The AlAbAmA CPA 1

ALABAMA SOCIETY OF CPAS I DECEMBER 2008 I JANUARY 2009

GoinG Global Makes statewide iMpact See pages 4 -5

Annual Student IssueAnnual Student Issue

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The AlAbAmA CPANewsleTTer

Alabama Society of

Certified Public Accountants

P.O. Box 5000

Montgomery, Alabama 36103

1-800-227-1711

334-834-7650

www.ascpa.org

OfficersMarlene M. McCain, Chair

J. Brian Barksdale, Chair-elect

E. Lamar Reeves, Vice-Chair

John P. Shank, Secretary/Treasurer

Charles L. Watkins, Past Chair

BOard Of directOrsMartin R. Abroms

William Mark Baker

Roger F. Bryant

Samuel F. Carnley

James R.L. Carroll

Jason B. Davis

J. Thomas Grainger

Darren P. Hipps

Clifton T. Jackson

John N. McCain

Lynn H. Reeves

Amanda H. Snead

Amanda M. Tyler

Aaron K. Waller

Justin K. Clark, Young CPA

Karen D. Arthur, Young CPA

aicPa cOuncil MeMBersThomas A. RatcliffeStephen L. Moore

Marlene M. McCain

The Alabama CPA Newsletter is published by Alabama Society of Certified Public Accountants as a membership service to Society members. Views and opinions appearing in this publication are not necessarily endorsed by the ASCPA. The deadline for submitting materials for publication is the first of the month preceding issue date.

Jeannine P. Birmingham, CPA, CAE President and CEO

Diane L. Christy, Editor

Greetings Fellow CPAs....

C an you believe the Holidays are here? What a special time for all of us to enjoy time with our family and friends! It is also a time to reflect on our accomplishments for the past year and to set new goals for

the upcoming year. We are all so busy…I think it is particularly important for us to take a ‘time out’ and reflect on where we are now and where we would l ike to be next year…and maybe five years from now. So....take a few minutes to review your 2008 year…….what did you do? Did you accomplish what you set out to do? …What did you not do that you wished you had?

Let’s talk about setting goals... Each year, we set “New Year Resolutions” in early January and within just a short time, many of us have abandoned our ideas and fallen back into our regular daily routines or habits. Ever notice how the gym is so busy in January but is almost back to normal traffic within just a month or so? This year I am challenging each of us to set at least two new goals for 2009 – one personal and one professional - for the short term and the long term.

The secret to goal setting is to recognize the difference between our ‘dreams’ and our ‘goals’, and to make your goals ‘attainable’. Sometimes it takes several steps or several years to ac-complish a goal on our list. Long term goals should be broken down into smaller steps to allow progress to be made. The reality is that if we never get started we will never accomplish our goals. It’s like trying to run a race that you never even entered. That is why it is so important for each of us to set aside some reflection time to think about our accomplishments and what our goals are for the upcoming year. And what a perfect time to do this…during the holiday break.

Here are three quick steps for establishing and attaining goals for the upcoming year:

1. Write down your goals.

2. Identify specific steps or tasks to help accomplish them.

3. Establish a planned timeline.

4. Address any potential barriers how you will overcome them.

It is important for all of us to know that we control our own destiny. There are lots of opportuni-ties to those who seek them out. Setting goals is a great way to add some order to your life plan and help you be happy and successful. Good luck with YOUR goals for 2009!

A Special Happy Holiday Greeting to all of you! Wishing you a successful and rewarding 2009!

message from the Chair...Marlene M. McCain

AsCPA ChAIr’s COrNer Traveling the State…As we approach mid-year for the ASCPA, I think it is appropriate to highlight the ASCPA Chapters that I have visited so far this year. Even though each Chapter has its own per-sonality, the welcome and hospitality has been consistent across the state. The energy and enthusiasm at the chapter meetings is amazing.

If you haven’t been to a Chapter meeting lately, I encourage you to attend. Also, if you are a regular attendee, consider bringing a client or fellow worker to a meeting. They might be one of our newest members. I am sure they don’t realize what they are missing out on!

So, ThANK YOU to each Chapter for your great hospitality!

Birmingham Chapter Northeast Alabama Chapter (Gadsden)Montgomery Chapter Tuscaloosa ChapterSouth Central Chapter (Troy) Southeast Chapter (Dothan)East Alabama Chapter (Auburn)

Visiting these ASCPA Chapters and meeting our members is a living testimonial of why…

IT’s greAT TO be A CPA!

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sTUdeNT SUCCESS

bIrmINghAm ChAPTerTheresa Ruth Wohleber Birmingham Southern CollegeReagan M. Horton University of MontevalloSarah Malcom University of Alabama

BirminghamCasey McGinnis University of Alabama

BirminghamDavid Hancock Samford University

mONTgOmerY ChAPTerJerel Brent Mims Auburn MontgomeryMonique Cherelle Cosby Auburn MontgomerySara Beth Vaughn Huntingdon CollegeKia Shawnte Toney Alabama State University

Chapters do Their Part in

Priming the Pump

It’s not all about the Alabama Society’s Educational Founda-tion when it comes to providing

support for the next generation of CPAs. Here are the recipients of chapter-level scholarships for academic year 2008/09.

mObIle ChAPTer Timothy (TJ) Vice, Jr. University of

South AlabamaSean Simpson Spring Hill CollegeMatthew Wilson Spring Hill College

John Wood University of Mobile

NOrTheAsT ChAPTerAshley Carlisle Jacksonville State

University

Chapters do Their Part in

Priming the Pump

1 Arika Jena Barnett Alabama State University 2 Kyle David Beason University of Montevallo 3 Laura Beth Bordelon University of Alabama at Birmingham 4 Nikki Elizabeth Calato Spring Hill College 5 Esther Lynn Clay Jacksonville State University 6 James Russell Dicks Troy University

7 Brittany Nicole Donahoe Birmingham-Southern College 8 Daffaney C. Griffin Tuskegee University 9 Tori Brooke Hildebrand Samford University 10 Lindsey Hallman Howard University of West Alabama 11 Laura Lee Lovelady University of Mobile 12 Stephen Matthew Loyd Athens State University 13 Taraesha Candiss Mastin Alabama A&M University 14 Candace Marie McCraney University of Alabama

15 Macy Meadows Nobles University of North Alabama 16 Aerrial Monique Orr UAB – Pearce Bevill Minority Scholarship 17 Melissa Martin Parrish University of South Alabama 18 Bradley Dean Vest Huntingdon College 19 Sabrina Maria Wenning University of Alabama in Huntsville 20 Travis M. Wilson Auburn University

Congratulations to this year’s educational Foundation

scholarship recipientsThe ASCPA applauds the dedication, talent and commitment of these rising stars of the accounting profession. The Alabama Society also appreciates members’ support of the Educational Foundation

and the effort of local chapters in reviewing candidate materials and awarding scholarships.

Congratulations to this year’s educational Foundation

scholarship recipients

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Thank You Volunteers

Alabama Young CPA

This one-day blitz was originally suggested by Young CPA Board president Don McCleod as an outreach into Alabama high schools. It was developed with the help of the Alabama

State Department of Education’s Career Tech section, which provid-ed multiple email blasts to the 168 schools in the state with account-ing classes. It reflects the most recent development in the Society’s four-year relationship with the department.

Derek Trotter created the PowerPoint using NY Times columnist Thomas Friedman’s book “The World is Flat” as source material. In it Friedman describes why and how the world has become flat; that is, how the advent of technology – most especially the internet and World Wide Web – have led to a global economy. Our “take” on this idea is to help students understand what skills will be needed to succeed in the future, and to pitch accounting as an ideal way to build a solid career. The program is designed to fit into a standard 50 minute period; 20-25 minutes for the slide show, 10-15 for the Young CPA’s own story of becoming a CPA, and remaining time for Q&A. Promotional items, including map of the world sticky notes and globe stress balls, with the Young CPA logo and ASCPA web address, were given to the students. These items are courtesy of the funds the Young CPAs receive from their chapters for the Best and Brightest campaign.

Over 2400 students saw the Going Global presentation, at 41 schools with 50 volunteers. While this is an astounding result for any first-year program, it will also serve as a template for other state soci-eties who, like the ASCPA, have limited resources for large outreach programs. Communications staff Diane Christy and Derek Trotter have volunteered to share Going Global with other state societies’ academic and career development departments.

Thank you to the many firms which provided staff members with the time to participate in this project.

GoinG GlobAl Young CPA 2008 Initiative

Karen Arthur Pearce, Bevill, Leesburg & Moore, PCSam Carnley Sam Carnley, CPAJoseph Cawood Warren, Averett, Kimbrough & Marino Josh Cosker BioHorizons Implant SystemsJonathan Kassouf Kassouf & Co, PCMichael Kassouf Kassouf & Co, PCMisti Rasmussen Kassouf & Co, PCBetsy Spurgeon Kassouf & Co, PCRush Letson Letson & AssociatesDenise Lowery Sellers, Richardson, Holman & West, LLPScherri Nix ProAssuranceChasity Peper DLMC, PC Tina White DLMC, PC Casey Taylor Mayer Electric Supply Company, Inc. Murry Guy Machen, McChesney & Chastain, LLPLesley Price Machen, McChesney & Chastain, LLPAmanda Savage Machen, McChesney & Chastain, LLPNicholas Sharp Machen, McChesney & Chastain, LLPRyan Campbell Anglin, Reichmann, Snellgrove & ArmstrongTodd McAdams Anglin, Reichmann, Snellgrove & ArmstrongBrandon Smith Anglin, Reichmann, Snellgrove & ArmstrongKimberly Cain Robertson, Andreoli & Covington, PC Rachel Godwin Hartmann, Blackmon & Kilgore, PCNena Beth Morris E. Mark Ezell, PCRonnie Smith Finance and Investment Services Erin Sylvia Wilkins Miller, PCBillie Blackwell Jackson ThorntonKeina Houser Jackson ThorntonKendra James Jackson ThorntonMark Russell Dempsey & Russell, CPA'sDavid Dvorak Carr, Riggs & Ingram, LLCAmanda Scott Carr, Riggs & Ingram, LLCMatthew Stringfellow Wilson PriceAllison Stack Johnson, Stack, Johnson, LLCJamey Carroll MDA Professional Group, PCAnnette Markham MDA Professional Group, PCShane Withey MDA Professional Group, PCJeff Zanzig Jacksonville State University Amanda Paul Troy UniversityHeather Price Gibson & Carden, LLCBillie Ann Taylor Gibson & Carden, LLCDon McCleod Don McCleod, CPA, PCBrian McLeod National Security GroupJennifer Ballard Jamison, Money, Farmer & Co, PCKeena Calloway Southeast Cancer NetworkRachel Mims Jamison, Money, Farmer & Co, PCTodd Turner Jamison, Money, Farmer & Co, PCErica Russell Fricke, Sweatmon & Co, PC Chasity Sweatmon Fricke, Sweatmon & Co, PC

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Thank You Volunteers

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Dear Ms. Scott:

Thank you for coming to our class on Friday and speaking to us. I learned a lot. I realized how much times have changed [from your presentation] to us. I would also like to let you know that I am investing money into a CD soon. Hopefully you can come again and speak.

Sincerely, Thanks again

Victoria McCollum

Dear Ms. Christy:Mr. Kilgore did an excellent job for my school! We really

enjoyed having him visit. Thank you for making this possible!Betty Clark Escambia Brewton CTC2824 Pea Ridge RdBrewton AL 36426251-867-7829 ext 6106

Hey Diane and Derek,Here are a few pictures from Tuscaloosa County High School.

Keena Calloway and I did the presentation. The teacher at Tusca-loosa County High School liked it so much that she asked us to stay and present it to her second block class! They asked good questions and really loved the goodies we gave them. We actually took up the whole class with the presentation and our personal stories about accounting. The second class was actually a computer technology class, but the teacher thought that the global economy presentation would be great for them since it talked so much about technology. We also talked about our careers and how we use technology in our jobs. The teacher was so appreciative and I think we will be going back to TCHS in the future! Keena and I are both graduates from this school, so it was really fun to go back.

Rachel R. Mims, CPASenior AccountantJamison, Money, Farmer, & Co. P.C.

REACTIONS TO GoinG Global

Karen Arthur Pearce, Bevill, Leesburg & Moore, PCSam Carnley Sam Carnley, CPAJoseph Cawood Warren, Averett, Kimbrough & Marino Josh Cosker BioHorizons Implant SystemsJonathan Kassouf Kassouf & Co, PCMichael Kassouf Kassouf & Co, PCMisti Rasmussen Kassouf & Co, PCBetsy Spurgeon Kassouf & Co, PCRush Letson Letson & AssociatesDenise Lowery Sellers, Richardson, Holman & West, LLPScherri Nix ProAssuranceChasity Peper DLMC, PC Tina White DLMC, PC Casey Taylor Mayer Electric Supply Company, Inc. Murry Guy Machen, McChesney & Chastain, LLPLesley Price Machen, McChesney & Chastain, LLPAmanda Savage Machen, McChesney & Chastain, LLPNicholas Sharp Machen, McChesney & Chastain, LLPRyan Campbell Anglin, Reichmann, Snellgrove & ArmstrongTodd McAdams Anglin, Reichmann, Snellgrove & ArmstrongBrandon Smith Anglin, Reichmann, Snellgrove & ArmstrongKimberly Cain Robertson, Andreoli & Covington, PC Rachel Godwin Hartmann, Blackmon & Kilgore, PCNena Beth Morris E. Mark Ezell, PCRonnie Smith Finance and Investment Services Erin Sylvia Wilkins Miller, PCBillie Blackwell Jackson ThorntonKeina Houser Jackson ThorntonKendra James Jackson ThorntonMark Russell Dempsey & Russell, CPA'sDavid Dvorak Carr, Riggs & Ingram, LLCAmanda Scott Carr, Riggs & Ingram, LLCMatthew Stringfellow Wilson PriceAllison Stack Johnson, Stack, Johnson, LLCJamey Carroll MDA Professional Group, PCAnnette Markham MDA Professional Group, PCShane Withey MDA Professional Group, PCJeff Zanzig Jacksonville State University Amanda Paul Troy UniversityHeather Price Gibson & Carden, LLCBillie Ann Taylor Gibson & Carden, LLCDon McCleod Don McCleod, CPA, PCBrian McLeod National Security GroupJennifer Ballard Jamison, Money, Farmer & Co, PCKeena Calloway Southeast Cancer NetworkRachel Mims Jamison, Money, Farmer & Co, PCTodd Turner Jamison, Money, Farmer & Co, PCErica Russell Fricke, Sweatmon & Co, PC Chasity Sweatmon Fricke, Sweatmon & Co, PC

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sTUdeNT SUCCESS

Jacksonville State University was the latest stop on the ASCPA’s caravan to university account-ing clubs during the 2008/09 academic year. Shane Withey of MDA Professional Group, a JSU alumnus, drove down from Ft. Payne to make the presentation to the group of 15. His

talk included not only materials provided by the ASCPA, but a comprehensive rundown on his personal experiences as a college student, public accounting intern, high scorer on the CPA exam (although he was too modest to tell the students of his achievement), and his career with MDA in their Albertville office. Shane’s audience listened intently after enjoying pizza and sodas cour-tesy of the ASCPA. The meeting details were coordinated through Trey Perman, club president, and Esther Clay, Educational Foundation scholarship recipient and Campus Ambassador. Esther, James McGriff and Kimberly Nelson were old friends of Society staff, having attended Accounting Interview Day ten days before. The outreach to accounting clubs is a way for ASCPA members and staff to forge deeper relationships with accounting students and encourage them to join the Society as student members.

How could the ASCPA get all its work done without the help of interns? No one wants to find out! The program

has been a huge success and the Society staff is looking forward to welcoming a seventh in-tern during the Spring 2009 semester.This term Tranelia “Shay” Harris, senior ac-counting student from Alabama State Univer-sity, was right-hand woman in all departments. She came to work in August, during the heat of CPE season, and provided enormous sup-port to the continuing professional education staff.

“There are so many details to be com-pleted that it takes all hands on deck to stay ahead of deadlines. Shay was all business when she was in the office. Sometimes we weren’t even sure she was in the building! Her head was down, her work got done with no fuss and then she was out the door, back to her campus life”, said Mary Frances Garner,

The Alabama Society of CPAs launched its new e-zine in September and a sec-ond volume is going out in early Decem-

ber. The e-zine is sent to student members of the Society as well as college educators and includes articles and information for students completing their education and entering the workforce. Derek Trotter is the creative force behind the e-zine and its content.

The first issue had a Name the E-zine Contest and, drum roll please, Huntingdon College’s Accounting Club sent in the winning entry. The General Ledger is the new e-zine title and earns the club a Nikon digital cam-era. Congratulations, Huntingdon College Ac-counting Club!

ASCPA Intern Program Continues to Keep the Wheels Turning

CPE Director. “She was a terrific asset to us.”Ms. Harris will earn academic credit for

her time at the Society as well as a stipend from the Educational Foundation. Her service was celebrated at a going-away breakfast on November 13.

Campus Ambassador Program Puts a Face on the State’s Accounting Students

Huntingdon College Accounting Club Wins Prize

why do dinosaurs no longer rule the earth? They weren’t CPAs. No career, no work,

no food…..well, you get the picture.

Become a student member So many resources for YOU.

$15 per year ($10 application fee)

The AsCPA Your hedge against career extinction.

www.ascpa.org

Communications Director Diane Christy with Frankie Vorrosso, Accounting Club president and Brad Vest, vice-president.

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sTUdeNT SUCCESS

It may have been drizzling outside, but inside the Ramsay Conference Center at the Uni-versity of Montevallo the sun was definitely

out. Students from 11 smaller accounting pro-grams arrived out of the mist on October 17 to gain valuable interviewing experience and maybe, just maybe, an offer of employment.

“We were really impressed with the cali-ber of students this year, even more than last year, and I didn’t think that was pos-sible. We hired from this event in 2008 and are excited about more hires for 2009,” said Andrea Hunter from Audit Services, Inc. of Chelsea.

Always a day filled with possibility and a need for flexibility, Accounting Interview Day offers exposure for students who do not have on-campus recruiting. Results from a follow-up survey of recruiters will be provided in the February/March newsletter.

A highlight of the day for the ASCPA staff? That would be learning that Kenya Clark, re-cruiter from the Internal Revenue Service’s Criminal Investigation Division, was “packing heat” while conducting interviews! She spoke frankly about their operations in uncovering white collar crime by serving search warrants and dealing with informants, and their close relationship with the FBI on specific cases. Very cool stuff. Several of the students were extremely interested in using their account-

The Alabama Society and University of Montevallo Hit the Mark with 22nd Annual Accounting Interview Day

ing skills for a career in law enforcement. Thanks so much to firms and organizations

who participated in Accounting Interview Day

2008. ASCPA members are encouraged to add October 16, 2009 to their roster of re-cruiting events.

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sTUdeNT SUCCESS

Becker CPA Review Makes Winners of Four Student Members

Congratulations to student members Lynnley Clark, Christ ina Hudgins, Mark

Burdett and James Dicks on win-ning half scholarships for a Becker CPA Review course! The four were selected after completing a survey featured in the September Edition of The General Ledger, the ASCPA’s

new student newsletter.

Doris Rollo, CPA ambassador and Mobile sole proprietor, is pictured with some of the students at Davidson High School’s Career Day on November 5. Approximately 600 students visited a wide variety of booths to assist with making informed decisions about their futures. Along with fellow CPA, Jack Solberger, Ms. Rollo spoke to many students about the vast opportunities available to them with an accounting degree. This is the second year for Ms. Rollo to attend the career event.

BeckerCPA Review

The AlAbAmA CPA 9

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10 The AlAbAmA CPA

members in Motion

While three generations of college graduates refer to him as Dr. Rat-cliffe, he is simply known as Tom

to most practitioners. Regardless what he is called, he is recognized and respected for his genuine passion for the accounting profes-sion.

Dr. Ratcliffe was recently appointed a member of the Auditing Standards Board, the AICPA senior technical committee responsible for developing auditing, attestation, and qual-ity control standards applicable to the perfor-

Kenneth R. Odom Elected to Position with National Association of State Boards of Accountancy

Thomas A. Ratcliffe Appointed to Auditing Standards Board of the AICPA

mance and issuance of audit and attestation reports for non-issuers. For seven years prior to his appointment, he served as chair and a member of the AICPA Accounting and Review Services Committee as well as a member of the AICPA Council for nine years. He was ap-pointed to serve as a founding member of the Private Company Financial Reporting Com-mittee and left that position to accept the ASB membership.

Ratcliffe also has served as a member of the AICPA Group of 100, as president of the Alabama Society of CPAs, and continues his service as a member of the Auditing Panel for The Journal of Accountancy.

He is Director Emeritus of the School of Accountancy at the Sorrell College of Busi-ness of Troy University and currently acts as Director of Accounting and Auditing at Wilson Price in Montgomery. The combination of his experience as an educator and a practitioner enables him to explain complex practical is-sues in a way that is easily understood.

Dr. Ratcliffe earned his Ph.D. at The Uni-versity of Alabama. He has published more than 100 technical works in accounting and auditing, including several books and docu-ments that are widely utilized in practice.

He has received numerous research and teaching awards throughout his career, in-cluding the Alabama Society of CPAs Out-standing Professional Educator award. After winning that award for seven consecutive years, the Alabama Society of CPAs renamed the award in his honor.

Ken Odom, audit partner with Rabren, Odom, Pierce & Hayes, PC in Andalu-sia was elected the Southeastern Re-

gional Director of the National Association of State Boards of Accountancy at their annual meeting in Boston. As the regional director Ken will be the liaison for Florida, Georgia, Alabama, Mississippi, Tennessee, Kentucky, Puerto Rico and the U.S. Virgin Islands. The board of directors is responsible for estab-lishing policy and goals for NASBA. Ken has served on the Alabama State Board of Public Accountancy since 2007. For more informa-tion on the work of NASBA, please go to their website, www.NASBA.org.

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J. Fred Kingren, a partner at Hand Arendall LLC, has been recognized in The Best Lawyers in America (2009 edition) in the area of Corpo-rate Law. The Best Lawyers in America is widely regarded as the pre-eminent referral guide

to the legal profession in the United States. The 2009 edition of Best Lawyers is based on more than two million detailed evaluations of lawyers by other lawyers. Fred Kingren is also a CPA who helps guide businesses from their early stages of development, through an evolution into more mature businesses, and, ultimately, to a transition in ownership.

Community Newsbarry burns, partner at Morrison & Smith, LLP, has joined the board of direc-tors of Capstone Bank.

michael e. mason was recently elected treasurer for the Kiwanis Club of Bir-mingham.

The Alabama Counci l of Associat ion Execut ives has e l ec ted Jeannine P. birmingham as secre-tary/treasurer of their board of directors for 2009.

The firm also announced david legrand has joined them as a new professional tax manager. Mr. LeGrand obtained his BS from Birmingham-Southern College and his Master of Tax Account-ing from the University of Alabama. He gained extensive tax experience at his previous position with an international accounting firm and special-izes in partnership and S-corporate taxation.

Awards and New DesignationsIn recognition of its process improvement pro-gram, accounting and consulting firm, wilkins miller, P.C., with offices in Mobile and Fairhope, has won a 2008 Practice Innovation Award from Practical Accountant magazine. One of only thir-ty-two firms in the nation to receive this award, Wilkins Miller won in the category of Enhanced Firm Culture and Operations. Wilkins Miller was recognized as a firm that takes the lead in devel-oping new or improved services and in promoting efficiency in the practice of public accounting.

barfield murphy shank & smith is proud to announce it has received two national ac-counting awards. The firm was named one of the “Best Accounting Firms to Work For” in the nation by Accounting Today magazine. BMSS was the only Alabama CPA firmed named to this list. They are also the recipient of the “Innovation Award” from Practical Accountant magazine. This award program recognizes accounting firms for taking the lead in developing new or improved services to promote efficiency in pub-lic accounting. BMSS was the only CPA firm in Alabama to receive this award.

Promotions and New Positionssusan gray, george Odom and Pel-ham Carroll have joined Covenant Consult-ing Group LLC. Mr. Odom is a consulting se-nior manager, leading the outsourced services

group. He is a Hoover native, and a graduate of the Univer-sity of Alabama’s Culverhouse School of Accountancy. He has over 20 years of experi-ence in public accounting and served as the CFO for the larg-est trust company in Alabama. Ms. Gray is a tax senior asso-ciate, focusing on tax matters for high net worth individuals and closely held businesses. She is also a graduate of the University of Alabama and has over 5 years of experience as a tax accountant. Mr. Carroll

has joined as an accounting associate special-izing in accounting and audit matters. A Tusca-loosa native, he is another UA graduate where he earned a BS in Accounting and Master in Business Administration. He recently passed all parts of the CPA exam after his first sitting.

Sellers, Richardson, Holman & West, LLP an-nounced the promotion of the following staff: scott stewart, emily stein, and Cynthia Page. Mr. Stewart was promoted to senior au-dit manager. He obtained his BS and Master of Accountancy from Auburn University. He has been with the firm 1 year, and specializes in the healthcare, real estate, and construction indus-tries. He gained extensive audit experience at his previous position with an international ac-counting firm.

Ms. Stein becomes a tax man-ager and obtained her BS from Birmingham-Southern College and her Master of Accountan-cy, concentration in tax, from the University of Tennessee. She has been with the firm 3 years, and specializes in the construction and real estate industries with a concentration in partnership taxation.

Ms. Page is now a senior ac-countant in the firm’s Audit Department. Ms. Page ob-tained her BS and Master of

Accountancy from Auburn University. She has been with the firm 2 years, and specializes in the construction and real estate industries. Continued on page 13

Scott Stewart

George Odom

Emily Stein

Fred Kingren

Michael Mason

Susan Gray

Jeannine Birmingham

Looking For Cash Now or Retirement Solutions?A life settlement can be a solution.

James H. Lance, CPA (Inactive)

From all the media reports, there is no doubt many retired and about-to-retire persons

worry about not having enough cash during their retirement years. A worsening global economy, rising energy, medical, and food costs, dwindling retirement savings, declining home values, and a very uncertain stock market are diminishing re-tirees’ accumulated wealth just when they most need cash from their assets.

A strategy that can produce ‘new-found’ cash to enhance retirement years is a life settlement. A life settlement is the sale of an existing life in-surance policy to a third party for a lump sum of cash that’s less than the policy’s death benefit, but more than its cash surrender value.

For example, a company owns a $2,000,000 convertible-term policy on the life of its presi-

dent, who decided to retire due to deteriorated health. Having no cash value and burdened by a $60,000 annual premium, the company decided to lapse the policy upon his retirement. However, the company’s CPA suggested selling the policy in a life settlement, which resulted in a cash pay-ment of $250,000, usable to enhance the retire-ment package for the retiring president. (Note: policy values vary)

Too numerous to list here, there are many situations where a life settlement might produce significant added cash value usable now by the policy owner. Whenever personal or business circumstances change, a life settlement should be considered before lapsing or surrendering a life policy. Change may mean the policy is under-

12 The AlAbAmA CPA

Continued on page 13

dOINg IT beTTer

An Important Conversation to Have with Clients in these Uncertain Times

As a result of the struggle to prepare top talent to fill positions left vacant by an aging workforce, businesses and firms

across the United States have employed succes-sion planning measures that strategically address maintaining the strength of the organization while balancing the replacement of critical organization leaders. Experts are saying that with the cloud of recession hanging over U.S. businesses, now is not the time to abandon your organization’s succession plan—in fact, it’s the time to pull one together.

If layoffs loom in your company’s future, it’s time to implement your plan. “This is the time to keep your exceptional performers and their suc-cessors while cutting the average and (should they exist) below-average employees,” says Bill Reeb, CPA, CITP of the Succession Institute, Austin, Texas.

Whether you’re facing a layoff or not, if you don’t already have a plan in place, Reeb recom-mends focusing on the leadership roles you need to fill rather than the people you need to replace. Your goal is not to replace personalities. That would be impossible. Instead, you want to clearly indicate the key roles and responsibilities of the positions in your succession plan. In addition, identify the authorities and limitations of those po-sitions. Doing so allows you to internally develop and groom replacements (the preferred route) or seamlessly enlist a successor from outside the organization.

“Replacement planning vs. strategic risk-based succession management adds costs to the business—all the more reason to be thought-ful with succession management and planning when times are tight,” says Thom Solomon, PHR, Progress Energy in Raleigh, N.C. In assessing your company’s talent, it is important to keep in mind who will be leading the company when the economy rebounds. In fact, Reeb explains that the succession planning process may bring to light the numerous management mistakes of the past such as incomplete performance reviews that result in undeserved raises and bonuses. In

assessing your succession needs, the goal is to determine and hold on to talented staff.

Should your business be forced into layoffs, there are several other key things to keep in mind besides your succession plan:

Plan early and carefully for a layoff (or potential future layoff). “You can hurt your busi-ness if you have to make talent adjustments in increments, so plan for a worst-case scenario upfront,” says Patti Gillenwater, CEO of Raleigh, N.C.-based, Elinvar. Gillenwater recommends considering your business’s sales cycle and fore-casting the amount of talent you will (or won’t) need based on orders for an upcoming (and pos-sibly slower) quarter.

Don’t necessarily bank on history repeat-ing itself. Gillenwater cites the dot com bubble’s burst as a precedent for how not to manage the upcoming aftermath of the current financial crisis. During the dotcom fallout, businesses had a hard time anticipating just how badly they would be hit. As a result, many suffered multiple layoffs over a series of months and years. This time, businesses can bet that with the credit-crunch and difficulty in getting bank loans, this recession will be tougher and affect more workers at earlier intervals than the recession of 2000-2001.

Determine who your key people are and tell them. Without making promises, tell your

all-stars that they have been identified as such. Explain the steps you are taking to try to keep them on during the turmoil. “This recession could last 2-4 years,” says Jeannine Birmingham. “A business’s survival depends on the commitment of its top performers. But a business must dem-onstrate its commitment to those performers in return.” Finally, plan for what to do without these critical people if they are “wooed away” by a busi-ness or firm that is actively recruiting.

Be as nice as possible. Layoffs always come with hurt feelings and stress, and the staff you keep may have difficulty adjusting to the envi-ronment without their old teammates. During the layoff and after, it’s important to make certain the experience is as respectful and humane as pos-sible. With advance planning, it may be possible to provide training for future redundant staff to help them set up for their next move. And it goes without saying, if you can provide outplacement services for those laid-off, by all means, do. Out-placement services can help encourage laid-off employees broaden their network, find their next position, or even tap into a new career. Finally, during the layoff and after, be sure to consider the layoff survivors.

In the aftermath, keep remaining staff en-gaged. As with any business situation, a layoff

The AlAbAmA CPA 13

Looking For Cash Now or Retirement Solutions?Continued from page 11

provides both challenges and opportunities. Solo-mon says, “With layoffs come leaner organiza-tions with high-potential talent capable of being stretched by untraditional or broader assign-ments.” Consider how to use these moments to challenge your remaining staff and engage them in projects where they might have otherwise missed out. Gillenwater asks, “How can you keep your remaining staff interested and happy? What can they sink their teeth into to stay en-gaged and excited?” One way to keep remain-ing staff motivated is to offer them training in a new skill, or involvement in cross-departmental projects so they feel a part of the strategy to get the company back on track. Providing the op-portunities for potential triumphs make staff feel valued and safe, a combination for success._____Visit the HR Resource page on the AICPA Financial Management Center for Business, Industry and Government.

performing or no longer affordable, the beneficiary is self-sufficient or deceased, cash is needed to cover emergency medical care or nursing home bills, a loan secured by a life policy is paid off (elimi-nating need for the policy), policy owner’s estate tax exposure is reduced, a ‘key-person’ policy is no longer needed because the business is sold or the key person is no longer an employee; a policy purchased to fund a buy-sell arrangement is un-needed because one or more of the participants died or left the business or the business is sold to a third-party or; policy owner desires to make a larger cash down payment on retirement home or to make cash gifts to charities or loved ones.

What criteria are policy buyers looking for? In-sureds age 65 or older life expectancy between 25 months and 20 years; policy face of $250,000 to $20 million+ ($1 million+ is preferred), policy type: all types may be sold (Universal Life is preferred). Term coverage must be convertible, with low an-nual premiums; and small cash surrender value.

Although selling a life policy for more than its cash surrender value is obviously very attractive, the transaction may not be suitable for some poli-cy owners. However, compared to lapsing a policy for no cash or accepting the insurer’s cash value, a life settlement is a legitimate, viable alternative. Before completing a life settlement, policy own-ers should consult with their trusted professional advisor.

14 The AlAbAmA CPA

The Birmingham Young CPA Chapter will offer their support to six families in the Salvation Army’s Transitional

Housing unit this holiday season. They had interviews with the single moms and their children on December 2 to assess needs. The party for the families will be held on

December 18.Last year they were

able to raise $8000 and furnish each family with a laptop computer as well

as personal items – cloth-ing and toys – for individual

family members. The Young CPAs ask for your help as a volunteer; helping wrap gifts, assist with the party, or as a donor to their fund.

Contact for the effort is Emily Stein of Sellers, Richardson, Holman and West. She can be reached at 205.278.0001 or emily.stein@srhwcpa.com.

I N m e m O r I A mThOmAs lee PINsON

August 21, 1968 – November 7, 2008Huntsville, AlabamaCertificate #6247

Chapter NOTES Derek Trotter, Communications Coordinator

east Alabama Chapter Provides support to local Food bank

The East Alabama Chapter of the ASCPA has completed its civic project, a food drive for the Food Bank of East Ala-

bama. The project was a success with doz-ens of chapter members donating various items over the past four months.

Martha Faupel, executive director of the

Julie Bolton, Jessica Pagan and Allison Edge

birmingham Young CPAs

Partner Again with salvation

Army Food Bank, was very appreciative of the effort.

“Getting back to basics is critical during economic hard times. We thank the CPAs in the Auburn-Opelika area for their commitment to those whose needs are even more appar-ent during the holiday season.”

The AlAbAmA CPA 15

AsCPA CONFereNCes 2008

Non-Member Member No. Date(s) Title Location Fee Fee

GAAF Dec. 3-4, 2008 21st Annual Governmental Accounting & Auditing Forum Birmingham $300 $250

C P e C A l e N d A r 2 0 0 8

Field of Non-Member Member No. Date(s) Study Title Location Fee Fee

VIew The COmPleTe CPe sChedUle AT www.AsCPA.Org

*177 12/02-03/08 TX Individual Income Tax Returns Workshop Birmingham $425 $375 *178 12/04-05/08 TX Corporate Income Tax Returns Workshop Birmingham $425 $375 *179 12/09/08 TX Best Federal Tax Update Barebones Huntsville $199 $149 *180 12/10/08 TX Best Federal Tax Update Barebones Birmingham $199 $149 *181 12/11/08 TX Best Federal Tax Update Barebones Montgomery $199 $149 *182 12/12/08 TX Best Federal Tax Update Barebones Mobile $199 $149 *183 12/16/08 AA Advanced Update for Compilation, Review and Accounting Services Birmingham $285 $235 *184 01/06/09 TX Preparing Individual Tax Returns for New Staff and Para-Professionals Birmingham $285 $235 *185 01/07- 08/09 AA Are You Ready for IFRS? Moving Beyond the Basics Birmingham $425 $375 *186 01/07/09 TX Preparing Corporate Tax Returns for New Staff and Para-Professionals Birmingham $285 $235 *187 01/08/09 TX Complete Guide to Preparing LLC, Partnership and S Corporation Federal Income Tax Returns Birmingham $285 $235 *188 01/13/09 TX Advanced Individual Income Tax Return Issues Birmingham $285 $235 *189 01/14/09 AA Detecting Misstatements: Integrating SAS 99 and the Risk Assessment Standards Montgomery $285 $235 *190 01/14/09 TX 1040 Tax Season Survival Guide Birmingham $285 $235 *191 01/15/09 AA Real Estate Accounting and Auditing Mobile $285 $235*192 01/27/09 TX Post-Election Tax Planning Strategies to Implement NOW for Individuals and Birmingham $179 $129

Closely-Held Businesses *193 01/28/09 TX Post-Election Tax Planning Strategies to Implement NOW for Individuals and Montgomery $179 $129

Closely-Held Businesses

(*) Asterisk indicates 8hr AICPA seminar; take advantage of a $30.00 discount applied to the ASCPA fee if you are an AICPA member ASCPA 4 hour Clusters or Barebone Seminars do not receive $30 discount. Late fee of $25 applies 10 calendar days before each event date. New Courses are in BOLD type.

Continuing Professional education in december and January

upcoming WorkshopsGet your tax return training from the industry's best! Originally written by Sid Kess and now led by AICPA's top tax instructors, AICPA's individual tax workshop provides the latest practical insights from nationally-recognized tax experts.

individual income tax returns Workshop december 2-3Reinforce your understanding of frequently used principles and receive a wealth of tax planning tips and strategies. Learn how to ap-ply the latest changes when preparing federal income tax returns and advise clients on new developments and tax-saving ideas for indi-viduals. All key tax return issues are covered during this fast paced, real-world session.

corporate income tax returns Workshop december 4-5Look at the most recent tax laws and other de-velopments affecting C Corporations, S Cor-porations and other business entities, including limited liability companies. Learn how to advise clients and employees on the latest tax plan-

ning ideas. Share marketing ideas from top practitioners - based on the latest tax strate-gies. Plus, a comprehensive practice problem lets you apply what you have learned.

Best federal tax update In a business world that is frequently shifting and changing, this course is essential for ev-ery successful practitioner. Not only will you be updated on the most important tax issues that will require your attention in 2009, but this course will also review the major trends and changes in the case and regulatory law. Classes will be held in Huntsville, Birming-ham, Montgomery, and Mobile for your con-venience.

save these dates for 2009 conferences

Women’s Summit May 21

Annual Meeting June 4

Sandestin Conference July 26-30

FAAC September 25

GAAF December 2-3

Got Chocolate?Got Chocolate?AlABAmA SOCIETy Of CPAS

WOmEN’S SummITDelicious Sessions, Filled with

Morsels of WisdomMay 21, 2009 10:00 – 4:00

Wynfrey Hotel / Birmingham, Alabama

Stay tuned to the Tuesday BULLETIN for details

16 The AlAbAmA CPA

Presorted StdUS Postage

PAIDPermit No. 131Montgomery, AL

The Alabama Society of Certified Public Accountants

1103 South Perry StreetP.O. Box 5000

Montgomery, AL 36103

Address Service Requested

DECEMBER 2008 JANUARY 2009

ClAssIF IedsCAlendAr of UpCominG events Date Event Location Time

d e c e M b e r 2 0 0 8

11 Tuscaloosa Chapter meeting Indian hills Country Club Noon17 Southeast Alabama Chapter meeting Dothan Country Club Noon18 North Alabama Chapter meeting Dale’s Restaurant 5:45 pm19 CPA Ambassador Training (8hrs CPe) barfield murphy Shank & Smith 8:00 – 4:00

J a N U a r Y 2 0 0 9

13 South Central Alabama Chapter meeting The Pines 6:00 pm15 Tuscaloosa Chapter meeting Indian hills Country Club Noon16 CPA Ambassador Training (8hrs CPe) barfield murphy Shank & Smith 8:00 – 4:0021 Southeast Alabama Chapter meeting Dothan Country Club Noon22 huntsville Chapter meeting Ruth’s Chris Steak house – embassy Suites Noon marlene mcCain—ASCPA Chair22 North Alabama Chapter meeting Dale’s Restaurant 6:00 pm marlene mcCain—ASCPA Chair23 Young CPA board meeting 10:00 amFor more information on these events, visit our website, www.ascpa.org, or contact Derek Trotter at 800-227-1711, or dtrotter@ascpa.org

Celebrate the blessings of the holiday season. The Alabama Society office

will be closed December 24, 25, 31 and January 1.

PRACTICE WANTED: The Powell Ac-countancy Group, P.C. wishes to pur-chase a practice in the Birmingham area or to associate with a retirement-minded practitioner. Phillip@cpaemail.net or call Philip at 205.824.4537

CONTROLLER POSITION AVAILABLE Platinum Mortgage, Inc. is seeking a Con-troller for its operations office (Huntsville area). The Controller will be responsible for all aspects of the mortgage com-pany’s accounting and financial func-tions, implementation and adherence to internal and financial controls to ensure compliance with legal, regulatory, and corporate requirements. Requirements include CPA certification, 5+ years of accounting/managerial experience, 2+ years experience in mortgage banking industry, proficiency in Microsoft Office, all versions of QuickBooks and Enter-prise a plus, and a strong knowledge of G/L, AP, AR, and taxes within mortgage banking. In addition, the ideal candidate will possess strong leadership skills, ex-cellent written and verbal communica-tion skills, be self-disciplined, and have the ability to analyze complex numerical data reports. Offering attractive salary/benef i ts package, including potent ia l relocation assistance. Please email resume to hr@callplatinumfirst.com.