WASHINGTON STATE REGISTER

WSR 99-19-045

PROPOSED RULES

BOARD OF ACCOUNTANCY

[ Filed September 13, 1999, 11:03 a.m. ]

Preproposal statement of inquiry was filed as WSR 98-24-059.

Title of Rule: Repeal of WAC 4-25-813 Continuing professional education (CPE)--Program sponsor agreements.

Purpose: To continue hearing date--To eliminate the voluntary sponsor agreement program offered to persons or organizations intending to sponsor programs qualifying for CPE.

Statutory Authority for Adoption: RCW 18.04.055, 18.04.105.

Statute Being Implemented: RCW 18.04.055, 18.04.105.

Summary: To repeal section of chapter 4-25 WAC that is unnecessary.

Reasons Supporting Proposal: The sponsor agreement program is voluntary and, as such, only a portion of sponsors participate. Currently, the board has approximately four hundred sponsor agreements. Sponsors agree to comply with the board's guidelines regarding program development and evaluation, and documentation requirements. Upon entering into an agreement with the board, CPE sponsors may display the following statement on their advertising materials: "We have entered into an agreement with the State of Washington Board of Accountancy to meet its continuing professional education program requirements." Approximately one hundred sponsors have been 'monitored' in the last ten years. Monitoring means a CPE committee member, or board staff, attends one of the sponsor's courses and evaluates it. To date, no course has been found unsatisfactory.

The program is designed to (1) educate CPE sponsors on the board's rules and suggested program development/evaluation guidelines, and (2) provide CPAs with a method to identify CPE sponsors who were aware of the board's requirements.

The board proposes to repeal this rule (WAC 4-25-813 Continuing professional education (CPE)--Program sponsor agreements) because:

• Program sponsors rarely state in their advertising literature that they have an agreement with the board.

• CPAs cannot differentiate between sponsors having an agreement with the board and those who do not.

• The board has monitored CPE program sponsors for nine years. During that time no course has been graded as unsatisfactory.

• The CPE committee feels the value of the program is minimal compared to the administrative costs.

• The program's primary purpose (education of sponsors and promotion of sound program development and administration procedures) can easily be accomplished through outreach and proactive customer service.

• Administration of the sponsor program entails the use of 10% of one staff's time. When you compare the value of what is accomplished through this program to areas where the agency could expand its activities no valid reason exists to continue this formal (rather bureaucratic) program.

• Elimination of this rule is consistent with the intent of Governor Locke's Executive Order: "whereby rules focus on issues of greatest need."

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Dana M. McInturff, CPA, 210 East Union, Suite A, Olympia, (360) 664-9194.

Name of Proponent: Board of Accountancy, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The board proposes to repeal WAC 4-25-813 as the rule is unnecessary.

Proposal Changes the Following Existing Rules: Eliminates the voluntary sponsor agreement program offered to persons or organizations intending to sponsor programs qualifying for CPE to Washington CPAs.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposal will not have more than minor economic impact on business.

RCW 34.05.328 does not apply to this rule adoption. The Board of Accountancy is not one of the agencies required to submit to the requirements of RCW 34.05.328.

Hearing Location: Cavanaughs River Inn, Northridge Board Room, 700 North Division Street, Spokane, WA, on October 28, 1999, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Cheryl Sexton by October 21, 1999, TDD (800) 833-6384, or (360) 664-9194.

Submit Written Comments to: Dana M. McInturff, P.O. Box 9131, Olympia, WA 98507-9131, fax (360) 664-9190, by October 26, 1999.

Date of Intended Adoption: October 29, 1999.

September 10, 1999

Dana M. McInturff, CPA

Executive Director

•	Program sponsors rarely state in their advertising literature that they have an agreement with the board.
•	CPAs cannot differentiate between sponsors having an agreement with the board and those who do not.
•	The board has monitored CPE program sponsors for nine years. During that time no course has been graded as unsatisfactory.
•	The CPE committee feels the value of the program is minimal compared to the administrative costs.
•	The program's primary purpose (education of sponsors and promotion of sound program development and administration procedures) can easily be accomplished through outreach and proactive customer service.
•	Administration of the sponsor program entails the use of 10% of one staff's time. When you compare the value of what is accomplished through this program to areas where the agency could expand its activities no valid reason exists to continue this formal (rather bureaucratic) program.
•	Elimination of this rule is consistent with the intent of Governor Locke's Executive Order: "whereby rules focus on issues of greatest need."

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