August 20, 2004

REPORT TO MEMBERS

1. A number of our members worked with a group of TSCPA concerned members to try to point out to the leadership the error of their ways with regard to allowing non-CPA ownership. After extensively reviewing that organization’s task force report on the subject we arrived at the following conclusions -

• There are very few non-CPA owners in Texas and apparently in the U.S.
• There are no real benefits to the public, in Texas of the U.S. from non-CPA ownership
• The majority of Texas CPAs and would support changing the law back to allowing for CPA only ownership of firms
• The cultural change in the profession brought on by changing emphasis from professional ethics and standards to revenue per partner has had a significant negative impact on the profession and the public
• The TSCPA leadership’s conclusions were different as expected –

There is no compelling reason to change the law back

Texas CPAs would be at a competitive disadvantage with CPA only ownership

The TSCPA executive board and its board of directors voted not to follow the results of its member mail ballot and seed a change in the law to require CPA only ownership

• The TSCPA leadership did leave the door open on the issue in case there are obviously negative effects from non-CPA ownership

2. Monitored the activities of the TSBPA and considered the need to comment on various issues affecting the CPA practitioner.

3. Requested public hearing on proposed TSBPA rules on ethics continuing education. A number of members testified at those hearings.

4. Continued our practice of quarterly meetings to offer you a chance to network with your colleagues around the state, as well as truly participate in the decisions of this organization.

5. Changed our meeting locations so that the meetings would be accessible to more members.

6. Offered meaningful CPE at the quarterly member meetings.

7. Increased our membership by over 100 members!

8. Continued the practice of not having a dues increase (still a bargain at $100 annually). We have accomplished this by being an all-volunteer organization.

9. Designed and printed the TACPA membership certificate.