201 KAR 1:100. Continuing professional education requirements.

201 KAR 1:100. Continuing professional education requirements.

RELATES TO KRS 325.330

STATUTORY AUTHORITY: KRS 325.240, 325.330(4)(a), (7)

NECESSITY, FUNCTION, AND CONFORMITY: KRS 325.330(4) establishes requirements to renew a license to practice as a certified accountant. This administrative regulation establishes the continuing professional education requirements an applicant shall satisfy for renewal of a license.

Section 1. Definitions. "Continuing professional education hour" means a fifty (50) minute period excluding meals, breaks and business sessions and for university or college courses, each unit of credit shall equal the following continuing education contact hours:

(1) One (1) semester hour equals fifteen (15) CPE hours; and

(2) One (1) quarter hour equals ten (10) CPE hours.

Section 2. Requirements for Continuing Education Credit. (1) Effective with license renewal for July 1, 2002 and subsequent years, each licensee who worked 3000 hours or more in a public accounting firm registered with the board during the two (2) calendar years prior to the renewal date shall report to the board successful completion of eighty (80) hours of continuing professional education. The eighty (80) hours shall be earned during the preceding two (2) calendar years. All others shall obtain sixty (60) hours.

(2) A licensee seeking renewal of his license in this state who at the time of renewal his principal office is located in another state shall satisfy the requirements of this section by satisfying the continuing professional education requirements for renewal of his license in the state in which his principal office is located. If the state in which the licensee’s principal office is located has no continuing professional education requirements for renewal of a license, the licensee shall comply with all continuing professional requirements for renewal of a license in this state.

Section 3. Each licensee who held a license for less than a full two (2) calendar year period shall be required to obtain two (2) hours of continuing professional education for each full month a license was held not to exceed the total number of required hours for the reporting period.

Section 4. Waivers From Continuing Professional Education. (1) The request for a waiver from the continuing professional education requirements shall be submitted on a form provided by the board.

(2) A waiver may be granted by the board if the permit holder meets one (1) of the following:

(a) Is physically or psychologically unable to complete the continuing professional education requirements and submits statements from licensed physicians or other appropriate authorities;

(b) Has encountered a severe personal hardship which made it extremely difficult or impossible to meet the continuing professional education requirements and the hardship is described in writing on the waiver form; or

(c) Is completely retired from practice and is fifty-five (55) years of age or older. Completely retired means not performing accounting services in the practice of public accounting, education, government or industry except for management of personal assets or investments.

(3) The board shall respond in writing, accepting or rejecting all waiver requests. Rejections shall specify the reasons for the rejection.

(4) All licensees granted waivers shall reaffirm the basis of the waiver when the license is next renewed.

(5) If the circumstances which form the basis of the waiver change, the licensee shall notify the board within thirty (30) days from the date of the change and resume compliance with the continuing professional education requirements from the date of the change.

Section 5. Exemption from Continuing Professional Education. A licensee who at the time of renewal is sixty-five (65) years of age or older and has been licensed continuously for twenty-five (25) years or more shall be exempt from the continuing education requirements.

Section 6. Programs which Qualify. (1) The overriding consideration in determining whether a specific program qualifies as acceptable continuing education shall be whether it is a formal program of learning which contributes directly to the professional competence of an individual licensed to practice as a certified public accountant in this state.

(2) Continuing professional education programs may qualify only if:

(a) An outline of the program is prepared in advance and preserved;

(b) The program is at least one (1) continuing professional education hour in length;

(c) The program is conducted by a qualified instructor. A qualified instructor or discussion leader shall be anyone whose background training, education or experience makes it appropriate for him to lead a discussion on the subject matter of the particular program; and

(d) A record of registration or attendance is maintained and a course completion document is given to the attendee.

(3) Acceptable subject matter.

(a) The following general subject matters are acceptable if the programs meet the criteria established by this administrative regulation:

1. Accounting and auditing;

2. Taxation;

3. Management services;

4. Computer science;

5. Communication arts;

6. Mathematics;

7. Statistics;

8. Probability and quantitative applications in business;

9. Economics;

10. Business law;

11. Functional fields of business - finance, production, marketing, personnel relations, business management and organizations;

12. Specialized areas of industry (i.e., real estate, farming, etc.); and

13. Administration practice (i.e., engagement letters, personnel, etc.).

(b) Areas other than those listed in paragraph (a) of this subsection may be acceptable if the licensee can demonstrate that they contribute to his professional competence. The responsibility for substantiating that a particular program is acceptable and meets the requirements rests solely upon the licensee.

(4) Acceptable programs. The following group programs qualify for credit if they meet the standards specified in this administrative regulation:

(a) Professional education and development programs of national, state and local accounting organizations;

(b) Technical sessions at meetings of national, state and local accounting organizations and their chapters;

(d) Formal in-firm education programs;

(e) Programs of other organizations (accounting, industrial, professional, etc.); and

(f) Firm meetings for staff or management groups which are structured as formal education programs. Portions of those meetings devoted to the communication and application of general professional policy or procedure may qualify. However, portions devoted to firm administrative, financial and operating matters shall not qualify.

(5) Formal individual study programs.

(a) The amount of credit to be allowed for correspondence and formal individual study programs, including taped study programs, shall be recommended by the program sponsor.

(b) Licensees claiming credits for such correspondence or formal individual study courses shall obtain evidence of satisfactory completion of the course from the program sponsor.

(c) Evidence of satisfactory completion in this section shall be indicated by a sponsor verification of completion of a workbook or examination on the subject matter.

(d) Credit shall be allowed in the renewal period in which the course was completed.

(6) Service as lecturer, discussion leader, or speaker.

(a) Instructors, discussion leaders and speakers may claim continuing professional education credit for both preparation and presentation time.

(b) Credit may be claimed for actual preparation time up to two (2) times the class contact hours.

(c) Credit as an instructor, discussion leader or speaker may be claimed if the session is one which would meet the continuing professional education requirements of those attending.

(d) No credit shall be granted for repetitious presentations of group programs unless it can be demonstrated that the program content was substantially changed and such change required significant additional study or research.

(e) Maximum credit for such preparation and teachings shall not exceed sixty (60) percent of the renewal period requirement.

(7) Published articles, books.

(a) Credit may be awarded for published articles or books provided they contribute to the professional competence of the licensee.

(b) Credit for preparation of such publications may be given on a self-declaration basis up to twenty-five (25) percent of the total education hours required.

(c) In exceptional circumstances, a licensee may request additional credit by submitting the article or book to the board with an explanation of the circumstances which he feels justifies a greater credit.

(d) The board shall determine the amount of credit to be granted.

Section 7. Reporting and Controls. (1) Primary responsibility for documenting the requirements have been met rests solely with the licensee, and evidence to support fulfilling those requirements shall be retained for a period of five (5) years after completion of educational courses.

(2) The board shall verify on a test basis, information submitted by the licensee for renewal of his or her license.

(3) Course completion evidence shall be a document indicating participation in a formal program of learning which includes:

(a) Name of sponsor;

(b) Title and description of course content;

(d) Location; and

(e) Number of continuing professional education contact hours.

Section 8. Continuing Professional Education Sponsors. (1) Sponsors are not required to register with the board.

(2) Detailed records of each program shall be kept by the sponsor which shall include:

(a) The date and location of the program presentation;

(b) The names of each instructor or discussion leader;

(d) A written outline of the program presentation.

(3) Records shall be kept by the sponsor for a period of five (5) years following the date each program is presented.

Section 9. Incorporation by Reference. (1) "Continuing Professional Education Waiver (2001)" is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the State Board of Accountancy, 332 W. Broadway, Suite 310, Louisville, Kentucky 40202, Monday through Friday, between 8 a.m. to 4:30 p.m. (10 Ky.R. 502; Am. 877; eff. 12-2-83; 17 Ky.R. 1528; eff. 11-29-90; 18 Ky.R. 2872; 3188; eff. 5-1-92; 28 Ky.R. 1669; 2187; eff. 4-15-2002.)