GREAT CPE STILL AVAILABLE

Following is a statement from Barry Melancon, President/CEO of the American Institute of Certified Public Accountants (AICPA) and AICPA 2011 Chairman Paul Stahlin regarding the Financial Accounting Foundation’s (FAF) decision not to create another standard setting board.

FAF FAILS TO CREATE NEW BOARD

November 2011

Official Publication of the Nebraska Society of CPAs

INSIDE . . . State Board Appointments

See Page 3

IRS Preparer Regulations See Page 4

Foundation Scholarships See Page 5

The final two months of Society-sponsored continuing professional education (CPE) courses have be-gun. There are still plenty of courses left before the beginning of the 2012 Tax Season! For a full listing of the November and December courses, go to Page 6 of this newsletter. Pic-tured is a packed Nebraska Society CPE course held recently at the beautiful, relaxing Mahoney State Park just off of Interstate 80. Regis-ter early as some courses may have limited registration!

parers and public accountants. “Three thousand private com-

pany constituents and a majority of the state CPA societies, representing more than a quarter million CPAs, have spoken. They want a separate independent standard setting board and they have sent letters to FAF asking for change,” said Melan-con. “Over the years, FASB’s main focus has understandably been on the needs of constituents of publicly traded companies. The pent up frus-tration we are witnessing by the pri-vate company constituency is a di-rect result of that public company focus and not seeing that differences can be and are appropriate for pri-vate companies and their financial

statement users.” For many years, the pleas of pri-

vate companies to have differences in standards for private companies that are more cost effective and rele-vant for their users have too often been ignored. We understand and appreciate FASB’s need to focus on public company issues and emerging capital market concerns. And as we move forward, FASB’s focus will need to continue to be on the public market and on the convergence of U.S. Standards with IFRS, which themselves are focused on public companies. This clearly underscores the need for a separate independent

We are profoundly disappointed that the Financial Accounting Foun-dation (FAF) is not proposing to cre-ate a new independent board to set differences in U.S. GAAP standards, where appropriate, for privately held companies. This was the corner-stone of the Blue Ribbon Panel on Standard Setting for Private Compa-nies' report. The Panel consisted of a cross-section of leaders from finan-cial reporting constituencies, includ-ing lenders, investors, owners, pre- Continued on Page 9

The Nebraska Chamber of Commerce & Industry re-cently unveiled its most ambitious initiative yet in an effort to address the state’s current challenges and to capitalize on new opportunities for Nebraska’s citizens.

The State Chamber’s “Forging Nebraska’s Future” ini-tiative will conduct in-depth research, while analyzing busi-ness, economic and community trends. In addition, it will propose specific recommendations for state and local lead-ers with the aim of enhancing Nebraska’s business climate, economic competitiveness and overall quality of life.

The State Chamber has also announced that Richard Baier, current Director of the Nebraska Department of Eco-nomic Development, has agreed to join the State Chamber staff to lead this important initiative. Baier will serve as Executive Vice President of “Forging Nebraska’s Future.”

The program will utilize a business-like model to exam-ine and continually review the state’s economic foundation and other aspects of Nebraska life, including tax climate, business conditions, demographics, natural resources, gov-ernment, workforce, transportation, technology and educa-tion. This analysis will be used by the State Chamber and others to devise strategies to ensure the future growth of Nebraska’s economy and population.

“Today, Nebraska faces a broad spectrum of advantages and challenges,” said Society member Jeff Scherer, CFOof Smeal Fire Apparatus in Snyder and current Chair-

man of the State Chamber. “State and local leaders must recognize these obstacles and opportunities and meet them head on with a clear and consistent vision. ‘Forging Ne-braska’s Future’ will offer a platform for carrying out this difficult mission. I have worked closely with Richard Baier on a variety of issues in the past and I am grateful that he has agreed to lead this effort.”

“Strong economies and prosperous communities do not happen by accident,” said Barry Kennedy, President of the State Chamber. “They are the result of bold ideas from lead-ers who are willing to take risks to implement them. ‘Forging Nebraska’s Future’ – under the leadership of Richard Baier – will help foster the vision and ingenuity needed in the 21st century.”

“The State Chamber believes Nebraska has a unique opportunity to distinguish itself. For that to happen, Ne-braska’s state and local leaders must take steps now to en-sure future growth and opportunities for the next genera-tion.”

When designing the “Forging Nebraska’s Future” initia-tive, the State Chamber conducted a review of national and regional data and studies. This review revealed that Ne-braska maintains a high quality of life, a balanced state budget, an ambitious workforce, a strong agricultural foun-dation, a steady manufacturing base, and a low cost of liv-

“NEBRASKA’S FUTURE” INITIATIVE LAUNCHED

Continued on Page 3

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The Nebraska Investment Finance Authority (NIFA) is encouraging in-vestments for manufacturing modernization for companies with 5 - 100 em-ployees. The incentives are capped at $30,000 for fixed asset investments of $500,000 or more made by existing companies in the manufacturing and agri-cultural product processing sectors. Because the incentive amounts are lim-ited, applicants must receive a “reservation” from NIFA before purchasing the equipment. The initiative has either a Modern Asset Grant (MAG) or Capital Asset Program loan guarantee (CAP) option.

To date the MAG, a direct rebate to the qualifying business for up to 6% of the eligible basis for the asset(s) placed into service, has seen over $200,000 in reservations. The program has $1,500,000 budgeted until June 30, 2013.

NIFA began accepting applications on June 1, 2011. More information including the Program Manual, application forms, and contact information are found at www.NeMAG-CAP.org or contact NIFA at 800.204.NIFA.

Nebraska CPA is published ten times annually for members of the Nebraska Society of CPAs. Publication is monthly, with the exception of two combined issues: February/March and December/January. Copy dead-line is the tenth of the month prior to publication.

Nebraska Society of CPAs 635 South 14th Street, Suite 330

Lincoln, Nebraska 68508 (402) 476-8482 or (800) 642-6178

Fax (402) 476-8731 Email society@nescpa.org

www.nescpa.org

OFFICERSJulie D. Bauman, Chairman

Patrick J. Lavelle, Chairman-Elect Michelle R. Thornburg, Treasurer

Daniel L. Wells, Secretary John B. Fruhwirth, Immediate Past Chairman

DIRECTORSGene G. Garrelts Jamie L. Johnson Patrick G. Kirlin Marcy J. Luth

Thomas J. Meister

David E. Lechner Elected Member of AICPA Council

Richard D. Gifford West Nebraska Chapter President

STAFFDan Vodvarka, President

Sheila Burroughs, Vice President

NIFA HAS INCENTIVE PROGRAM

JoAnn Martin of Lincoln has been recognized by the Insurance Networking News as one of the “Top Ten Most Influential Women in Insurance” nationally . . . Chris Lindner of Lincoln, a member of the BKD’s National Not-for-Profit & Government Group, has earned the firm’s 2011 PRIDE Award from BKD, LLP . . . James A. Warren of Lincoln has been promoted to Senior Manger in the Lincoln firm of La-benz & Associates, LLC . . . Doug Lienemann of Lincoln has received the Robert W. Furnas Award from the Nebraska Historical Society . . . The Omaha firm of W.E. Stevens, P.C. has moved to the Legacy Row Building to 17310 Wright Street, Suite103, Omaha . . . Patrick Lacy of Omaha is currently serving as the Chairman of the Board of Easter Seals Nebraska while Jason Tonjes of Omaha is Treasurer and Jerry Crouseof Omaha is a Director.

BOARD APPOINTMENTS ANNOUNCED

“NEBRASKA’S FUTURE” . . . From Page 2

ing. These key factors have helped the state weather the current economic storm.

However, the state has its share of challenges, as well. By all accounts, Nebraska is still a high tax state and continues to be ranked in the bottom half of the 50 states for tax cli-mate. Nebraska’s state-and-local tax burden ranks in the bottom 15 of all states. Also, the Chamber’s prelimi-nary report found that Nebraska’s edu-cational system needs to be revised and that a decades-long trend of rural outmigration must be reversed.

More information on the “Forging Nebraska’s Future” initiative will be made available in the coming weeks.

The State Chamber is Nebraska’s largest business association, represent-ing employers of all sizes and in every sector, as well as local chambers of commerce and other statewide asso-ciations. For 99 years, the State Chamber has proudly served as the voice of Nebraska’s business commu-nity.

Nebraska Governor Dave Heineman, on October 14, 2011, appointed two Nebraskans to the Nebraska Board of Public Accountancy (State Board).

The Governor re-appointed Jim Rieker of Omaha, President/CEO of Midwest Housing Equity Group, Inc., to his second four-year term on the State Board. Rieker is one of two public members on the State Board.

The Governor also appointed Society member Lori Druse of Lincoln to an initial four-year term on the Board beginning on November 1, 2011, and extending until September, 2015. Board members are limited to two, four-year terms.

Druse is an Audit Partner with Deloitte. She lives in Lincoln and will be one of the two First Congressional District representatives on the State Board. She replaces Society member Anne Fuhrman of Gretna who served eight years on the Board. Druse served on the Society Board for a number of years as the Society’s Treasurer. She completed her last one-year term on the Society Board on October 26, 2011. Under the Society’s Bylaws, a member cannot serve on both Society Board and the State Board at the same time.

The appointments were supported by the Society’s Board of Directors.

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The American Institute of Certi-fied Public Accountants on October 7, 2011, urged the Internal Revenue Service to make changes to user fee regulations it has proposed for tax return preparers as part of the IRS’ preparer oversight program.

“We have serious concerns re-garding the level of burden that the user fee regulations will place on CPA firms, primarily small and me-dium-size firms,” Patricia Thomp-son, chair of the Tax Executive Committee, said at a hearing held at IRS headquarters.

The user fees would apply to individuals who are required to take the IRS competency examination in order to become Registered Tax Re-turn Preparers and for fingerprinting those individuals who participate in the preparer tax identification num-ber (PTIN), acceptance agent and authorized e-file provider programs.

Thompson identified three pri-

IRS URGED TO REVISE PREPARER REGSmary areas of concern: The fingerprinting of supervised

non-signing, non-licensed staff at CPA firms and other firms of li-censed professionals who are ex-empt from the testing and continu-ing education aspects of the IRS return preparer regulatory regime. The possibility that IRS might

stop issuing provisional PTINs as soon as April 19, 2012. IRS's request for comments on

whether CPAs should be finger-printed as part of the suitability check performed attendant to re-ceiving a PTIN.

Regarding fingerprinting of su-pervised non-signing preparers, Thompson said the IRS should con-sider an alternative framework “that would allow CPA firms to engage a Consumer Reporting Agency (CRA) that is regulated by the Federal Trade Commission to perform back-

ground checks to learn of any felony histories of their supervised employ-ees. We believe such an alternative could be crafted to meaningfully meet the IRS suitability check re-quirement through means other than fingerprinting, and in a less costly and less burdensome way to all par-ties impacted.”

Thompson said that if the IRS stops issuing provisional PTINs it will result in “benching” of college

In MemoriamRobert J. Sylvester

York, Nebraska 1941-2011

Nebraska Certificate #1015 Society Certificate #686

Continued on Page 11

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Foundation Awards 2011-2012 Scholarships This Fall, the Foundation of the

Nebraska Society of CPAs is again showing its support of accounting educa-tion. In 2011, the Foundation awarded $73,400 in scholarships to accounting students at 14 Nebraska colleges and uni-versities and $13,000 in institutional grants. The scholarships range in amounts from $1,200 to $2,500. Because of generous bequests and the continued support of Society mem-bers, the Foundation was able in 2011 to award 16 scholarships to accounting students faced with the 150-hour educa-tion requirement in Nebraska. Three of these scholarships are named for the Society's 2011 Award Recipients. One of the Fifth-Year Scholarships is named for and in part funded each year by the Aureus Group of Lincoln and Omaha. The Foundation Board of Trustees, led by President Randy Limbeck of Omaha, annually distributes funds to fulfill its Mission “to support excellence in the Certified Public Accounting pro-fession through financial assistance to accounting programs of Nebraska col-leges and universities and to individuals interested in the profession through scholarship programs.” Following is a list of the account-ing students from throughout the state who received Nebraska Society Foun-dation scholarships for the 2011-12 col-lege year:

ACCOUNTING SCHOLARSHIPS

Bellevue University   Kathleen Merriman Jessica Thomas     

Chadron State College Marianne Griffiths  

   Concordia University   

August Richters       Creighton University   

Nicholas M. Gilmore Parker Mullen Alexis Gold Jill Stuckenschneider

   Doane College   

Ryan Dirkschneider  

Midland University Kevin Dupree

Nebraska Wesleyan UniversityAshley Maurer

Peru State CollegeJo Vostrez

Union College

Shann Birth

University of Nebraska - LincolnSam Barg Kyle Steffensmeier Bryan Broekemier Kimberly Zarybnicky Jacob Jensen Cody Zavadil Ashley Steffensmeier

University of Nebraska at KearneyReggie Ruhl Kyle Teel Ryan Grossnicklaus

University of Nebraska at OmahaKurtis Evon Andrew Jezewski William Gier Devyn Musil Alyson Howard Cortney Pauley

Wayne State College Tyler Hohenstein

Hastings College  April Carl  

ACCOUNTING SCHOLARSHIPS - CONT

Society Award Scholarships Michael S. McClure of Lincoln 

2011 Distinguished Service to the  Profession Award 

Recipient  ‐  Kristen Seda University of Nebraska ‐ Lincoln 

Duane J. Gabriel of Seward 2011 Public Service Award  Recipient  ‐ Jesse Skelton Concordia University 

Thomas J. Von Riesen of Omaha 2011 Outstanding CPA in Business  

and Industry Award Recipients: 

Justine Dethlefs & Andrea Winfield Hastings College 

Matthew Behrens, Creighton UniversityFoundation Board Scholarship

Shruti Singh Creighton University

Kevin Slattery Creighton University

Aislee Adkisson Doane College

Morgan Dubas Doane College

Kelsie Scholting Midland University

Shaw, Hull, Navarrette Scholarship

Taylor Jeppesen Midland University

Richard Winkelman Midland University

Ashley Hostert Nebraska Wesleyan University

Andrew Schweitzer Nebraska Wesleyan University

Laura Poots University of Nebraska – Lincoln

Aureus Group Scholarship

Abigail L. Hughes University of Nebraska @ Kearney Arnold L. Magnuson Scholarship 

 

Ross Pierce University of Nebraska @ Kearney

Rebecca Thomas University of Nebraska @ Omaha

Stephanie Vanicek University of Nebraska @ Omaha

Kimberly Seavert Wayne State College

Nicholette Wolinski Wayne State College

Fifth-Year & Other Scholarships

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Nebraska Society of CPAs’ CPE Calendar - All locations are in Nebraska -

VISIT OUR WEBSITE (www.nescpa.org) FOR COURSE INFORMATION OR TO REGISTER

DATE ID MONTH TYPE DISCUSSION LEADER LOCATION

CPEHRS

ETHICS

HRS

NOVEMBER

1 CGPT THE COMPLETE GUIDE TO PAYROLL TAXES & 1099 ISSUES TXTERRYLL WILLIAMS - SURGENT MCCOY, CPE LLC

GERMAN AMERICAN SOCIETY,OMAHA 8 0

2 EPE ESTATE PLANNING ESSENTIALS: TAX RELIEF FOR YOUR CLIENTS’ ESTATES TX CHARLES BOREK - AICPA EMBASSY SUITES & CONF.CTR., LAVISTA 8 0

3 SCORPS-CORPORATION KEY ISSUES, COMPLIANCE AND STRATEGIES: AN IRS TARGET AREA TX CHARLES BOREK - AICPA

EMBASSY SUITES & CONF.CTR., LAVISTA 8 0

4CL4TXRWBE

REAL-WORLD BUSINESS ETHICS FOR TAX PRACTITIONERS: HOW WILL

YOU REACT? - 8:30 AM TO 12:00 PM ET CHARLES BOREK - AICPA MAHONEY ST. PARK, ASHLAND 4 4

4 MVAPMARKET VOLATILITY AND THE LONG-TERM INVESTOR & ACTIVE AND

PASSIVE ALLOCATIONS - 1:00 TO 4:30 PM TXN. BEDLAN & - N. FARMER -MORGAN STANLEY SMITH BARNEY  MAHONEY ST. PARK, ASHLAND 4 0

8 HOWPHANDS-ON TAX RETURN WORKSHOP - PARTNERSHIPS & LLCS

(FORM 1065) TXMARK VANDEN BERG - GARVERICK CPE MAHONEY ST. PARK, ASHLAND 8 0

9 HOWS HANDS-ON TAX RETURN WORKSHOP - S-CORPS (FORM 1120S) TXMARK VANDEN BERG - GARVERICK CPE

EMBASSY SUITES & CONF.CTR., LAVISTA 8 0

9 IBV INTRODUCTION TO BUSINESS VALUATIONS MA RON DIMATTIA - AICPA GERMAN AMERICAN SOCIETY,OMAHA 8 0

11 H1TU 1-DAY FEDERAL TAX UPDATE - 8:00 AM TO 4:00 PM TXVERN HOVEN & RON ROBERSON - VERN HOVEN TAX SEMINARS THE CORNHUSKER, LINCOLN 8 0

17 TDAPSURGENT MCCOY'S COMPREHENSIVE GUIDE TO TAX DEPREC., AMORT. & PROP. TRANSACTIONS FROM ACQ. TO EXCHANGE OR DISPOSITION TX

JOHN SHERRICK - SURGENT

MCCOY, CPE LLC FAIRFIELD INN & SUITES,GRAND ISLAND 8 0

18 BTBBTHE TOP 50 BUSINESS TAX MISTAKES PRACTITIONERS MAKE & HOW TO

FIX THEM TXJOHN SHERRICK - SURGENT

MCCOY, CPE LLC FAIRFIELD INN & SUITES,GRAND ISLAND 8 0

21 LLS LOSS LIMITATION SCHOOL TX BRADLEY P. BURNETT, J.D., LL.M. MAHONEY ST. PARK, ASHLAND 8 0

22 IRASIRAS, ROTH IRAS, SIMPLES, SEPS, 401(K)S AND ROTH 401(K)S - CONTRIB., OPERATION AND DISTRIB., ESTATE PLANNING & BEYOND TX BRADLEY P. BURNETT, J.D., LL.M. MAHONEY ST. PARK, ASHLAND 8 0

22 NCAS THE NEW CLARIFIED GAAS AA PAUL H. KOEHLER, CPA THE CORNHUSKER, LINCOLN 8 0

29 HGTCLOSCALZO'S HANDS ON GUIDE TO UNDERSTANDING & TESTING

INTERNAL CONTROL AAJAMES WOY -LOSCALZO ASSOCIATES DOUBLETREE SUITES, OMAHA 8 0

30 FRAUDAPLOSCALZO’S ACCOUNTS PAYABLE FRAUD: OVERLOOKED SCHEMES & HOW

TO DETECT & PREVENT THEM AAJAMES WOY -LOSCALZO ASSOCIATES DOUBLETREE SUITES, OMAHA 8 0

DECEMBER

1-2 HOWI HANDS-ON 2-DAY TAX RETURN WORKSHOP - INDIVIDUALS (FORM 1040) TXMARK VANDEN BERG - GARVERICK CPE MAHONEY ST. PARK, ASHLAND 16 0

5 FTUBAICPA'S FEDERAL TAX UPDATE - CO-SPONSORED WITH IOWA SOCIETY -8:00 AM TO 4:00 PM TX

ANDREW R. BIEBL, CPA - LARSONALLEN, LLP

MARINA INN CONFERENCE

CENTER, S SIOUX CITY 8 0

6 ATKN THE ESSENTIAL AUDIT TOOLKIT: BEST PRACTICES FOR SMALLER ENTITIES AAANNE MARCHETTI -SURGENT MCCOY, CPE LLC

GERMAN AMERICAN SOCIETY,OMAHA 8 0

7 NABB THE TOP 50 NONPUBLIC AUDIT MISTAKES AND HOW TO FIX THEM AAANNE MARCHETTI -SURGENT MCCOY, CPE LLC

GERMAN AMERICAN SOCIETY,OMAHA 8 0

8 1041 FIDUCIARY INCOME-TAX RETURNS - FORM 1041 WORKSHOP TXROBERT BARNHILL -SURGENT MCCOY, CPE LLC MAHONEY ST. PARK, ASHLAND 8 0

9 SSRBSOCIAL SECURITY, MEDICARE & PRESCRIPTION DRUG RETIREMENT

BENEFITS: WHAT EVERY BABY BOOMER NEEDS TO KNOW NOW TXROBERT BARNHILL -SURGENT MCCOY, CPE LLC MAHONEY ST. PARK, ASHLAND 8 0

12-13 H2TU 2-DAY FEDERAL TAX UPDATE - 8:00 AM TO 4:00 PM TXV.HOVEN & R. ROBERSON - VERN HOVEN TAX SEMINARS

EMBASSY SUITES & CONF.CTR., LAVISTA 16 0

14 NSUT NEBRASKA SALES & USE TAX - 8:30 AM TO 12:00 PM TX NEBR. DEPT. OF REVENUE MAHONEY ST. PARK, ASHLAND 4 0

14 ETUP3 ETHICS - 2011 - 1:00 PM TO 4:30 PM ETJEREMY WORTMAN -HRD INITIATIVES LLC MAHONEY ST. PARK, ASHLAND 4 4

15 NYBS THE NEW 2011 YELLOW BOOK AA PAUL H. KOEHLER, CPA THE CORNHUSKER, LINCOLN 8 016 GAAU GOVERNMENTAL ACCOUNTING AND AUDITING UPDATE AA PAUL H. KOEHLER, CPA MAHONEY ST. PARK, ASHLAND 8 0

21 ETU ESSENTIAL TAX UPDATE - 8:00 AM TO 4:00 PM TX BRADLEY P. BURNETT, J.D., LL.M. FAIRFIELD INN & SUITES,GRAND ISLAND 8 0

LODGING RATES FOR UPCOMING CPE If you are attending CPE and need lodging, please call

or email Sheila Burroughs in our office. She can be reached at (800) 642-6178 or sheila@nescpa.org.

There are various facilities that will give Society mem-bers special rates. A few are listed below:

Best Western Plus Kelly Inn, Omaha - $69 per night. Embassy Suites, LaVista - Dec 12-13 CPE course -

$109 per night. Goto http://embassysuites.hilton.com/en/es/groups/personalized/O/OMAESES-NCP-20111211/index.jhtml?WT.mc_id=POG.

Fairfield Inn & Suites, Grand Island - $96.95 per night.

The Cornhusker, Lincoln, various rates depending upon date.

AvAilAble

7

Continued on Page 10

STRUCTURED ORGANIZATION, PROGRAMMING DISCUSSEDmid. In order to make this upside-down pyramid work, a pro-grammer often spends hundreds of hours creating links and correcting errors resulting from a myriad of extraneous transla-tions. Eventually, the binary base cannot support this Babel of alphabet blocks, and the pyramid collapses of its own dead weight. If this method of language translation were used at the U.N., even fewer people would know what is going on there.

There are intrinsic errors inherent to a binary base which receives commands from another computer language which subsequently receives commands from a still newer fad lan-guage ad infinitum. This approach consumes memory and re-sults in errors which require “patches” which require even more “patches” to cover up subsequent errors, band aid upon band aid. Such programming becomes readily antiquated.

Most programmers continue to utilize this “artistic,” piece-meal approach to programming. This is an incessant expense. The result is an unending flow of cash sucked down into a black hole of no return.

Conversely, Structured Modular Programming is a self-correcting system which utilizes simple, straight-forward logic written in plain English. This type of singularized, unit system communicates directly, yet independently, with the underlying binary base. A computer language needs to be consistent with the mathematical language of the binary base. The program should not take you to New York via a detour through New Orleans, Chicago, and Rio Linda. Components of Structured Programming are comparable to those of the calculus in terms of analysis and synthesis, differentiation and integration.

A pragmatic, “Back-to-Basics” approach using a Discrete Unit Programming computer model sometimes requires tar-geted rewriting of the binary base. This provides long-term, permanent solutions for recurrent or perpetual problems. How-ever, in most cases, a less expensive, “work-around” method is possible to circumvent the problem. This is necessary in order to eliminate overlapping and interdependent programming which results in hidden wormholes and costly viruses. A thor-ough cost-benefit analysis is required to determine the degree of implementation necessary for each particular business sys-tem.

Secondary functions are improved and redundant opera-tions eliminated using a workable programming model. Overly integrated systems are streamlined into a singular, manageable operation. This system is adaptable to transitional needs. An-other advantage to Structured Programming is systems com-patibility between offices, departments, and other external computer systems, e.g., vendors, etc.

Structured Computer Programming parallels Structured Organization in that a bare-bone flowchart, or command chart, is set up with distinct and discrete plug-in units. These units are designed to complete specific tasks and return to the com-mand line within an unbroken circuit. If a unit has non sequi-tur programming, or a new computation is needed, the unit is replaced quickly and easily. There is no sudden cascade of errors requiring correction. Virtual signals direct traffic flow to ease congestion at busy intersections. SUMMARY

Implementation of Structured Organization and Structured Programming easily results in millions of dollars in profits for any large business. These twin complementary components

By David Sity, CPA During an economic downturn, even the most successful

business discovers a dramatic need to increase profits and cut losses. It is no longer enough for a business to survive by merely hiring a consultant to tweak out a few extra pennies here and there. Competitive corporate survival is now a ubiq-uitous challenge.

Just like any living plant, a business either grows or dies. This means intelligent, profitable change. But, how?

Over the course of my career, I have analyzed hundreds, possibly thousands, of businesses. Based on this interactive experience, I have developed the twin complementary concepts of Structured Organization and Structured Programming. Im-plementing these concepts enables any business to confront the multiple, dynamic challenges of the new millennium. This is accomplished by reducing variable costs, increasing overall efficiency, and freeing assets for expansion and improved sales. Utilizing these strategies results in an increase of mil-lions of dollars per year in profits for any large business.

Currently, many businesses approach organization and programming in a haphazard or piecemeal manner. Only full implementation of structural strategies reaps full benefits. STRUCTURED ORGANIZATION

Implementation of Structured Organization initially re-quires the construction of at least two flowcharts for each busi-ness process. The first chart documents the current, actualworkflow.

Chart two is the creative framework for your work sheet. This second chart is a bare-bone, skeletal flowchart. In effect, a straight line illustrates a beginning and desired end result. The straight line is analogous to the command line in a com-puter program. As a need or command point is reached on the line, each single task or operational unit is “plugged in” to be tested for effect. As systemic needs change, a replacement unit is “plugged in.” This continues until the end of the line is reached, or the desired product is produced. This allows for latitude, flexibility, and transitional progress.

Structured Organization automatically allows for rapid implementation of new operations, including the insertion of an effective system of internal control. Since a business must operate as a seamless entity, each flow chart connects to an-other business process at one or more junctures. These changes are then implemented incrementally, so overall operations con-tinue with only minor interruptions. Implementation costs can be amortized over time.

Internal control is accomplished by using a system of checks and balances parallel to those in the U.S. Constitution. The Legislative Branch makes the law; the Executive executes the law; and the Judicial interprets the law. In like manner, internal controls are evaluated based upon a system of checks and balances according to designated function. Correspond-ingly, operational assessments clearly define, implement, and re-evaluate existing programs and control systems. An opera-tion based upon checks and balances also monitors and stream-lines office procedures, so your business focuses on its bottom line with minimal disruption.

STRUCTURED PROGRAMMING Current computer programming is based upon the building

blocks of language. Some speak JAVA; others Assembly. These alphabet blocks often create a top-heavy, inverted pyra-

8

will be very difficult to build the fil-tering plan and follow-through with it. If the plan is in place or you need to build one, make sure that you stick to it. If changes need to be made throughout the year, make them based on a solid reason. Don’t allow the issues of a handful of clients to undermine the importance of a strong foundation. This prevents the firm from going down bunny trails that lead to frustration and extra work. Interested in creating a strategic plan for your firm. Contact us and we will send you our Guide to Strategic Planning.

Training your team on what an ideal client looks like early on will provide them with the knowledge to filter them before they become prob-lem clients. Firms with strong rain-makers are very adept at this. They have the ability to find companies that fit the model. Help your staff by utilizing the client filtering plan in their ongoing training. Train them to understand how to look for clients that may cause future issues. If they complain or fight price early on, chances are they will do it through-out their client life with your firm. Training will also give your staff the confidence to say no to poor clients or to begin the process of eliminating them altogether. It will be difficult for the “D” clients to influence direc-tion if your entire staff has been equipped with the ability to identify and deal with them. Conclusion

Every firm has at least one horror story about how a client created problems in some form or another. If they are honest, most firms will also tell you about how a “D” client or two have made them make unneces-sary or bad decisions in efforts to fix the issues. This will typically result in frustration and lost efficiency. Keep focused on your best or “A” clients and minimize or eliminate the “D” clients. Your staff will be hap-pier, the firm will be more profitable and your best clients will see im-proved service because you will have more time for them.

DON’T LET “D” CLIENTS DIRECT FIRM!By Eric Hunt

Boomer Consulting, Inc. We all have those great clients

that we love to work with. They are forward thinking, pay their bills on time, refer work to us, and are typi-cally fun to work with! These are the types of clients every firm says they strive to find and keep on their books. Just as we have our ideal cli-ents, we also have what I refer to as “D” clients. They are just the oppo-site of ideal. They tend to haggle on price, expect more than what they are paying for, don’t refer work, and typically can’t be pleased. The scary part is that many firms build strate-gies around these clients and their issues. A big complaint or sugges-tion from a “D” and all of sudden firms are changing course to suit the needs of this client. The rationale is that if they can address this and make a change, maybe that firm can be-come an ideal client. This just sim-ply isn’t the case! What can a firm do to prevent the worst clients from

driving direction of the firm in any manner? Client Filtering Plan

Simply put, the easiest way to keep “D” clients from influencing the firm is to filter them out of your busi-ness. This isn’t just picking up the phone and firing clients that you don’t like. There has to be a process and plan behind your actions. Build a plan that defines an ideal client, determines filtering criteria, and cre-ates a process for moving forward with the removal of problem clients. Once a plan is in place, it is much easier to provide direction to your team. Need help creating a client filtering plan? Contact us and we will send you our Guide to Client Filter-ing.Stick To Your Plan!

As important as the client filter-ing plan is, it won’t matter if you don’t have a firm strategic plan. This is the foundation for everything your firm is doing and what it stands for. Without a strategic plan in place, it

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9

Nebraska Society membership applications have been received from the following individuals. Objections should be filed with the Secretary of the Nebraska Society of CPAs: Daniel L. Wells, Diesel Power Equipment Co., 13619 Industrial Rd., Omaha, NE 68137.

Casey J. Carpenter, Doh-man, Akerlund & Eddy, LLC; Aurora

Rachel Clark McGladrey & Pullen, LLP; Omaha

Michael J. Smith II, McFar-lin & Brokke, PC; Omaha

CarLee A. Wadell, Deloitte Tax, LLP; Omaha

The 49th Annual Great Plains Federal Tax Institute (Institute) is scheduled at the Embassy Suites Down-town/Old Market, 555 S. 10th Street in Omaha, on Thursday and Friday Dec. 1-2, 2011. The Institute combines the in-terests of attorneys, accountants, finan-cial planners, life insurance and other tax professionals.

Program Committee Chairman Kurt Tjaden of Omaha cites an outstanding faculty that includes both national and local experts as a primary feature of the event.

Creighton Law Professor Edward A. Morse will present Current Develop-ments on Income Tax on the first day of the Institute, and Timothy L. Moll of Lincoln will deliver the Estate and Gift Taxes Update on the second day. Other Dec. 1 presentations include Ethical Issues in Tax Practice, by Dr. Thomas J. Purcell III, of Omaha, and James W. Sansone of Schaumburg, IL; and Plan-ning for Retirement Benefits, by James G. Blase, St. Louis, MO.

Thursday afternoon will conclude with three concurrent breakout sessions: 1) A live webinar with Lawrence Brody of St. Louis, MO, on 2010 Tax Act with Planning Opportunities; 2) The “Revocable Irrevocable Trust”, by R. Nick Taylor of Omaha and 3) Coordi-nating Tax and Farm Entity Planningwith Participation in USDA Farm Pro-grams by Todd Jennsion, Garden City, KS.

49TH GREAT PLAINS TAX INSTITUTE SET Additional presentations scheduled

for Friday morning, Dec. 2, include Partnership Transactions by Andrea M. Whiteway of Washington, DC, and Dis-claimers by E. Diane Thompson of Vir-ginia Beach, VA. Christine M. Jurish Furie of Chicago, IL kicks off the Friday afternoon session by presenting Com-pensation and Benefits Issues in Today’s Transactional Environment. She will be followed by Katherine Breaks of Wash-ington, DC, who will give an update on legislation. Nicholas K. Niemann of Omaha will conclude the Institute with a discussion of Nebraska and Iowa State Tax and Economic Development.

Proceeds from the annual Institute have established funds from which scholarships are awarded to students at the University of Nebraska-Lincoln School of Accountancy and the College of Law. Registration fees are $410, but a discounted fee of $360 is given for registrations received by Nov. 9. A spe-

cial discount rate of $275 is offered to participants who have been in their pro-fessional practices for less than five years. Participants are to receive course materials online. Purchasing printed course materials is optional. At the in-stitute participants will receive a compli-mentary flash drive containing the course materials.

The course is expected to carry both CLE and CPE credit for Nebraska and Iowa attorneys and CPAs. To register or for more information, contact the pro-gram manager at 402-483-4234 or cindylilleoien@aol.com. Online infor-mation at www.greatplainstax.org.

On-site registration for the event gets under way at 7:30 a.m. on Dec. 1. Programming begins that day at 8:30 a.m. and recesses at 4:35 p.m. Instruc-tion begins again the following morning at 8:00 a.m., and the Institute concludes at 4:30 p.m. on Dec. 2.

MEMBERSHIP APPLICATIONS

“FAF DOESN’T CREATE” . . . From Page 1 board focused solely on the right standards for private company GAAP.

In essence the Panel’s report stated: The supermajority view of the BRP members is that the current FASB and even a restructured FASB cannot produce the needed excep-tions and modifications to GAAP for private company financial report-ing. Those BRP members believe that throughout its history, the FASB has been very heavily geared, in its composition and its processes, to-ward public companies. As a result, GAAP exceptions and modifications in recognition, measurement and presentation have been too rare and extremely difficult to achieve. Members of a board with authority to set accounting standards for private companies must possess the perspective of those stakeholders, and the FASB cannot be sufficiently restructured or possess enough of the essential private company represen-tation needed to set GAAP differ-ences for private companies.

“Unfortunately, FAF’s pro-posal has failed to accept the views of the many voices of the private

company constituency asking for a separate board. We don’t think the concerns of smaller private compa-nies can be fully appreciated until there is an independent board dedi-cated and focused solely on the needs of private companies. There-fore, we will continue to ask our members and others who support more relevant, more cost beneficial standards for private companies to make their voices heard loud and clear that the best answer is an inde-pendent private company board,” commented Stahlin, AICPA chair-man.

AICPA Council Acts On October 18, 2011, the

AICPA’s governing Council over-whelmingly approved a resolution that sends a strong message to the Financial Accounting Foundation (FAF): adopt the Blue Ribbon Panel on Standard Setting for Private Com-panies’ recommendation for an inde-pendent standard-setting Board — which is the AICPA’s preference — or the Institute's Board of Directors will look at other solutions for ad-dressing the needs of private compa-nies.

“STRUCTURED ORGANIZATION” . . . From Page 7

renovate a company’s business structure in a cost effective manner without alter-ing its current business model. Simulta-neous instruction of these dual structural concepts can be taught through a variety of multi-media techniques. These con-cepts have multiple applications to innu-merable functions and systems.

Those businesses concerned with major labor-related costs might also con-sider updating their business plan to a Comprehensive Independent Contractor Business model. This model is designed to assist businesses in the proper conver-sion of all levels of labor to independent contractor status on a sustainable basis.

David Sity holds a CPA (WI) and is a professional expert in operational, internal, compliance, and financial auditing. Sity has developed sets of specific guidelines which can be applied for use to any number of business or industry venues. Any business or consulting firm inter-ested in his services may contact Sity, at AalborgServices@gmail.com.

The American Institute of Certi-fied Public Accountants (AICPA) an-nounced on October 17, 2011, that 51 CPAs have been selected nationwide to receive its inaugural Sustained Con-tribution Award. The award recog-nizes members of the Institute who have contributed measurably to the AICPA and the CPA profession through their volunteer service. Twoof the 51 recipients, William V. Strain of Lincoln and Thomas J. Purcell III of Omaha, are members of the Nebraska Society.

All the recipients have served on an Institute volunteer group for 20 or more years and have served at least once as a chairman of an AICPA com-mittee, task force or resource panel. “The AICPA congratulates all of the recipients of the Sustained Contribu-tion Award,” stated Kathy Eddy, chairman of the awards committee and former AICPA chairman. “The work they’ve done in volunteer leadership roles at the AICPA will help strengthen the profession for many years to come.”

Bill Strain is a Shareholder and Officer in the Lincoln firm of Strain Slattery Barkley & Co., CPAs, P. C. He is the only Nebraskan ever to serve on the AICPA Board of Directors (1999-2001) and during that time was the Board’s Finance Committee Chairman. In addition, he served for years on numerous AICPA commit-tees and task forces. Bill has also been the Nebraska Society’s Chair-man of the Board (1989), Treasurer and Secretary and has held the same offices with the Society’s Foundation along with serving on numerous Soci-ety committees.

Dr. Purcell is a Professor of Ac-counting and a Professor of Law at Creighton University in Omaha and last year received the AICPA’s Arthur J. Dixon Memorial Award. The Dixon Award is the highest award given by the accounting profession in the area of taxation. He is a past Chairman of the AICPA’s Tax Execu-tive Committee and currently is the Chairman of the AICPAs’ Energy Tax Policy Task Force and over the years

has served on numer-ous AICPA Tax Di-vision committees and task forces. He has also been an ac-tive volunteer and a leader in the Ne-braska Society. He served as the Chair-man of the Board of the Society during 1997 and 1998 and has served on both the Society Board and the Foundation Board along with providing extensive service with a num-ber of Society com-mittees.

Both Strain and Purcell have also served on the governing bodies of many civic, charitable, religious and educational organizations in their communities.

The AICPA (www.aicpa.org), founded in 1887, is the world’s largest accounting association.

STRAIN, PURCELL RECEIVE AICPA AWARDS

Bill Strain

Tom Purcell

10

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Society members can now save up to 30% off UPS Express air and international shipments. That’s a significant savings over FedEx published rates!* All this with the peace of mind that comes from using the carrier that delivers outstanding reliability, greater speed, more service, and innovative technology. UPS guarantees delivery of more packages around the world than anyone, and deliv-ers more packages overnight on time in the US than any other carrier, including FedEx. Simple shipping! Special savings! It's that easy!

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Now save up to 30% on UPS shipping. Thanks to the Nebraska Society of Certified Public Accountants!

“IRS URGED” . . . From Page 4

interns and other supervised em-ployees who are newly hired or tem-porary while their PTIN applica-tions are being processed. This would negatively affect a CPA firm’s ability to do business. “CPA firms need a solution that flexibly addresses their immediate staffing needs without disruption,” she said. Furthermore, IRS should, at a minimum, allow provisional PTINs to be effective through Oct. 16, 2012, in order to accommodate the completion of tax returns that have been extended.

The preamble to the proposed IRS regulations indicates that the IRS does not intend to fingerprint CPAs at this time, but specifically requests comments on whether CPAs and others should be exempt.

“The AICPA strongly believes that CPAs should continue to be exempt from the fingerprinting process because it is redundant to the suitability process performed by the 55 state boards of accountancy that regulate CPAs in the United States and territories,” Thompson said. “Given the longstanding regu-latory process provided by the state boards of accountancy, we do not believe it appropriate for the IRS to duplicate the cost or burden of fin-gerprinting CPAs.”

OPPORTUNITIES AVAILABLEPAGES 11 & 12

ASSISTANT PROFESSOR BUSINESS – Possible Tenure Track, Department: School of Professional Studies. Focus: Accounting and Fi-nance. Responsibilities: Teaching up to a 12 hour load per semester of online and onsite undergraduate courses, advising and mentoring students, providing service to the College, active participation in campus life on main campus in Peru, NE, and implementing an active professional development/academic discipline contribution plan. Faculty members are expected to dem-onstrate commitments to continuous improvement of instructional practices and student engagement in and outside the traditional learning space. Quali-fications: Master’s degree required for appointment as an instructor, a termi-nal degree (Ph.D., D.B.A., or Ed.D.) is required for tenure track position as an assistant professor. Candidates for the instructor position should currently be a Certified Public Accountant (C.P.A.),Certified Management Accountant (C.M.A.), or a Chartered Financial Analyst (C.F.A.) and have a Master’s De-gree in Business Administration, Finance or Accounting. Professional experi-ence desired in accounting, finance and accounting information systems. Courses taught may include Intermediate Accounting classes, Business Fi-nance, Accounting Information Systems, and other accounting or business classes. APPLICATION PROCEDURE: An employment application is avail-able at www.peru.edu - Use the ‘employment opportunities’ link or contact Human Resources at hr@peru.edu. Send the completed application plus let-ter of interest, curriculum vitae clearly showing education, work background and years of experience, statement of teaching philosophy, academic tran-scripts (photocopies accepted), and contact information for 3 current refer-ences (name, address, telephone number and email) to Human Resources, PERU STATE COLLEGE, PO Box 10, Peru, NE 68421-0010. Starting Date August 2012. Salary: 9-month contract salary mid $40’s to mid $50’s,depend-ing upon qualifications. Opportunity for additional Summer pay. Excellent benefits package.

FUTURE MANAGER SOUGHT MSLCPA is looking for senior in-charge accountant with future management possibilities in North Platte office. This position has ownership potential. Must have 5 years or more experience in tax and accounting. This position has little travel. A wide range of benefits are available. Contact Doug Skiles, McPherron Skiles & Loop, CPAs, PO Box 36, McCook NE 69001, dskiles@msl-cpa.com; (308) 345-5100.

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Cabela’s World’s Foremost Bank in Lincoln, NE has an opening for a FINANCIAL ANALYST 1 in its Accounting Department. The Finan-cial Analyst position prepares entry-level financial analysis and per-forms assignments in the areas of general ledger, regulatory compli-ance, financial reporting and budg-eting. Also responsible for assisting in preparation & analysis of financial statements & reports. Ability to per-form in a fast paced environ-ment. Bachelor’s degree in account-ing or equivalent. One to two years public accounting experience or two to three years financial analyst or related experience in accounting. Cabela’s offer competitive benefits including generous merchandise discount, 401(k), vacation and em-ployee stock purchase plan. Apply on-line at www.cabelas.job requisi-tion #3167. Cabela’s is an Equal Opportunity Employer (EOE) and we seek to create an inclusive workplace that embraces diverse backgrounds, life experiences and perspectives.

LOCAL SUCCESSFUL CPA FIRM IS LOOKING TO PURCHASE CPA FIRM OR TAX PRACTICE

We are a local CPA firm with broad practice expertise with an Omaha office looking to expand. We are seeking to purchase an existing CPA firm or Tax practice in the Omaha, Nebraska area. Contact: Ray Filipowicz at (402) 390-2480 or email: rfilipowicz@hayes-cpa.com. Serious inquiries only.

Low Cost Incorporation Prompt Affordable Service ¨ Attorney Prepared

Services Provided (prices include filing fees and costs)

Incorporation $399.00 Standard business corporation organized in NE or IA. Call for pricing of additional states.

Limited Liability Company $449.00 Standard provisions, with Operating Agreement; NE or IA. Call for pricing of additional states.

Professional Corporation $499.00 Nebraska Only

Nonprofit Corporation $399.00 Standard nonprofit corporation organized in NE or IA. Call for pricing of additional states.

Law Offices of Thomas E. Whitmore 7602 Pacific Street, Suite 200

Omaha, Nebraska 68114

phone: (402) 391-2400 (800) 771-5056 Fax: (402) 391-0343

visit our website – http://whitmorelaw.com e-mail: tom@whitmorelaw.com

Nebraska Society of CPAs 635 South 14th Street, Suite 330 Lincoln, Nebraska 68508

PRSRT STD US POSTAGE

PAIDLINCOLN NE

PERMIT NO. 1122

OPPORTUNITIES

AVAILABLEPAGES 11 & 12

CPA PRACTICE FOR SALE inBlair, NE - gross revenues of $1,140,000 - well-established prac-tice with a quality client base, strong fee structure and knowledgeable staff in place. For more information, call (800) 397-0249. Also see list-ings, inquire for details and register for f ree emai l updates at www.accountingpracticesales.com.THINKING OF SELLING YOURPRACTICE? Accounting Practice Sales is the leading marketer of ac-counting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm and negoti-ate the best price and terms. To learn more about our risk-free and confidential services, call Trent Holmes at (800) 397-0249 or email trent@accountingpracticesales.com.

Grand Island accounting firm has an opportunity for a CPA with experience working with clients in the agricultural industry. Limited travel, competitive compensation, benefits and opportunity to take control. Send resume to Horst & Associates, P.C., 1831 N Webb Rd, Grand Island, NE 68803; or email steveh@horstcpas.com.

Infogroup is looking to hire a CORPORATE ACCCOUNTANT. Looking for 2+ years of Public Accounting experience. Please send resume to Paul Nields at Paul.Nields@infogroup.com to discuss.