ALJDEC - Licensing
23A-2023.241-ACY · State Board of Accountancy · 2023-09-12
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of
Certified Public Accountant Firm Registration No. 3473-L Issued to:
TIENSVOLD SHAFFER WENZEL CPAS PLLC,
Respondent.
No. 23A-2023.241-ACY
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: August 24, 2023
APPEARANCES: Respondent TIENSVOLD SHAFFER WENZEL CPAS PLLC did not appear. The Arizona State 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 Accountant professionals (“CPA”) in the State of Arizona.
The Board previously issued Certified Public Accountancy Firm Registration No. 3473-L to TIENSVOLD SHAFFER WENZEL CPAS PLLC (“Respondent” or “Firm”).
On or about December 12, 2022, following its December Board meeting, the Board issued a letter offering a Decision and Order (By Consent) (“Consent Order”) with regard to Firm. The Board specified that the offer of the Consent Order would expire on January 11, 2023, and that Firm needed to file a response either accepting or rejecting the offer on or before 30 days from the date of the offer, i.e., on or before January 11, 2023.
A response was not received.
On or about January 23, 2023, Board staff resent the Consent Order to Respondent via certified mail. A response was due by February 22, 2023.
A response was not received.
On or about March 7, 2023, Board staff reviewed the USPS tracking for the certified mailing that was sent out on January 23, 2023. The tracking information had not been updated since late January. No response, green card, or returned mail had been received by the Board. Board staff suspected that the certified mail may have been lost in the system. Board staff sent a ticket to USPS to confirm.
On or about March 10, 2023, Board staff received a response from USPS that did not provide any additional information. Board staff considered the certified mailing sent on January 23, 2023, as lost.
On or about March 15, 2023, Board staff sent the Consent Order to the Firm via email, regular mail, and certified mail to the Firm’s address of record. A response accepting or rejecting the offer was required within 30 days of the date of the letter, i.e., on or before April 14, 2023.
On or about April 19, 2023, the certified mail was returned to the Board, marked as “Return to Sender – Unable to Forward”. A copy of the returned certified mail was emailed to the Firm per procedure.
The regular mail sent to the Firm was not returned and the email did not bounce back.
The Board had not received any response from the Firm as of the date of the hearing.
At the May 1, 2023 Board meeting, the Board voted to forward the file to an administrative hearing for revocation of Respondent’s registration.
On or about June 8, 2023, the Board issued a Complaint and Notice of Hearing to the Firm at its addresses of records.
The hearing was continued and ultimately convened on August 24, 2023. On July 27, 2023, a notice of the new hearing date was sent to the Firm at its email address of record.
On or about August 18, 2023, a notice with the information necessary to connect to the Google Meet hearing was sent to the Firm at its email address of record.
Although the start of the hearing was delayed 15 minutes, the Firm did not appear.
CONCLUSIONS OF LAW
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 applicable laws found at A.R.S. § 32-701 et seq.
The Board bears the burden of proof to establish cause to discipline Respondent Firm’s Registration 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.”
The copy of the Complaint and Notice of Hearing that the Board mailed to Respondent at the known addresses of record was reasonable and Respondent is deemed to have received notice of the hearing. See A.R.S. §§ 41-1092.04 and 41-1092.05(D).
Respondent did not appear at the administrative hearing and therefore presented no evidence to dispute the facts known to the Board. Pursuant to A.R.S. § 32-743, the Board may proceed to determine the merits of the case.
The conduct and circumstances above constitute a violation of A.R.S. § 32-741(A)(9) (“Violation of Board rules”), specifically A.A.C. R4-1-455.03(D) (“Communications: When requested, a registrant shall file a written response to a communication from the Board within 30 days of the date of the mailing of such communication by certified mail.”).
Respondent has demonstrated that it cannot be regulated by the Board at this time.
Therefore, pursuant to A.R.S. § 32-742, the Board is authorized to discipline Respondent Firm’s Registration, including revocation of Respondent Firm’s Registration.
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Board’s Final Order in this matter, the Board revoke Respondent Firm’s Registration.
It is further recommended that Respondent reimburse the Board for the costs it incurred during the investigation and proceedings in this matter.
Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.
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 forty (40) days from the date of that certification.
Done this day, September 12, 2023.
/s/ Tammy L. Eigenheer
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Monica L. Petersen, Executive Director
Arizona State Board of Accountancy
Scott Donald
Office of the Attorney General
[email redacted]
[email redacted]
Tiensvold Shaffer Wenzel CPAS PLLC
[email redacted]
By: OAH Staff