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IN THIS ISSUE:
GOVERNMENTAL AFFAIRS - Florida Senate Releases Interim Project List for the 2005 Legislative Session; DOR Adopts Emergency Rules for Communications Services Tax; AG Releases Compliance Supplement for Audits of Circuit Court Clerks; Constitutional Amendments Set to Appear on November Ballot
NEWS YOU CAN USE - Hurricane Jeanne Adds More Counties To the List of Those in Need of Assistance; Campaign Seeks to Raise $2-Million for Florida Hurricane Relief Fund; PCAOB and SEC Post Additional Guidance on Internal Control
FLORIDA CPA NETLINKTM - Florida CPA NetLink To Be Temporarily Offline Next Week; FICPA Web Site Features 'CPAs in the Spotlight'; 'Tech Tip': Displaying File-Name Extensions
SECTIONS - Section Members Needed for Legislative and Regulatory Review Teams; Section Discussion Boards Provide Help In Many Ways
CPE - USF Accounting Conference Early Registration Deadline Fast Approaching; Construction Industry Conference Spotlights Trends and Emerging Issues
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GOVERNMENTAL AFFAIRS
Florida Senate Releases Interim Project List for the 2005 Legislative Session
Between each legislative session, both chambers of the Florida Legislature work on interim projects in anticipation of the following legislative session. Recently, the Florida Senate released the projects the committees in their chamber have been focusing on. Of interest to FICPA members are reports from the Senate Finance and Taxation, the Senate Regulated Industries, and the Senate Ethics and Elections committees.
The Senate Finance and Tax Committee is focusing on several tax-related issues that were amended onto House Bill 509 and House Bill 71 relating to the county public hospital surtax during the 2000 regular session. This bill contained a repealer section that will cause a number of provisions in the Florida Statutes to be repealed in 2005 unless they are re-enacted by the Legislature. The interim projects include:
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County Contributions To Public General Hospitals, #2005-208
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Award of Reasonable Attorney's Fees and Costs to Prevailing Appellant Regarding Assessment of Taxes Under Chapter 212, S. 120.80(14)(b)6, F. S., #2005-209
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Tourist Development Tax, #2005-210
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Certain Intangible Personal Property Exempt From Annual and Nonrecurring Taxes, #2005-211
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Responsibility for Auditing the Convention Development Tax Records, #2005-212
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Department of Revenue to Pass Upon and Order Refunds, #2005-213
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Permits Department of Revenue to Share Certain Information for the Registration Information Sharing and Exchange Program, #2005-214
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Compromising Liability of Taxpayer Who Reasonably Relied on a Written Determination of the Department, #2005-215
In addition to those affected by HB 509, the Senate Finance and Tax Committee also will be monitoring other projects that include:
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Streamlined Sales and Use Tax Project (SSTP), #2005-382. (After two failed attempts to pass a bill to simplify and modernize sales and use tax collections and administration, this will be the third year in a row that the SSTP issues have been looked at by the Legislature.)
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Application of the Tourist Development Tax to the Sale of Discounted Hotel Rooms Over the Internet and to Hotel Reward Points Programs, #2005-131
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Implications of the Absence of a Use Tax on Utilities for Education Funding, #2005-132
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2005 Florida Tax Handbook Including Fiscal Impact of Potential Changes, #2005-133
The Senate Regulated Industries Committee also is looking at issues that could potentially affect the CPA profession. The interim projects that this committee has been working on include:
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Evaluate the Implementation of the Smoking Ban, #2005-156
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Legalized Gambling in Florida - the Competition in the Marketplace, #2005-155
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Florida Tobacco Settlement and Non-settling Manufacturers, #2005-157
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Condominium Complaints, #2005-3011
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Funeral and Cemetery Regulation Consolidation, #2005-3012
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Agriculture and Migrant Labor, #2005-3013
Two interim projects for the Senate Regulated Industries Committee that may be of interest to FICPA members are interim project #2005-156 and #2005-3011. For the first project, the committee will review the status and requirements of the rules adopted to implement the Smoking Ban act by finding inconsistencies or contradictory enforcement provisions and determining whether or not clarification is needed. The second project will focus on condominium complaints.
Interim project #2005-156 focuses on House Bill 63A that passed during the 2003 Special Session A. The new law requires under Section 561.695(6), F.S. that a licensed stand-alone bar shall provide to the Division of Alcoholic Beverages and Tobacco, an Agreed Upon Procedures report for the preceding 36-month period that indicates the vendor does not derive more than 10 percent of its gross revenue from on-premises food sales. This procedures report must be prepared by a Florida Certified Public Accountant, on DBPR Form ABT 4000A-400 and contain the license name, license number, physical location address, the owner of the license and the period of the report, along with the CPA's name, firm and signature and the CPA's license number with date of expiration.
Work on interim project #2005-3011 relates to condominium complaints. The objective is to improve the condominium complaint review process to reduce the number of days it takes to investigate, review and close cases. This project will be of interest to members practicing in the area of Common Interest Realty Associations (CIRAs).
The Senate Ethics and Elections Committee also is focusing on several interim projects. Of interest is interim project #2005-130 regarding a survey of lobbying fees and compensation regulation. This project will research methods of disclosure and regulation other jurisdictions have adopted regarding lobbying fees and compensation paid by principals to lobbyists. Second is interim project #2005-381 that will focus on the citizen initiative process during the 2004 election cycle. The purpose of this project is to further evaluate the constitutional amendment process and identify specific issues that should be addressed during the 2005 legislative session.
You will receive more information on each of these issues as the 2005 legislative session approaches.
The FICPA Governmental Affairs team will continue to monitor these issues and others throughout the year.
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DOR Adopts Emergency Rules for Communications Services Tax
The Florida Department of Revenue (DOR) announced that it has adopted emergency rules relating to the Communications Services Tax. These rules include:
12BER04-8 - Assignment of Service Addresses to Local Taxing Jurisdictions; Liability for Errors; Avoidance of Liability Through Use of Specified Methods; Reduction in Collection Allowance for Failure to Use Specified Methods. With this rule, dealers of communications services that are required to collect local communications services taxes must assign each customer service address to a specific local taxing jurisdiction for purposes of determining the appropriate local communications services tax rate to be applied to sales made to that address. In determining the liability for any additional local communications services taxes, interest and penalties of a dealer who has failed to assign a service address to the correct local taxing jurisdiction, DOR will take into account any amount of local communications services tax that was collected and erroneously assigned by the dealer to another local taxing jurisdiction.
12BER04-9 - Department of Revenue Electronic Database. DOR must maintain an electronic database that assigns service addresses to local taxing jurisdictions.
12BER04-10 - Certification of Service Address Databases. This rule states that a "communications services dealer that develops and maintains its own database for assigning service addresses to local taxing jurisdictions or a third-party vendor that provides a database for sale to communications services dealers or uses such a database in providing billing or other services to communications services dealers may apply to the Department for certification of the database."
12BER04-11 - Use of Enhanced ZIP Code Method to Assign Service Addresses to Local Taxing Jurisdictions. Under this rule, an enhanced ZIP code method must be used to assign service addresses to local taxing jurisdictions based on U.S. postal ZIP codes of at least nine digits.
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AG Releases Compliance Supplement for Audits of Circuit Court Clerks
According to Section 28.35(6)(b), F.S., it is required that Certified Public Accountants conduct audits of counties pursuant to Section 218.39, F.S. and shall report, as part of the audit, whether or not the clerks of the courts have complied with budgets certified by the Florida Clerk of Courts Operations Corporation. In addition, it must be in compliance with the performance standards developed and certified pursuant to Section 218.35, F.S. Section 28.35(6)(b), F.S. also requires that the Auditor General develop a compliance supplement for the audit of compliance with budgets and performance standards.
The Auditor General's office has released the draft version of the Compliance Supplement for Audits of Clerks of Circuit Courts and would like comments from FICPA members no later than Oct. 13, 2004. The reporting requirements have been included in the draft rules for Chapter 10.550.
Please send your comments or suggestions via e-mail to govaffairs@ficpa.org.
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Constitutional Amendments Set to Appear on November Ballot
The following is a list of proposed constitutional amendments that will appear on the ballot on Nov. 2, 2004. In addition to the ballot title and summary, a 75-word fiscal impact statement also will appear on the ballot.
No. 1
Ballot Title: Parental Notification of a Minor's Termination of Pregnancy
Ballot Summary: Proposing an amendment to the state Constitution to authorize the Legislature to require by general law for notification to a parent or guardian of a minor before the termination of the minor's pregnancy. The amendment provides that the Legislature shall not limit or deny the privacy rights guaranteed to minors under the U.S. Supreme Court. The Legislature shall provide exceptions to such requirement for notification and shall create a process for judicial waiver of the requirement for notification.
No. 2
Ballot Title: Constitutional Amendments Proposed by Initiative
Ballot Summary: Proposing amendments to the state Constitution to require the sponsor of a constitutional amendment proposed by citizen initiative to file the initiative petition with the Secretary of State by Feb. 1 of the year of a general election in order to have the measure submitted to the electors for approval or rejection at the following November's general election, and to require the Florida Supreme Court to render an advisory opinion addressing the validity of an initiative petition by April 1 of the year in which the amendment is to be submitted to the electors.
No. 3
Ballot Title: The Medical Liability Claimant's Compensation Amendment
Ballot Summary: Proposes to amend the state Constitution to provide that an injured claimant who enters into a contingency fee agreement with an attorney in a claim for medical liability is entitled to no less than 70 percent of the first $250,000 in all damages received by the claimant, and 90 percent of damages in excess of $250,000, exclusive of reasonable and customary costs and regardless of the number of defendants. This amendment is intended to be self-executing.
Financial Impact Statement: The direct financial impact this amendment will have on state and local government revenues and expenditures cannot be determined.
No. 4
Ballot Title: Authorizes Miami-Dade and Broward County Voters to Approve Slot Machines In Pari-mutuel Facilities
Ballot Summary: Authorizes Miami-Dade and Broward counties to hold referenda on whether to authorize slot machines in existing, licensed pari-mutuel facilities (thoroughbred and harness racing, greyhound racing, and jai alai) that have conducted live racing or games in that county during each of the last two calendar years before effective date of this amendment. The Legislature may tax slot machine revenues, and any such taxes must supplement public education funding statewide. Requires implementing legislation.
Financial Impact Statement: This amendment alone has no fiscal impact on government. If slot machines are authorized in Miami-Dade or Broward counties, governmental costs associated with additional gambling will increase by an unknown amount and local sales tax-related revenues will be reduced by $5 million to $8 million annually. If the Legislature also chooses to tax slot machine revenues, state tax revenues from Miami-Dade and Broward counties combined would range from $200 million to $500 million annually.
No. 5
Ballot Title: Florida Minimum Wage Amendment
Ballot Summary: This amendment creates a Florida minimum wage covering all employees in the state covered by the federal minimum wage. The state minimum wage will start at $6.15 per hour six months after enactment, and thereafter be indexed to inflation each year. It provides for enforcement, including double damages for unpaid wages, attorney's fees, and fines by the state. It forbids retaliation against employees for exercising this right.
Financial Impact Statement: The impact of this amendment on costs and revenues of state and local governments is expected to be minimal.
No. 6
Ballot Title: Repeal of High Speed Rail Amendment
Ballot Summary: This amendment repeals an amendment in the Florida Constitution that requires the Legislature, the Cabinet and the Governor to proceed with the development and operation of a high-speed ground transportation system by the state and/or by a private entity.
Financial Impact Statement: The probable financial impact of passage of this amendment is a state cost savings ranging from $20 billion to $25 billion over the next 30 years. This estimate assumes the repeal of associated laws, the use of state bonds to finance construction, and could be reduced by federal or private sector funding.
No. 7
Ballot Title: Patients' Right to Know About Adverse Medical Incidents
Ballot Summary: Current Florida law restricts information available to patients related to investigations of adverse medical incidents, such as medical malpractice. This amendment would give patients the right to review, upon request, records of health care facilities' or providers' adverse medical incidents, including those which could cause injury or death. Provides that patients' identities should not be disclosed.
Financial Impact Statement: The direct financial impact this amendment will have on state and local government revenues and expenditures cannot be determined, but is expected to be minimal. State agencies will incur some additional costs to comply with public records requirements of the amendment, but these costs will be generally offset by fees charged to the persons requesting the information.
No. 8
Ballot Title: Public Protection from Repeated Medical Malpractice
Ballot Summary: Current law allows medical doctors who have committed repeated malpractice to be licensed to practice medicine in Florida. This amendment prohibits medical doctors who have been found to have committed three or more incidents of medical malpractice from being licensed to practice medicine in Florida.
Financial Impact Statement: The direct financial impact on state and local governments resulting from the proposed initiative would be minimal. There will likely be additional costs to the state of less than $1 million per year, but these costs will be offset by licensure fees.
Please contact Jennifer J. Green, CAE, FICPA's Director of Governmental Affairs at (850) 224-2727, Ext. 201, or via e-mail at govaffairs@ficpa.org with any questions or comments on these issues.
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NEWS YOU CAN USE
Hurricane Jeanne Adds More Counties To the List of Those in Need of Assistance
The recent hurricanes have left some fellow FICPA members in need of practice-continuation services, and the public in need of CPAs' technical advice. Accordingly, the FICPA is coordinating disaster recovery services and resources for members and the public.
We are looking for the following:
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CPAs whose offices have been damaged or destroyed by the recent hurricanes. If you are unable to operate your practice because of hurricane destruction, call the FICPA's Hurricane Help Line toll free (within Florida only) at (800) 342-3197, and press 1. We can refer you to fellow CPAs who may be able to assist you.
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Volunteer CPAs who can offer fellow CPAs (whose offices were damaged or destroyed) practice-continuation support. Support may include offering temporary office space and/or client assistance.
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Volunteer CPAs who can assist IRS employees at Federal Emergency Management Agency sites. In presidential disaster areas, taxpayers are allowed to claim qualified casualty losses as if they had taken place in the prior tax year. They are allowed to file amended returns and receive refunds in an expedited manner. To provide timely assistance to victims, we need CPA volunteers to help, along with IRS employees, at the FEMA sites.
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Volunteer CPAs who can assist hurricane victims in Red Cross service centers. Assistance may include providing information about filing insurance claims, filing casualty losses on their income tax returns, and cash-flow planning.
Please take a few minutes to answer this questionnaire and send the information to hurricanehelp@ficpa.org. If you are able to provide any of these services, please be sure to also include your complete contact information (name, firm name, address, telephone number and e-mail address).
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If your office is functional, are you willing to temporarily share office space with a fellow CPA who has been displaced? (If so, how many practitioners could you reasonably accommodate?)
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If your office is functional, can you offer any practice-continuation support to a fellow CPA who needs your help?
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Are you available to volunteer at either a FEMA site or a Red Cross service center?
CPAs can make a significant contribution to the disaster recovery efforts. Together, we can make a difference.
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Campaign Seeks to Raise $2-Million for Florida Hurricane Relief Fund
Members of the FICPA, as well as their counterparts at other Florida associations, are being asked by Gov. Jeb Bush to contribute to the Florida Hurricane Relief Fund. A campaign targeting association members, named "Associations Respond," has set a $2-million fund-raising goal.
Money raised will be used to support community needs not met entirely by assistance from the state and federal governments, as well as relief organizations such as the American Red Cross. Contributions to the fund are tax-deductible. The nonprofit Volunteer Florida Foundation is managing the relief fund.
To avoid duplication in funding, local committees set up in affected counties will determine how to spend contributions from the state relief fund. Those committees will include representatives from the Red Cross and other relief organizations.
For more information on the relief fund, please call (800) FL-HELP-1 or visit the Florida Hurricane Relief Fund Web site.
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PCAOB and SEC Post Additional Guidance on Internal Control
On Wednesday, Oct. 6, the Public Company Accounting Oversight Board published additional guidance regarding the auditing of internal control over financial reporting. The guidance can be found on the PCAOB's Web site.
In addition, the Securities and Exchange Commission has updated its FAQs on the same subject on its Web site.
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FLORIDA CPA NETLINKTM
Florida CPA NetLinkTM To Be Temporarily Offline Next Week
Next Friday, Oct. 15, and throughout that weekend, members may experience intermittent difficulties accessing Florida CPA NetLink, the FICPA's official Web site. The FICPA will be installing a new Web server and updating its Web IP address.
This change is necessary to improve our Web site performance. When complete, members will have even more reliable Web access to the FICPA.
FICPA Member Service Center staff will be available on Monday, Oct. 18, should members need additional assistance. To reach the Member Service Center, please send an e-mail to msc@ficpa.org, or call (800) 342-3197 (within Florida only) or (850) 224-2727.
We apologize for any inconvenience members may experience and we thank you for your patience.
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FICPA Web Site Features 'CPAs in the Spotlight'
FICPA members will find links to articles spotlighting fellow members in the news when visiting this page of Florida CPA NetLink, the FICPA's official Web site.
Peers in the accounting profession are often recognized by the news media as providing innovative services to their clients, having an amazing human-interest story to share, or for receiving an impressive honor or award.
Located in the "Members" area of the FICPA Web site, please click here to read all about the exceptional CPAs who have been highlighted for their expertise, accomplishments and personalities.
Members who have been recognized by the news media, or those who read about a fellow CPA in an electronic publication, are encouraged to forward a link to the article for consideration to be posted in this special area of the FICPA Web site. Please direct inquiries and information via e-mail to communications@ficpa.org.
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'Tech Tip': Displaying File-Name Extensions
By default, Windows is configured to hide file-name extensions. File-name extensions, usually consisting of three letters, are the portion of the file name following the period. Hiding these extension names can often make it difficult to differentiate different types of files with the same file-name prefix.
Here are the steps to change the default setting:
This "Tech Tip" is brought to you by the FICPA Business and Technology Section ... IT Solutions for Today's CPAs. Click here to view an archive of previous "Tech Tips".
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SECTIONS
Section Members Needed for Legislative and Regulatory Review Teams
Here is your chance to have direct input into the legislative process. The CIRA, State and Local Government, and State Tax Legislative and Regulatory Review Teams are seeking volunteers to help review bills during the 2005 legislative session. Your job as a volunteer is to give feedback on whether or not the legislation will affect your license or the practice of public accounting.
The process is easy - when bills are released by the Legislature, FICPA's lobbying staff reviews the language for Section-related content. If staff determines there may be an impact, the bill is posted to your Section Listserv for the team to review.
Usually the turnaround time will be a few days, but as the legislative session gets busier, the review timeframe may be very brief. Your opinions do count, and commenting on legislation can be very rewarding. To get involved, please send an e-mail to sections@ficpa.org.
For additional information about the Legislative and Regulatory Review Teams, please contact Jennifer J. Green, CAE, the FICPA's Director of Governmental Affairs, at (800) 342-3197 (within Florida only) or (850) 224-2727, Ext. 201. You also may send an e-mail to govaffairs@ficpa.org.
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Section Discussion Boards Provide Help In Many Ways
For FICPA members who have a question about filing deadlines, need help with a business plan or are looking for information on turnover audits, the FICPA Section discussion boards can get them an answer - in most cases, within 24 hours.
Using the discussion boards is as easy as using e-mail. Each Section has its own, members-only discussion board where members are able to share and communicate ideas with each other any time. Here's what Section members have been discussing recently:
BUSINESS TECHNOLOGY
Microsoft Sharepoint, Outlook usage, self-service tax preparation on the Web, new small-business Web site, AICPA Top Tech survey, ATX Total Tax Office, and Windows Service Pack 2.
COMMON INTEREST REALTY ASSOCIATIONS (CIRA)
Association merger, HOA annual financial statements, hurricane damage/reserves, property manager salary, financial reporting under revised statutes, and turnover audits.
MANAGEMENT of an ACCOUNTING PRACTICE (MAP)
Business plan how-tos, collections, paying para-professional staff, paid time- off administration, S-Corporation election, and confirmation letters.
STATE & LOCAL GOVERNMENT
Blended component units, Auditor General draft rules, single-audit roundtable, contract management, and development costs.
STATE TAX
DOR information on late filing, reasonable cause, substitute communications systems, tax calendar software, and retirement payment extension.
VALUATION & LITIGATION SERVICES
Alimony, bankruptcy, engagement letters, hypothetical hurricane valuation, medical company valuation, and valuing a cable television company.
To find out how the Sections discussion boards can help you, contact the FICPA at (800) 342-3197 (within Florida only) or (850) 224-2727. Requests for information also can be e-mailed to sections@ficpa.org.
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CPE
USF Accounting Conference Early Registration Deadline Fast Approaching
The FICPA's University of South Florida Accounting Conference is being held Oct. 21-22 in Tampa. Members won't want to miss this opportunity to earn up to 16 hours of CPE credit on important topics including "The Paperless Accounting Office," "SEC Hot Topics" and a PCAOB update. Early registration ends October 11, so register soon to take advantage of this discount.
For more information about this conference, or to register, please visit the University of South Florida Accounting Conference Web page, or call the FICPA Member Service Center at (800) 342-3197 (within Florida only) or (850) 342-3197.
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Construction Industry Conference Spotlights Trends and Emerging Issues
The FICPA's Construction Industry Conference is coming to Orlando on Oct. 22.
CPAs who work in the construction industry, will not want to miss this opportunity to earn 8 hours of CPE credit. Attendees will hear some of the best speakers in the field discussing such topics as "Trends and Emerging Issues for the Construction Industry," "The 10 Most Important Provisions in Every Construction Contract," and tax and accounting & auditing updates.
For more information about this conference, or to register, please visit the Construction Industry Conference Web page, or call the FICPA Member Service Center at (800) 342-3197 (within Florida only) or (850) 342-3197.
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Look for the next issue of FICPA NewsFlash to come Friday morning, October 22, 2004.
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