Accountancy Board meeting focuses on future workforce, CPAs who violate licensing requirements

The Accountancy Board of Ohio (ABO), the state government entity charged with licensing, regulating, and when necessary, disciplining CPAs, can significantly affect the practice of all CPAs. That is why OSCPA represents the profession at every ABO meeting and advocates for best-practice rulemaking. Their first meeting of 2024 included discussions about future CPA pipeline and workforce development efforts, and how to best protect the public from current CPAs who fail to meet licensing requirements. The meeting included a variety of topics:

• As occurs at many of these meetings, one person had their CPA certificate revoked for renewal noncompliance.  The disciplinary hearing in question centered around an individual who had not renewed his CPA permit, which in turn meant his firm registration was not renewed.  This CPA  did not respond to numerous electronic and USPS outreaches, and an in-person visit by the ABO’s investigator found the office closed.  Current laws/rules place the burden of compliance on license holders, including ensuring they update contact information with the ABO when they move or change email addresses. The ABO voted to revoke his CPA certificate and firm registration for failure to meet state licensure renewal mandates.
  
• A total of 15 CPAs formally requested a waiver of fines primarily generated for two reasons: individuals who renewed their practice permit in 2023 and failed to take at least 20 hours of CPE each year of the total 120 hours required to renew, and individuals who pointed to personal or family health issues.  Each explained in their written correspondence why they felt their penalty merited dismissal. There was also one firm that missed a filing deadline.  Five of the fifteen requests resulted in waiver of penalties.  The remaining ten were not waived.  Fees ranged from $50 to $350. Of note:  each letter is read out loud at the ABO meeting, so if you want to request a fine waiver, only include details you are comfortable sharing as part of the public record!
  
• The ABO discussed the existing rule (4701-11-07) requiring that licensees report – within 30 days – any felony conviction or conviction of any crime (including misdemeanors) where dishonesty or fraud could be an element, or actions by another licensing body or government entity.   The ABO noted that there is some confusion on what is reportable and what is not, and agreed that clarity is needed on where the ABO draws the line on what is reportable.  OSCPA offered to include more on this topic in its ethics courses once ABO clarity is reached.  Of note:  each CPA is required to take at least three hours of professional standards and responsibilities as part of their total 120 hours of CPE.
  
• ABO Executive Director Donna Oklok received authorization to appear before the Ohio Controlling Board to seek release of funding included in their current budget for scanning of licensing records going back decades.   Currently, the records are maintained in paper form, take up a significant amount of space, and could be lost to fire, flood or other damage. 
  
• The future CPA workforce continues to be a hot topic.  The Board shared the latest developments with AICPA and NASBA, noting both groups are working on a possible alternative, non-academic pathway to licensure for the last 30 hours of the 150 hour requirement.  The target is this spring for a vote by both entities.   ABO member Megan Durst serves on the NASBA task force and OSCPA past chair Lori Kaiser serves on the AICPA task force, making Ohio well-represented in discussions.  OSCPA presented its recommendations to the AICPA task force in the fall.
  
• The ABO discussed alternative licensing pathways currently existing under Ohio law.  Both require a score of 670 on the GMAT prior to taking the CPA Exam.  The first, in place since 1959, allows candidates with an associate degree, including all of the required accounting and business coursework, to be licensed after passing all parts of the CPA Exam and earning four years of experience.  The second, in place since 2000 when the 150-hour requirement went into effect, allows candidates with a bachelors degree, including all required accounting and business coursework, to be licensed after passing all parts of the CPA Exam and earning two years of experience.  ABO staff reported that 24 individuals have been licensed since 2019 under these alternative pathways, most of whom had a bachelors degree and wanted to start taking the CPA Exam prior to finishing the last 30 of the required 150 hours.  

   

  ABO staff noted that a handful of state licensing boards told the Ohio Accountancy Board that these candidates likely would not receive a reciprocal license in their state because they took and passed the CPA Exam prior to finishing the 150 hours of education – despite the reality that currently all but one state allow testing at 120 hours and many have allowed testing at 120 hours for years.   Ohio law enacted in 2020 allows Ohio candidates to start taking the CPA Exam once they have 120 semester hours of college education and have completed 24 of the 30 accounting hours and all 24 business hours.  Unlike the alternative pathway involving the GMAT, they cannot be licensed until finishing all 150 hours of education.

   

• The ABO continued discussion on the nationwide workforce shortage of CPAs, and the shrinking CPA pipeline now in college.  They reported a total of $211,194.87 in scholarships to fifth-year students had been issued since July 1, 2023.

   

   The next ABO meeting will take place on Friday, March 1, in Columbus. While the meetings are held in person, watching it via Teams is an option, too. To receive a link, contact the ABO at 614-466-4135.  If you have questions about these or other licensing issues, feel free to reach out to OSCPA at 614-764-2727.