinancialReportingandBudgeting&FinancialReportingwithExcel.
by Reva Brennan, MPA, CAE, IOMS e r v i n g S C AC PA s i n ce 2 0 0 1
A&A Conference PreviewUpcoming CPE Focus On CPE
Changes on the Horizon
SouthCarolinafavoriteMark Hobbs, CPA willexploreaNewFrameworktoDocumentandEvaluateInternalControlsatanEntity,andprovidea2010FraudUpdate.
FairValueAccountingcontinuestoevolveintheU.S.Leah Donti, CPAwillpresenthowfairvalueaccountinghasbroughtchallengestotheaccountingprofession,andinasecondsessionpresentBusinessCombinationsFAS141RandtheRelatedFAS160.
GovernmentalAccountingStandardsBoardexpertDean Mead, CPAwillcoverGASBpronouncements
thatarenowbeingimplementedandtheGASB’scurrentstandards-settingactivities.
Joseph Beck, CPA willprovideaComp&ReviewsessioncenteredonSSARS19.
ByDecember2010,manylarge403(b)planswillhaveundergonetheirfirstaudits.Robert Lavenberg, CPA, JD, LLM willconductanopenforuminwhichthepresenterandparticipantswillsharetheirobservationsfromthischallengingauditseason.
TheconferencewillwrapupwithaQ&Asessionwithanall-starpanelofexperts.WearepleasedtoannounceRobertHalfasasponsorofthisevent,andlookforwardtoseeingyouinCharlestononDecember9-10!n
What accounting and
auditing changes are
on the horizon? Attend
this conference and find
out. This conference is
an ideal opportunity
for you to keep abreast
of the fast-paced
changes in accounting
and auditing. The
conference will cover
topics varying from
budgeting, compilation
and review, fair value,
financial reporting, and
more. Register today to
secure your spot!
Book your reservation at the Francis Marion Hotel today!SCACPAgrouprateof$136expires11/12/2010.
Pleasevisitwww.francismarioncharleston.comtomakeyourreservation.SCACPAgroupcodeisSCCPA.
register for the 2010 A&A conference atwww.scacpa.org.
the cpa report - south carolina 4th edition 4c page ad live: 8 x 10.5 trim: 8.5 x 11 bleed: 8.75 x 12.5
Special Offer for State Society Members*.ADP gives you the choice of doing business the way that best fits your firm. Whether you want to refer payroll or process it yourself, ADP provides world-class payroll and beyond payroll services, so you can focus on what matters most: growing your business and helping your clients be successful. In addition, your state society membership means that you will be rewarded with the following special benefits when you partner with ADP:
Contact your local ADP representative today.* Discount/free payroll applies to companies with 1 to 49 employees that sign complete ADP sales order and to all features of standard payroll processing invoiced on client’s regular processing cycle and does not include additional non-payroll services; excludes pass through costs, courier and other delivery fees, including off cycle fees, hardware, or penalty and interest fees. Only available to new ADP Clients using EasyPaysm or RUN Powered by ADP® in the continental U.S. Must be set-up for direct debit of fees (“DDF”) as the payment method.
© 2010 ADP, Inc. The ADP Logo is a registered trademark of ADP. EasyPay is a service mark and RUN Powered by ADP is a registered service mark of ADP, Inc. All other trademarks are the property of their respective owners.
■ Payroll for your firm — FREE for up to 50 employees with discounted solutions to meet the needs of larger businesses
■ Special discounts for your firm’s clients
■ Free access to our Accountant HR Helpdesk
■ Free Master Tax Guides from CCH, a Wolters Kluwer business
■ 30% discount on all CCH tax and accounting publications
2610_CPAtrade_ad cpa report sc v2.indd 1 9/15/10 2:06:47 PM
South Carolina CPA Report 38 (888) 557-4814 | www.scacpa.org
OFFICE SPACE AVAILABLEAccOUNTiNG PrAcTice sALesBuyers: registration is free and simple on our Web site! Selling? We can help you: maximize the value of your practice; experience a smooth process; and achieve confidence that your clients will be in good hands. See our available listings below! If interested contact Brannon Poe at [email protected] or call (888) 246-0974. Please see our multi-state listings at www.accountingpracticesales.com. Charleston - $220,000 Hilton Head/Bluffton - $145,000 Midlands Area - $195,000 Greenville Area - $210,000 Hartsville - $125,000 Spartanburg - $375,000
PrOfessiONAL AccOUNTiNG sALes BUY-SELL-MERGE-FINANCE your practice with USA’s No. 1 Accounting Brokerage Firm. Let our 27 years of CPA firm merger-acquisition experience work for you! We offer complete consulting assistance package to our clients including 100% bank financing so you can cash the seller out at closing.
current carolina practices include:Asheville $1,600,000+; Myrtle Beach $125,000 to $300,000; Winston-Salem $175,000; Charlotte
$350,000+; ATLANTA $350,000 to $850,000; Many others! Contact Leon Faris CPA Professional Accounting Sales 800-729-9031 Visit our web site: www.cpasales.com
ADVERTISER INDEX
Accounting Practice Saleswww.accountingpracticesales.com
Inside Back Cover
ADPwww.adp.com/accountant.aspx
Page 37
American Pensionshttp://www.ampen.com/
Inside Front Cover
Aon/BB&T Insurance Services/AICPA Professional Liability
Insurance Programwww.cpai.com
Page 29
Blythecowww.blytheco.com
Back Cover
Eddsa, Inc.www.eddsa.com
Page 28
John F. Hamilton, [email protected]
Page 25
Haynsworth Sinkler Boyd, PA www.hsblawfirm.com
Page 10
McAngus Goudelock & Courie, LLCwww.mgclaw.com
Page 33
Southeastern Insurance Consultantshttp://siconsultants.com/
Page 4
Classifieds
JOB OPPORTUNITIESTireD Of PUBLic AccOUNTiNG? Join our manufacturing/corporate network. Contact Ryan Nelson 800.525.7828 or [email protected]
ONSITE TRAINING AVAILABLEGet quality CPE in your office at your convenience. You choose the location, topic and date and we take care of the rest. Visit www.scacpa.org for more information. staff contact: Reva Brennan
SEEKING ADS FOR FUTURE EDITIONSReach more than 3,900 CPAs and accounting professionals in the South Carolina CPA Report! Rates are $1 per word for members; $2 per word for non-members. staff contact: Emily Allen
SCACPA encourages you to recycle when you are finished reading.
Tolearnmore visit www.recycleplease.org.
Tofindrecyclingcentersnearyouvisitwww.earth911.comorwww.wm.com.
eXecUTiVe cPA Office. York County - Fort Mill/Rock Hill/Charlotte, excellent up-scale area to start/relocate practice, New Class AAA Building, professionally designed interiors, furnishings/cubicles available, 2,000 to 4,000 square feet, $15 per square foot, $3.25 NNN, 6 months free. E-mail [email protected] for information/pictures or call 803-322-1583.
Picture this...next tax season,
a chair ...no desk
Go with the leader. We provide excellent service and get the best results.We have qualified buyers waiting. See detailed articles about the process on our website!
AVAILABLE PRACTICES
Charleston – $220,000 Bluffton/Hilton Head – $145,000
Midlands Area – $195,000 Greenville Area – $210,000
Hartsville – $125,000 Spartanburg – $375,000
Buyers – Registration is free and simple
Brannon Poe, CPA [email protected]
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PRSRT STDUS POSTAGE PAIDPERMIT NO. 1146
Columbia, SC
south carolina Association of cPAs570 Chris Drive, West Columbia, SC 29169
www.fsc.org© 1996 Forest Stewardship Council
Cert no. SW-COC-002946
10%
Mixed SourcesProduct group from well-managed
forests, controlled sources andrecycled wood or fibre