CPA Resources
CPA Resources

General Assembly OKs 'special fund' for State Board

ANNAPOLIS, April 13, 2006 — A bill that calls for the creation of a "special fund" for Maryland's State Board of Public Accountancy has been approved by both houses of the General Assembly.

House Bill 103 calls for the creation of the "State Board of Public Accountancy Fund," a special, non-lapsing fund in the Department of Labor, Licensing and Regulation. The fund would be paid for by the licensure fees of Maryland CPAs and would provide the State Board with the resources necessary to carry out its duties and responsibilities and protect the interests of the public.

Beginning July 1, 2008, the State Board shall establish fees based on calculations of the direct and indirect costs attributable to the Public Accountancy Board. The amount of increase in the fees cannot exceed 12.5 percent of the current fee. For example, the fee for license renewals currently is $40 every two years. That fee would not increase by more than $5 in 2008.

"It is only logical that the fees paid by licensees for the privilege of practicing public accountancy cover the cost of administering the State Board of Public Accountancy," the MACPA said in a position paper on the issue. "No other group of licensees would understand this better than licensed CPAs, and our members have expressed that understanding to us."

The fund could help ease a number of problems the State Board currently faces.

  • It is important that licensed CPAs understand the laws and regulations that are designed to protect the interests of the public. However, when CPAs have called the State Board for clarification or information, it is almost impossible to get an answer due to the lack of adequate staffing for the Board. It is important to the protection of the public that the fund is created to allow for additional staffing for the Board.
  • CPAs are required by law to maintain their competency in the practice of public accountancy to protect the interests of the public. However, many of our members have advised us that they are often unable to reach anyone at the State Board to determine what the requirements are for those education programs. Again, this is due to lack of adequate staff and assistance to the Board.
  • Individuals seeking a CPA license in Maryland often call the MACPA to find out how they can become licensed. Although the information is available on the State Board's Web site, the process and requirements can be so complex that being able to ask a few questions of a live person is necessary.
  • The MACPA also receives calls from the general public seeking guidance or assistance with a problem related to public accountancy. This often happens because they are not able to reach anyone at the State Board of Public Accountancy.
  • MACPA members hold themselves accountable to high standards of professional ethics and integrity in all that we do. The MACPA disciplines members who do not comply with those standards. We also recognize the need for the State Board of Public Accountancy to be able to investigate violations of Maryland accountancy laws and regulations, and we expect the Board to take action against those found guilty of wrongdoings. Creation of the fund would ensure that the Board has adequate resources to carry out that responsibility in a timely and judicial manner.

The creation of the fund is one of the recommendations found in the MACPA's white paper on accounting reform, The Road to Reform: Protecting the Public Interest, Strengthening the CPA Profession. Published in 2002, the paper discusses ways in which CPAs can enact meaningful accounting reform and prevent the Sarbanes-Oxley Act from "cascading" down to the state and local levels.

Other recommendations from the white paper that have already been enacted include mandatory ethics CPE for Maryland CPAs and mandatory peer review for CPAs who perform compilations, audits or reviews.

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