During 2019, the Washington State Board of Accountancy is proposing to revise its rules on continuing professional education (CPE). Any draft revisions will be published in spring 2019 for public comment with anticipated full adoption in fall 2019.

In 2016, the Statement on Standards for CPE programs was revised. This statement is a national professional standard that is modified by both the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA). These revisions resulted in changes to Uniform Accountancy Act (UAA) Model Rules maintained by NASBA. When the Model Rules are adopted by state boards, acceptable CPE programs will include “nano-learning” and “blended learning” programs, as well as other changes.

“Nano-learning” is a tutorial program designed to permit a participant to learn a given subject in a 10-minute time frame using electronic media (including technology applications and processes and computer-based or web-based technology) and without interaction with a real-time instructor. A nano-learning program differs from a self-study program in that it is typically focused on a single learning objective and is not paper-based. To provide evidence of satisfactory completion of the course, CPE program sponsors of nano-learning programs must require participants to successfully complete a two-question qualified assessment with a passing grade of 100% before issuing CPE credit for the course.

“Blended learning” is an educational program incorporating multiple learning formats in a single program, such as group live education, group web-based learning, and nano-learning.

As a result of these national changes, the Board is proposing to adopt several changes to Washington’s CPE rules consistent with new national standards, and rewrite Washington’s CPE rules to be more consistent with revised UAA Model Rules, while still maintaining unique and longstanding Washington differences from the Model Rules. The major changes proposed from previous Washington CPE rules are:

• Nano-learning will be an allowable CPE format, but the total number of nano-learning credits is limited to 10%, or no more than 12 of the 120 hours in any three-year reporting cycle.
• Currently, a CPA can earn up to 64 hours of annual credit for service on or to the Washington State Board of Accountancy, up to 72 hours of credit in a reporting period for being the first-time instructor/developer of CPE courses, and up to 30 hours of credit in a reporting period for published articles, books, and other publications. Under the revisions, no more than 60 hours of CPE credit in the aggregate will be allowed in any three-year cycle for Board service, first-time instructor/developer of CPE courses, and authorship of published articles, books, and other publications.
• A CPA will be required to complete a minimum of 20 hours of CPE in each year of the three-year reporting cycle. Board service, first time instructor/developer, or authorship of published materials will not count towards the 20-hour minimum.
• Currently, non-technical CPE, including subjects such as personal development and practice management, cannot exceed more than 24 hours in any three-year reporting cycle. But under the proposed revisions, non-technical CPE credits will be limited to no more than 60 of the 120 hours in any three-year reporting cycle.
• The “pre-lapsed renewal” process will be eliminated. “Pre-lapsed renewal” has been a process for CPAs who fail to obtain required CPE during their three-year reporting period and who also did not request an extension before the December 31 end of their reporting period. Under the current rules, these CPAs pay a $480 reinstatement fee. Under the revisions, CPAs are given an automatic extension of time to obtain CPE, but only one extension is granted for any two consecutive CPE reporting periods (six-year period). A CPA who obtains an extension request for the first CPE reporting period and fails to obtain required CPE for the second successive reporting period is ineligible for any extension and will be subject to the disciplinary process.

CPE reciprocity will be allowed for Washington CPAs who are residents of other states. The Board will be publishing proposed changes for comments by CPAs and members of the public. You can follow these proposed revisions in the Board’s newsletter and the Board’s website at www.acb.wa.gov.

Mark Hugh, CPA, is the principal of Mark Hugh PLLC. He is a CPA member of the Washington State Board of Accountancy. You can contact him at mark@markhugh.com.

This article appears in the spring 2019 issue of the WashingtonCPA Magazine. Read more here.

Related resource: View a summary of the proposed CPE revisions here.