00;00;00;01 - 00;00;20;04 Speaker 1 Welcome to episode two of the California Board of Accountancy Accounting for California Podcast. My name is David Hemphill. I'm an information and planning analyst here at the CBA. Happy to be joined by Sara Benedict, the manager of our License Renewal and Continuing Competency Unit. Did I get that right? 00;00;20;05 - 00;00;20;21 Speaker 2 You did. 00;00;20;23 - 00;00;22;16 Speaker 1 Excellent. And you are competent. 00;00;22;20 - 00;00;24;09 Speaker 2 I am. I hope. Yes. 00;00;24;26 - 00;00;38;01 Speaker 1 Renewals isn't the most straightforward thing all the time and licensees do have quite a few questions. So that's the goal of this podcast, right? To have them feel confident and know everything they could possibly need to know going into their renewal. 00;00;38;02 - 00;00;38;22 Speaker 2 That's the goal. 00;00;38;23 - 00;00;39;23 Speaker 1 Is that a tall task? 00;00;39;26 - 00;00;43;02 Speaker 2 That is a very tall task. But I'm confident that we can accomplish it. 00;00;43;03 - 00;00;51;16 Speaker 1 We can do this. Okay. Let's start off with the basics, Sara. So once someone is licensed, how often is their license going to come up for renewal? 00;00;51;22 - 00;01;12;10 Speaker 2 Their license will renew every two years, and it's based on their birth date. So it will end the very last day of their birth month. And then whether they're born in an even your order year will also dictate when it expires. So, for example, someone who is born in March of 1980 will always expire March 31st of even years. 00;01;12;17 - 00;01;18;04 Speaker 2 So for the first renewal, sometimes that's less than two years, but every renewal after that will be exactly two years. 00;01;18;05 - 00;01;26;01 Speaker 1 And that is a question we do get a lot. Someone's initial license period. Sometimes there's a little bit of confusion because it's not a full two years every time. 00;01;26;02 - 00;01;28;00 Speaker 2 Very rarely is it a full two years the first time. 00;01;28;02 - 00;01;31;29 Speaker 1 But then once they renew the first time, then it's like clockwork. Every every. 00;01;32;00 - 00;01;32;13 Speaker 2 Two years. 00;01;32;18 - 00;01;52;03 Speaker 1 Very good. Based on your date of birth, part of it is and this is where it's starting to get a little more confusing. But completing C.E. or continuing education is, of course, a very important part of the continuing competency. So tell us, what are the C requirements? And I know there are some timeframes that licensees have to look out for, right? 00;01;52;05 - 00;02;22;25 Speaker 2 Correct. So the basics are that you have to complete 80 hours of continuing education to renew in an active status that 80 hours has to be taken in the two years prior to your last expiration date. So, for example, if I expired in September of 2019 and I'm renewing this month, September of 2021, every class that I'm claiming needs to have been taken between October 1st, 2019 and September 30th, 2021. 00;02;22;26 - 00;02;27;15 Speaker 1 In other words, you can't try to claim something that you took prior to this licensing period. 00;02;27;15 - 00;02;28;04 Speaker 2 That is correct. 00;02;28;10 - 00;02;30;19 Speaker 1 Got it. But there's more to it than just that. 00;02;30;19 - 00;02;48;01 Speaker 2 There's more. Right. Yes. So on top of the 80 hours, it is broken out into different subsets. There is what we call a 2012, which means that in each year of the renewal cycle, you have to take at least 20 hours of C, e and out of that 20 hours, at least 12 need to be in a technical subject matter. 00;02;48;14 - 00;03;11;08 Speaker 2 So like I said, the C period is two years and it's broken up into one year segments. So for example, the person I spoke about who expired September of 2019, their first year is going to be September 30th, 2020. The second year will be September 30th, 2021. So they need to have taken at least 20 hours of CAA before September 30th, 2020. 00;03;11;17 - 00;03;18;18 Speaker 2 And now that 20 hours, at least 12, need to be in a technical subject matter, which basically means related to the practice of public accountancy. 00;03;18;25 - 00;03;24;21 Speaker 1 Got it. So in other words, you can't procrastinate all of your CV until right before the end. 00;03;24;24 - 00;03;40;21 Speaker 2 That would be my trouble. Number one piece of advice is to plan ahead and make sure that you get that 20 hours in the first year, right? Yes, but there's more. So, of course, of the 80 hours, at least 40 need to be technical and at least four need to be in ethics. And that is standard across the board. 00;03;40;22 - 00;04;06;09 Speaker 2 Every six years, you have to take a regulatory review course and that one is a little bit different because that's the only course that the CBA requires to be pre-approved. So normally we'll accept any C course as long as it is legitimate and provides some kind of education that's relevant to the profession. But the regulatory review course is one that's approved by CBA, and the list is on our website and we will only accept courses that are on that list. 00;04;06;11 - 00;04;14;16 Speaker 1 Got it. So make sure you're looking into that. And I know that that does confuse some people, the ethics requirement versus the regulatory review requirement. 00;04;14;17 - 00;04;35;22 Speaker 2 That is correct. They are two separate and distinct courses. Some providers name their course regulatory ethics, which can be confusing to consumers. So very important to distinguish upfront whether or not you're taking an ethics course or a regulatory review course. And one of the ways that I would recommend figuring that out is by going to the list online of regulatory view courses. 00;04;36;00 - 00;04;42;23 Speaker 2 And if it is on that list, it can be used as a regulatory review. If it is not, it is most likely ethics. 00;04;43;02 - 00;04;43;13 Speaker 1 Got it. 00;04;43;17 - 00;04;55;19 Speaker 2 The certificate of completion should also spell out what kind of credit they're getting. But if you're not sure upfront and you need to know specifically to meet a certain requirement, you can always check the regulatory review list and make sure that it's on there. 00;04;55;24 - 00;05;02;20 Speaker 1 Okay. So ethics required every time for renewal, every time. The regulatory review is just every six years. 00;05;02;21 - 00;05;05;11 Speaker 2 Correct. And the due date will be listed on the renewal notice. 00;05;05;17 - 00;05;08;18 Speaker 1 So there will be that reminder there. But you just have to keep an eye out for it. 00;05;08;19 - 00;05;09;00 Speaker 2 Yes. 00;05;09;15 - 00;05;11;20 Speaker 1 You're not going to call them yourself and remind them. 00;05;11;20 - 00;05;14;05 Speaker 2 Nope. Oh, no. No one from staff. 00;05;15;08 - 00;05;24;11 Speaker 1 That's okay. Another facet of this is the peer review. And I know some rules have changed in the not so distant past. So can you walk us through how that works? 00;05;24;12 - 00;05;45;17 Speaker 2 Sure. So as of April 1st, 2021, the peer review reporting form is only required at the time of renewal for firms, and that does include sole proprietors. So anybody who's working as an employee of a firm, or if they're not practicing public accountancy, they do not need to turn in that form. And that gets very confusing, particularly for CPAs. 00;05;46;00 - 00;05;59;13 Speaker 2 So a sole proprietor is someone who's working for themself and using their own name, which means they don't also have a corporation license for this. They're just on their own, doing their own thing. So they would need to report using the peer review reporting form. 00;05;59;20 - 00;06;04;04 Speaker 1 But if I'm a CPA working for another company, I don't have to do it on my own. 00;06;04;05 - 00;06;18;27 Speaker 2 You do not. And even if you're a CPA and you own a corporation or you're a partner in a partnership and you have a partnership license with us, let's say you would report that under your partnership license, not under your CPA license. Okay. 00;06;19;03 - 00;06;20;03 Speaker 1 That makes sense to me. 00;06;20;05 - 00;06;20;24 Speaker 2 Okay, good. 00;06;21;23 - 00;06;31;13 Speaker 1 What then is the overall process kind of how does the timeline work? When are you going to send me my application and notices and all those things? Because I'm never going to remember all this myself. 00;06;31;17 - 00;06;51;14 Speaker 2 Applications go out in the mail approximately 90 days before expiration. So it's very important to make sure that the address of record is correct with us, because that's where it's going to go once the application is received, licenses can renew at any time. They can either pay online and then email us the application or they can send the application with a check to DCA. 00;06;51;23 - 00;06;59;21 Speaker 1 But I assume if they go online and make the payment there at CPA Dot S.A., things probably move along a little more quickly. 00;07;00;05 - 00;07;06;05 Speaker 2 Absolutely. Go to the KBA website. On the right hand side, there's a quick links and renewal payment is right there. 00;07;06;10 - 00;07;06;26 Speaker 1 Very good. 00;07;07;00 - 00;07;29;04 Speaker 2 When a CPA pays their renewal online, it updates overnight and the license expiration date will update the very next day. If a check is mailed, it may take several weeks for it to get through the system and to be processed and for the expiration date to move up. We do go by the postmark date. So even if a check arrives after the expiration date, they may not be charged a delinquency fee if it was mailed in time. 00;07;29;13 - 00;07;34;26 Speaker 2 But there is a delay in actually getting it through the system and getting the license expiration date updated. 00;07;35;02 - 00;07;49;05 Speaker 1 Sure. So if you're concerned, you want to make sure that when people log on to the license, look up their on our website, that it's never out of date or anything. Yeah, get it. Get it in on time. And of course, making a payment online is the most convenient and quick way to do that. 00;07;49;08 - 00;07;49;26 Speaker 2 It is. 00;07;50;05 - 00;08;05;21 Speaker 1 So what happens if I know I'm coming up to my run all day? Maybe it's next month and for some reason I haven't received my application. Perhaps I moved and did not update my address with the CBA. Shame on me. Not that anyone would do that. But what happens if I don't have my application? 00;08;05;22 - 00;08;16;23 Speaker 2 Not a problem, David. You can just reach out to us at Renewal Info at CPA Dot S.A. and we can either get another one in the mail for you or we can provide you a digital copy via email. 00;08;16;29 - 00;08;20;21 Speaker 1 Okay. What happens if I am late even getting it back in? 00;08;20;28 - 00;08;31;14 Speaker 2 Well, there is a delinquency fee, unfortunately, and it's half of the renewal fee, so it's $125. There is a 30 day grace period, but after that we will charge the delinquency. 00;08;31;14 - 00;08;33;01 Speaker 1 If you know, I need grace a lot. 00;08;33;09 - 00;08;34;27 Speaker 2 But that's why we recommend the online payment. 00;08;34;29 - 00;08;35;08 Speaker 1 There you. 00;08;35;08 - 00;08;36;10 Speaker 2 Go. You can do it last minute. 00;08;36;10 - 00;08;39;20 Speaker 1 Don't be late. Make the payment first and then send in the info. 00;08;39;21 - 00;09;04;27 Speaker 2 Yes, make the payment first and then email documents to us at CPA at Renewal App at CPA Dot S.A. and we will accept pictures of the paperwork, scanned PDFs, Excel sheets, word docs, all that is good. We cannot use secure links to documents that are housed on the web on some kind of platform that would require a password or anything like that. 00;09;04;28 - 00;09;07;11 Speaker 2 We get those. Sometimes we cannot access them. 00;09;07;14 - 00;09;14;17 Speaker 1 That makes sense. So the c e worksheet is part of the requirement. Right. I have to fill out all the courses that I took. 00;09;14;18 - 00;09;30;07 Speaker 2 You do? You don't necessarily have to use the worksheet that's provided in the renewal application, but you do need to provide the information that's asked in that renewal worksheet. So Excel sheets are fine, handwritten lists are fine. Doesn't have to be specifically on that form as long as the information is there. 00;09;30;08 - 00;09;36;10 Speaker 1 Got it. You just need to know. You need the proof. Okay. So once I send all that in, what will I expect to hear. 00;09;36;12 - 00;09;57;05 Speaker 2 As soon as the payments process, the expiration date will roll forward two years and a new pocket I.D. will be issued and sent out in the mail. The application will go into the queue for review and CBA staff will look it over and make sure that all of the continuing education requirements are met, that the application has been filled out properly, it's signed, and that everything is there. 00;09;57;12 - 00;10;07;15 Speaker 2 If there's a problem, CBA staff will reach out to the individual and let them know what the problem is. And in most cases it is correctable and we can just get it cleaned up and move on. 00;10;07;20 - 00;10;15;29 Speaker 1 Excellent. It sounds like I know everything I need to know, but I know I'm going to come up with some questions. I'm going to come up with something. So can I reach out for help? 00;10;16;01 - 00;10;32;29 Speaker 2 Always. The RCC staff is willing to help any time we can be reached at renewal info at CBA dot S.A. gov. Email is absolutely the best way to reach us because that way we can provide you with the documents or the links to the website that will get you where you need to go. 00;10;33;04 - 00;10;36;07 Speaker 1 So that's a different email address from where I'm sending my documents, correct? 00;10;36;07 - 00;10;47;07 Speaker 2 Correct. Okay. Two different email addresses and the renewal app email box does not get checked every single day, so questions should be directed to renewal info at CBA. 00;10;47;07 - 00;10;59;08 Speaker 1 Does S.A., you've got it. Okay. Well, we knocked all that out. C is where I know you get a lot of questions. Is there anything else specific that licensees ask you a lot about? C. 00;10;59;14 - 00;11;28;05 Speaker 2 Yeah. One of the questions we get pretty frequently is whether or not a CPA needs to take the special c e that is carved out for people that are working on government audits and and preparation engagements. That is not a question that the CPA can really answer, because it depends on the work that the CPA is performing. So anybody who is doing that kind of work will need to take additional C, e and it is 24 hours in the specialized area that is not in addition to the 80 hours. 00;11;28;05 - 00;11;49;05 Speaker 2 It is part of the 80 hours, but it's another carve out that they need to be aware of. There's also a four hour fraud requirement that is involved with that as well. So if someone, for example, is performing government audits and they are performing a and a work, they do not need to take 24 hours of government audit and 24 hours of agony. 00;11;49;18 - 00;12;15;17 Speaker 2 They would just need to take 24 hours of government auditing because that's the highest level of service. And that would count for both the government auditing and the AN8 work. And then there's the four hour fraud requirement on top of that. And the same goes for someone who may be doing A&R work and preparation engagements. As long as they took the 24 hours of an A, C, E, that would count towards their 8 hours of preparation engagement, because the ANA is the higher level of service. 00;12;15;17 - 00;12;17;09 Speaker 1 But again, that doesn't apply for everyone. 00;12;17;09 - 00;12;29;12 Speaker 2 Just doesn't apply for everyone. And the CPA can help you figure out how many hours you need to take if you know you're subject to it. But we cannot tell you definitively whether or not you are subject to that C or not. 00;12;29;18 - 00;12;37;15 Speaker 1 Right. And the good news is these days, there's lots of different ways to complete your C. It's not just attending a classroom lecture somewhere, right? 00;12;37;16 - 00;12;54;26 Speaker 2 Absolutely. There are so many different ways and especially in the last year or so, online courses have really been booming. The CPA does not have a limit on how many courses a CPA can take online. We're completely open to however they want to take it. So if you want to take every course online, we are okay with that. 00;12;55;06 - 00;13;16;26 Speaker 2 One thing to be cognizant about is that we only accept courses in half hour increments and they need to be at least one hour to start. So sometimes we see courses that are 1.8 hours or 2.6 hours and we will always round down. So if the course happens to be a little bit more, a little bit less than that half hour, just keep in mind that it will be rounded down. 00;13;17;02 - 00;13;29;16 Speaker 2 The only exception to that is the self-study courses. They can be a half hour to start. They're still going to be counted in half hour increments. We'll accept just a half hour, whereas with other courses, they have to be an hour minimum, at least an hour. 00;13;29;18 - 00;13;50;09 Speaker 1 Okay, well, I can't possibly think of anything else. Anyone would need to know about license renewals. Thank you for all of that knowledge you just shared with us, Sara. I encourage everyone to go follow us on our social media as we do a lot of updating things on Twitter and Facebook and even LinkedIn. You can find out lots of information on us there. 00;13;50;09 - 00;13;59;10 Speaker 1 But once again, remember, the CBA is always here to help you through. If you have any questions along the way and tell us that email address again one more time if they have a question, it. 00;13;59;10 - 00;14;04;16 Speaker 2 Is renewal info at CBA dot S.A.. 00;14;05;00 - 00;14;27;18 Speaker 1 We hope you learned everything you need to know about renewing your license as a thank you for listening all the way to the end. I'm going to let you in on some exciting news. There are big changes coming to the license renewal process, including the transition to an all online renewal application. Get ready to hear a lot about CBA connect very soon. 00;14;28;03 - 00;14;34;09 Speaker 1 Until then, thanks once again for listening to this episode of the Accounting for California podcast.