State Board Report

October 2011

It has been an incredible year, not only for NASBA and the State Boards, but for me as well. It has been an unparalleled opportunity and honor representing the NASBA member Boards and our priorities at numerous activities and functions. I only hope that I have properly represented the Boards and the organization with the professionalism and respect that every volunteer and staff member so richly deserves. That would make me feel like a “Big Deal.”

In my inaugural speech, I reminded, if not challenged, State Board members that their responsibilities to their Board, their public and their profession extend beyond the Boards’ boardroom doors. Our constituents rely on us to be familiar with the current issues affecting the profession and impacting the public. To fulfill our responsibilities, we must study and deliberate these issues. Additionally, I mentioned that current issues have also become global. We are no longer adequately representing our constituents by enforcing only our own state statutes and rules. The Uniform Accountancy Act and mobility have extended our boundaries. And the global standard-setting and regulatory community has demanded that we expand our vision even further.

The NASBA Board and Committee members and staff demonstrated a work ethic, enthusiasm and passion that enabled us to have a very productive year. Little can be done without the energy of the volunteers and their supporting staff. We started with a number of new Board members and Committee Chairs, as well as veterans, who took off running and never had time to look back. I will attempt to highlight as many of their achievements as possible in my Chair’s Report at the Annual Meeting. I sincerely want to thank each one of you for being “Big Deals” and, as I often say, for making me look good!

I have been so fortunate to have experienced the level of activity and accomplishment that we had this year. In one single transaction, the sale of the Professional Credential Services, Inc., subsidiary, we had the biggest financial impact on our mission of “Enhancing the effectiveness of State Boards of Accountancy.” We have reached nearly 100 percent mobility! Almost 40 states have joined or are in the process of joining the Accountancy Licensee Database. We have initiated an Education Research Grant Program. We have assisted numerous State Boards with their efforts to remain or maintain their independent or semiindependent state agency status. We are signing our first Mutual Recognition Agreement with an Asian professional association, the Hong Kong Institute of CPAs. Oh, to name just a few…

And let’s not forget that we looked far and long for someone who could replace the NASBA Legend, President/CEO David A. Costello. And we got him. I have had the privilege to personally observe both gentlemen and their commitment to coordinate a relatively seamless transition. It has been a tremendous opportunity to watch two of the most professional individuals, that I know, do their best.

Speaking of David, and a “Big Deal,” I can’t miss the opportunity to remind everyone of the difference one man has made on our organization. From my days in the ’80s serving on the AICPA Council, hearing “Who’s NASBA,” to now where we have seats at the tables of most of the prestigious professional and regulatory bodies affecting our profession, I am impressed and privileged to have witnessed the change. And because of David’s leadership, our members, the State Boards, have a voice and a strong, self-sufficient organization to represent their views. That makes us so much more effective and accomplished. I would say more, but trust me, we will be hearing more during the Annual Meeting, as we should.

As I reflect on my career as a CPA, I am reminded that I have been blessed with great opportunities. I take real pride in my service on the many standard setting committees and boards for both NASBA and the AICPA. I particularly enjoyed serving as the Chair of NASBA’s Ethics Committee, while also serving on the AICPA’s Professional Ethics Executive Committee. Both committees accomplished a lot for the benefit of the profession and, in turn, the public. The special benefit of working on all the committees was the opportunity to relate and work with some very bright professionals.

For over 30 years as a partner and mentor, I had the privilege to advise a number of young CPAs and CPA candidates regarding professional conduct. My best advice was that we all must remember that we worked hard to obtain the CPA credential, but we can lose it easily, if we aren’t always cognizant of our professional responsibilities. Similarly, as a profession, we have to work hard to gain the trust of our clients and the public, or we may lose it. As a regulator, we need to be diligent, fair and consistent in regulating our peers. Keeping those thoughts in mind should secure a highly regarded profession and career.

Thank you, for the opportunity to serve as your Chair.

— Michael T. Daggett, CPA
     Chair 2010-2011

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