FINACT18F-2018.134-ACY.pdf

18F-2018.134-ACY · State Board of Accountancy · 2018-11-08

BEFORE THE ARIZONA STATE BOARD OF ACCOUNTANCY In the Matter of Certified Public OAH Docket No. 18F-2018.134-ACY Accountant Certificate No. 14862-E ASBA File No. 2018.134 Issued to: MELISSA B. PETERSEN DECISION AND ORDER Respondent.

On November 5, 2018, this matter came before the Arizona State Board of Accountancy (“Board”) for consideration of Administrative Law Judge (“ALJ”) Kay Abramsohn’s proposed Findings of Fact, Conclusions of Law and Recommended Order (“ALJ’s Decision”). Neither Melissa B. Petersen (“Respondent”) nor an attorney on her

behalf appeared. Assistant Attorney General Scott Donald appeared on behalf of the State. The Board received independent legal advice from Assistant Attorney General Seth Hargraves. The Board, having considered the ALJ’s Decision and the entire record in this

matter, hereby issues the following Findings of Fact, Conclusions of Law and Order (“Decision and Order”). FINDINGS OF FACT

The Findings of Fact as set forth in the ALJ’s Decision are adopted in their

entirety and incorporated herein. CONCLUSIONS OF LAW The Conclusions of Law as set forth in the ALJ’s Decision are adopted in their

entirety and incorporated herein. // // A true and correct copy of the ALJ’s Decision is attached and certain parts of it are incorporated here as set forth above. ORDER Based on the foregoing, the Board ORDERS that Respondent Certified Public Accountant Certificate No. 14862-E be REVOKED.2 IT IS FURTHER ORDERED that Respondent shall be required to reimburse the Board $35.50 within thirty (30) days of the effective date of this Decision and Order. This amount reflects the costs and attorney’s fees the Board incurred in prosecuting this matter.3 NOTICE OF APPEAL RIGHTS Respondent is hereby notified that they have the right to move for a rehearing or review by filing a motion with the Board’s Executive Director within thirty (30) days after service of this Decision and Order. A.R.S. § 41-1092.09. The motion must set forth legally sufficient reasons for granting a rehearing. A.A.C. R4-1-114(C). Service of this Decision and Order is effective on the date of personal service or five (5) days after the date of mailing. If a motion for rehearing is not filed, the Board’s Decision and 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 November, 2018. ARIZONA STATE BOARD OF ACCOUNTANCY By: ___________________________________ Julie S. Klewer, CPA, Board President The Board voted to reject the ALJ’s Order for suspension of the Registrant’s certificate because the Board determined that a violation of A.A.C. R4-1-455.03(D) is grounds for revocation through A.R.S. § 32-741(A)(9), which is consistent with past Board decisions. Further, in order to apply A.R.S. § 32-741.02 for a suspension, there would need to be a finding of a violation of A.R.S. § 32-730 for which the ALJ did not conclude. The Board voted to modify the ALJ’s Decision to include a requirement that Respondent pay reimbursement within thirty (30) days, which is consistent with the Board’s practices. Original of the foregoing Decision and Order (and attachment) th filed this 7 day of November, 2018 with: Monica L. Petersen Executive Director Arizona State Board of Accountancy th 100 N. 15 Avenue, Suite 165 Phoenix, AZ 85007 Copy of the thforegoing Decision and Order (and attachment) e-filed this 7 day of November, 2018 with: Greg Hanchett, Director Arizona Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, AZ 85007 Copy of the foregoing Decision and Order (and attachment) mailed via U.S. First Class Mail and Certified Mail #[account number redacted] 4584 this 7th day of November, 2018, to: Melissa B. Petersen 2500 E. Beltline Ave SE STE G PMB 193 Grand Rapids, MI 49546 Copy of the foregoing Decision and Order (and attachment) emailed this 7th day of November, 2018 to: Scott Donald Assistant Attorney General 2005 N. Central Avenue Phoenix, Arizona 85004 Seth Hargraves Assistant Attorney General Independent Advisor 2005 N. Central Avenue Phoenix, Arizona 85004 By: ___________________________________ IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the matter of No. 18F-2018.134-ACY

Certified Public Accountant ADMINISTRATIVE LAW JUDGE Certificate No. 14862-E DECISION Issued to: MELISSA B. PETERSEN, Respondent.

HEARING: October 10, 2018. APPEARANCES: The Arizona State Board of Accountancy (“the Board”) was represented by Scott Donald, Esq., Assistant Attorney General. Melissa B. Peterson (“Respondent”) failed to appear. ADMINISTRATIVE LAW JUDGE: Kay Abramsohn _________________________________________________________________ FINDINGS OF FACT 1. On September 7, 2018, the Board issued a Complaint and Notice of Hearing setting this matter for an evidentiary hearing at 1:00 p.m. on October 10, 2018, before the Office of Administrative Hearings (“OAH”), an independent state agency. 2. The Complaint and Notice of Hearing provided that the issue to be decided was “whether good cause exists to revoke, suspend or take any other disciplinary action against [Certified Public Accountant (“CPA”)] Certificate No. 14862-E issued to [Respondent].” 3. The Board sent the Complaint and Notice of Hearing via United States certified mail to Respondent at his address of record with the Board. 4. Respondent did not request to appear telephonically at the hearing and did not request that the hearing be continued. Although the start of the duly noticed hearing was delayed to allow Respondent additional travel time to arrive, Respondent did not appear and did not contact OAH to request that the start of the hearing be further delayed. Consequently, Respondent did not present any evidence to be considered. 5. The Board presented the testimony of Christopher Rasmussen, Assistant Director of Regulation and Compliance, and submitted two exhibits. Mr. Rasmussen was familiar with this matter because he had reviewed the file in this matter.

Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826 6. Respondent is the holder of CPA Certificate No. 14862-E issued by the Board.1 7. On March 1, 2018, the Board received Respondent’s renewal application for the 2018-2010 renewal period; the application noted only 69.5 continuing professional education credit (CPE) hours had been completed.2 8. In its Complaint and Notice of Hearing, the Board indicated that Respondent requested that she obtain an extension until March 27, 2018 for 10.5 more CPE hours, for the good cause of “other condition/circumstance that the Board deems relevant.”3 The Board indicated therein that Respondent “originally assumed that CPE in excess of hours from the last reporting period would have carried forward to the next reporting period.” 9. On March 26, 2018, the Board voted to deny an extension request for failure to show “good cause” and to offered a Decision and Order (By Consent) (“Consent Order”) for a one-year suspension due to noncompliance with CPE requirements. 10. On April 2, 2018, the Board sent Respondent, by regular and certified mail, a letter offering the consent Order and indicating the offer would expire on May 2, 2018.4 11. The Board’s records demonstrate that the offer letter had been received and signed for at Respondent’s address of record on April 5, 2018.5 12. At hearing, the Board indicated that it did not receive a response from Respondent. At hearing, the Board requested that Respondent’s certification be revoked and that the Tribunal award costs and fees regarding this disciplinary matter.

CONCLUSIONS OF LAW

1. The Board has personal and subject-matter jurisdiction over Respondent

pursuant to A.R.S. § 32-701 et seq. and A.A.C. R4-1-101 et seq. The Board has the

authority to discipline Respondent pursuant to A.R.S. § 32-741. Specifically, under

The Tribunal is unaware of the length of time that Respondent has held this certificate. 2 The Board did not present a copy of Respondent’s renewal application to the hearing record. As there was no citation to any rule, the Tribunal presumes that this is a quotation from Respondent’s application/letter. Exhibit A. Attached to this letter is a copy of the Consent Order prepared by the Board. Exhibit B.

A.R.S. § 32-741(A)(9), the Board may discipline a registrant for a violation of any decision, order, or rule promulgated by the Board. 2. The Board bears the burden of proof to establish cause to discipline Respondent by a preponderance of the evidence.6 “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”7 3. A.A.C. R4-1-455.03(D) provides that a registrant shall file a written response to a communication from the Board within 30 days of the date of the mailing of that communication. 4. A.R.S. § 32-730(C) provides that the accountant shall submit to the Board, at the time of registration, proof that they have completed the CPE requirements. This section further provides that the Board may grant a full or partial exemption from CPE or “an extension of time to complete the [CPE] requirements for registrants on a demonstration of good cause.” 5. A.A.C. R4-1-453(C) provides that a registrant, whose last registration period was two years, must complete 80 hours of CPE. 6. The Board established that Respondent failed to file a timely written response as required by A.A.C. R4-1-455.03 (D) and that Respondent was not in compliance with CPE requirements, as she reported only 69.5 CPE hours, which was a violation of A.A.C. R4-1-453(C)(1), in violation of A.R.S. § 32-741(A)(9). 7. While A.R.S. § 32-741(A) authorizes the Board to revoke or suspend Respondent’s certificate, A.R.S. § 32-741.02(A) provides that the Board shall suspend the certificate of a registrant who fails to provide proof of compliance with the Board’s CPE requirements. 8. As the Tribunal was unable to determine the length of time that Respondent has held the certificate and unable to determine whether good cause existed for an extension request, the Administrative Law Judge recommends, pursuant to A.R.S. § 32- 741.02(A) and (C), the Board suspend Respondent’s certificate until she complies with

6 See A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119; see also Vazanno v. Superior Court, 74 Ariz. 369, 372,

249 P.2d 837 (1952). MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960).

the CPS requirements by a date certain and, if she does not do so, to revoke the certificate. RECOMMENDED ORDER Based on the foregoing, it is recommended that, on the effective date of the Board’s final order, Certified Public Accountant Certificate No. 14862-E previously issued to Respondent Melissa B. Peterson, be suspended until she has complied with the CPE requirements, and that the Board provide a specific time period within which Respondent must comply and, in the event that she does not comply, to revoke the certificate. 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 five days from the date of that certification. Done this day, October 30, 2018

/s/ Kay Abramsohn Administrative Law Judge

Transmitted electronically to: Monica L. Petersen, Executive Director Arizona State Board of Accountancy