ALJDEC decisions subject to certification as final

10F-2010.092-ACY · State Board of Accountancy · 2010-08-18

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: August 4, 2010 APPEARANCES: The Arizona State Board of Accountancy was represented by Assistant Attorney General Seth Hargraves. Ted R. Rhudy did not appear. ADMINISTRATIVE LAW JUDGE: Brian Brendan Tully _____________________________________________________________________ Based upon the evidence of record, the Administrative Law Judge makes the following Findings of Fact, Conclusions of Law, and Recommended Order: FINDINGS OF FACT 1. The Arizona State Board of Accountancy (“Board”) is the authority for regulating the profession of Certified Public Accountants in the State of Arizona. 2. Ted B. Rhudy, CPA (“Respondent”) is the holder of Certified Public Accountant Certificate No. 3571-E issued by the Board. The certificate enables Respondent to practice as a certified public account in Arizona. 3. Pursuant to A.R.S. § 32-730(A) and (D), all certified public accountant registrants must biennially register with the Board and submit satisfactory proof that they have completed the continuing professional education (“CPE”) requirements promulgated by the Board. 4. Pursuant to A.A.C. R4-1-453(D) (1), Respondent was required to complete 80 hours of CPE during the two-year period immediately preceding his registration renewal. 5. On November 10, 2009, Respondent submitted his biennial registration renewal form to the Board. In his renewal form, Respondent requested a waiver of CPE requirements, pursuant to A.A.C. R4-1-453(D) (10), based upon Respondent’s permanent disability. 6. Respondent’s renewal form indicated that he was actively engaged in the practice of accounting as a sole proprietor. 7. Respondent signed his renewal application certifying that all statements were true, accurate, and correct. 8. By letter dated November 25, 2009, Respondent explained his permanent disability to the Board as follows: I am a paraplegic and have been in a wheelchair since September, 1976. In February, 2008 I developed a pressure sore on my buttocks. This greatly limited the time I can remain in a sitting position. I began treatment for this condition in February, 2008. I developed complications and was admitted to the hospital in November, 2008. I had a complex muscle flap reconstruction to close the wound on January 15, 2009 and remained in the hospital until March, 2009.

9. At its December 7, 2009 meeting, the Board considered Respondent’s request for a CPE waiver. The Board voted to deny Respondent’s CPE waiver request and grant Respondent a 90-day extension to complete the CPE requirements. 10. By letter dated December 7, 2009, Board staff informed Respondent of the Board’s denial of his CPE waiver request and the 90-day extension to complete his CPE requirements. 11. Respondent failed to complete the required CPE by March 8, 2010, the ending date for the 90-day extension. 12. The Board forwarded this matter, designated by the Board as ASBA File No. 2010.092, to the Office of Administrative Hearings, an independent agency, for an evidentiary hearing. 13. On June 24, 2010, the Board, through its Executive Director, issued a Complaint and Notice of Public Hearing, which advised the parties of the time, date, and location of the formal hearing. A copy of the Complaint and Notice of Public Hearing was sent to Respondent at his address of record with the Board. 14. The commencement of the scheduled hearing was delayed 15 minutes to allow for the late arrival of Respondent or an attorney authorized to represent him. After the delay, the Administrative Law Judge conducted the hearing in Respondent’s absence. 15. The Board presented credible evidence that Respondent failed to complete his required CPE at the time he submitted his renewal form to the Board and further failed to complete the required CPE within the 90-day extension time frame. CONCLUSIONS OF LAW 1. The Board has jurisdiction over Respondent and the subject matter in this case. 2. Pursuant to A.R.S. § 41-1092.07(G) (2) and A.A.C. R2-19-119(B), the Board has the burden of proof in this matter. The standard of proof is preponderance of the evidence. A.A.C. R2-19-119(A). 3. Respondent violated the provisions of A.R.S. § 32-730(D) by failing to complete 80 hours of CPE during the two-year period preceding his submission of a renewal form. The evidence of record supports this conclusion. 4. Respondent’s failure to complete the CPE requirements for renewal constitutes a violation of A.R.S. § 32-741(A) (9), specifically A.A.C. R4-1-453(D) (1). The evidence of record supports this conclusion. 5. Respondent violated the provisions of A.A.C. R4-1-455.03(A) (3). The evidence of record supports this conclusion. 6. The Board may impose discipline upon Respondent for the above-provided statutory and regulatory violations, pursuant to A.R.S. § 32-741(A) and (D), as defined in A.R.S. § 32-701(6). The evidence of record supports this conclusion. RECOMMENDED ORDER Pursuant to A.R.S. § 32-741(D), Respondent’s Certified Public Accountant Certificate No. 3571-E shall be suspended on the effective date of the Order entered in ASBA File No. 2010.092 for a period not to exceed one year until Respondent becomes compliant with the CPE requirements for renewal of his certificate. If Respondent fails to reinstate his certificate by complying with the CPE requirements for renewal within one year from the effective date of the Order entered in ASBA File No. 2010.092, then Certified Public Accountant Certificate No. 3571-E shall expire. Pursuant to A.R.S. § 32-701(6) (f), Respondent shall reimburse the Board for its costs of investigation and administrative proceedings in ASBA File No. 2010.092 within 30 days of the date of billing by the Board, unless the Board or its designee grants an extension of the deadline date.

Done this day, August 18, 2010.

/s/ Brian Brendan Tully Administrative Law Judge

Transmitted electronically to:

Monica L. Petersen, Executive Director Arizona State Board of Accountancy -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826