ALJDEC decisions subject to certification as final

18F-2018.151-ACY · State Board of Accountancy · 2018-07-02

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of

Certified Public Accountant Certificate No. 14680-R Issued to:

KATHLEEN MARY DAUGHERTY,

Respondent.

No. 18F-2018.151-ACY

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: June 12, 2018

APPEARANCES: Respondent Kathleen Mary Daugherty did not appear. The Arizona Board of Accountancy was represented by Assistant Attorney General Scott Donald.

ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer

_____________________________________________________________________

FINDINGS OF FACT

The Arizona State Board of Accountancy (Board) is the State agency authorized pursuant to A.R.S. §§ 32-701 et seq., to regulate the profession of Certified Public Accountants (“CPAs”) in the State of Arizona.

The Board issued Certified Public Accountant Certificate No. 14680-R to Respondent Kathleen Mary Daugherty.

On January 10, 2018, Board staff sent Respondent a compliance affidavit related to File No. 2018.024; Daugherty, Kathleen, by certified and regular mail to her address of record. The compliance affidavit notified Respondent that a response was due within thirty days from the date of the compliance affidavit pursuant to A.A.C. R4-1-455.03(D).

A response to the January 10, 2018 compliance affidavit was not received by February 9, 2018.

On February 7, 2018, Board staff received a domestic return receipt signed by “Katie Teolu”.

On March 26, 2018, the Board considered Respondent’s non-response to the January 10, 2018 compliance affidavit and voted to proceed to an administrative hearing for revocation of Respondent’s certificate for failure to respond to the Board as required.

On April 26, 2018, the Board issued a Complaint and Notice of Hearing to Respondent at her address of record.

After April 26, 2018, the Board received a response to the compliance affidavit from Respondent.

CONCLUSIONS OF LAW

The copy of the Complaint and Notice of Hearing that the Board mailed to Respondent at her address of record was reasonable and Respondent is deemed to have received notice of the hearing. A.R.S. §§ 41-1092.04 and 41-1092.05(D).

The Board was created and authorized to regulate and control the profession of Certified Public Accountancy in Arizona. This matter lies within its jurisdiction.

The Board bears the burden of proof to establish cause to discipline Respondent‘s CPS Certificate by a preponderance of the evidence. Respondent bears the burden to establish affirmative defenses or factors in mitigation of any penalty by the same evidentiary standard.

“A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”

Respondent did not appear at the hearing and therefore did not dispute that she did not respond to the January 10, 2018 compliance affidavit from the Board. Therefore, under A.R.S. § 32-741(A)(9) and A.A.C. R4-1-455.03(D) the Board is authorized to discipline Respondent‘s CPA Certificate.

RECOMMENDED ORDER

Based on the foregoing, it is recommended that on the effective date of the final Order in this matter, the Board revoke Respondent‘s CPA Certificate. It is further recommended that the Board require Respondent to reimburse the Board’s costs of investigating and proceeding to hearing in this matter under A.R.S. § 32-701(10)(g).

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, July 2, 2018

/s/ Tammy L. Eigenheer

Administrative Law Judge

Transmitted electronically to:

Monica L. Petersen, Executive Director

Arizona State Board of Accountancy