Minutes of Meeting By Conference Call

August 11, 2004

The South Dakota State Board of Accountancy met by conference call at 10:00 p.m. (CDST) on Wednesday, August 11, 2004. Board members present were John Graham, Marty Guindon, Mary Day, John Mitchell, Dave Olson and John Peterson. Also present were, Executive Director, Bobbi Barnhill, and Legal Counsel, Sherri Sundem Wald.

Chair John Graham, called the meeting to order and asked if there were any additional agenda items. The Budget Overview for FY 2005 and FY 2006, Exam Candidate Eligibility Request, and the National Association of State Boards of Accountancy’s Annual Meeting Registration Forms were added to the agenda.

A motion was made, and seconded to approve the July 28-29, 2004 board meeting minutes. A roll call was taken and the motion was unanimously carried.

A motion was made, and seconded to approve the financial statements through July 2004. A roll call was taken and the motion was unanimously carried.

A discussion was held regarding the fiscal year 2005 and 2006 budgets. John Mitchell offered to review and approve changes to be made by the Executive Director. A discussion was held regarding the State’s Annual Report. Marty Guindon offered to review the final copy to be submitted by the Executive Director prior to release to the Department of Labor. The board will make a final approval of the fiscal year 2005 and 2006 budgets at the next board meeting.

The board entered into a discussion of the proposed continuing professional education (CPE) rules. John Mitchell offered several suggestions for changes to be made by the Executive Director. John Graham reviewed with the board his recommendations for changes. The Executive Director will make all changes recommended and submit the final draft to Legislative Research Council for their review by September 1, 2004.

The board reviewed the candidate’s request for eligibility to sit for the Uniform Certified Public Accountant Examination based on completion of a bachelor’s degree in Business Economics and minors in Accounting and History, to include the 24 hours of accounting courses required by rule, and two years experience in a licensed CPA firm. The board reviewed the request. A motion was made to deny the request based on SDCL: 36-20B-15, which maintains the candidate have at least one-hundred fifty hours of college education, regardless of experience. The motion to deny the request was seconded, a roll call was taken and the motion was unanimously carried.

The board made a motion to approve attendance by John Mitchell, Dave Olson and Bobbi Barnhill at the National Association of State Boards of Accountancy Annual Meeting in October to be held in downtown Chicago. A motion was made, seconded, a roll call was taken and the motion was unanimously carried.

Minutes of Meeting By Conference Call

August 11, 2004

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The Executive Director will seek pre-approval, for the travel of those attending, from the Department of Labor Secretary, prior to September 1, 2004.

A motion was made to enter into executive session, the motion was seconded, a roll call was taken and the motion was unanimously carried.

A motion was made to come out of executive session, the motion was seconded, a roll call was taken and the motion was unanimously carried.

The board was satisfied that Mr. Horning had complied with all stipulations made by the board for reinstatement of license. However, the board requested documentation be submitted to the board substantiating all continuing professional education reported.

The board requested the Executive Director draft a letter to Mr. Arobba requesting a copy of the accelerated peer review completed by Ketel Thorstenson.

The board discussed the tentatively scheduled meeting of September 27, 2004 by conference call and agreed to maintain the tentative nature of the meeting contingent on feedback received from the public on the proposed CPE rules.

All business having come before the board was concluded and the meeting was adjourned at 12:15 P.M. (CSDT).

John D. Graham, CPA, Chair

Bobbi Barnhill, Executive Director John M. Mitchell, Secretary/Treasurer