ALJDEC decisions subject to certification as final

12F-2012.019-ACY · State Board of Accountancy · 2011-11-23

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: November 10, 2011 APPEARANCES: Robert C. Dunlap did not appear; Assistant Attorney General Seth Hargraves appeared for the State Board of Accountancy ADMINISTRATIVE LAW JUDGE: Thomas Shedden _____________________________________________________________________ FINDINGS OF FACT The Arizona State Board of Accountancy (“Board”) is the authority for regulating Certified Public Accountants in the State of Arizona. Robert C. Dunlap is the holder of Certified Public Accountant Certificate No. 8316-E issued by the Board, which allows Mr. Dunlap to practice as a certified public accountant in Arizona. On September 22, 2011, the Board issued a Complaint and Notice of Public Hearing setting this matter for hearing at 8:00 a.m. November 10, 2011, at the Office of Administrative Hearings. Mr. Dunlap did not appear at the scheduled time and the matter was convened in his absence at about 8:20 a.m. 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. Pursuant to A.A.C. R4-1-453(D)(1), Mr. Dunlap was required to complete 80 hours of CPE during the two-year period immediately preceding his registration renewal. On March 29, 2011, Mr. Dunlap submitted his biennial registration renewal form to the Board. Mr. Dunlap did not provide the Board with proof that he had completed any CPE in the 2 years prior to filing his renewal. Through his renewal form, Mr. Dunlap requested to be placed on inactive status pursuant to A.R.S. § 32-730(B). Mr. Dunlap’s renewal form shows that he was actively engaged in the practice of accounting in that he was “[r]endering tax and management advisory services.” A certified public accountant may be placed on inactive status only if he is not actively engaged in the practice of accounting. At its May 9, 2011 meeting, the Board considered Mr. Dunlap’s request to be placed on inactive status. The Board voted to deny Mr. Dunlap’s request and to grant Mr. Dunlap a 90-day extension to complete the required CPE. By certified letter dated May 9, 2011, the Board informed Mr. Dunlap of the Board’s denial of his request to be placed on inactive status and its grant of the 90-day extension to complete the required CPE. Based on the 90-day extension, Mr. Dunlap was required to provide the Board proof that he had completed the required CPE on or before August 9, 2011. Mr. Dunlap failed to complete the required CPE by August 9, 2011. The Board requested that Mr. Dunlap’s Certificate be suspended and that he be assessed the cost of the Board’s investigation in this matter. CONCLUSIONS OF LAW 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 that of the preponderance of the evidence. See A.A.C. R2-19-119. A preponderance of the evidence is “[e]vidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary 1182 (6th ed. 1990). The Board has jurisdiction over Mr. Dunlap and the subject matter in this case. The preponderance of the evidence shows that Mr. Dunlap 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 registration renewal. Mr. Dunlap’s failure to complete the required CPE constitutes a violation of A.R.S. § 32-741(A)(6), specifically A.R.S. § 32-730(D). Mr. Dunlap’s failure to complete the required CPE also constitutes a violation of A.R.S. § 32-741(A)(9), specifically A.A.C. R4-1-453(D)(1). The preponderance of the evidence shows that Mr. Dunlap violated A.R.S. § 32-741(A)(15) because he did not respond to the Board’s letter dated May 9, 2011. The Board may impose discipline upon Mr. Dunlap for the proven statutory and regulatory violations. See A.R.S. § 32-741(A) and (D). Mr. Dunlap’s Certificate should be suspended until he either provides the Board proof that he has completed the required CPE or for a period of 1 year. And if Mr. Dunlap has not completed the required CPE at the end of 1 year, his Certificate will expire. See A.R.S. § 32-741(D). Mr. Dunlap should be required to reimburse the Board for the costs of the Board’s investigation and the administrative proceedings in this matter. See A.R.S. § 32-701(6)(f). RECOMMENDED ORDER IT IS ORDERED that effective on the date the final Order is entered in this matter, Robert C. Dunlap’s Certificate No. 8316-E is suspended for a period of 1 year, or until such time as Mr. Dunlap demonstrates that he has completed the required continuing professional education; IT IS FURTHER ORDERED that if Mr. Dunlap has not completed the required continuing professional education within 1 year of the effective date of the final Order entered in this matter, then Certificate No. 8316-E will expire; IT IS FURTHER ORDERED that within 30 days of the final order entered in this matter, Mr. Dunlap is required to reimburse the Board for the costs of the Board’s investigation and the administrative proceedings in this matter as determined by the Board at the time a final order is entered.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be the date of that certification.

Done this day, November 23, 2011.

/s/ Thomas Shedden Thomas Shedden 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