FINACT15F-2015.064-ACY.pdf

15F-2015.064-ACY · State Board of Accountancy · 2015-05-15

BEFORE THE ARIZONA STATE BOARD OF ACCOUNTANCY

In the Matter of Certified Public Accountant Certificate No. 16611-R ASBA File No. 2015.064 Issued to: OAH Docket No. 15F-2015.064-ACY GERI A. ZINN,

DECISION AND ORDER RESPONDENT

This matter came before Dorinda M. Lang, Administrative Law Judge (ALJ) for the Office of Administrative Hearings on April 7, 2015, for the purpose of determining whether good cause exists for the Arizona State Board of Accountancy (“Board”) to discipline Geri A. Zinn (“Respondent”), a certified public accountant (CPA), pursuant to Arizona Revised Statutes (“A.R.S.”) § 32-701 et seq. and Arizona Administrative Codes (“A.A.C.”) R4-1-101 et seq. The Respondent appeared, telephonically and the Board appeared through its attorney, Michael Raine, Esq., Assistant Attorney General. On May 11, 2015, the Board reviewed the record in this matter including the hearing exhibits and the ALJ’s recommended Decision, dated April 23, 2015. Mr. Raine, the Board’s attorney, was present and requested that the Board adopt the ALJ’s Findings of Fact, the ALJ’s Conclusions of Law and consider amending the ALJ’s Recommended Order to seek reimbursement of the Board’s cost for proceeding to a hearing in this matter and/or possibly consider an administrative civil penalty. Ms. Zinn was present at the board meeting and summarized her thoughts regarding the Board’s continuing professional

education (CPE) requirements in a CPE audit and stated that she has since provided the

Board with copies of two additional courses she attended. Christopher Munns, Esq., Assistant Attorney General with the Solicitor General’s office made himself available, telephonically, to provide independent legal advice to the Board, but was not needed. The Board voted to adopt the ALJ’s Findings of Fact and the ALJ’s Conclusions of Law, but amend the ALJ’s Recommended Order to include the reimbursement of the Board’s costs for proceeding to hearing in this matter, pursuant to § 32-701(10)(g). The

Board capped the reimbursement to not exceed $750.00. 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. Respondent is a Certified Public Accountant. After an audit by the Arizona State Board of Accountancy ("the Board"), it was discovered that Respondent did not have enough continuing education credits to support her continued certification. 2. The Board proposes to suspend Respondent's certificate for one year or until she is current on her continuing education. The matter was set for hearing at the Arizona Office of Administrative Hearings, an independent hearing agency. 3. Respondent appeared at the hearing and argued that she is very ethical, but she just moved to Arizona and this was her first audit. Additionally, she stated that she thought she had met all her continuing education requirements but she was unable to obtain documentation of it all.

4. The Board's attorney argued that the law requires that proof be submitted in the

manner that is required by the Board and that it shall suspend the certificate of anyone who fails to show that proof. CONCLUSIONS OF LAW 1. A.R.S. § 32-730 provides as follows: 32-730. Biennial registration; continuing professional education A. Except as provided in subsection B of this section and in section 32-4301, the board shall require every certified public accountant, public accountant and firm to register once every two years with the board and pay a registration fee pursuant to section 32-729. B. The registration fee for certified public accountants and public accountants may be reduced or waived by the board for registrants with a disability to a degree precluding the continuance of their practice for six months or more prior to the due date of any renewal fee. C. At the time of registration, every certified public accountant and public accountant, as a prerequisite to biennial registration, shall submit to the board satisfactory proof in a manner prescribed by the board that the registrant has completed the continuing professional education requirements established by the board. The board may grant a full or partial exemption from continuing professional education requirements or an extension of time to complete the continuing professional education requirements for registrants on a demonstration of good cause.

2. A.R.S. § 32-741.02 provides as follows:

32-741.02. Suspension for noncompliance with continuing education requirements; expiration of certificate A. After notice and an opportunity for a hearing, the board shall suspend the certificate of any registrant who fails to show proof of compliance with the continuing professional education requirements established by the board pursuant to section 32-730. B. A registrant whose certificate is suspended shall not assume or use the title or designation of "certified public accountant" or "public accountant” or the abbreviation "C.P.A", "CPA", "P.A" or "PA" while the registrant's certificate remains on suspended status. C. A suspension issued under this section is vacated when the board has determined that the registrant has complied with the continuing professional education requirements and has satisfied all other requirements for renewal. D. If the registrant fails to meet the requirements of subsection C of this section within twelve months after the date of suspension, the certificate expires.

3. In this case, it was not disputed that Respondent has failed to meet her continuing education requirements. Therefore, as required by A.R.S. § 32-741.02, the Board has properly determined to suspend Respondent's certification. ORDER Based on the foregoing, IT IS ORDERED that Respondent’s CPA certificate be suspended for no more than one year or until Respondent shows proof or completes the required CPE; IT IS FURTHER ORDERED that if the Respondent does not comply with the

Board’s CPE requirements within one year of the effective date of the Final Order in this

matter, her Certified Public Accountant Certificate No. 16611-R shall be expired; and

IT IS ORDERED that within one year of the effective date of the Final Order in

this matter, the Respondent must pay to the Board $519.13 for proceeding to a hearing in this matter. 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. §41-1092.09. 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 15th day of May, 2015.

ARIZONA STATE BOARD OF ACCOUNTANCY

By:___________________________________ John C. Sizer, Jr., CPA, Board President

Original of the foregoing filed this 14th day of May, 2015, with:

Monica L. Petersen Executive Director Arizona State Board of Accountancy 100 N. 15th Avenue, Suite 165 Phoenix, AZ 85007

/// /// Copy of the foregoing filed this 14th day of May, 2015, with:

Office of Administrative Hearings 1400 W. Washington, Suite 101 Phoenix, Arizona 85007 Via: Copy of the foregoing mailed via regular USPS and certified mail return receipt no. [account number redacted] 8017 this 15th day of May, 2015, to: Geri A. Zinn 6800 E. Arroyo Verdi Road Gold Canyon, AZ 85118

Copy of the foregoing mailed this 15th day of May, 2015, to: Sophia Varma Van Langen Assistant Attorney General 1275 W. Washington, CIV-LES Phoenix, Arizona 85007

By:___________________________________ Ryan P. Edmonson