FINACT13F-2013.079-ACY.pdf

13F-2013.079-ACY · State Board of Accountancy · 2013-06-13

BEFORE THE ARIZONA STATE BOARD OF ACCOUNTANCY In the Matter of Certified Public Accountant Certificate No. 9991-E ASBA File No. 2013.079 Issued to: OAH Docket No. 13F-2013.079-ACY ELIZABETH A. KNIGHT

DECISION AND ORDER

This matter came before M. Douglas, Administrative Law Judge (ALJ) for the Office of Administrative Hearings on April 11, 2013, for the purpose of determining whether good cause exists for the Arizona State Board of Accountancy ("Board") to discipline Elizabeth A Knight's ("Respondent") individual certified public accountant (CPA) certificate pursuant to Arizona Revised Statutes ("AR.S.") § 32-701 et seq. and Arizona Administrative Codes ("AAC.") R4-1-101 et seq. The Respondent appeared on her own behalf and the Board appeared through its attorney, Seth T. Hargraves, Esq., Assistant Attorney General. On June 3, 2013, the Board reviewed the record in this matter including the hearing exhibits and the ALJ's recommended Decision, dated April 24, 2013. The Respondent was not present at the Board's meeting. Mr. Hargraves, the Board's attorney, was present and requested that the Board adopt the ALJ's Findings of Fact and. the ALJ's Conclusions of Law. However, Mr. Hargraves requested that the Board consider modifying the ALJ's Recommended Order to be amended to create consistency between the first and second paragraphs of the Recommended Order. The Board voted to adopt the ALJ's Findings of Fact, the ALJ's Conclusions of Law and the ALJ's Recommended Order. Based on the ALJ's Recommended Decision, the administrative record in this matter and the Board meeting, the Board issues the following Order: FINDINGS OF FACT 1. The Board is the authority for regulating certified public accountants in the State of Arizona. 2. Ms. Knight is the holder of Certificate No. 9991-E issued by the Board that allows Ms. Knight to practice as a certified public accountant in the State of Arizona. 3. Pursuant to A.R.S. § 32-730(A) and (0),1 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. Ms. Knight was required to complete 80 hours of CPE during the two-year period immediately preceding her registration renewal. Pursuant to A.A.C. R4-1- 453(0)(1), a minimum of 16 hours is required to be completed in a classroom setting or through an interactive webinar. 5. On or about August 30, 2012, Ms. Knight submitted her biennial registration application to the Board. Ms. Knight indicated that she had completed 102 hours of CPE, but that she had only taken 3 of the required 16 hours in a classroom setting or through an interactive webinar. On her application, Ms. Knight requested a waiver/exemption of the remaining 13 live CPE hours. 6. On or about October 15, 2012, the Board reviewed Ms. Knight's request for waiver/exemption and voted to deny Ms. Knight's request. 7. The Board then granted Ms. Knight a 3-month extension to complete the CPE requirement. 8. On or about October 15, 2012, Ms. Knight was sent a letter notifying her of the Board's decision and requesting that she submit the requested CPE documentation that she had taken the additional remaining 13 hours of CPE in a classroom setting or through an interactive webinar to the Board by January 14, 2013. The letter was delivered by registered mail and signed for on October 17,2012. 9. Ms. Knight failed to submit any additional documentation to the Board and failed to provide proof that she had completed the required 13 CPE hours in a classroom setting or through an interactive webinar or that she had complied with the CPE requirements of A.R.S. § 32-730(0) and A.A.C. R4-1-453(0)(1). 10. Ms. Knight testified that she had been unemployed for eight months prior to accepting her new position. Ms. Knight stated that she is supporting herself and her adult daughter and grandchildren. Ms. Knight testified that the CPE requirements impose a financial hardship on people in her position. 11. Ms. Knight testified and produced evidence that she had completed more than the required 13 hours of CPE through classroom or interactive webinar before January 14, 2013. Ms. Knight acknowledged that she had failed to inform the Board that she had completed the required CPE hours. Ms. Knight stated that she did not realize that the Board's October 15, 2012 letter required a reply from her. 12. Ms. Knight testified that she had difficulty utilizing the Board's website. Ms. Knight stated that she did not know how to report that she had completed the required CPE hours to the Board. Ms. Knight acknowledged that she had not attempted to contact the Board by telephone or in writing for information on how to submit the documentation of the additional CPE hours that she had completed. 13. The Board's October 15, 2012 letter provided, in pertinent part, as follows: To update your CPE page from your submitted renewal (2012- 2014), visit the Board's website at www.asaccountancy.gov and login, select the "Continuing Professional Education List" button. Secondly, select the "Instructions" button and follow the directions on the FAQ "How do I know what CPE revision to update." Any CPE used to meet this requirement may not be used on your subsequent registration.

Please be advised that your failure to timely respond and/or submit the requested material may be considered a violation of A.R.S. § 32-741 (A)(5), and grounds for disciplinary action against your certificate. CONCLUSIONS OF LAW 1. The burden of proof at an administrative hearing falls to the party asserting a claim, right, or entitlement and the standard of proof on all issues in these matters is by a preponderance of the evidence. See AAC. R2-19-119. 2. A preponderance of the evidence is "such proof as convinces the trier of fact that the contention is more probably true than not." MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960). 3. Under AR.S. § 32-741 (A), the Board may revoke, suspend, or take additional disciplinary action as defined by AR.S. § 32-701 (6) against Ms. Knight's Certified Public Accountant Certificate No. 9991-E. 4. Pursuant to AAC. R4-1-1 02(A),2 Ms. Knight is deemed to have knowledge of the

Board's rules. 5. Ms. Knight provided credible documentation that she had completed the CPE requirements for registration within the three-month period allowed by the Board in the Board's October 15, 2012 letter. This Tribunal concludes that Ms. Knight has complied with the CPE requirements set forth in ARS. § 32-730(0),3 AAC. R4-1-453(0),4 and AAC. R4-1- 455.03(A).5 6. Ms. Knight failed to respond to the CPE extension provided in the Board's October 15, 2012 letter. Ms. Knight failed to notify the Board that she had completed the CPE requirement prior to the time and date of the administrative hearing. Ms. Knight failed to provide the Board with documentation that she had completed the required CPE until the time and date

of the hearing. Ms. Knight failed to take reasonable measures to notify the Board that she had completed the CPE requirements prior to the administrative hearing. This Tribunal concludes that Ms. Knight's failure to respond and/or furnish documentation in a timely manner to the Board constitutes a violation of the charged provision of ARS. § 32-741 (A)(15).6 7. Pursuant to ARS. § 32-701 (6)(a), the Board may impose "[a]n administrative penalty in an amount not to exceed two thousand dollars for each violation of this chapter or rules adopted pursuant to this chapter" in this matter. At the hearing the Board's counsel requested that Ms. Knight be assessed a $500.00 civil penalty for Ms. Knight's failure to respond to the Board's October 15, 2012 letter and that Ms. Knight be assessed the Board's costs of its investigation and the proceedings in this matter. ORDER Based on the foregoing, the Board orders that pursuant to A.R.S. § 32-701(6), Ms. Knight shall be required to pay to the Board an administrative civil penalty in the amount of $500.00 within 12 months of the effective date of this Order as a condition of keeping her Certified Public Accountant Certificate no. 9991-E in good standing. It is further ordered that pursuant to A.R.S. § 32-701 (6)(f) , Ms. Knight shall be required to pay to the Board its costs of the investigation and of proceeding to a hearing in this matter in the amount of two thousand sixty-four dollars and 40/100 ($2,064.40) within 12 months of the effective date of this Order as a condition of keeping her Certified Public Accountant Certificate no. 9991-E in good standing. NOTICE OF APPEAL RIGHTS Respondent is hereby notified that she has the right to petition for a rehearing or review by filing a petition with the Board's Executive Director within thirty (30) days after service of this Order. A.R.S. §41-1 092.09. The petition must set forth legally sufficient reasons for granting a rehearing. A.A.C. R4-1-114(C). Service of this Order is effective on the date of personal delivery or five days after the date of mailing. If a motion for rehearing is not filed, the Board's Order becomes effective thirty (30) days after it is mailed to Respondent.

Respondent is further notified that the filing of a motion for rehearing is required to preserve any rights of appeal to the Superior Court.

DATED this 7th day of June, 2013.

ARIZONA STATE BOARD OF ACCOUNTANCY

BY:~---:-___-:--~-:--:::-----:--:::----tll'--_ _ Mark L. Landy, CPA, Board PresiCient Original of the foregoing filed this 7th day of June, 2013, with: Monica L. Petersen Executive Director Arizona State Board of Accountancy th 100 N. 15 Avenue, Suite 165 Phoenix, AZ 85007 Copy of the foregoing filed this 7th day of June, 2013, with: Office of Administrative Hearings 1400 W. Washington, Suite 101 Phoen~,Arizona 85007

Copy of the foregoing mailed via regular USPS and certified mail return receipt no. [account number redacted] 7909 this 7th day of June, 2013, to: Elizabeth A. Knight 6401 N. 183rd Avenue Waddell, AZ 85355

Copy of the foregoing mailed this 7th day of June, 2013, to: Seth T. Hargraves Assistant Attorney General 1275 W. Washington, CIV-LES Phoenix, Arizona 85007