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Accounting Resource Center Manual University of Mississippi eGrove American Institute of Certified Public Guides, Handbooks and Manuals Accountants (AICPA) Historical Collection Accounting Resource Center Manual American Institute of Certified Public Accountants.Small Business Development Committee Follow this and additional works at: https://egrove.olemiss.edu/aicpa_guides Part of the Accounting Commons, and the Taxation Commons Small Business Development Committee A R C Accounting Accounting Resource Resource Center Center Manual Manual American Institute of Certified Public Accountants ACCOUNTING RESOURCE CENTER MANUAL AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Small Business Development Committee 1211 Avenue of the Americas New York, N.Y. 10036 TABLE OF CONTENTS Page I. Introduction 1 A. Purpose of Manual 1 B. CPAs and Public Service 2 C. ARC Services 2 Exhibits I.1 to I.7 5-20 II. Services 21 A. Summary 21 B. Education and Training 21 C. Direct Technical Assistance 21 D. Referrals 22 E. Information to the Public 22 Exhibits II.1 to II.6 23-34 III. Clients 35 A. Summary 35 B. Small Business Clients 35 C. Non-Profit Clients 36 D. Individual Clients 36 E. Government Clients 37 F. Eligibility Standards 37 G. Terminating Services 37 Exhibits III.1 and III.2 39-42 IV. Establishing the Center 43 A. Summary 43 B. Relations with the Profession 43 C. Community and GovernmentRelations 43 D. Outreach Exhibits IV.1 to IV.5 47-60 Page V. Formal Incorporation 61 A. Summary 61 B. Incorporation 61 C. Board of Directors 61 D. Liability 62 Exhibits V.1 to V.9 65-100 VI. Resources 101 A. Summary 101 B. Initial Funding 101 C. Long-Term Funding 102 D. Facilities and Equipment 102 Exhibits VI.1 to VI.5 105-152 VII. Personnel 153 A. Summary 153 B. Executive Director 153 C. Staff 154 D. CPA Volunteers 154 E. Students 155 F. Other Volunteers 155 G. Personnel Policies 155 Exhibits VII.1 to VII.10 157-178 VIII. Program Administration 179 A. Summary 179 B. Philosophy of Practice 179 C. Long-Term Plan 179 D. Management by Objectives 180 E. Processing Cases 180 F. Program and Financial Recordkeeping 181 Exhibits VIII.1 to VIII.25 183-236 IX. Program Evaluation 237 A. Summary 237 B. Quality Control Statement 237 C. Periodic Review by Board 238 D. Independent Review 238 E. Program Analysis Techniques 238 Exhibits IX.1 to IX.3 241-250 TABLE OF EXHIBITS Page I. Introduction Exhibit I.1 - Commonly Used Abbreviations and Acronyms 5 Exhibit I.2 - Accounting Aid Centers - 1978 List 9 Exhibit I.3 - How Do We Find Cases? - Editorial 11 Exhibit I.4 - Our Goals and Objectives - Editorial 13 Exhibit I.5 - U.S. Department of Commerce - Office of Minority Business Enterprise 15 Exhibit I.6 - SBA - What it is...What it does 17 Exhibit I.7 - SBA Field Office Addresses 19 II. Services Exhibit II.1- Course Based on AICPA's Business­ man's Information Guide 23 Exhibit II.2 - Services Rendered by Community Accountants 25 Exhibit II.3 - Workshop Series for Non-Profit, Community Organizations 27 Exhibit II.4 - Community Tax Aid, Inc. 29 Exhibit II.5 - College Recruiting Assistance Program 31 Exhibit II.6 - Assisting Parents Complete Financial Resources Questionnaire for College Scholarship Aid 33 III. Clients Exhibit III.1 - Role of the Clients 39 Exhibit III.2 - Objectives of Community Accountants The Clients 41 IV. Establishing the Center Exhibit IV.1 - Sample News Release on an Action Program 47 Exhibit IV.2 - Sample News Release on Tax Clinic 49 Exhibit IV.3 - Community Accounting Aid & Services, Inc., Hartford, CT 51 Exhibit IV.4 - Tax Returns Done Free by Volunteers 53 Exhibit IV.5 - Storefront Accountant 55 iii Page V. Formal Incorporation Exhibit V.1 - Planning for and Control of Incor­ poration by Using a Checklist 65 Exhibit V.2 - Sample Articles of Incorporation 69 Exhibit V.3 - Bylaws of the Minnesota Accounting Aid Society, Inc. 73 Exhibit V.4 - Applying for Recognition of Exemption 83 Exhibit V.5 - Licensing with State Boards of Accountancy 85 Exhibit V.6 - Guidelines for Board Development 87 Exhibit V.7 - The Association Professional Liability Insurance Policy 89 Exhibit V.8 - Outline of Board of Directors’ Planning Process 97 Exhibit V.9 - Accountants for the Public Interest of Rhode Island, Inc. - Goals for 1977 99 VI. Resources Exhibit VI.1 - Typical ARC Budget 105 Exhibit VI.2 - APIDC Proposal for $2,500 107 Exhibit VI.3 - San Francisco API Proposal for $15,000 121 Exhibit VI.4 - Proposal for Establishment of the Accounting Aid Society of Metro­ politan Detroit 131 Exhibit VI.5 - Foundations 149 VII. Personnel Exhibit VII.1 - Relationship Between Board and Executive Director 157 Exhibit VII.2 - Personnel Processing Checklist 159 Exhibit VII.3 - Employment Application 161 Exhibit VII.4 - Personal Data Sheet 163 Exhibit VII.5 - Employee Orientation Memorandum 165 Exhibit VII.6 - Attendance Calendar 167 Exhibit VII.7 - Exempt and Non-Exempt Staff Attendance Record 169 Exhibit VII.8 - Employee Performance Appraisal 171 Exhibit VII.9 - Notice of Solicitation of Public Service Employment Projects under Title VI of the Comprehensive Employment and Training Act of 1973, as Amended (CETA) 173 Exhibit VII.10- The Staff 175 iv Page VIII, Program Administration Exhibit VIII.1 - Accounting Resource Centers, Inc. Philosophy of Practice 183 Exhibit VIII.2 - Organization Chart 185 Exhibit VIII.3 - Procedure for Client’s Assistance 187 Exhibit VIII.4 - Client Service Decision Matrix Non-Profit and Small Business Clients 189 Exhibit VIII.5 - Client Service Decision Matrix Public Issue Clients 191 Exhibit VIII.6 - Application for Assistance - Community Service Program - CAAS 193 Exhibit VIII.7 - Client Data Sheet 195 Exhibit VIII.8 - Case Worker's Screening Report 197 Exhibit VIII.9 - Client Letter of Request 201 Exhibit VIII.10- Engagement Letter 203 Exhibit VIII.11- Engagement Letter (another form) 205 Exhibit VIII.12- Model Engagement Letter 207 Exhibit VIII.13- Assignment Log 209 Exhibit VIII.14- Volunteer Viewpoint 211 Exhibit VIII.15- Professional Volunteer Questionnaire 213 Exhibit VIII.16- Professional Volunteer Data Sheet 215 Exhibit VIII.17- Orientation Sheet for New Volunteers 217 Exhibit VIII.18- Professional Volunteer Assign­ ment Letter 219 Exhibit VIII.19- The Volunteers 221 Exhibit VIII.20- Professional Volunteer’s Monthly Report 223 Exhibit VIII.21- Volunteer Record Card 225 Exhibit VIII.22- Student Staff Application 227 Exhibit VIII.23- Student Volunteer Component 229 Exhibit VIII.24- Chart of Accounts 233 Exhibit VIII.25- Administrative Files 235 IX. Program Evaluation Exhibit IX.1 - Quality Control Statement - C.A. 241 Exhibit IX.2 - Quality Control - Direct Service 247 Exhibit IX.3 - Quality Control - Public Issue 249 v I Introduction ACCOUNTING RESOURCE CENTER MANUAL I. INTRODUCTION A. PURPOSE OF MANUAL This manual is prompted by the ethical consideration that every profession must concern itself with the needs of the society in which it functions. Satisfying this social obligation rewards the profession with trust and respect from the public and enhances the self-esteem and integrity of its members. These intangibles, in time, become the source of practical benefits to individuals, the profession, and society at large. The AICPA Code of Professional Ethics articulates this principle for the accounting profession: In light of the importance of their function, CPAs and their firms should have a keen consciousness of the public interest and the needs of the society. Thus, they should support efforts to achieve equality of opportunity for all, regardless of race, religious background or sex, and should contribute to this goal by their own service relationships and employment practices ET Section 56.01 The contributions of the profession should be based on a true desire to provide assis­ tance to those in need. Efforts motivated solely by public relations considerations are short-lived and rarely convincing. Sincere professional contributions, however, are generally viewed favorably by the public and can result in measurable benefits. Such positive recognition by the public is essential to the growth and prosperity of the profession. Traditionally, the accounting profession’s public service efforts have been on two levels: individual CPAs have served governments, community groups and charitable organizations as volunteers, and groups of CPAs have organized and sponsored pro­ grams of assistance to taxpayers, to municipal, state and Federal departments and to disadvantaged businesses. This manual has been prepared to help CPAs render volunteer public services to those unable to pay for such services. It seeks to foster participation by CPAs in activities which will benefit their communities, themselves and their profession. It shows how to establish, develop and maintain a center for free accounting services for those in need. -2- A loose-leaf, three-ring format has been used to accommodate future developments. In addition, supplemental assistance is available from private and government organi­ zations including AICPA, Accountants for the Public Interest (API), Small Business Administration (SBA) and Office of Minority Business Enterprise (OMBE). Users of this manual should feel free to select sections and procedures appropriate for their communities. Modification and adjustments are encouraged since ARCs should be responsive to local needs. Successful innovations may later be incorporated into the manual for use in other localities. B. CPAS AND PUBLIC SERVICE CPAs’ participation in public service activities has always been wide-spread. The pro­ fession has long recognized the value of contributing to social and charitable pro­ grams. More recently, state society committees and AICPA have provided assistance to developing and minority businesses. Presently, committees exist in more than twenty states offering accounting assistance and management advice to needy indi­ viduals and organizations. In addition, accounting aid centers have been established in six major cities (see Exhibit I.2, p. 9). These centers developed out of the need to offer continuous and visible public service activities which could not be effectively rendered under a committee structure.
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