MINUTES Texas State Board of Public Accountancy September 17, 2009 The Texas State Board of Public Accountancy met from 10:00 a.m. until 12 Noon on September 17, 2009, at 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701-3900. A notice of this meeting containing all items on the agenda was filed with the office of the Secretary of State at 4:17 p.m., September 2, 2009. (TRD #2009006823) (ATTACHMENT 1) Board Members Present
Member Absent
Staff Present
Gregory L. Bailes, CPA Presiding Officer A. Carlos Barrera, CPA Treasurer John W. Dunbar, CPA Everett R. Ferguson, CPA James C. Flagg, PhD, CPA Secretary David L. King, CPA Executive member-at-large Evelyn M. Martinez, Esq. Maribess L. Miller, CPA Steve D. Peña, CPA James W. Pollard Thomas G. Prothro, CPA Catherine J. Rodewald John W. Steinberg, CFE
Dorothy M. Fowler, CPA Assistant Presiding Officer excused Jon R. Keeney excused
Ismael Castillo Karen Davis James Hamilton, CPA Alan Hermanson, CPA J. Randel Hill, Esq. Donna Hiller Jean Keith Steven Mahaffey Virginia Moher, Esq., CPA Patrick Myers, Esq. Marisa Rios Barbara Stooksberry Lorna Schwimmer William Treacy
I.
Others Present Richard Forrest, Esq., CPA Robert Owen, CPA
Mr. Bailes, presiding officer, called the meeting to order at 10:00 a.m. Mr. Steinberg moved to excuse the absence of Ms. Fowler from the Board meeting and from committee meetings held September 16, 2009. Mr. Barrera seconded the motion, and it passed unanimously. Mr. Peña moved to excuse the absence of Mr. Keeney from the Board meeting. Ms. Miller seconded the motion, and it passed unanimously.
II.
Mr. Steinberg moved to approve the July 23, 2009, Board meeting minutes as presented. Dr. Flagg seconded the motion, and it passed unanimously.
III.
Mr. Bailes, Executive Committee chair, reported on the September 17, 2009, committee meeting. Members Present
Members Absent
Staff Present
Gregory L. Bailes, CPA A. Carlos Barrera, CPA James C. Flagg, PhD, CPA David L. King, CPA
Dorothy M. Fowler, CPA excused
James Hamilton, CPA Alan Hermanson, CPA J. Randel Hill, Esq. William Treacy
Others Present Roberto Gonzalez, CPA Monday R. Rufus, CPA
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A.
Mr. Dunbar moved to approve the Board’s financial statements. Mr. Steinberg seconded the motion, and it passed unanimously.
B.
The following SDSI matters were reported: 1.
Mr. Barrera moved to approve the Board’s budget plan for FY 2010 as presented. Mr. Steinberg seconded the motion, and it passed unanimously.
2.
Mr. Bailes reported that the executive director’s evaluation process would be discussed at the end of meeting during executive session.
3.
Mr. Peña moved to approve the Board’s internal audit plan for FY 2010. Mr. Dunbar seconded the motion, and it passed unanimously. The internal audit plan would include the following: 1. 2. 3.
Peer Review Follow-up on SAO FY 2009 report Risk assessment and audit plan for FY 2011
C. The following NASBA/AICPA matters were reported: 1.
Mr. Bailes reported that the Board’s executive director, William Treacy, has been selected to receive the Lorraine P. Sachs Standard of Excellence Award at the NASBA annual meeting in Phoenix on November 1-4, 2009. Candidates for this award are state board executive staff leaders who show excellence in regulating and make a positive impact on the accounting profession.
2.
Mr. King moved to ratify a mutual recognition agreement between the New Zealand Institute of Chartered Accountants and the United States International Qualifications Appraisal Board in accordance with Board Rule 512.3 (Evaluation of Foreign Credentials by the International Qualifications Appraisal Board). Dr. Flagg seconded the motion, and it passed unanimously
D. Mr. Prothro moved to approve the following professional service contracts. Mr. Dunbar seconded the motion, and it passed unanimously. FY 2009 Amendments: Technical Standards Review Committees: Padgett, Stratemann, & Co. 4/13/09 – 8/31/09 (increase contract by $12,750 from $25,000 to $37,750)
$12,750
Independent Consultant Contract (SOAH litigation): Mary Alice Boehm-McKaughan 9/1/08 – 8/31/09 (increase contract by $13,000 from $60,000 to $73,000)
$13,000
Peer Review Oversight Board: John Mason Andres, CPA 9/1/08 – 8/31/09 (increase contract by $330 from $1,270 to $1,600 for travel) Office of the Attorney General 9/1/08 – 8/31/09 (increase contract by $35,000 from $125,000 to $160,000)
$330 $35,000
FY 2010 Behavioral Enforcement Committee consultants: On an as-needed basis – budget of $26,000 Technical Standards Review Committees consultants: 1. P. Vincent Milano, CPA 9/1/09 – 8/31/10 2. Ken Skrabanek, CPA 9/1/09 – 8/31/10 3. Benjamin Gomez, CPA 9/1/09 – 8/31/10
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$25,000 $25,000 $10,000
4. 5. 6.
Edward H. Gowett, CPA Padgett, Stratemann, & Co. Dennis Jennings, CPA
9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10
$5,000 $50,000 $60,000
Peer Review Committee consultants: 1. John Mason Andres, CPA 9/1/09 – 8/31/10 2. Gary S. Hoffman, CPA 9/1/09 – 8/31/10 3. Rebecca Teague, CPA 9/1/09 – 8/31/10
$17,648 $17,648 $17,648
Office of the Attorney General
9/1/09 – 8/31/10
$150,000
State Office of Administrative Hearings 9/1/09 – 8/31/10
$14,452
Internal Audit
9/1/09 – 8/31/10
$25,000
Peer Assistance
9/1/09 – 8/31/10
$90,000
Independent consultant contract (SOAH litigation): Mary Alice Boehm-McKaughan 9/1/09 – 8/31/10
$68,000
Sponsor Review Program consultants: Master Reviewers: Ron Huntsman 9/1/09 – 8/31/10 Mitch Sutherlin 9/1/09 – 8/31/10
$115.00/hour $115.00/hour
Reviewers: Kathy Abshire Richard Baland Michelle Barton Michael Burnett Manuel Cavazos Manal Coleman David Crumbaugh Helen Cruz-Diaz Romulo Diaz Pamela Evans Jennifer Fadal Ed Gowett Linda Gray Charles Hallam Alice Jennings John Jones Connie Kelly Jimmie Wayne Knowles Tim Madrigal Michael McMennamy James Molduene Philip Morehead Colleen Neuharth McClain Ray Newman Timothy Prebe Darlene Pulliam Janet Ann Smith Mark Turner Neal Van Zante Alva Winston Steve Wright
$100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour $100.00/hour
9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10 9/1/09 – 8/31/10
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IV.
E.
Mr. Bailes reviewed general correspondence received by the Board.
F.
Mr. Bailes announced that the executive session would be held at the end of the general meeting.
Mr. Barrera, Rules Committee chair, reported on the September 16, 2009, committee meeting. Members Present
Member Absent
Staff Present
Gregory L. Bailes, CPA ex officio A. Carlos Barrera, CPA Maribess L. Miller, CPA Catherine J. Rodewald
Dorothy M. Fowler, CPA excused Jon R. Keeney excused Evelyn M. Martinez, Esq.
Karen Davis James Hamilton, CPA J. Randel Hill, Esq. Donna Hiller Jean Keith Steven Mahaffey Marisa Rios Barbara Stooksberry William Treacy
Others Present James Pollard Robert Owen, CPA
V.
A.
Mr. Barrera moved to authorize the executive director to publish in the Texas Register, for public comment, the committee’s proposed new Chapter 520 (Provisions for the Fifth-Year Accounting Students Scholarship Program) of the Board’s Rules. Mr. Dunbar seconded the motion, and it passed unanimously. (ATTACHMENT 2)
B.
Mr. Peña moved to authorize the executive director to publish in the Texas Register, for public comment, the committee’s proposed amendments to Section 505.10 (Board Committees) of the Board’s Rules. Mr. Dunbar seconded the motion, and it passed unanimously. (ATTACHMENT 3)
Dr. Flagg, Qualifications Committee chair, reported on the September 16, 2009, committee meeting. Members Present
Member Absent
Staff Present
Florence Atiase, CPA Gregory L. Bailes, CPA ex officio James C. Flagg, PhD, CPA Sharron Graves, CPA David L. King, CPA Roselyn Morris, PhD, CPA James W. Pollard Thomas G. Prothro, CPA Melanie G. Thompson, CPA
Jerry A. Davis, CPA
Donna Hiller Patrick Myers, Esq. Barbara Stooksberry
A.
Dr. Flagg reported that the committee had reviewed the report on success rates for the April/May 2009 CPA exam.
B.
Dr. Flagg informed the Board that the committee did not approve ACCT 854 – Ethical, Professional, and Societal Responsibilities, offered at Clemson University as meeting Board Rule 511.58(c) (Definitions of Related Business Subjects).
C. Dr. Flagg reported that the committee had reviewed the following materials received from the AICPA and NASBA: 1. Report on the 2008 Examination Review Board report 2. Report on the AICPA Content and Skill Specification Outlines for the Uniform CPA Examination – Preview 3. Report on the NASBA CBT Steering Group – Quarterly Summary Reports to the state boards 4. Report on the NASBA Candidate Care Department – Candidate Concerns
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VI.
Mr. Peña, Peer Review Committee chair, reported on the September 16, 2009, committee meeting. Members Present
Members Absent
Staff Present
Dan H. Hanke, CPA David A. Jentho, CPA Robert McAdams, CPA William L. Patton, CPA Steve D. Peña, CPA James W. Pollard Joseph W. Richardson, CPA David C. Start Jr., CPA
Dorothy M. Fowler, CPA excused
J. Randel Hill, Esq. Jean Keith Steven Mahaffey Virginia Moher, Esq., CPA Anthony Sanchez April Serrano Barbara Stooksberry
Others Present John Mason Andres, CPA via teleconference Jerry Cross, CPA Gary S. Hoffman, CPA Rebecca Teague, CPA
A.
Mr. Peña reported that the committee had reviewed information that was submitted by seven firms previously considered at the March 2009 meeting. One firm has completed the review and received a rating of pass and requires no further action. Five of the firms are awaiting final letters of acceptance from the sponsoring organization. The last firm will be sent an agreed consent order limiting its practice and must complete the required continuing professional education and receive a pass rate on the assigned accelerated review in order to meet the terms of the order.
B.
Mr. Peña reported that the committee had received information from four firms that have had two or more consecutive substandard reviews. Two of the firms are required to complete an accelerated review with due dates of December 31, 2009, and June 30, 2010. The third firm received a rating of pass and is awaiting the final letter of acceptance from the sponsoring organization. The last firm was scheduled for a March 31, 2010, peer review and will forward the results.
C. Mr. Peña reported that the committee had reviewed annual statistical information on firm’s peer review results. D. No action was taken regarding correspondence from the Peer Review Oversight Board regarding sponsoring organizations. E.
VII.
Mr. Peña reported that a request was received from a firm requesting guidance on a peer review dispute between the firm and the peer review sponsor. Staff was directed to prepare a letter addressing the comments.
Dr. Flagg, Fifth-Year Accounting Students Scholarship Program Advisory Committee member, reported on the August 17, 2009, committee meeting. Members Present
Others Present
Staff Present
Walter D. Davis, CPA James C. Flagg, PhD, CPA Sewon O Cynthia Ramos, CPA Violet Rogers, CPA Robert Vigeland, PhD Pat L. Wilson, CPA
Jane Caldwell Rosalyn Morris, PhD, CPA Robert Owen, CPA
Karen Davis Alan Hermanson, CPA J. Randel Hill, Esq. Donna Hiller Marisa Rios Barbara Stooksberry William Treacy
Dr. Flagg reported on the history and the purpose of the transfer of the Fifth-Year Accounting Students Scholarship Program from the Texas Higher Education Coordinating Board to the Texas State Board of Public Accountancy. He also informed the Board that staff was asked to determine what data were available to utilize in allocating funds in accordance with the purpose established by the legislature and meeting the criteria of 1) financial need, 2) ethnic or racial minority status, and 3) scholastic ability and performance. He also reported that the Advisory Committee had reviewed proposed rules to administer the program and made revisions that had been incorporated into the proposed rules.
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VIII.
Mr. Dunbar, Behavioral Enforcement Committee member, reported on the August 3, 2009, committee meeting in Ms. Fowler’s absence at the Board meeting. Members Present
Member Absent
Staff Present
A. Carlos Barrera, CPA John W. Dunbar, CPA Dorothy M. Fowler, CPA Donna J. Hugly, CPA Jimmie L. Mason, CPA Maribess L. Miller, CPA Steve D. Peña, CPA John W. Steinberg, CFE
Jerry L. Love, CPA
Andrea Carter, Esq. J. Randel Hill, Esq.
A.
Dr. Flagg moved to dismiss the following investigations based on insufficient evidence. Mr. Pollard seconded the motion, and it passed. 1. 2. 3. 4. 5.
B.
Investigation No. 09-03-01L1 1 Investigation No. 09-02-21L Investigation No. 09-02-01L1 1 Investigation No. 09-05-04L Investigation No. 09-04-06L1
6. 7. 8. 9.
Investigation No. 09-04-05L1 1 Investigation No. 09-04-13L Investigation No. 09-03-06L1 1 Investigation No. 09-02-08L
Mr. King moved to dismiss the following investigations based on voluntary compliance. Mr. Ferguson seconded the motion, and it passed. 1. 2. 3.
1
4. 5. 6.
Investigation No. 09-02-15L 1 Investigation No. 09-05-03L Investigation No. 09-04-12L1
1
Investigation No. 09-03-02L 1 Investigation No. 09-05-12L Investigation No. 09-04-09L1
C. Other – The committee took no action on 10 other investigations the committee had considered. IX.
Mr. Barrera, Technical Standards Review I Committee chair, reported on the April 29, 2009, and August 21, 2009, committee meetings. April 29, 2009 Staff Present
Members Present A. Carlos Barrera, CPA Ben W. Bender, CPA James C. Flagg, PhD, CPA David King, CPA Joe D. Koshkin, CPA
James W. Pollard Edward L. Summers, PhD, CPA
J. Randel Hill, Esq. Virginia Moher, Esq., CPA William Treacy
A.
Mr. Steinberg moved to dismiss Investigation Nos. 07-10-02L2 and 07-10-03L2 based on voluntary compliance. Mr. Dunbar seconded the motion, and it passed.
B.
Other - The committee took no action on four other investigations the committee had considered.
August 21, 2009 Members Present
Members Absent
Staff Present
A. Carlos Barrera, CPA Joe D. Koshkin, CPA Michael McConnell, CPA Maribess L. Miller, CPA James W. Pollard W. David Rook, CPA Edward L. Summers, PhD, CPA
Ben W. Bender, CPA James C. Flagg, PhD, CPA
J. Randel Hill, Esq. Virginia Moher, Esq., CPA
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A.
Mr. Steinberg moved to dismiss the following investigations based on insufficient evidence. Mr. Dunbar seconded the motion, and it passed. 1. 2. 3.
B. X.
3 3 Investigation Nos. 07-06-09L and 07-06-10L Investigation No. 09-02-05L tabled Investigation No. 97-08-53L3
Other - The committee took no action on two other investigations the committee had considered.
Mr. King, Technical Standards Review II Committee chair, reported on the August 25, 2009, committee meeting. Members Present
Members Absent
Staff Present
David D. Duree, CPA Everrett Ferguson, CPA Jon R. Keeney David L. King, CPA Steve D. Peña, CPA Thomas G. Prothro, CPA Joseph W. Richardson, CPA
James W. Johnson, CPA Stanley D. Sewell, CPA
J. Randel Hill, Esq. Patrick Myers, Esq. William Treacy
A.
Mr. Dunbar moved to dismiss the following investigations based on insufficient evidence. Mr. Barrera seconded the motion, and it passed. 1. 2. 3.
B.
Investigation Nos. 08-05-16L4 and 08-05-17L4 Investigation No. 09-04-10L4 4 Investigation No. 09-06-06L
Mr. Steinberg moved to lift a pre-issuance requirement imposed by an agreed consent order for Investigation No. 01-12-24L4. Mr. Dunbar seconded the motion, and it passed.
XI.
Ms. Moher, staff attorney, reported on the status of the Enforcement Division’s probation monitoring system.
XII.
Mr. Hill, general counsel, reported on the status of investigations of violations of Subchapter J of the Public Accountancy Act regarding the unauthorized practice of public accountancy.
XIII.
The Board took the following actions on agreed consent orders, agreed cease and desist orders, and proposals for decision: A.
Agreed Consent Orders Behavioral Enforcement Committee
Mr. King moved to approve the following Agreed Consent Orders as presented. Mr. Ferguson seconded the motion, and it passed. 1.
Investigation No.: 09-02-20L Hometown: Dallas Respondent: Richard L. Meggs, Jr. Certificate No.: 074866 Rules Violations: 501.81, 501.83 and 527.4 Firm License No.: C06920 Act Violation: 901.502(6) Respondent entered into an Agreed Consent Order with the Board whereby Respondent was reprimanded. Respondent shall complete and submit proof of completion of eight hours of live CPE in the area of compilations and reviews within 90 days of the date the Board ratifies the Board Order. In addition, Respondent must pay $566.76 in administrative costs within 30 days of the date the Board ratifies the Board Order. Respondent practiced public accountancy in an unregistered entity, practiced public accountancy with an improper firm name and failed to participate in the Board’s peer review program.
2.
Investigation No.: Respondent: Act Violation
07-04-11L Jean E. Sickels 901.502(8) 7
Hometown Decatur, GA Certificate No.: 072576 Firm License No.: T09446
Respondent entered into an Agreed Consent Order with the Board whereby Respondent was reprimanded. In addition, Respondent must pay an administrative penalty of $1000 and $876.55 in administrative costs within 30 days of the date the Board ratifies the Board Order. On September 20, 2006, the Colorado Board issued an Order wherein Respondent was placed on probation for at least two years, assessed a $1000 fine, required to submit copies of five preissuance reviews of her audits, and required to obtain and submit preissuance reviews of her next five audits conducted on entities in the state of Colorado. B.
Mass Hearings
Mr. Steinberg moved to approve the following proposals for decision as presented. Mr. Dunbar seconded the motion, and it passed unanimously. 1.
Respondents:
In The Matter of Disciplinary Action Against Certain Licensees for Nonpayment of Professional Fees for Three Consecutive License Periods The Respondents failed to pay their licensing fees for three consecutive license periods. Following the public hearing, an Administrative Law Judge (ALJ) of the State Office of Administrative Hearings recommended that the certificate of each Respondent still not in compliance be revoked without prejudice. Each Respondent may regain his or her certificate by paying all license fees and penalties and by otherwise coming into compliance with the Act. The ALJ found that the Respondents violated Section 901.502(4) (failure to pay license fees for three consecutive years) of the Act. The Respondents, although properly notified, failed to appear, and were not represented at the hearing. No Board Committee considered these actions. (ATTACHMENT 4) Docket 457-09-2935 457-09-3415
2.
Scheduled Hearing May 26, 2009 June 30, 2009
Respondents:
In The Matter of Disciplinary Action Against Certain License Holders for CPE Delinquencies The Respondents failed to comply with CPE reporting requirements found in Chapter 523 of the Rules and Section 901.411 of the Act. Following the scheduled public hearing, an Administrative Law Judge (ALJ) of the State Office of Administrative Hearings recommended that the license of each Respondent still not in compliance be suspended for a period of three years, or until he or she complies with the licensing requirements of the Act, whichever is sooner. Additionally, the ALJ recommended a $100 penalty be imposed for each year a Respondent is not in compliance with the Board's CPE requirements. The ALJ found that the Respondents violated Sections 501.94 (Mandatory CPE) and 523.111 (Mandatory CPE Reporting) of the Board's Rules, and 901.411 (CPE) of the Act. The Respondents, although properly notified, failed to appear, and were not represented at the hearing. No Board Committee considered these actions. (ATTACHMENT 5) Docket 457-09-2936 457-09-3416
3.
Investigation Numbers 09-04-10001 through 09-04-10038 09-05-10001 through 09-05-10053
Investigation Numbers 09-04-10039 through 09-04-10180 09-05-10054 through 09-05-10277
Scheduled Hearing May 26, 2009 June 30, 2009
Respondents:
In The Matter of Disciplinary Action Against Certain Certificate Holders for Failure to Complete License Notice The Respondents failed to complete the renewal of their licenses required under Section 515.1 of the Board's Rules, engaged in the practice of public accountancy without a license issued by the Board as required by Section 501.80 of the Board's Rules and failed to substantively respond to Board communications as required by Section 501.93 of the Board's Rules. Following the public hearing, an Administrative Law Judge (ALJ) of the State Office of Administrative Hearings recommended that the certificate of the Respondents not in compliance be revoked without prejudice until such time as the Respondent complies with the requirements of the Act. The ALJ found that the Respondents violated Sections 501.80 and 501.93 of the Board's Rules well as Sections 901.502(6) (violation of a rule of professional conduct) and 901.502(11) (conduct indicating lack of fitness to serve the public as a professional accountant) of the Act. The Respondents, although properly notified, failed to appear, and were not represented at the hearing. No Board Committee considered these actions. (ATTACHMENT 6) Docket 457-09-2937 457-09-3417
Investigation Numbers 09-04-10181 through 09-04-10213 09-05-10278 through 09-05-10310 8
Scheduled Hearing May 26, 2009 June 30, 2009
C.
Agreed Cease and Desist Orders
Ms. Rodewald moved to approve the following Agreed Cease and Desist Orders as presented. Dr. Flagg seconded the motion, and it passed unanimously. 1.
Investigation No.: 08-08-16N Hometown: Midland Respondent: The Accounting Office - Gary Biggs Act Violation: 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent held himself out as an “accountant” and asserted his expertise in accounting, although Respondent does not hold a license in Texas.
2.
Investigation No.: 07-08-08N Hometown: Kerrville Respondent: Harold L. Walsleben Act Violation: 901.451 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation although Respondent does not hold a license in Texas.
3.
Investigation No.: 08-06-02N Hometown: Hurst Respondent: Ken Carter Act Violation: 901.451 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation although Respondent does not hold a license in Texas.
4.
Investigation No.: 08-07-24N Hometown: Houston Respondent: James Broomas Act Violation: 901.451 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation although Respondent does not hold a license in Texas.
5.
Investigation No.: 09-05-38N Hometown: Dallas Respondent: Cindy Clifton Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation and asserted her expertise in accounting and auditing, although Respondent does not hold a license in Texas.
6.
Investigation No.: 09-05-63N Hometown: Sugar Land Respondent: Charles E. Willett Act Violation: 901.451 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation although Respondent does not hold a license in Texas.
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7.
Investigation No.: 09-06-10N Hometown: Cedar Park Respondent: DB Consulting Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent offered attest services and used the term “accountant” although Respondent does not hold a license in Texas.
8.
Investigation No.: 09-06-14N Hometown: Arlington Respondent: Aaron Liggett Act Violation: 901.451 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent performed an attest service although Respondent does not hold a license in Texas.
9.
Investigation No.: 09-06-26N Hometown: Austin Respondent: Marc R. Hall Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation and asserted his expertise in accounting although Respondent does not hold a license in Texas.
10. Investigation No.: 09-06-28N Hometown: Austin Respondent: Greg Schroen Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent offered attest services and held himself out to the public as an “accountant” although Respondent does not hold a license in Texas. 11. Investigation No.: 09-06-34N Hometown: Austin Respondent: Marjorie Adams Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent offered attest services and held herself out to the public as an “accountant” although Respondent does not hold a license in Texas. 12. Investigation No.: 09-07-06N Hometown: Forney Respondent: Smith & Associates Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent performed an attest service and used the term “accounting” although Respondent does not hold a license in Texas.
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13. Investigation No.: 09-07-07N Hometown: Wylie Respondent: Haytham Nakhleh Act Violation: 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent held himself out to the public as an “accountant” and asserted his expertise in accounting, although Respondent does not hold a license in Texas. 14. Investigation No.: 09-07-09N Hometown: Houston Respondent: GAVA Consulting & Galia M. Vargas Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent performed an attest service and held itself out to the public as “accountants” although Respondent does not hold a license in Texas. 15. Investigation No.: 09-07-15N Hometown: Houston Respondent: William E. Gassiott Act Violation: 901.451 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation although Respondent does not hold a license in Texas. 16. Investigation No.: 09-07-24N Hometown: Fort Worth Respondent: M. Wayne Usry Act Violation: 901.451 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation although Respondent does not hold a license in Texas. 17. Investigation No.: 09-07-30N Hometown: Houston Respondent: Mounis Masood Abbasi Act Violations: 901.451, 901.453 Respondent entered into an Agreed Cease and Desist Order with the Board whereby Respondent will cease and desist from providing attest services and using reserved terms until or unless Respondent complies with the registration and licensing provisions of the Act, and until or unless Respondent has obtained a license to practice public accountancy or certified public accountancy. Respondent used the CPA designation and asserted his expertise in accounting although Respondent does not hold a license in Texas. XIV.
XV.
Mr. Dunbar moved to adopt the following Board Rules on second reading. Mr. Steinberg seconded the motion, and it passed unanimously. A.
Section 501.75 (Confidential Client Communications) (ATTACHMENT 7)
B.
Section 511.57 (Definition of Accounting Courses) (ATTACHMENT 8)
C.
Section 523.118 (Limitation for Non-Technical Courses) (ATTACHMENT 9)
Mr. Bailes reviewed the schedule of future Board meetings. After a five-minute recess the following occurred:
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The Board went into executive session at 10:46 a.m., pursuant to Texas Government Code Section 551.071 and Section 551.047, to seek the advice of the Board’s attorney concerning the litigation styled Bauer, Bass & Gruzmacher v. TSBPA and Beakley v. TSBPA and to deliberate the duties and/or evaluate the performance of the executive director. The full Board reconvened at 11:58 a.m. Mr. Bailes moved to increase the executive director’s salary to $120,000. Mr. Steinberg seconded the motion and it passed unanimously. XVI.
Mr. Bailes adjourned the meeting at 12 Noon.
ATTEST:
___________________________________________ Gregory L. Bailes, CPA, Presiding Officer
___________________________________________ James C. Flagg, PhD, CPA, Secretary
____________________________________________________________
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Mr. Barrera, Mr. Dunbar, Ms. Miller, Mr. Peña and Mr. Steinberg recused themselves from participating in this matter Mr. Barrera, Dr. Flagg, Mr., King, and Mr. Pollard recused themselves from participating in this matter. Mr. Barrera, Ms. Miller, and Mr. Pollard recused themselves from participating in this matter. Mr. Ferguson, Mr. King, Mr. Peña, and Mr. Prothro recused themselves from participating in this matter. Mr. Bailes, Mr. Barrera, Mr. Dunbar, Mr. Peña and Mr. Steinberg recused themselves from participating in this matter. Mr. Bailes, Mr. Dunbar, and Mr. Steinberg recused themselves from participating in this matter.
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