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PUBLIC SESSION AGENDA NORTH CAROLINA STATE BOARD OF CPA EXAMINERS

JANUARY 23, 2017 10:00 A.M.

1101 OBERLIN ROAD RALEIGH, NC

I. Administrative Items A. Call to Order

In accordance with the State Government Ethics Act, it is the duty of every Board member to avoid both conflicts of interest and appearances of conflict. Does any Board member have any known conflict of interest or appearance of conflict with respect to any matters coming before the Board today? If so, please identify the conflict or appearance of conflict and refrain from any undue participation in the particular matter involved.

B. Welcome and Introduction of Guests C. Approval of Agenda (ACTION) D. Minutes (ACTION)

E. Financial/Budgetary Items 1. Financial Statements for December 2016 (ACTION)

II. Legislative & Rule-Making Items

III. National Organization Items IV. State & Local Organization Items V. Request for Declaratory Ruling VI. Committee Reports A. Professional Standards (ACTION)

B. Professional Education and Applications (ACTION)

VII. Public Comments VIII. Closed Session IX. Executive Staff and Legal Counsel Report A. Strategic Plan Update (FYI) X. Adjournment

ITEM I-D

PUBLIC SESSION MINUTES North Carolina State Board of CPA Examiners

December 19, 2016 1101 Oberlin Road Raleigh, NC 27605

MEMBERS ATTENDING: Michael H. Womble, CPA, President; Wm. Hunter Cook, CPA, Vice President; Jeffrey J. Truitt, Esq., Secretary-Treasurer; Murchison (“Bo”) Biggs, CPA; Cynthia B. Brown, CPA; Justin C. Burgess; and L. Samuel Williams, Jr., CPA. STAFF ATTENDING: Robert N. Brooks, Executive Director; David R. Nance, CPA, Deputy Director; Frank Trainor, Esq., Staff Attorney; Lisa R. Hearne, Communications Manager; Jean Marie Small, Professional Standards Specialist; Kelly Goehl, Professional Standards Assistant; Buck Winslow; Licensing Manager; and Noel L. Allen, Esq., Legal Counsel. GUESTS: Sharon Bryson, CEO, NCACPA; Mark Soticheck, CPA, COO, NCACPA; Donna Taylor, CPA, Chair, NCACPA; Stephanie Saunders, CPA, NASBA Middle Atlantic Regional Director; Suzanne Jolicoeur, Senior Manager, State Regulation & Legislation, AICPA; Nathan Standley, Esq., Allen & Pinnix, P.A.; Sergeant J.A. Stokes, Raleigh Police Department. CALL TO ORDER: President Womble called the meeting to order at 10:00 a.m. MINUTES: The minutes of the November 21, 2016, meeting were approved as submitted. FINANCIAL AND BUDGETARY ITEMS: The November 2016 financial statements were accepted as submitted. NATIONAL ORGANIZATION ITEMS: Ms. Brown and Mr. Burgess moved to approve the draft response to the NASBA Focus Questions. Motion passed. Stephanie Saunders, CPA, of Virginia and Regional Director of the Middle Atlantic Region of NASBA was recognized by Mr. Womble for comments. Ms. Saunders presented an update on currents topics of importance to NASBA and all Boards. REPORT OF THE PROFESSIONAL STANDARDS COMMITTEE: Mr. Cook moved and the Board approved the following recommendations of the Committee: Case Nos. C2016190-1 and C2016190-2 – David Wylie – Approve the signed Consent Order (Appendix I ).

Public Session Minutes December 19, 2016

Page 2

Case Nos. C2016191-1 and C2016191-2 – Dixon and Higgins, CPA, PLLC – Approve the signed Consent Order (Appendix II ). Case Nos. C2016203-1 and C2016203-2 – Stewart & Satterfield, P.A. – Approve the signed Consent Order (Appendix III ). Case Nos. C2016032, C2016035, C2016219-1, and C2016219-2 – Ernest K. Leonard, CPA, and Leonard CPA, PLLC - Approve the signed Consent Order (Appendix IV). Case No. C2016125 – Close the case without prejudice. Case No. C2016159 – Close the case without prejudice. Case No. C2016162 – Close the case without prejudice with a Letter of Warning. Case No. C2016189-1 and C2016189-2 – Close the cases without prejudice. REPORT OF THE PROFESSIONAL EDUCATION AND APPLICATIONS COMMITTEE: Mr. Biggs moved and the Board approved the following recommendations of the Committee: Reciprocal Certificate Applications - The Committee recommended that the Board approve the following: Daniel Gregory McGovern John Stevens Norris, III

Daron Seth Tarlton Anne Marie McCarthy Voutsos

Temporary Permits - The Committee recommended that the Board approve the following temporary permits that were approved by the Executive Director: Jigna H. Shah, T9518 Alison M. Merkabah, T9519 Susan Ralko, T9520 Kasturi Raghuveera Shetty, T9521 Brenda Baker Jackson, T9522 Rachel Ann Graham, T9523 Andrew James VanLeeuwen, T9524 Judith A. Kristan, T9525 Mary Thompson Prillaman, T9526 Jason Thomas Kelly, T9527 Alexander Lee Hall, T9528 Daron Seth Tarlton, T9529

Elisa Frey Fernbach, T9530 Robert Rubin Miracle, T9531 Katherine Wells Demick, T9532 Vicky Lynn Enox, T9533 Gaurav Sharma, T9534 Cory Jay Seyl, T9567 Danielle Marie Ponchak, T9568 Jeffrey Lee Edgington, T9569 Brian Vincent Bass, T9570 Wenjing Chen, T9571 Anthony T. Nash, T9572 Sabrina Hawkins Didier, T9573


Page 3

Reinstatements - The Committee recommended that the Board approve the following: Samuel Wesley Black, #13477 David Andrew Stern, #16896 Reissuance of New Certificate - The Committee recommended that the Board approve the following applications for reissuance of new certificate: Simion Cerchez, #37920 Phyllis Louise Reynolds, #39208 Extension Requests - The Committee recommended that the Board approve John M. Kunst, #37162 for extension for completion of CPE until June 30, 2016. Letters of Warning - Staff recommended approval of the requests to rescind the Letters of Warning awarded to the individuals listed below. The Committee recommended that the Board approve staff recommendation: Geneva J. Dally, #30064 Lisa Gaetano, #39425 John M. Kunst, #37162

Terry D. Smith, #7415 Robert W. Thorburn, #16561 Karen M. Wisniewski, #31206

Examinations –The Committee recommended that the Board approve the following staff-approved applicants to sit for the Uniform CPA Examination: Michael Abbott Mariam Abebe James Addison Ayra Ajel Megan Aleshire Jennifer Allen James Badgett Tannis Barnes Faye Barry Joseph Baxter Timothy Baynes Gene Beecher Duncan Belo Hirut Benalfew Jose Benavidez Tyler Bennett Abbie Bernard Shannon Berry

Robert Bett Lindsay Bobbett Caley Boggs Lauren Bolusky Kenya Borders Heather Boulden Gurganus Jocelyn Boyd Stacie Brandhoefer Peter Bremhorst Justin Bruno Ryan Burke William Burke Mary Casey Michael Cento Cara Chabreck Grant Chambers Robbie Chapman Wendy Cheek


Page 4

Jedadiah Chilton Rodney Clark Rashaad Clavon Erich Cloninger Lindsay Clouse Drew Coble Andrea Cole Brian Combs Abigail Cooper Chileen Cooper Lynn Couturier Kristin Cox Joshua Cubitt Gina Daniels Casey Davis Samantha Dawson Manan Desai Douglas Dey Amy Dherckers Allison Diaz Kerianne Doran Dwayne Dowden Thomas Dowling Christina Drake William Dudley James Durand Tawanda Dzangare Jessica Earles Kellie Earnhardt Kyle Ebinger Melissa Edwards Miranda Edwards Kelsey Elggren Anna Etheridge Kate Etheridge Andrew Farris Susan Fenwick Andy Ferrell Daniel Fisher John Fisher Tyler Frank Leanne Fredericks David Friberg

Laura Fulp Tristan Gales Aaron Galliher Jacob Garner Gerald Gayle Min Ge Mary Gibbons Janeane Gibson Timothy Gilbert William Glidewell Christopher Good Maria Grant Eugene Gray Danez Green Karl Green Emily Griffin Barry Griffith Cynthia Grose John Gudauskas Dana Gulledge Cara Hall Brittany Hamilton Daniel Hathcock Daniel Healy Monica Hilburn Jessica Hilgoe Mark Horsch Jonthan Huggins Alex Hunt Natalie Hunt Lucas Hyde Fatimatu Ingawa Kelsey Isaacs Zana Ismail Kimoi James Patricia Jimenez Angela Johnson Mitchell Johnson Sarah Johnson Shan Jones Jennifer Jordan Keith Keller Spencer Kendle


Page 5

Emma Kenney Karitsa Kerns Soonam Kim Mackenzie Kinley Erin Kissling Katherine Kleinknecht David Komasara Messavi Komlavi Joseph Koon Kyle Kwiatkowski Bart Landen Joshua Lawrence Kizzy Lea Hannah Leahy John Lee Geoffrey Leeker Steven Leerberg Haley Long Cicely Lopez Travis Lowman Phuong Luu Joshua Lyons Nicholas Lyons Alison MacKay Jonathan Macon Nicholas Mannon John Marks Joe Marshall Brandon Martin Maria Martinez Kane Mason Peter Maxwell Paula McBride Mary McCarthy Matthew McDonald Morgan McElwee John McGrotha William Meador Brandy Medina Jeremy Meganck Shuoyi Meng Ian Metcalf Courtney Miller

Ryan Miller Christopher Mitchell Andre Monitto James Morrison Asia Moses Nathia Moses Trenton Mosley Donna Multerer Tiana Murchison Rosemary Murphey Megan Murphy Taylor Myers Laurie Nelson Ryan Nelson Dennis Niesborella Skylar Norris Zachary Nutter Albert Ong Elizabeth Paluso Kenan Patel Chelsea Payne Christina Peck Ricci Pelland Denise Penny William Perrault Laura Peters Lynda Peterson Olivia Petkau Jeffrey Phillips Clemson Player Owen Poole Kaitlyn Porter James Post Tara Potter Brittany Powell Alicia Racculia Matthew Raytick Tammy Reason Phillip Robbins Carter Roberts Dillon Rogers Anne Russell Mason Ryon


Page 6

Liliya Sabaleuskaya Allison Schill Jessica Schisler Zachary Schumacher Hannah Seipel Elizabeth Senczy Erin Shepard Erin Sherk Randy Shin Constance Short Katherine Sloat Dylan Smith Savannah Stanaland Matthew Stenmark Robert Stephenson Zachary Stevens Amanda Stillinger Carter Stinman Kyle Stinman Gregory Stone Courtney Stroud Allison Sullivan Michael Surles Shung Li Tan Willie Tate Bryce Taylor

Charnice Taylor Miki Taylor Michelle Theron Kavonda Thrasher Casper Timberlake Sarah Vipperman Phillip Walker Stephanie Walsh Sarah Walters Madeleine Watkins William Webb Adelaide Weiss Harrison Welch Samuel Weldon Sharice Wells Rachelle Westbrook Chelsea Wiggins Bailey Wilhelm Aviance Williams Tyler Wooten Ruoyu Wu Jun Xiong MaiXong Xiong Ji Sun Yang Nathaniel Zarzar Minghui Zhao

EXECUTIVE STAFF AND LEGAL COUNSEL REPORT: Mr. Nance discussed the status of the draft of the Strategic Plan to be reviewed by the Board at the January 14, 2017, Board meeting. RECESS: Mr. Womble recessed the Board meeting at 10:27 a.m. until 11:00 a.m. for the Rule-Making Hearing. RULE-MAKING HEARING: President Womble called the Rule-Making Hearing to order at 11:00 a.m. The proposed rules to be considered at this Hearing were submitted in the formal document with the Office of Administrative Hearing. President Womble called for anyone present who would like to speak on the proposed rules. No one came forward to comment. President Womble then inquired from the Executive Director if any written comments had been submitted to the Board to be entered in the public record. Mr. Brooks stated that the Board had not received any written comments on the proposed rules prior to the date of the Hearing. President Womble then adjourned the Rule-Making Hearing at 11:03 a.m. The entire Hearing is a matter of public record.


Page 7

ADJOURNMENT: Messrs. Womble and Biggs moved to adjourn the meeting at 11:04 a.m. Motion passed. Respectfully submitted: Attested to by: Robert N. Brooks Michael H. Womble, CPA Executive Director President

NORTH CAROLINA WAKE COUNTY

IN THE MATTER OF: David Wylie, CPA

Respondent

BEFORE THE NORTH CARO I .INA STATE BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINEES

CASE #s C2016190-2

CONSENT ORD EH

Appendix I

THIS CAUSE, coming before the North Carolina State Board of CPA Examiners ("Board") at its offices at 1101 Oberlin Road, Raleigh, Wake County, North Carolina, with a quorum present. Pursuant to N. C. Gen. Stat§ 1508-41, the Board and Respondent stipulate to the following:

1. David Wylie, CPA (hereinafter "Respondent firm"), is a registered certified public accounting firm in North Carolina.

2. The Respondent firm received a "fail" on its most recent system peer review, with an acceptance letter date of September 29, 2015.

3. The peer review report noted that the Respondent firm conducted a governmental audit engagement and a yellow-book non-profit audit engagement which were not compliant with professional standards in all respects.

4. The Respondent firm wishes to resolve this matter by consent and agrees tha t the Board staff and counsel may discuss this Consent Order with the Board ex parte, whether or not the Board accepts this Consent Order as written. The Respondent firm understands and agrees that this Consent Order is subject to review and approval by the Board and is not effective until approved by the Board at a duly constituted Board Mee ting.

BASED upon the foregoing, the Board makes the following Conclusions of Law:

1. The Respondent firm is subject to the provisions 0£ Chapter 93 of the North Carolina General Statutes and Title 21, Chapter 08 of the North Carolina Administrative Code, including the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board.

2. The Respondent firm's failure to perform audit services in accordance with Generally Accepted Auditing Standards constitutes a violation 0£ lhe Statements on Auditinr; Standards in violation of 21 NCAC 08N .0403 and .0212.

3. The Respondent firm's failure to perform governmental audit services in accordance with Generally Accepted Government Auditing Standards constitutes a violation of Government Auditing Standards in violation of 2'1 NCAC 08N .0409 and .0212.

4. Per N.C. Gen. Stat. § 93-12(9), 93-10(b) and also by virtue of the Respondent firm's consent to this order, the Respondent firm is subject to the discipline set forth below.

NC BOARD OF

NOV 15 2016

CPA EXAMINEHS

Consent Order - 2 David Wylie, CPA

BASED on the foregoing and in lieu of further proceedings, the Board and the Respondent firm agree to the following Order:

1. The Respondent firm is censured.

2. The Respondent firm has signed a written statement acknowledging that the Respondent firm is not currently participating in, performing, or reviewing any audit engagements.

3. P1ior to the Respondent firm participating in, performin8, or reviewing any audits, the Respondent firm shall be required to complete the following:

a. Each staff member participating in engagements subject to peer review must take at least eight (8) hours of group-study A&A CPE related to Audit Documentation annually until the firm receives a pass on a system review or a pass or pass with deficiencies on an engagement review.

b. At its own expense, obtain pre-issuance reviews of all audit engagements until such time as the Board determines that pre-issuance review is no longer necessary. The p.re-issuance reviewer shall be approved by the Board. The Respondent firm shall authorize and cause the pre-issuance reviewer to p rovide the Board with a copy of each pre-issuance review report.

CONSENTED TO THIS THE 1 \ DA y OF_N_o_v_~_~_b_e._.r __ _, (Day) ).JJ ~} (Month)

::lo J (.,

(Year)

Individual authorized to sign on behalf of Respondent Firm

APPROVED BY THE BOARD THIS THE \~ DAY OF (Day)

0 ~~e~ber , "t,p 1,.b (Month) (Year)

NORTH CAROLINA STATE BOARD OF CERTIFIED PUBLIC ACCOUNT ANT EXAMINERS

BY:_~~~----President

NCBOARO OF

NOV 15 2016


IN THE MATTER OF: Dixon & Higgins, CPAs, PLLC

Respondents

BEFORE THE NOHTH CAROLINA STATE BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS

CASE #s C2016191-2

CONSENT ORDER

Appendix II

THIS CAUSE, comin8 before the North Carolina State Board of CPA Examiners ("Board") at its offices at 1101 Oberlin Road, Raleigh, Wake County, North Carolina, with a quorum present. Pursuant to N. C. Gen. Stat. § 150B-41, the Board and Respondent stipulate to the following:

1. Dixon & Higgins, CPAs, PLLC (hereinafter "Respondent firm"), is a registered certified public accounting firm in North Carolina.

2. The Respondent firm received a "fail" on its most recent system peer review, with an acceptance letter date of December 1, 2015.

3. The peer review report noted significant deficiencies in the conduct of a compilation engagement and its audit engagements.

4. The Respondent firm wishes to resolve this matter by consent and agrees that the Board staff and counsel may discuss this Consent Order with the Board ex parte, whether or not the Board accepts this Consent Order as written. The Respondent firm understands and agrees that this Consent Order is subject to review and approval by the Board and is not effective until approved by the I3oard at a duly constituted Board Meeting.


1. The Respondent firm i~ subject to the provisions of Chapter 93 of the North Carolina General Statutes and Title 21, Chapter 08 of the North Carolina Administrative Code, including the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board.

2. The Respondent firm's failure to perform audi t services in accordance with the Statements on Auditing Standards constitutes a violation of 21 NCAC 08N .0403, and .0212.

3. The Respondent firm's failure to perform accounting services in accordance with the Statements on Standards for Accountin~ and Review Services constitutes a violation of 21NCAC08N .0404 and .0212.

4. Per N.C. Gen. Stat. § 93-12(9), 93-10(b) and also by virtue of the Respondent firm's consent to this order, the Respondent firm is subject to the discipline set forth below.

NC BOARD OF

NOV 17 2016

Consent Order - 2 Dixon & Higgins, CPAs, PLLC


1. The Respondent firm i~ censured.

2. The Respondent firm has signed a written statement acknowledging that the Respondent firm is not currently participating in, performing, or reviewing any audit engagements.

3. Prior to the Respondent firm participating i.n, performing, or reviewing any audits, the Respondent firm shall be required to complete the following:

a. Each staff member participating in engagements subject to peer review must take at least eight (8) hours of group-study A&A CPE related to Audit Documentation annually until the firm receives a pass on a system review or a pass or pass with deficiencies on an engagement review.

b. At its own expense, obtain pre-issuance reviews of all audit engagements until such time as the Board determines that pre-issuance review is no longer necessary. The pre-issuance reviewer shall be approved by the Board. The Respondent firm shall authorize and cause the pre-issuance reviewer to provide the Board with a copy of each pre-issuance review report.

/._1< #-... A I I CONSENTED TO THIS THE _--'--=J'--__ DAY OF /V&YcM-1.- ~~-_,,-

(Day) (Month)

114.~~ 0201 (,

(Year)

APPROVED BY THE BOARD THIS THE I q DAY OF (Day)

De~er ~'°~k. (Month) (Year}


BY:~L--~--~-------7 President NC BOARD OF

NOV t 7 2016

CPA EXAf\/llNEm:-.


IN THE MATTER OF: Stewart & Satterfield, P.A.

Respondent

BEFORE THE NORTH CAROLINA ST A TE BOARD OF CERTIFIED PUBLIC ACCOUNT ANT EXAMINERS

CASE #s C2016203-2

CONSENT ORDER

Appendix Ill

THIS CAUSE, corning before the North Carolina State Board of CPA Examiners ("Board") at its offices at 1101 Oberlin Road, Raleigh, Wake County, North Carolina, with a quorum present. .Pursuant to N. C. Gen. Stat.§ 150B-41, the Board and Respondent stipulate to the following:

1. Stewart &. Satterfield, P.A. (herein<1fter "Respondent firm"), is a registered certified public accounting firm in North Carolina.

2. The Respondent firm received a "fail" on its most recent system peer review, with an acceptance letler date of August 22, 2016.

3. The peer review report noted several significant departures from Generally Accepted Government Auditing Standards ("GAGAS") by the Respondent firm.

4. The peer review also noted other audit standards representing a significant departure from Generally Accepted Auditing Standards ("GAAS") by the Respondent firm.

5. The Respondent firm wishes to resolve this matter by consent and agrees that the Board staff and counsel may discuss this Consent Order with the Board ex parte, whether or not the Board accepts this Consent Order as written. The Respondent firm understands and agrees that this Consent Order is subject to review and approval by the Board and is not effective until approved by the Board at a duly constituted Board Meeting.


1. Th£ ~c~ponde~t n~m !s St'.bject to the ~'ro~:.iski~s of Ch.apte: 93 of the Nor~h Ca:-o!ina Genernl Statutes and Title 21, Chapter 08 of the North Carolina Administrative Code, including the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board.

2. The Respondent firm's failure to perform government auditing services in accordance with the GAG AS constitutes a violation of 21 NCAC 08N .0409 and .0212.

3. The Respondent firm.' s failure to perform auditing services in accordance with the GAAS constitutes a violation of 21 NC/\.C 08N .0403 and .0212.

4. Per N.C. Gen. Stat. § 93-12(9), 93-10(b) and also by virtue of the Respondent firm's consent to this order, tlw Respondent firm is subject to the discipline set forth below.

NC BOARD Of

NOV 2U 2ln6

Consent Order - 2 Stewart & Satterfield, P.A.


l. The Respondent firm is censured.

2. Prior to the Respondent firm participatine in, performing, or reviewing any audits, the Respondent firm shall be required to complete the following:

a. Each staff member participating in engagements subject to peer review must take at least four (4) hours of group-study A&A CPE related to audit (Audit Update, Audit Documentation, etc.) annually until the firm receives a pass on a system review or a pass or pass with deficiencies on an engagement review.

b. Each staff member participating m engagements subject to peer review must ensure the attainment of required Yellow Book CPE for the performance of audits per GAGAS.

c. At its own expense, obtain pre-issuance reviews of all audit engagements until such time as the Board determines that pre-issuance review is no longer necessary. The pre-issuance reviewer shall be approved by the Board. The Respondent firm shall authorize and cause the pre-issuance reviewer to provide the Board with a copy of each pre-issuance review report.

CONSENTED TO THIS THE __ 2._1_~_1 __ DA Y OF _ __:_}J_v_lf___;M_.:__IJ-=-t-_R ___ ___J _ 2.iJ--=-1-'--k.-(Day) (Month) (Year)

l26~f 4 s ~I CP4 Individual authorized to sign on behalf of Respondent Firm

APPROVED BY THE BOARD THIS THE lq . DAY OF (Day)

Pe~, ?..C!b (Month) (Year)


NC BOARD Of

NDV 26 2016

NORTH CAROLIN/\ WAKE COUNTY

IN THE MATTER or: Ernest K. Leonard, CPA, #24431, Leonard CPA, PLLC

Respondents

Appendix IV

13EFORE TI IE NORTJI CAROLINA STATE BOARD OF CEKflflJED PUBLIC ACCOUNTANT EXAMINERS

CASE #s: C2016032, C2016035, C2016219-1, C2016219~2

CONSENT ORDER

THIS CAUSE, coming before l"he,Norf:h Carolina State Board of CPA Examiners ("B.oard")·at.its offices at 1101 Oberlin Rqad, .Ra1¢tgh, Wake Counl)', Norlh Carolina, with a quorwn present. Pursuant. to N. C. Gen. Slat. § iSOU-41, ·the Board a,n (\. Respondent stipulate to lhe following:

1. Respondent Ernest K. LeoJmrd (herei1taftcr ''Respondent'') is the holder. of certificate 1·\uinber.24431 as a North Carolfu.a Certified Public Accountant.

2. Respondent firm Leonard CPA, PLLC (herejnafte.r "Respondent Firm"), is a. registere<:l certified pub.lie accouhting fi!m in NorU1 Carolina.

3~ ~rhe; Rc$pondent ~clf,-:icp01~d. that ;J:ie lA{as charged with failing to filb an.d pay the Respondent Firrt{s withholding taxes and.·the Respondenl's income !:axes: The Boa.rd

,c:)pened cases agair(stthe Re&pon.dent (C2016032} and the Respond.~1t Firm (C201.,6035).

4. The;Resp.ondentpleQ.'g\,lilty to one COUI\l of failure to file an income:tax reh1r.n· and one. count of foihi.i'e to pay in,~oirtc tax. He also pied guilly to one count of failure to file a witfil1oldin.g ta.x return ~d· Ohe CQ~t of .failure to pay ·withholding-tax,

5. The; Board also received information that the Respondent flrm had l\Ot uitc;lergone a peer review sinc5;! Nove~P:tµ,: 18, 2010. The Board opened cases against the. Resporidet,1t (C2,016219-1) and'.the R~s~-ionde[)t Pil'm.(C2016219-2). · · · · ·

6. Per the· North Carolina Accountancy Act. a t N.C. Gen. Stat. § 93-1'2(8c)( c), CPA £inns are required.: to unde.J•g9, p~ey ipv:jew1 ~v,e.cy Lf.;.ree yeats if ·they ~e eng.aged to p,erform audHs~ revi ews, coinpilatiqn or other .reports issued on financial information in the public practice of accountancy.

7. On tl1e Respondent firm's rumua( renewals for the y~ars 2010 through 2014; the Respondent represented Uial the Respondent firm had performed audits, reviews, agreed-upon procedures and compilations for third party use durine the prior year.

8. On the Respondent fi_rm's annual renewal for the year 2015, the Respondent represented that th~ Respondent firm had performed agreed-upon procedures and compilations for third party use duriiig the pril11' year.

Consent Order - 2 Ernest K. Leonard, CPA Leonard CPA, PLLC

9. The Respondent firm had undergone previous peer reviews and therefore the Respondent knew, or should have known, that a peer review was reql'1ir~d in order pcrfom1 the engagements i<lcntifi~d on the 2010 through 2015 fo-m renewals.

10. The Respondent wishes to resolve U-US inall:er by consent and agrees Ulat Uie Board slaff and counsel may discuss this Ccinsent Order with the Board e~ pilrte~ whether or not the Board accepts this Coru;ent Order as written. 'the Respond·~i:lt un<lerst<inds and agrees that tl1is Consent Order is subject to review and ilpproval by the .Board and is not effective until approved by the Board at a duly constituted BoardMee~ng.

BASED upon the foregoing, the 13oard makes the follo"Wi,ng·Conclusions of Law:

1. The I~espol.1.~lent is sybject to the provisions of Chapter 93 of the North ~?rulina Generali S tatutes and Tttie 2+, Chapter 08 oft.ht'! North Caroli.i:l,e~1A'q1pil1istfatlve Co(ie, ir:iclu.dipg the Rules of Profession.al Ethics and Conduct promulgated :and adopted'. therein by the Board .

. 2. lf proven by the North C::aroii.nc.\ Department of ~cve~ue, the Re~-pondcni.'-s .guilly' pleas refo.ted to the titn~ly filing or paymentofwit:h.holding taxes. w:ouldconstifute violations Of ~1 NCAC 08N .0201 (integrity), .0'203(a) (Discreditable Co:P,d\1d), arid .0207 {Violation of Tax Laws). .

3. If proven at hcarin~ the Respondents failu.re t!:nm.dergotti.ai.ely:peer rcvi.C-W constitutes CJ. v~ofati~m of 21NCAC08N .C)213 (Violatioq Qf·OtJler Rufes) • "

4. ; .. Per N.C. Gen. Stat.§ 93-12(9), 93..:lO(b) and·al.$oby. virtue of 'the Responden~s consent lo: this order, U1e Respondent is sti bject to the di~dpiicte set for.ti\ ~~lchv.

BASED on the foregoing and in lieu of further pi'dceedings, the· Boar& and Respondent agree to thefol_Ioy.ii11g Or_der:

1. The Certified Public Accountant cert.ifi('.ate Jor the Re:;pondent Ernest :K Levnar<l, is h<!r~hy.perinancntly revoked.

3. Neither Respondent Leonard nor Respondent ·fi~•m sh.all of for o.t ;render ·se.rvkes as a CPA or ·CPA firm or othe1;wise trade upon or µsc the <:::PA tllle fu this state either through CPA mobility provisions or substantialequivalency practice privileges or in any other mrumer, nor shall Respondent Leonard oi' Respondent Firm claim or atlc.thpt to use any practice privileges in any other stat!'! based upon Respondent Leonard's permanently revoked North Carolina certificate or Responde1it Firm's c_ancelled CliA fom regi~tratiun,

Consent Order - 3 Ernest K Leonard, CPA Leonard CPA, PLLC

CONSENfEO TO THISTHE

Respondent

APPROVED BY THE BOARD:IHf5 '11-ffi _ _ l _<=t_ DAY:OF (Day

NOR:rH CARqLINA STATE "BOARD OFCERTlFtJ)Q PUBhlC AGCOWNTANT EXA Mlt-!ERS•

Presi~eht

Z..-ti Lb. (Year)

Financial Highlights For the Nine Month Period Ended December 31, 2016

Compared to the Nine Month Period Ended December 31, 2015

I Budget Var. I Dec-16 Dec-15

Total Revenue $59,61 9.101 $ 2,669,094.29 $ 2,500,944 .61

•Total Operating Revenue $59,634.1411 $ 2,62 1,037.30 $ 2,454,205.08

•)Total Net Non Operating Revenue -$1 S.04jj $ 48,056.99 $ 46,739.53

OTotal Expenses -$72,008.66 $ 2, 160,957 .60 $ 2,0 14,630.94

IIncrease(Dec.) Net Assets for Period $ 508,136.69 $ 486,313.67

!Total Checking and Savings $ 1,691 ,862. 64 $ 891 ,638.92

Item 1-E-l

Inc. (Dec.)

$ 168,149.68

$ 166,832.22

$ 1,317.46

$ 146,326.66

$ 21,823 .02

$ 800,223.72

jTotal Assets $ 3,946,539.56 $ 3,558,526. lO ii $ 388,01 3.461

II IFull-Tjme/Part-time Employees 1114/1 Ill 3/1 11110

Budget: • Operating revenue was $60,000 over budget primarily due to increased exam fees ($39,000),

and the timing of receipt of firm renewal fees ($23,000).

•:• N~n-Opernting revenue was as expected.

(.) Expenses were $72,000 under budget, primarily due to reduced salary/benefit costs ($69,000) and postage/printing costs ($30,000) offset by increased exam fees ($17,000) and legal costs ($18,000).

Actual: • Total operating revenue increased from prior year by $167,000. Increase related to higher intake

of certificate renewal fees ($31,000) and expected exam fee revenue ($140,000).

•:• Total net non-operating revenue increased this period compared to prior by $1,300 primarily due increased interest income earnings.

0 Total expenses increased from prior period by $146,000. Exam costs are up $115,000, and the jnvestigation and hearing costs has a net change of $25,000 (civil penalty collections).

I

NC Board of CPA Examiners

01/06/17 Statement of Net Position As of December 31, 2016

Dec 31, 16 Dec 31, 15 -----ASSETS

Current Assets Checking/Savings

1077 ·Fidelity Bank - MMA 249,199.28 0.00 1076 ·Bank of North Carolina - MMA 503,929.92 251,070.76 1075 ·Union - Money Market 249,281.15 246,165.67 1074 ·First Tennessee Bank - MMA 245,792.99 245,313.08 1023 • BB&T Disciplinary Clearing Acct 2,500.00 3,500.00 1020 · BB&T Checking Acct 280,621.35 135,249.32 1021 ·BB&T Savings Account 160,337.95 10,240.09 1030 • BB&T Payroll Acct 200.00 100.00 ----

Total Checking/Savings 1,691,862.64 891,638.92

Other Current Assets 1110 ·Accrued CO Interest 8,656.44 9,715.66 1050 • CD Investments - Current 502,653.24 991,541.47 1165 ~Deferred Lease Commissions 4,358.12 0.00 1125 · Accts Rec Civil Penalties 4,000.00 500.00 1120 ·Accounts Receivable -92.80 -283.70

-Total Other Current Assets 519,575.00 1,001,473.43

Total Current Assets 2,211,437.64 1,893,112.35

Fixed Assets 1330 ·Land Improvement 14,640.90 14,640.90 1300 ·Building 1,022,767.10 917,143.10 1305 ·Land 300,000.00 300,000.00 1310 • Furniture 112,387.24 113,918.90 1320 • Equipment 179,481.05 209,139.09 1325 ·Data Base Software 180,336.18 180,336.18 1390 ·Accumulated Depreciation -815,010.72 -807,493.22

-----Total Fixed Assets 994,601.75 927,684.95

Other Assets 1250 ·CD Investments Non-Current 740,500.17 737,728.80 ----

Total Other Assets 740,500.17 737,728.80 ---

TOT AL ASSETS 3, 946,539 .56 3 ,558,526.10

LIABILITIES & NET ASSETS Liabilities

Current Liabilities Other Current Liabilities

2040 · Accounts Payable Civil Penalty 3,600.00 450.00 2005 ·Due to Exam Vendors 627,834.36 455,618.66 2011 • Accounts Payable Other 2,500.00 2,500.00 2015 ·Accrued Vacation Current 7,332.18 4,571.00 -----

Total Other Current Liabilities 641,266.54 463,139.66 -----

Total Current Liabilities 641,266.54 463,139.66

Page 1

01/06/17


Statement of Net Position As of December 31, 2016

Long Term Liabilities 2020 • Accrued Vacation

Total Long Term Liabilities

Total Liabilities

Net Assets 3010 ·Net Assets Invest In Cap Assets 3020 ·Designated for Capital Assets 3031 · Designated-Operating Expenses 3040 · Designated for Litigation 3900 • Net Assets Undesignated Change in Net Assets

Total Net Assets

TOTAL LIABILITIES & NET ASSETS

Dec 31, 16

72,106.36

72,106.36

713,372.90

994,601.75 100,000.00 300,000.00

1,000,000.00 330,428.22 508,136.69

3,233, 166.66

3,946,539.56

Dec 31, 15

73,432.34

73,432.34

536,572.00

927,684.95 100,000.00 300,000.00 750,000.00 457,955.48 486,313.67

3,021,954.10

3,558,526.10

Page2


01/06/17 Statement of Revenues & Expense .. Budget v. Actual April 2016 through December 2016

Apr - Dec 16 Budget $Over B ... -- - - -Ordinary Income/Expense

Income Certificate Fees

4110 ·Certificates - Initial 45,600.00 52,499.97 -6,899.97 4120 • Certificates - Reciprocal 25,000.00 24,000.03 999.97 4121 ·Certificates - Recip/Temp 0.00 0.00 0.00 4130 ·Certificates - Temporary 0.00 0.00 0.00 4131 ·Certificates - Temp Renewal 0.00 0.00 0.00 4140 • Certificates - Renewal Fees 1,234,080.00 1,230,000.00 4,080.00 4150 ·Certificates - Refnst/Revoked 1,700.00 0.00 1,700.00 4151 ·Certificates - Reinst/Surr 6,100.00 8,250.03 ·2, 150.03 4152 • Cer1ificates - ReinstJRetired 0.00 0.00 0.00 4160 • Certificates - Notification 0.00 0.00 0.00 4161 · Certificate - Notification Rnwl 0.00 0.00 0.00

Total Certificate Fees 1,312,480.00 1,314,750.03 -2,270.03

Exam Fee Revenue 4001 · Initial Adm Fees 186,990.00 181,125.00 5,865.00 4002 ·Re-Exam Adm Fees 152,025.00 140,625.00 11,400.00 4004 · Exam Fees Revenue 915, 100.88 900,000.00 15,100.88 4060 · Equivalency Exam Fees 0.00 0.00 0.00 4070 • Transfer Exam Grade Credit 0.00 0.00 0.00 4071 · Exam Review Fees 0.00 0.00 0.00 4072 · Exam Scholarship Coupon -24,397.25 -30,930.21 6,532.96 ---

Total Exam Fee Revenue 1,229,718.63 1,190,819.79 38,898.84

Misc 4993 · Revenue Suspense 0.00 0.00 0.00 4999 ·Board Training 0.00 0.00 0.00 4910 ·Educational Program Fees 0.00 0.00 0.00 4970 • Duplicate Certificates 650.00 0.00 650.00 4980 • Copies 0.00 0.00 0.00 4990 ·Miscellaneous 1,003.67 1,125.00 -121.33

-- -Total Misc 1,653.67 1,125.00 528.67

Partnership Fees 4260 · Partnership Reglstrat.ion Fees 60.00 0.00 60.00 4261 ·Partnership Renewal Fees 36,640.00 26,000.00 10,640.00

Total Partnership Fees 36,700.00 26,000.00 10,700.00

Professional Corporation Fees 4250 · PC Registration Fees 3,200.00 3,375.00 -175.00 4251 · PC Renewal Fees 37,260.00 25,333.34 11,926.66 4252 · PC Renewal Fees W/Penalties 25.00 0.00 25.00 -- -- - --

Total Professional Corporation Fees 40,485.00 28,708.34 11,776.66 -- - ---- ----Total Income 2,621 ,037.30 2,561 ,403.16 59,634.14

Expense 6900 · Bad Debit Expense 0.00 0.00 0.00 6690 · Over & Short 0.55 0.00 0.55

Page 1


01/06/17 Statement of Revenues & Expense - Budget v. Actual April 2016 through December 2016

Apr - Dec 16 Budget $ OverB •..

Fringe Benefits 5031 · Retirement - NCLB Contribution 41,053.20 41,991 .03 -937.83 5033 ·Retirement - NCLB Admlnistr 1,744.56 2,600.00 -855.44 5035 · Health Ins. Premiums 80,006.21 110,999.97 -30,993.76 5036 ·Medical Reim Plan 16,719.62 29,250.00 -12,530.38 5038 ·Unemployment Claims 0.00 0.00 0.00

Total Fringe Benefits 139,523.59 184,841.00 -45,317.41

Board Travel 5120 ·Board Travel - Board Meetings 15,234.47 18,216.00 -2,981.53 5121 • Board Travel - Prof Meetings 38.50 0.00 38.50 5122 ·Board Travel - NASBA Annual 18,738.30 17,080.00 1,658.30 5123 ·Board Travel - NASBA Regional 8,134.03 9,360.00 -1,225.97 5124 ·Board Travel - NASBA Committees 0.00 0.00 0.00 5125 ·Board Travel-AICPA/NASBA 0.00 0.00 0.00 5126 ·Board Travel- NCACPA Annual 0.00 0.00 0.00 5127 ·Board Travel - NCACPA/Board 2,981.53 2,800.00 181.53 5128 ·Board Travel -AICPA Committees 0.00 0.00 0.00 5129 ·Miscellaneous Board Costs 332.42 0.00 332.42 5133 ·Board Travel - NASBA CPE 0.00 0.00 0.00

Total Board Travel 45,459.25 47,456.00 -1 ,996.75

Building Expenses 5800 · Building Maintenance 2,772.17 2,500.00 272.17 5801 · Electricity 8,417.15 9,000.00 -582.85 5802 · Grounds Maintenance 1,220.00 3,750.03 -2,530.03 5803 ·Heat & Air Maintenance 2,248.00 4,500.00 -2,252.00 5804 • 1mprovements 0.00 0.00 0.00 5805 ·Insurance 4,704.00 0.00 4,704.00 5807 • Janitorial Maintenance 4,325.66 4,500.00 -174.34 5808 • Pest Control Service 0.00 200.00 -200.00 5809 • Security & Fire Alarm 2,448.00 2,500.00 -52.00 5810 ·Trash Collection -456.45 749.97 -1,206.42 5811 · Water & Sewer 858.77 825.03 33.74 -

Total Building Expenses 26,537.30 28,525.03 -1,987.73

Continuing Education -Staff 5050 ·Continuing Education - Staff 1,401.08 3,750.03 -2,348.95 5051 ·Continuing Education - RNB 102.60 0.00 102.60 5052 ·Continuing Education - Computer 0.00 0.00 0.00

Total Continuing Education -Staff 1,503.68 3,750.03 -2,246.35

Exam Postage 5531 • Exam Postage 960.00 1,350.00 -390.00

Total Exam Postage 960.00 1,350.00 -390.00

Exam Printing 5533 · Exam Printing 0.00 0.00 0.00

Total Exam Printing 0.00 0.00 0.00

Page 2



Apr - Dec 16 Budget $Over B ...

Exam Sitting and Grading 5538 • Exam Vendor Expense 841 ,701.57 825,000.03 16,701 .54 ---

Total Exam Sitting and Grading 841,701.57 825,000.03 16,701 .54

Exam Supplies 5532 · Exam Supplies 0.00 0.00 0.00 -

Total Exam Supplies 0.00 0.00 0.00

Exam Temporary Staff 5530-10 ·Temp Employees - May 0.00 0.00 0.00 5530-20 • Temp Employees - Nov 0.00 0.00 0.00 ----

Total Exam Temporary Staff 0.00 0.00 0.00

Investigation & Hearing Costs 5220 · Investigator Fees 0.00 0.00 0.00 5221 · Staff Investigation Costs 16.50 0.00 16.50 5222 · Investigation Materials 5,302.56 8,624.97 -3,322.41 5230 · Hearing Costs 7,266.84 3,750.03 3,516.81 5231 • Rule-Making Hearing Costs 0.00 0.00 0.00 5232 • Legal Advertising 0.00 0.00 0.00 5250 • Administrative Cost Assessed -4,600.00 -1,874.97 -2,725.03 5260 · Civil Penalties Assessed -12,200.00 -5,625.00 -6,575.00 5261 ·Civil Penalties Remitted 13,158.53 0.00 13, 158.53

Total Investigation & Hearing Costs 8,944.43 4,875.03 4,069.40

Legal Expense 5140 · Legal Counsel -Administrative 24,509.00 27,000.00 -2,491.00 5141 · Legal Counsel - Spec Projects 0.00 0.00 0.00 5210 · Legal ·counser - Prof Standards 0.00 0.00 0.00 5211 · Legal Counsel - Litigation 30,864.61 10,000.00 20,864.61

Total Legal Expense 55,373.61 37,000.00 18,373.61

Misc Personnel 5034 • Misc. Payroll Deduction 0.00 1,125.00 -1,125.00 5037 • HSA Deduction 0.00 0.00 0.00 5090 · Flowers, Gifts, Etc. 362.58 0.00 362.58 5091 · Staff Recruiting 299.00 0.00 299.00 5092 ·Misc. Personnel Costs 2,041.45 2,250.00 -208.55

Total Misc Personnel 2,703.03 3,375.00 -671 .97

Office Expense 5436 ·Contracted Copy Service 1,235.16 0.00 1,235.16 5301 · Equipment Rent 468.00 800.00 -332.00 5310 • Decorations 259.13 250.00 9.13 5320 · Payroll Service 1,330.01 1,500.03 -170.02 5360 ·Telephone 3,612.59 5,249.97 ·1,637.38 5361 · Internet & Website 3,878.25 3,750.03 128.22 5390 ·Clipping Service 2,588.34 2,999.97 -411 .63 5400 ·Computer Prog/Assistance 5,881.22 3,750.03 2,131 .19 5405 ·Computer Software Maintenance 42,296.53 41 ,249.97 1,046.56 5410 · Dues 7,805.00 8,200.00 -395.00 5420 · Insurance 12,557.00 16,800.00 -4,243.00 5430 · Audit Fees 8,990.00 8,990.00 0.00

Page 3



Apr - Dec 16 Budget $Over B ...

5435 · Consulting Services 0.00 749.97 -749.97 5440 ·Misc Office Expense 1,020.00 2,600.00 -1 ,580.00 5445 ·Banking Fees 3,534.90 2,625.03 909.87 5450 ·Credit Card Fees 48,602.23 38,999.97 9,602.26

Total Office Expense 144,058.36 138,514.97 5,543.39

Per Diem - Board 511 O • Per Diem - Board Meetings 10,550.00 10,800.00 -250.00 5111 ·Per Diem -Prof Meetings 250.00 2,999.97 -2,749.97 5112 ·Per Diem -NASBA Annual 3,500.00 3,500.00 0.00 5113 • Per Diem - NASBA Regional 2,100.00 ~.800.00 -700.00 5114 • Per Diem - NASBA Committees 400.00 0.00 400.00 5115 • Per Diem -AICPA/NASBA 0.00 0.00 0.00 5116 · Per Diem - NCACPA Annual 0.00 800.00 -800.00 5117 ·Per Diem - NCACPA/Board 100.00 500.00 -400.00 5118 ·Per Diem -AICPA Committees 0.00 0.00 0.00 5119 · Per Diem - Miscellaneous 0.00 500.00 -500.00 5130 ·Clerical Reimbursement 0.00 0.00 0.00 5135 ·Per Diem· NASBA CPE 0.00 0.00 0.00

Total Per Diem - Board 16,900.00 21 ,899.97 -4,999.97

Postage 5345 ·Postage· UPS 12,000.00 8,000.00 4,000.00 5340 · Postage • Other 4,411.28 14,625.00 -10,213.72 5341 · Postage - Newsletter 49,100.00 53,250.03 -4, 150.03 5342 ·Postage - Business Reply 1,200.00 1,874.97 -674.97 5343 ·Postage - Renewal 1,440.00 1,500.03 -60.03 5344 ·Postage - Rulebook 0.00 0.00 0.00

Total Postage 68,151.28 79,250.03 -11,098.75

Printing 5330 · Printing - Other 2,656.40 5,249.97 -2,593.57 5331 · Printing - Newsletter 31,069.12 48,750.03 -17,680.91 5332 · Printing - Certificat~s 1,497.00 0.00 1,497.00 5333 · Printing - Renewal 0.00 0.00 0.00 5334 ·Printing - Rulebook 0.00 0.00 0.00 5335 ·Mailing Label Printing 0.00 0.00 0.00

Total Printing 35,222.52 54,000.00 -18,777.48

Repairs & Maintenance 5380 • Repairs - Misc. 0.00 0.00 0.00 5381 ·Maintenance - Copiers 875.47 1,874.97 -999.50 5382 · Maintenance - Computer 766.64 1,125.00 -358.36 5383 • Maintenance - Postage 490.00 749.97 -259.97

Total Repairs & Maintenance 2,132.11 3,749.94 -1 ,617.83

Page4



Apr- Dec 16 Budget $Over B ...

Salaries & Payroll Taxes 5040 ·State Unemployment Tax 0.00 0.00 0.00 5010 ·Staff Salaries 687,020.65 701,653.55 -14,632.90 5020 • Part-Time Staff Salaries 9,249.26 13,389.06 -4, 139.80 5021 ·Temporary Contractors 0.00 0.00 0.00 5030 • FICA Taxes 49,930.65 54,722.63 -4,791.98

Total Salaries & Payroll Taxes 746,200.56 769,765.24 -23,564.68

Scholarships 5535 • Scholarship 0.00 0.00 0.00

Total Scholarships 0.00 0.00 0.00

Staff Travel 5060 ·Staff Travel - Local 290.16 1,912.50 -1,622.34 5061 • Staff Travel ~ Prof Mtgs 2,453.00 2,962.53 -509.53 5062 • Staff Travel - NASBA CPE 0.00 0.00 0.00 5063 • Staff Traver - NASBA Ethics 0.00 0.00 0.00 5070 • Staff Travel - NASBA Annual 7,857.03 7,320.00 537.03 5071 • Staff Travel - NASBA Regional 3,383.64 3,544.00 -160.36 5072 • Staff Travel - NASBA ED/Legal -635.96 0.00 -635.96 5073 • Staff Travel - NASBA Committee 0.00 0.00 0.00 5074 ·Staff Travel -AICPA 0.00 0.00 0.00 5075 · Staff Travel - NCACPA Meetings 0.00 1,499.96 -1,499.96 5076 • Staff Travel - NCACPA/Board 983.94 1, 125.00 -141.06 5077 • Staff Traver - Clear Conference 1,607.66 0.00 1,607.66 5078 • Staff Travel ·Vehicle 0.00 0.00 0.00 5080 ·Staff Travel - Univ Dialogue 0.00 0.00 0.00

Total Staff Travel 15,939.47 18,363.99 -2,424.52

Subscriptions/References 5370 • Subscriptions/References 528.45 2,250.00 -1,721.55

Total Subscriptions/References 528.45 2,250.00 -1,721.55 .

Supplies 5350 • Supplies - Office 6,030.37 3,375.00 2,655.37 5351 • Supplies - Copier 1,902.20 3,187.53 ·1,285.33 5352 • Supplies - Computer 1,185.27 2,437.47 -1,252.20 5353 • Supplfes - Special Projects 0.00 0.00 0.00

Total Supplies 9,117.84 9,000.00 117.84

5920 · Funded Depreciation 0.00 0.00 0.00 6999 ·Uncategorized Expenses 0.00 0.00 0.00 9999 • Suspense 0.00 0.00 0.00

Total Expense 2, 160,957.60 2,232,966.26 -72,008.66

Net Ordinary Income 460,079.70 328,436.90 131,642.80

Other Income/Expense Other Income

8250 · Gift Card Revenue 6,500.00 6,000.00 500.00

Page 5


01/06/17 Statement of Revenues & Expense .. Budget v. Actual April 2016 through December 2016

Apr - Dec 16 Budget ---

Interest Income 8500 ·Interest Income - MMAs 3,768.76 0.00 8505 · Interest Income - BB&T BUS IDA 0.00 0.00 8510 · Interest Income - CDs 12,094.48 15,000.03 8520 · Interest Income - Prudential TB 0.00 0.00 8530 · Interest Income - Wachovia MM 0.00 0.00

-- -Total Interest Income 15,863.24 15,000.03

6200 · Rental Income 27,071.68 27,072.00 8920 ·Gain on Sale of Fixed Assets 514.55 0.00 8921 ·Loss on Sale of Fixed Assets 0.00 0.00

- -- -

Total Other Income 49,949.47 48,072.03

Other Expense 7000 ·Leasing Commission 1,892.48 0.00

Total Other Expense 1,892.48 0.00 - -- -

Net Other Income 48,056.99 48,072.03

c·hange in Net Assets 508,136.69 376,508.93 ----

$Over B ... --- -

3,768.76 0.00

-2,905.55 0.00 0.00 - ---

863.21

-0.32 514.55

0.00 ----1,877.44

1,892.48

1,892.48 - -

-15.04

131,627.76

Page6


01/06/17 Statement of Revenues & Expenses Year-to-Date Comparison

Apr- Dec 16 Ap·r- Dec 15

Ordinary Income/Expense Income

Certificate Fees 4110 ·Certificates - Initial 45,600.00 49,900.00 4120 ·Certificates· Reciprocal 25,000.00 24,600.00 4140 ·Certificates - Renewal Fees 1,234,080.00 1,202,940.00 4150 ·Certificates - Reinst/Revoked 1,700.00 2,100.00 4151 ·Certificates - Reinst/Surr 6,100.00 4,700.00 4152 ·Certificates - Reinst/Retired 0.00 600.00

Total Certificate Fees 1,312,480.00 1,284,840.00

Exam Fee Revenue 4001 ·Initial Adm Fees 186,990.00 158,470.00 4002 ·Re-Exam Adm Fees 152,025.00 135,675.00 4004 • Exam Fees Revenue 915,100.88 807,261.64 4070 ·Transfer Exam Grade Credit 0.00 75.00 4071 · Exam Review Fees 0.00 200.00 4072 ·Exam Scholarship Coupon -24,397.25 -11,534.06

Total Exam Fee Revenue 1,229,718.63 1,090,147.58

Misc 4993 • Revenue Suspense 0.00 0.00 4999 ·Board Training 0.00 0.00 4910 • Educational Program Fees 0.00 0.00 4970 ·Duplicate Certificates 650.00 725.00 4990 • Miscellaneous 1,003.67 322.50

Total Misc 1,653.67 1,047.50

Partnership Fees 4260 ·Partnership Registration Fees 60.00 0.00 4261 ·Partnership Renewal Fees 36,640.00 36,670.00

Total Partnership Fees 36,700.00 36,670.00

Professional Corporation Fees 4250 ·PC Registration Fees 3,200.00 4,100.00 4251 ·PC Renewal Fees 37,260.00 37,400.00 4252 ·PC Renewal Fees W/Penalties 25.00 0.00

Total Professional Corporation Fees 40,485.00 41,500.00

Total Income 2,621,037.30 2,454,205.08

Expense 6690 ·Over & Short 0.55 0.05 Fringe Benefits

5031 • Retirement - NCLB Contribution 41,053.20 39,777.87 5033 · Retirement - NCLB Administr 1,744.56 1,131.18 5035 ·Health Ins. Premiums 80,006.21 82,475.18 5036 ·Medical Reim Plan 16,719.62 23,672.94

Total Fringe Benefits 139,523.59 147,057.17

Page 1



Apr- Dec 16 Apr- Dec 15

Board Travel 5120 ·Board Travel - Board Meetings 15,234.47 14,527.75 5121 • Board Travel - Prof Meetings 38.50 113.49 5122 ·Board Travel- NASBA Annual 18,738.30 16,381.04 5123 ·Board Travel - NASBA Regional 8, 134.03 4,084.04 5124 ·Board Travel· NASBA Committees 0.00 238.20 5127 • Board Travel· NCACPA/Board 2,981.53 1,548.55 5129 ·Miscellaneous Board Costs 332.42 1,438.42

Total Board Travel 45,459.25 38,331.49

Building Expenses 5800 • Building Maintenance 2,772.17 348.57 5801 · Electricity 8,417.15 8,138.64 5802 · Grounds Maintenance 1,220.00 2,360.00 5803 ·Heat & Air Maintenance 2,248.00 4,950.93 6805 ·Insurance 4,704.00 4,459.00 5807 • Janitorial Maintenance 4,325.66 4,275.00 5808 • Pest Control Service 0.00 150.00 5809 ·Security & Fire Alarm 2,448.00 2,320.38 5810 ·Trash Collection -456.45 678.20 5811 · Water & Sewer 858.77 696.19 -

Total Building Expenses 26,537.30 28,376.91

Continuing Education -Staff 5050 · Continuing Education - Staff 1,401.08 2,938.15 5051 ·Continuing Education - RNB 102.60 0.00

Total Continuing Education -Staff 1,503.68 2,938.15

Exam Postage 5531 ·Exam Postage 960.00 960.00

Total Exam Postage 960.00 960.00

Exam Sitting and Grading 5538 ·Exam Vendor Expense 841,701.57 726,356.50

Total Exam Sitting and Grading 841,701.57 726,356.50

Investigation & Hearing Costs 5221 ·Staff Investigation Costs 16.50 124.20 5222 · Investigation Materials 5,302.56 9,514.48 5230 · Hearing Costs 7,266.84 2,512.28 5231 · Rule-Making Hearing Costs 0.00 398.80 5250 • Administrative Cost Assessed -4,600.00 -22,200.00 5260 • Civil Penalties Assessed -12,200.00 -67,700.00 5261 • Civil Penalties Remitted 13,158.53 59,619.79

Total Investigation & Hearing Costs 8,944.43 -17,730.45

Legal Expense 5140 • Legal Counsel - Administrative 24,509.00 28,094.30 5211 • Legal Counsel - Litigation 30,864.61 25,824.39

Total Legal Expense 55,373.61 53,918.69

Page 2



Apr- Dec 16 Apr- Dec 15

Mlsc Personnel 5034 • Misc. Payroll Deduction 0.00 0.00 5037 • HSA Deduction 0.00 0.00 5090 · Flowers~ Gifts~ Etc. 362.58 80.06 5091 ·Staff Recruiting 299.00 0.00 5092 • Misc. Personnel Costs 2,041.45 3,011.40

Total Misc Personnel 2,703.03 3,091.46

Office Expense 5436 • Contracted Copy Service 1,235.16 19,325.79 5301 • Equipment Rent 468.00 624.00 5310 ·Decorations 259.13 223.76 5320 • Payroll Service 1,330.01 1,267.90 5360 ·Telephone 3,612.59 4,044.87 5361 · Internet & Website 3,878.25 3,266.01 5390 · Clipping Service 2,588.34 2,147.48 5400 ·Computer Prog/Asslstance 5,881.22 1,530.00 5405 • Computer Software Maintenance 42,296.53 35,368.16 5410 ·Dues 7,805.00 7,740.00 5420 ·Insurance 12,557.00 15,861.00 5430 ·Audit fees 8,990.00 8,730.00 5440 · Misc Office Expense 1,020.00 840.00 5445 ·Banking Fees 3,534.90 1,913.69 5450 • Credit Card Fees 48,602.23 42,332.14

Total Office Expense 144,058.36 145,214.80

Per Diem - Board 5110 ·Per Diem· Board Meetings 10,550.00 8,550.00 5111 ·Per Diem· Prof Meetings 250.00 0.00 5112 ·Per Diem - NASBA Annual 3,500.00 1,900.00 5113 ·Per Diem - NASBA Regional 2,100.00 400.00 5114 · Per Diem - NASBA Committees 400.00 611.80 5117 ·Per Diem· NCACPA/Board 100.00 500.00

Total Per Diem - Board 16,900.00 11,961.80

Postage 5345 • Postage - UPS 12,000.00 11,900.00 5340 · Postage - Other 4,411.28 4,427.41 5341 · Postage - Newsletter 49,100.00 51, 100.00 5342 · Postage - Business Reply 1,200.00 1,700.00 5343 · Postage - Renewal 1,440.00 1,440.00

Total Postage 68,151.28 70,567.41

Printing 5330 · Printing - Other 2,656.40 8,233.97 5331 · Printing - Newsletter 31,069.12 39,602.88 5332 · Printing - Certificates 1,497.00 0.00

-

Total Printing 35,222.52 47,836.85

Pagel

01/06/17


Statement of Revenues & Expenses Year-to-Date Comparison

Apr - Dec 16 Apr - Dec 15

Repairs & Maintenance 5381 ·Maintenance - Copiers 5382 ·Maintenance - Computer 5383 · Maintenance - Postage

Total Repairs & Maintenance

Salaries & Payroll Taxes 5040 ·State Unemployment Tax 5010 ·Staff Salaries 5020 · Part-Time Staff Salaries 5021 ·Temporary Contractors 5030 · FICA Taxes

Total Sataries & Payroll Taxes

Scholars hips 5535 · Scholarship

Total Scholarships

Staff Travel 5060 • Staff Travel - Local 5061 • Staff Travel - Prof Mtgs 5070 • Staff Travel - NASBA Annual 5071 • Staff Travel - NASBA Regional 5072 ·Staff Travel - NASBA ED/Legal 5075 • Staff Travel - NCACPA Meetings 5076 · Staff Travel - NCACPA/Board 5077 · Staff Travel· Clear Conference 5078 • Staff Travel - Vehicle

Total Staff Travel

Su bscrlptions/References 5370 • Subscriptions/References

Total Subscriptions/References

Supplies 5350 • Supplies - Office 5351 ·Supplies· Copier 5352 ·Supplies - Computer

Total Supplies

9999 ·Suspense

T otaJ Expense

Net Ordinary Income

Other Income/Expense Other Income

8250 ·Gift Card Revenue Interest Income

8500 • Interest Income - MMAs 8510 • Interest Income - CDs

Total Interest Income

875.47 766.64 490.00

2,132.11

0.00 687,020.65

9,249.26 0.00

49,930.65

746,200.56

0.00 - ---

0.00

290.16 2,453.00 7,857.03 3,383.64 -635.96

0.00 983.94

1,607.66 0.00

- ---15,939.47

528.45 ---528.45

6,030.37 1,902.20 1, 185.27

9,117.84

0.00 ---

2, 160,957.60

460,079.70

6,500.00

3,768.76 12,094.48

15,863.24

829.16 1,075.92

0.00

1,905.08

1,148.54 663,220.42

10,722.90 290.00

48,465.89

723,847.75

6,000.00

6,000.00

404.57 2,308.73 7,537.53 5,347.45

298.00 93.70

0.00 0.00

488.00

16,477.98

876.80

876.80

3,289.23 1, 195.20 2,158.07

6,642.50

0.00

2,014,630.94

439,574.14

10,300.00

2,623.30 11,960.63

14,583.93

Page 4

01/06/17


Statement of Revenues & Expenses Year·to-Oate Comparison

Apr-Dec 16 - - - -

8200 ·Rental Income 27,071 .68 8920 • Gain on Sale of Fixed Assets 514.55

Total Other Income 49,949.47

Other Expense 7000 · Leasing Commission 1,892.48

Total Other Expense 1,892.48

Net Other Income 48,056.99

Change in Net Assets 508,136.69

Apr - Dec 15

21 ,855.60 0.00

46,739.53

0.00

0.00

46,739.53

486,313.67

Page 5

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