From Managing Partner Mark Eberle

Celebrating our firm’s 50th Anniversary is more akin to a golden wedding anniversary than perhaps a typical business milestone. It’s personal, it’s local, and it’s a time for reflection. Being surrounded by the friends and family who have grown with us in since 1957 is what makes us most happy.

Like many couples approaching their 50th, we can say we’ve grown up together. Our history reflects the history of our communities, our clients and the state of Arizona over the past 50 years of phenomenal growth, change and maturity. Henry & Horne began as the “marriage” of two small accounting firms, started by two Arizona natives who were members of the Greatest Generation, World War II veterans and visionary entrepreneurs – Marvin Henry and Gail Horne.

From the beginning, their goal was to provide the best, most personal client service and support on a local level. Over the past five decades, the nature of our clients’ business and income may have changed – from primarily agricultural - based to a diverse range of occupations and investments – but our mission remains rock solid. We’ve been courted by larger, internationally known firms, but have always politely declined to give up our Arizona base and focus. Managing Partner Tenures Since Just as that proverbial long-married couple, our firm and our clients have weathered challenges posed by the economy, technology, a growing 1957 family, a changing environment and significant national events. While Marvin Henry 1957 – 1976 serving our clients and mentoring our employees, we’ve also given back to our profession and the communities in which our offices have been Gail Horne 1976 – 1987 located. Mel Anderson 1987 – 1998 Our intent in assembling the pages of this book is to remind its readers – especially our clients, employees and community partners – how we’ve Wendell Jones 1998 – 2002 relied on one another to prosper and succeed. Bonded by integrity, trust, a sense of community, flexibility for accommodating change and Mark Eberle 2002 – Present a commitment to long-term relationships, Henry & Horne and its constituents have together made history in Arizona. As we wax nostalgic on our collective past, let’s remember: the best is yet to come!

Henry & Horne Partners-in-Charge “It is a profound honor to be “I’m honored to be part of the “It is the little things a part of the Henry & Horne Henry & Horne legacy . . . we do that make golden legacy of service. Those the firm is as strong now as it Henry & Horne so before us built a phenomenal has ever been due to the great big. I am proud to be base and set the high standards leadership the firm has had a part of such a great we will continue to follow for over the past 50 years . . . I’m organization.” the next 50 years.” thrilled to be part of the next 25 years and look forward to our 75th anniversary.” Chuck Goodmiller Chuck Inderieden Donny Kretschmar Casa Grande Office Scottsdale Office Tempe Office Founders Built A Solid Foundation for the Future Gail Horne Marvin Henry Native Arizonans and veterans of World War II, Marvin Together they built the firm’s reputation as a solid, Henry and Gail Horne merged their accounting practices locally owned and operated accounting practice that July 1, 1957 and created a firm that literally grew up specialized in the needs of its clients. At first, the firm’s with Arizona and the communities that it served. focus was on agricultural and small business accounting, bookkeeping and taxation, and preparing tax returns Marvin Henry was born in 1913, grew up in rural Gilbert, for private individuals. During the 1960s and 1970s, and attended Arizona State College (now University). several small firms throughout the state approached During World War II, he served first in the U.S. Army the partners to request inclusion in the firm; when Air Corps as a flight instructor, then transferred to the appropriate, these practices were acquired. Despite U.S. Navy and again served as a flight instructor. He offers from national and regional accounting firms to passed the Certified Public Accountant (CPA) exam acquire Henry & Horne, the co-founders and their while still on active duty in the Navy. Marvin Henry other partners in the firm declined in order to stay local started his own accounting practice in 1946 in Mesa. and true to their clients.

Gail Horne, a member of the Horne family On the strength of a handshake (no actual that has called the Mesa area home for over “I have profound respect partnership papers were signed until 100 years, was born in 1921 and raised for the two men who founded 1974), Marvin Henry served as the in Mesa. He served in the U.S. Army in the firm -- both men of integrity. firm’s managing partner from 1957 to Italy during World War II, then used his Marvin Henry and Gail Horne 1976, and then Gail Horne assumed G.I. Bill benefits to earn his Bachelor broke the mold.” the helm from 1976 to 1987. Marvin of Science in Accounting at Arizona Henry retired in 1976, and passed State College (now University). He away in 1984. Gail Horne retired in taught accounting at his alma maters Joe Sorenson 1987, but continues to be active in his – Mesa Union High School and Arizona 49-year member of sons’ businesses and through charitable State – and earned a Masters of Arts in Henry & Horne, LLP foundation work. Education. In January 1951, the State of Arizona issued him CPA Certificate #212E, and Long-time members of the firm think of their he began practicing in a small firm. founders with fondness and the utmost respect. Marvin Henry is remembered as a down-to-earth, easy-going and According to Gail Horne, he met his future partner far-sighted professional. Gail Horne describes his role Marvin Henry while each was auditing a client account. in starting and managing the firm as one of “benevolent Horne was doing the books for a Valley hospital; Henry’s dictator,” while others attribute the firm’s position at the client was a well-known medical insurance company. forefront of accounting technology to his foresight and Through this chance business meeting, the two formed hands-on approach to learning and leadership. a lasting friendship, partnership and respect for one another. Marvin Henry and Gail Horne – stellar representatives of The Greatest Generation – grew their firm in their On July 1, 1957, they merged their two accounting home state in the post-World War II boom years. They practices, creating Henry & Horne CPAs. At the outset, helped their client base evolve with the communities the firm had 12 employees working in three locations: in which they were located, where family farms turned Mesa (7 W. Pepper Place), Phoenix (in the Luhrs Tower) into desirable residential communities, a network of and Casa Grande (110 E. Florence Blvd.). Six months new freeways linked businesses and consumers, and later, to accommodate a major client, they opened a technology revolutionized the accounting practice, fourth location in Scottsdale in the client’s new building turning posted-by-hand general ledgers into bytes of at 600 N. Scottsdale Road. data in cyberspace. 3 In 1957, Eisenhower was President of the , Ernest W. McFarland was Governor of Arizona, Carl T. Hayden and Barry M. Goldwater were Arizona’s U.S. Senators and John J. Rhodes represented the Mesa U.S. Congressional District. The Arizona population was just about 1 million. Throughout the 1950s, Arizona residents and companies held civil defense drills in response to Cold War realities. Like their counterparts around the nation, Arizonans rallied to combat polio through the March of Dimes.

Mesa: Although half of the city’s residents still earned their living by farming, Mesa welcomed other businesses, such as rocket engine maker Talco at Falcon Field (1957) and Talley Defense Systems/Talley Industries (1960). Nearby Williams AFB continued to be a major employer and economic engine. As retail, business and residential areas grew, sheep ranching and cotton farming declined. During the 1950s, the Maricopa County Fair, Cotton Festival and Citrus Fair Downtown Mesa were held annually in Mesa, and the Chicago Cubs held their spring training games at Rendezvous Park (1952-1965). Mesa’s population was about 30,000.

Phoenix: With broadcaster Jack Williams as mayor, Phoenix was one of the fastest growing cities of its size in the U.S. Its population of nearly 600,000 was boosted by new arrivals and the continuing post World War II baby boom; its size grew through

The 1950s numerous land annexations in all directions. New technology companies like Sperry Rand (1957) and General Electric (1957) created jobs. Manufacturing, agriculture and tourism were the three economic drivers. New suburban shopping centers, like Park Downtown Phoenix Central Mall (1957), started the decline in downtown as a shopping destination.

Casa Grande: Primarily an agricultural area, family-owned farms in Casa Grande, Coolidge, Eloy and Maricopa grew cotton, crops and cattle. They cheered for their Cotton Kings semi-pro baseball team. They enjoyed movies at the Paramount Theatre, but grew to love the new addition to their homes – black and white television. New homes sold for $11,000. Downtown Casa Grande

Scottsdale: When Motorola opened its plant on McDowell Road in 1957, employees and families spurred new demand for housing, schools, shopping and services, turning farmland into neighborhoods. In 1958, Scottsdale’s population was slightly less than 10,000. Artists, new resort hotels like the Safari and Valley Ho, and desert adventures drew visitors to the West’s Most Western Town. Scottsdale area resident Amanda Blake, “Miss Kitty” on the popular “Gunsmoke” television series, rode in the 1957 Scottsdale Fifth Ave Scottsdale Jaycees’ Parada Del Sol.

4

In 1957, Henry & Horne was in Arizona Before: • The U.S. flag had 50 stars, and Arizona was still the youngest of 48 states • The Valley of the Sun had a freeway system • The provided most of Arizona’s water (1986), and the Palo Verde Nuclear Generating Station provided electricity (1985) • The Phoenix Suns (1968), Arizona Cardinals (1988), Phoenix Coyotes (1996), Phoenix Mercury (1997) or Arizona Diamondbacks (1998) delighted sports fans • Lake Havasu City had the transplanted London Bridge (1968) • ran for the U.S. Presidency (1964) 110 E Florence Blvd • Arizonans William Rehnquist (1972) and Sandra Day O’Connor (1981) were appointed 1st Casa Grande Office to the U.S. Supreme Court • Del Webb opened Sun City (1960) • Arizona State College in Tempe became the full-fledged (1958), with Sun Devil Stadium (1958) and the Frank Lloyd Wright-designed Gammage Auditorium (1964) • Scottsdale Fashion Square (1961), Tri-City Mall/Mesa (1968-1998), Los Arcos Mall (1969-1999), Metrocenter Mall (1973), (1979), Outlets at Casa Grande (1992), (1997), (2002), and (2007) lured shoppers to their malls. • The Fiesta Bowl (1971), Barrett Jackson Classic Car Auction (1970s), NASCAR at Phoenix International Raceway (1964), Scottsdale Culinary Festival (1978), Insight Bowl (1989) were some of Arizona’s most anticipated annual events. • Arizona had gaming casinos on its many Indian reservations (late 1980s) 7 W Pepper Place • Intel, America West Airlines/USAirways (1983), Apollo Group/University of Phoenix, 1st Mesa Office Scottsdale Healthcare (1962), Mayo Clinic (1987), Southwest Airlines (1980s), Cox Communications, Dillard’s, Costco, FedEx, , Target, and PetSmart were among the state’s top 50 employers. • Tempe had a town lake (1999) • The personal computer, Internet, email and tax e-filing; mobile phones and Personal Digital Assistants (PDAs); cable or satellite television; telecommuting; Starbucks; most credit cards, ATMs or PayPal existed.

Henry & Horne in the 1950s: • The Mesa office was located at 7 West Pepper Place, Mesa, just a stone’s throw from vibrant Main Street. Among the 1950s employees (seven at start-up) were Marvin Henry, Gail Friden Calculator Horne, Maury Jones and Joe Sorenson. The office consisted of five rooms and a fireproof vault. • The Phoenix office was located in the historic Luhrs Tower at 1st Avenue and Jefferson Street in the heart of the Phoenix business district. • The Casa Grande office was located at 110 East Florence Boulevard. • The Scottsdale office was located at 600 North Scottsdale Road. Gail Horne opened the office in the new McCune Building adjacent to the trés-chic Fifth Avenue shopping and fashion district. • Marvin Henry served as the first Managing Partner of Henry & Horne. • Tax returns, bookkeeping and other accounting tasks were all done by hand – posting to ledger books, typing with manual or “new” electric typewriters and using carbon paper to make copies of documents. Black, rotary-dial phones and pencils with erasers were standard office equipment. • Many of the firm’s clients – retail, restaurants, and service businesses – closed for 1959 Client Tax Package the summer or scaled back operations 6 The 1960s Tax Accounting and inthe 1960s: Arizona inthe 1960s: • • • • • • • • • • • • • • • • federal tax rate for individuals earning over $100,000 was 91 percent.the He’s1961, watched in Horne & Henry with started he when that Youngremembers Dean in opened Chandler Corporation Rogers program; space U.S. in the involved Motorola – forms industry tech high State’s & craftsfairheldin1969 arts first the bars; espresso candle and stores clothing and used shops, incense with complete zone,” “hippie a into transformed Avenue era, Tempe’s Mill the of reflection A as Uptown Phoenix sprouted on Phoenix’s Central Avenue near buildings Osborn use mixed – rise high known with district business new A Legend City(1962),Gammage Auditorium atASU(1964) (1965), VeteransColiseum (1962), Zoo Phoenix Valleyincluded the in Amenities urban business,residential andtourismlocations Images of many of Arizona cities began transformation from dusty western towns to and residential to converted commercial areas ranches and farms more growth; population Huge GoldwaterBarry ranforpresident; attentiontothestate brought further With openingofSun City, Arizona marketed asidealretirement destination Growth ofSpring Training; Phoenix Suns debutedin1968 miles offreeway inPhoenix seven only were there decade the of beginning the at however 1965); in completed Beginning of an interstate highway system in Arizona (I-10 to West Germany duringtheBerlin Crisis (1961) industry. deployed are Guard National defense Air Arizona the of Members and bases military the Arizona through Race spurred economy, the Space and War Cold The Jack asArizonaWilliams governors (1967-1975)served and (1965-67) Goddard Sam (1959-1966), Fannin Paul half millionto1,775,399by 1970 a nearly by grew and 1,302,161 was population state 1960 at thetime. principle ofthe a was firms their and CPAs all by to adhered onadvertising ban strictly and profession, The accounting listed national they how directory. and phone employees the in new firm recruited the they how careful be to had even they – way any in marketing or advertising from prohibited were firms Accounting In itsearlyyears, thefirmcharged$25todoaclient’s individualtax return. landing attoday’s rateof35 percent. until percent, 50 then percent, 70 to fall income earned for bracket tax highest the Scottsdale Stadium Luke Air ForceBase Mill Avenue

Office Technology in the 1960s • Gail Horne remembers Stella in the Phoenix office using 11 carbons in her typewriter to make the necessary copies of certified audits – on spreadsheets, no less! • Ofelia Rivera remembers that if you made just one mistake on a tax return or spreadsheet, the entire document had to be hand-written or typed over again…not like computers that fix the error and adjust all of the column entries. • 10-key by 10-key calculators, although electric, were slow, and didn’t have enough columns to figure into the millions. • According to Maury Jones, “I can remember when we got our first electronic calculator. IBM Electric Typewriter It didn’t print, and it was just about the size of a table. We got it just to do payroll calculations for our clients; it was so much faster to calculate withholdings than with the little adding machines we had. When I first started with the firm in 1957, we just had adding machines, and they had capacity limits. When you got into the big numbers – 100,000 and over – you couldn’t enter them, you had to split them.” • Dean Young recalls: “When I started doing accounting work, we didn’t have good reproduction equipment. We used an old process called “bruning.” You’d take a translucent form that was coated on the back, and you’d write on the front. Then the form would go through this bruning machine, which was a wet process, to make copies. Because this was a time-consuming way to make copies, we typed more of our forms, using carbon paper for copies. At first, I typed quite a lot, until the bosses told me my time was too valuable to be typing. Then, two decades later, we got computers, and I’ve been typing ever since!” • By the late 1960s/early 1970s, microwave ovens began to appear in office break rooms, complementing the ever-present coffee pot. Telephones were available in colors other Typewriter Necessities than black.

Henry & Horne in the 1960’s:

1960 Phoenix office moved from Luhrs Tower to 222 W. Osborn (one of the first tenants in that building). The firm stayed there for about 19 years.

1961 Maury Jones became Partner in charge of the Mesa office.

1966 The Coolidge office opened September 1; the Eloy and Maricopa offices Coolidge, Arizona opened November 1. Through these office acquisitions, the firm obtained two electrical districts as clients, each becoming a long-term client.

1967 The Prescott office was purchased.

1967 Mel Anderson became Partner in charge of the Casa Grande office.

1969 Dean Young became Partner in charge of the Scottsdale office. 7 8 The 1970s Arizona inthe 1970s: Accounting Office Technology: • • • • • • • • • • • • • • • • • • • • • • foundation fortheInternet ofthefuture the laid (ARPANET) Network Agency Projects Research Advanced Defense the 1970, In VisiCalc came outwiththefirstspreadsheet software in1979 dot matrixin1971,to(expensive) lasers in1975to(affordable) ink-jetsin1976 Personal computer printers evolved from daisy wheels in 1970, to 1977 in debuted II Apple the 1976; in founded was Computer Apple 8800, was a home-assembled kit that stored 256 Altair bytes of memory. the computer, personal mass-produced first the 1975, In could affordably senddocumentsthroughout theU.S. overnight businesses 1971, in founded was Express Federal When inexpensive computers/datastorage The floppy disk was introduced in 1970, paving the way for small, in 1971 calculator pocket Texas electronic first the marketed Instruments the firsttobeintroduced in1971 chip 4004 Intel the with 1970s, the of technology breakthrough the were Microprocessors First Fiesta Bowl college football game played at Arizona State University’s Sun Devil (1977); however,Stadium Freeway tobuildthe efforts Papago Freeway toconnect SuperstitionValley cities were stymied (1971); completed Yuma to I-8 Valley). New golfcourseswere ofmasterplannedcommunitiesandresorts builtaspart Loew’s(Scottsdale); Radisson and Paradise ValleyPosadaLa Sheratonand Resort, (Paradise The Inn at McCormick Ranch, Scottsdale Conference Resort, Doubletree at Scottsdale Mall Resort, Registry The Hilton, Scottsdale (Phoenix); Peak Squaw at Point The and Regency As tourism throughout Arizona flourished, many new luxury hotels and resorts opened: (tapedrives,data processing punch cards) department Hyatt a established and computer in-house an acquired governments local and businesses Many Carefree the Studios ofScottsdale north from sitcom television weekly their filmed Lang Hope and Dyke VanDick lemon intolemonade,creating parks andopenspace a Scottsdale Bend Indian The turned project control flood Wash communities Valley new became Guadalupe and Hills Fountain Ahwatukee, State (Phoenix), Farm Insurance (Tempe), Express ArmourResearch Center(Scottsdale) American (Phoenix), Greyhound as such state, the to relocated headquarters regional and Corporate andmeetingvenues tothestate arts large added (1978) Mesa’sHall (1975), Centennial Arts the for Phoenix Civic Center/Symphony Hall (1972), Scottsdale Center schools andrecreation services, goods, for demand creating cities, within cities became Master-planned communities like Scottsdale’s McCormick Ranch and Mesa’s Dobson Ranch Williams AFBwasfirstinthenationtotrainfemaleofficersasU.S.Air Force pilots(1976) during thedecade governors as served Babbitt Bruce WesleyCastro,and Raul Bolin Williams, (Jack) R. John population size inU.S.1970;by 2007itwasthenation’s fifthlargestcity State population grew from 1,775,399 (1970) to 2,716,546 (1980). Phoenix ranked 20th in roads impassable,impactingcommutersandbusinesses and bridges many made 1978) (March River December and the Salt of floods Catastrophic Cactus LeagueSpring Training games(1977) host to Park HoHoKam new the for way make to razed Mesa’sPark (1971); Rendezvous once Ms t Phoenix to Mesa connected Salt RiverFlood-Tempe Camelback Office • Ray Tomlinson invented the first email program in 1971 • Microsoft was founded in 1976 • Cellular telephones were invented in 1979 • In 1974, bar-coded products began to appear in stores, simplifying accounting and inventory recordkeeping • Although introduced in 1959, Xerox copiers became increasingly popular in small and medium-sized business offices during the 1970s • Telephone answering machines became a necessity in offices and homes Reflecting on the firm’s former “low-tech” way of exchanging documents before the advent of email Greyhound Bus Was Used and overnight delivery services: To Deliver Documents

“In order to get our tax documents to and from the Mesa office, where the computer was, we’d meet someone halfway – in the parking lot of the Last Chance Saloon on Arizona Avenue. Other times, we’d put our documents on a Greyhound bus. If someone forgot to meet the bus at the Casa Grande depot, our documents ended up in Ajo.” - Ofelia Rivera, Casa Grande/Coolidge offices since 1966

“Every morning we used the White Mountain bus lines to send documents to the Mesa office for computer processing. Someone at the Mesa office, around noon, had to go to the bus depot to pick them up.” -Wayne Hall, former Partner-In-Charge of the Pinetop-Lakeside office; joined Henry & Horne in 1975 The “Last Chance Saloon” Tax and Accounting in the 1970s: • The Employee Retirement Income Security Act (ERISA) was enacted in 1974, allowing persons not covered by a pension plan to create Individual Retirement Accounts (IRAs) • The Earned Income Tax Credit Program was enacted in 1975 • The Tax Reduction and Simplification Act of 1977 revised the standard deduction and adjusted tax tables and rates • The Revenue Act of 1978 allowed taxpayers 55 years of age and older a one-time capital gains tax exclusion for sale of personal residences • The Bankruptcy Reform Act of 1978 established permanent bankruptcy judgeships • The Energy Tax Act of 1978 established tax credits to homeowners and businesses for installing certain energy saving equipment • Credit cards became important ways to pay for business and individual expenses Re-Creation of the Logo Henry & Horne in the 1970s 1970s Maury Jones and Mel Anderson suggested that the firm have a partner who specialized in audits; Mel Anderson became the partner in charge of the audit department. 1974 The Lake Havasu office was established as of July 1. 1974 The Tempe office was established as of October 1. 1974 Information Technology (IT) department was established in the basement of the Mesa office (led by Maury Jones and Wayne Douglas). The Burroughs computer filled the The Phoenix Office entire basement. 1974 First official Henry & Horne Partnership Agreement established. 1975 The Phoenix office grew when Wayne Hall merged his practice into Henry & Horne as of January 1. Located in the same building on Osborn as Henry & Horne, Mr. Hall moved his office down a floor into the Henry & Horne offices.. (Continued on page 24) 9 10 The 1980s Arizona inthe 1980s: Tax Reform Act Notification • • • • • • • • • • • • • • • • • • by 1990 3,665,339 to increasing 1980; in 2,716,546 Populationwas The Cold War ended when the Berlin Wall fell in November 1989, followed by the by followed 1989, November in fell Wall Berlin the when ended War Cold The Stadiumin Compadre the new at Chandler in1987;helditsfirst Ostrich Festival in1989 season first their played Brewers Milwaukee The in 1998 The Tempe Town Council approved the massive Rio Salado Project; construction began Mayo ClinicopenedinScottsdale1987 Stadium Devil Tempe’s Sun in mass September 14,1987 a held and Phoenix visited II Paul John Pope from agri-businesstohightech economy,the in change the of indicative – farm agricultural College State Arizona the The ASU Research Park was established on Warner Road in Tempe on the former site of WestCourt at The(Tempe)Buttes and Inn Fiesta Palms, Mission (Scottsdale); Resort Princess Scottsdale Boulders, The Phoenician, The tocities Ranch, Gainey Regency Hyatt continued: resorts luxury in Growth water River Colorado throughout thestate brought finally Project Arizona Central the planning, the in decades six than More the U.S.1983-1987 book; 1986” growthin job in #1 areaPhoenix metro the named magazine Ahead Year “The his in Business a Start to Places Best Top10 the among Mesa listed Naisbitt John to rejuvenate historicdowntown Mesa (1987) MesaThe formed Corporation Redevelopment Center Town Lakeside (1984) The White Mountain towns of Pinetop and Lakeside incorporated as one town, Pinetop- Harbor intheU.S. International itquicklybecameoneofthebusiestairports Airport, Sky Phoenix at hubs established WestAirlines America and Airlines Southwest When Supreme Justice Court U.S. female first the became O’Connor Day Sandra Judge and Senator State Arizona and tourismwere negatively impacted,voters approved theholidayinearly1990s The Martin Luther King holiday issue was debated during the 1980s, then, after business of growth real inthestatewide estatemarket, abigbustoccurred. Tax Reform Act of 1986, RTC, bankruptcies, etc. After years or Central Avenue bridges. Avenue Mill the either cross to hours allbut waited Motorists two. out in Valley the cutting River, Salt washed the over 1980 bridges two February in flood 500-year A governors as served Mofford Rose and Mecham Evan Babbitt, Bruce bases anddefenseindustries were impacted culminating in the demise of the Soviet Union in 1991; local military Europe, Eastern in governments Communist the of most of collapse Inc.

The Flood at Tempe Bridge Flooding InScottsdale Office Technology of the 1980s: • Personal computers (PCs) began to appear in offices, schools and homes • Scientists at 3M invented Post-It Notes • Bill Gates licensed MS-DOS to IBM; the first IBM PCs rolled out in 1981 • When hackers invaded military computers, the issue of electronic security raised its ugly head for the first time in 1983 1980s Personal Computer • Apple Computers introduced the Macintosh • Many executives became tethered to their offices via pagers; car phones became popular in the late 1980s Tax and Accounting in the 1980s: • Tax Reform Act of 1986 changed the rules for deducting interest on investment property; many speculators and developers were adversely impacted • Largest stock market drop in history occurred on Monday, October 19, 1987 when the Dow Jones fell over 500 points (bigger drop than the one that started the Great Depression in 1929) • “Arizona lottery winnings of $5,000 or more in one year are now subject to Arizona income tax. Arizona now withholds 20 percent of the federal withholding amounts on lottery, dog and horse track winnings.” • “Under the Immigration Reform and Control Act of 1986, all employers are required to verify both the identity and employment eligibility of all employees hired on or after November 7, 1986.” • Ban on accounting firms advertising was lifted by national professional society

Henry & Horne in the 1980s: 1980 The firm had a softball team that competed with other firms. 1980s Once the AICPA lifted the ban on advertising and marketing by accounting firms and accountants, Henry & Horne developed a variety of promotional items to distribute to clients in appreciation for their business (calendars, pens), and for use in sponsored events (golf caps, bumper stickers, clocks). 1981 The year 1981 began with 12 office locations. Memorabilia 1981 Tucson office established. 1981 On Sept. 4, the Firm celebrated the groundbreaking for its new 14,000 sq. ft. Mesa-East office at 2135 E. University Avenue in Mesa. 1981 On Nov. 7, Henry & Horne held its first firm-wide picnic at Kiwanis Park in Tempe. 1982 Parker and Mesa East offices established, as of July 1, bringing the total office locations to 14 throughout Arizona. 1982 Pinetop office moved into new facilities in the Village Center in December. 1982 Firm celebrated its 25th Anniversary as of July 1, 1982. 1982 Henry & Horne held its second annual firm picnic at McCormick Railroad Park i n Scottsdale; 280 attended.

(Continued on page 24) 11 12 The 1990’s The 1990sin Arizona: Office Technology inOffice Technology the1990s • • • • • • • • • • • • • • • • • • The state’s population was 3,665,339 in 1990; increasing during the decadeto the during 1990; increasing in 5,130,632 was 3,665,339 population state’s The ao got i lxr rsrs n gl cuss otne truhu te state, the throughout continued courses golf and resorts luxury in growth Major to 602, code, area telephone having several –602,480,623and520 one having from went state the 1999 September in As an indicator of growth in population and telecommunications throughout Arizona, was alsofast-trackedinmanycommunities preservation Historic enacted. were programs recycling curbside mandatory areas; preserve and space open as land resources preserve major to becoming mainstream and cities like Scottsdale committing Environmentalism took root in Arizona, with Central preservationists and American countries Canada Mexico, with dealings commercial their in benefited companies Arizona law; into Agreement Trade Free American North the signed Clinton President Biosphere IIinOracle, Arizona Four men and four women were sealed inside associated events heldthroughout thestate the experimental with 1996, January TempeStadium,in Devil Sun in played was XXX Bowl Super new Valley-wide events alongitsbanks and developments mixed-use spurring filled, Tempeand completed Town was Lake its 50 StateArizonaUniversity’s to home and park industrial an AtAirport, Campus. East Gateway into Williams morphed land its 1993; 30, September closed AFB Williams and PeoriaTucson, Scottsdale, Maryvale. in built were stadiums training spring New play. the began Phoenix; team baseball Diamondbacks Arizona downtown the and team hockey in Coyotes Phoenix opened Ballpark BankOne and Arena West America traffic lawsviaphotoradar enforcing began cities several area; Phoenix metro the encircled 202 and 101 Loop Native Americancommunitiesthroughout thestateestablishedcasinos web siteandmanywere engagedine-commerce The Internet Age began mid-decade; by 1999, nearly every business in the state had a Governors were , J. IIIand Jane D. Hull sales taxes, few start-up costs, nolocaljurisdiction). sales taxes, start-up few no WebWorld(e.g., Wideunregulated highly the on entrepreneurship for way the easing and e-commerce proliferating everywhere, up sprung businesses “Dot.com” for businessandpersonal use. one have to had Everyonecheaper. became phones and service phone and networks enlarged smaller, phones made technology phone mobile then phone, cellular As battlethe to computerbug,whichnever reallyanticipated “Y2K” materialized. prepared departments Technology Information 1999, Throughout Internet waslifted. research-oriented previously the on business on ban “surfing the web.” the 1990, In were globe the around people million 100 some 1998 by and 1992 in premiered it Tim Berners-Lee introduced his plan for a World Wide Web for the Internet in 1991, inthePhoenix metroparticularly area th anniversary in1991,thebasehadtrained27,000pilots anniversary in2000 : Bank OneBallpark Tax and Accounting in the 1990s: • The stock market surged, thanks in part to individuals learning how to, and excelling at, “day trading” on the Internet • Tax Reform Act of 1993 repealed the 10 percent luxury tax except for automobiles. • “The Electronic Federal Tax Payment System is here, and many businesses will be required to make all federal tax deposits electronically. The original date that businesses (with $50,000 or more payroll taxes in 1995) had been required to be enrolled by was January 1, 1997. The IRS extended the date to July 1, 1997….then extended again to WMS Gateway Terminal December 31, 1997,” according to the Fall 1996 Henry & Horne Advisor. • Taxpayer Relief Act of 1997 provided income, estate and gift tax relief to America’s families and small businesses… the largest and most broad-based tax cut legislation in the past 16 years.

Henry & Horne in the 1990s: 1990 The firm became a member of the SEC Practice Section (SECPS) of the American Institute of Certified Public Accountants Division of CPA Firms, joining SECPS to demonstrate dedication to quality and professionalism in every aspect of the firm. The firm had also been a member of the Private Companies Practice Section of AICPA. Both memberships benefited clients due to the high standards required for membership. Throughout the 1990s, Mark Eberle, a partner in the Scottsdale Airpark office, 1990s Scottsdale New Office wrote a monthly column on tax and business accounting issues for the widely distributed Scottsdale Airpark News magazine. Debra Callicutt also provided International Business commentary. c. 1990 The firm began distribution of the first issue of DEALER INSIGHTS, a bi-monthly publication that spotlights items of interest to the automobile industry, one of the firm’s specialty areas. 1992 The mission statement of the firm is: “At Henry & Horne we strive to do the right thing on behalf of our clients, the Firm, and the communities we serve. We are People dedicated to providing quality professional services to help our clients identify and achieve their goals,” according to the summer 1992 issue of the Henry & Horne Advisor. 1992 The U. S. Small Business Administration selected Mark Eberle, partner in charge of the Scottsdale Airpark office, as the 1992 Accountant Advocate of the Year. 1992 According to The Business Journal of Phoenix, the firm ranked seventh in size – as measured by number of local Scottsdale Office Opening professional staff – coming in just behind “Big Six” national firms with a local presence. 1992 The firm again successfully completed an independent peer review, conducted by Maudlin & Jenkins, a CPA firm from Macon, GA. 1993 Debra Callicutt was hired to establish the firm’s International Department. (Continued on page 26) 13 14 The 2000’s The 2000sin Arizona Office Technology inOffice Technology the2000s • • • • Tax and Accounting in the 2000s: • • • • • • • • • • • IRS to raise the deduction for business Gasolineuse pricesof reached a all-timevehicle highs, going over to $3.00 ana gallon unprecedentedin 2007, prompting the 48.5Hurricane cents Katrina,a gallon. which devastated New Orleans and much One ofthemostpopular charitabledeductions for 2005wasreliefof tothevictimsof the Mississippi Gulf Coast. addressed themarriagetaxpenaltyandlowered capitalgainstaxrates. President Bush signedtaxcutbillsin2001and2003thatlowered taxbrackets, the United Kingdombeingthemost significantholdout)in2002. The Euro became thestandardized currency inmost Western European national(with • • be 6,166,318in2006 The state’s populationwas5 became thenorm;faxmachinesdeclinedinimportance. Business conductedover theInternet andviaemail Arizona, openedit’s doorsin2003 The Center,Mesa Arts thelargestandmostcomprehensive centerinthestateof arts T-GEN inPhoenix anditsaffiliatesinseveral Valleycities Biotechnology businessclustersfollowing andgenomicsbecamenew thearrival of thousands tolive, work andplayintheurbancores and recreation centers,developers builtloftandcondominiumprojects, luring With Phoenix, Tempe andScottsdaledowntowns revitalized asbusiness,cultural with planstoopenamedicalschool Arizona State University expandeditscampustoadowntown Phoenix location, ofalightrailsystembegan (and gridlock),construction As themetro Phoenix freeway systemneared completion Glendale, Peoria, Surprise, Goodyear andBuckeye growthnew inthepreviously agriculturalareas suchas stadiumsinthe obtained new West Valley, launching The Arizona Cardinals andthe Phoenix Coyotes both nation’s airports Administration (TSA)becameafamiliarsightatthe was created in2002andthe Transportation Security reach itsdestinationof Washington ofHomeland D.C.;theDepartment Security Pentagon andanotherwhichcrashedintoaPennsylvania fieldbefore itcould attacks whichsawtwoplanescrashintothe World Trade Center, oneintothe pursued disasterplansaftertheSeptember 11terrorist Most citiesandtowns inthestateandnationearnestly New York Yankees, inOctober 2001 Arizona Diamondbacks wonthe World Series, beatingthe After onlyfourseasonsasamajorleaguebaseballteam,the Napolitano Governors have been/are Jane D.Hull andJanet popularity. In the2000’s paperlesstechnologybegantosurgein client expectationsforspeedandaccessibility. mobile phone,emailandteleconferencing, created new High techoffices,withemployees reachable24/7 by ,130,632 : in2000;estimatedto : Scottsdale Waterfront Condos Data Storage Technology Downtown Phoenix Henry & Horne in the 2000s: 2000 Henry & Horne hosted the 31st Kreston International World Conference at the Scottsdale Princess Resort. 2000 Chuck Inderieden, Chuck Goodmiller and Donny Kretschmar became Partners of the Firm. Partner Sherald R. Griffin retired after 27 years with the firm’s Scottsdale office. 2000 The East Valley Regional Office in Mesa relocated to the current Tempe location at 2055 E. Warner Road in September, after the Tempe office space was purchased and buildings constructed. The new office became known as the Tempe office. Tempe Office Construction 2001 On January 24-25, the firm celebrated the grand opening of its newly constructed Tempe office. 2001 Debra Callicutt became a Partner of the firm. 2001 Henry & Horne received an Art & Private Development award at the 25th Annual City of Tempe Beautification Awards event. The firm was honored for its “Abacus” sculpture located on the Warner Road side of the Tempe office. The sculpture was designed and created from limestone and glass inlay by local artist Otto Rigan. 2001 Henry & Horne joined the Center for the Advancement of Small Business at Arizona State University as a member of the Family Business Forum. 2002 Wendell Peters became a Partner of the firm. 2002 Working with the LEA firm of CC&R Gary Fleming established the R&D Credit niche for the firm. 2002 Mark Eberle became the fifth Managing Partner of the firm. 2002 Arizona Governor Jane Hull appointed Don Bays to the Arizona State Board of Accountancy for a five-year term. He went on to serve the Board as secretary and president. He had served as the Editor for the Board for 15 years prior to his appointment. 2003 Henry & Horne received the prestigious Best of the Best Silver Award from Bowman’s Accounting Report, recognizing excellence in firm management. Tempe Office Dedication 2003 Henry & Horne was recognized as one of the Valley’s “Best Places to Work” in The Business Journal’s first-ever attempt to rank local companies on their best practices. 2003 Firm’s team won First Place in the Sand Sports Beach Volleyball League, with only one loss. 2005 Candace Tooke, Christine Brueser and Brad Dimond were named Partners in the firm.

(Continued on page 27) Abacus at Tempe Office The

Facesat Henry and & Horne Friends Henry & Horne is all about people. The firm employs the best of the best to serve its clients with confidence, professionalism, integrity, dedication and friendship.

The firm has been rated “One of the Best Places to Work in the Valley” for four consecutive years (2004- 2007) by The Business Journal of Phoenix. In 2007, Henry & Horne LLP was named a national winner of the Alfred P. Sloan Award for Business Excellence in Workplace Flexibility, distinguishing it as one of the top practitioners of workplace flexibility in the nation. This award is part of the When Work Works project, an ongoing initiative of Families and Work Institute, the Institute for a Competitive Workforce (ICW), an affiliate of the U.S. Chamber of Commerce, and the Twiga Foundation to recognize businesses that are dedicated to making work “work” for the employer and its team members.

Throughout the past 50 years, Henry & Horne has been fortunate to recruit and retain a close-knit group of employees and partners. Many current and retired Henry & Horne employees have spent their entire careers - - spanning 30, 40 and 50 years – at the firm, giving clients continuity and long-term local accounting services rarely found these days.

Henry & Horne began with 12 employees in 1957. In 2007 the firm counted 53 Certified Public Accountants among its total staff of 140. Just like its founders Marvin Henry and Gail Horne, 19 of the firm’s current employees are native Arizonans, with most of the other staff members adopting Arizona as 16 their home state. “I love the young people coming into the firm. I think they are phenomenal. The first thing you need to do is show them you Current Henry & Horne genuinely care about them and their future. They’ll work as hard or harder than anyone. They’re not restricted by their fear, especially of technology, and they’ll try anything. They embrace change. They’re better communicators. This ‘life-work’ balance Team Members with concept is something that they’re teaching the rest of us.” 20 or more years of service at the firm: - Mark Eberle, Managing Partner; joined the Scottsdale office in 1972 Joe Sorenson (1958) Ofelia Rivera (1966) Peggy Schlief (1978) Robin Adair (1984) Diana Pena (1985) Dale Jensen (1985) Connie Harmsen (1986) Jill Collins (1987)

“Our success is in hiring good Partners with people. We offer opportunity to young accountants that like 20 or more years of service public accounting and want to progress. The firm does Mark Eberle (1972) a good job of keeping all of Wendell Jones (1974) its employees happy, giving Jim Crampton (1983) them good opportunity, Kathy Hostetler (1983) compensation and benefits. Why would you want to go anywhere else?” Partners with Emeritus - Dean Young, Partner Emeritus, joined the Scottsdale office in 1961 20 or more years of service Dean Young (1961) Mel Anderson (1962)

“I’ve had the best bosses and friends as co-workers here. I love the family atmosphere at Henry & Horne. It’s kept me here and happy all these years.”

- Ofelia Rivera, Casa Grande/Coolidge offices since 1966

17 18 Our Clients And Our Firm Clients, Evolve With Firm part ofwhat’spart keptus togetherfor50years.” It’sanswer. YorkNewan or for Chicago Weto don’tgo Arizona. to in have here clients our help to want identity.we locally; decisions We make to want we’d our because lose offers their “We’veresisted always said. Wendell Jones Partner Managing former firms,” larger the of most by courted “We’vebeen past five decades:“Respect, andelasticity.” trust the over clients its with relationships its and firm the characterized have that traits three to points Anderson Mel Partner Managing Former friends. and associates long-term as – individuals and businesses – clients its knowing on While technology may have changed the process, the firm still places high value receipts asApril 15thapproached. of shoeboxes and notes hand-written in brought clients day,tax the in Back In 50 years, firm officials estimate they have prepared some 228,000 tax returns. becoming friends.” up end we and lives, personal and business tax, their in interest an “Wetake Horne’syears. & 50 Henry past to the oversecret success the as clients her or his for has firm the of member each interest intense the credits Sorenson Joe members. family or owners of generation third or second a serving now clients, original is have firm to The proud most its of some retained treasured near- or original on complex businesstaxandplanningissuesfacingtheirclients. advising and consulting for time more them allowing thus accountants, firm by performed functions bookkeeping tedious the of much automate to business/taxation, and estates, gifts and trusts. In the 1980s, technology began international sector, insuch non-profit industry,the automotive Arizona the serveclients as areas tobetter specialties niche created firm the 1990s, and 1980s the In Horne’sbase. & client Henry did so clusters, business of range wide a to agricultural-based primarily from Arizona’sdiversified As economy comprise thecore ofthefirm’s widerangeofprofessional services. still – auditing and preparation tax bookkeeping, – services Horne’soriginal & Henry preparation. tax income private annual their for and in came who individuals businesses family-owned small restaurateurs, merchants, retail businesses, agricultural-related farmers, local included clients their 1957, 1, Julypractices accounting their merged Horne Gail and Henry Marvin When Arizona’s Economy “My father and I came to the Casa Grande area in 1946, cleared the desert and put in wells for our row crop farm. My wife and I moved here in 1955. The farm – where we raise cotton, barley, wheat, maize and watermelons – is now operated by the fourth generation of Isoms. We actually started with Henry & Horne before Marvin Henry and Gail Horne merged their practices, sometime in about 1954. Over the years, we’ve had good, friendly service from the firm, and we’ve never had the need to go elsewhere. We hated to see our friend Mel Anderson retire, but the good service continues.” Bill Isom, co-founder of the 2,440 acre Isom & Isom farm, Casa Grande, AZ

Photo: Left to right, former Henry & Horne Managing Partner and partner emeritus Mel Anderson and client Tom Isom. They are holding the November 2, 1968 issue of Arizona Farmer-Rancher, showing Tom (as a boy) and his father Bill on their row-crow farm in Casa Grande, Arizona.

Norm and Audrey Bingham originated Bingham Equipment Company in Casa Grande in 1955 as a Ford Tractor dealership.

“I knew Marvin Henry very well, and Marvin assumed our business accounting personally. Our company has developed to 10 locations throughout Arizona, dealing in farm and construction equipment sales, rentals, parts and service. For the past 50 years, working with Henry & Horne has been a very fine experience with a highly competent group. Our sons, Blaine and Russell Bingham, along with our son- in-law, Blayne Spilsbury, continue the relationship with Chuck Goodmiller, partner at Henry & Horne.”

Norm Bingham, co-founder of Bingham Equipment Company, Mesa, AZ

Photos: The Bingham family (top) and an aerial view of Bingham Equipment Company headquarters in Mesa, AZ (bottom). Photo Credit: Bingham Equipment Company

“Dale Anderson was one of the clients I worked with when I started at the firm in the early 1960s. We originally started doing work for him when he was the manager of Lulu Belle’s [c. 1958]. Then when he opened his own restaurant [c. 1963], we did the accounting on that, from then to now [with his current restaurants].”

Dean Young, partner emeritus in the Scottsdale office of Henry & Horne

(Upper left) Dale Anderson greeting ladies in wagon at the Lulu Belle restaurant in 1950s Scottsdale (northeast corner of Scottsdale Road and Main Street), and (lower right) Dale Anderson’s restaurant on Marshall Way, c. 1960s. Photo Credit: Scottsdale Historical Society

19 20 Community local chapters. Kathy Hostettler served as President of thePresidentBoardof Directorsas of served Hostettler Kathy chapters. local the of board the or directors of board its on and president ASCPA as served Certified Public Accountants (ASCPA). Several partnersof and accountants haveSociety Arizona the particularly organizations, professional statewide and Accountants and other professionals in the firm have always been active in local the nextgenerationofbusinessandaccountingprofessionals. groom help to state the in universities and colleges Stateother Universityand For the past five years, Henry & Horne has initiated several programs at Arizona local schoolsandplacesofworship. roadsides, up cleaned participated in Rotary and Kiwanis, sung in choral classes, groups and supported their taught risk, at youth serve that organizations the for money Metropolitanthe Societyand Leukemia Girls BoysPhoenixClub,and helped raised commissions, city on served arts, the supported have giving committees, seminars, participating in finance marathons and chairing giving blood. boards, Partners and on employees charitable and serving range of organizations, a wide civic supported have its employees and firm The seminars, totradeshows andmore. and the firm has sponsored chamber events, from golf tournaments, to business Maury Jones, Mel Anderson, Mark Eberle -- have chaired their local chambers, – partners Several located. is it which in town and city every in commerce of Since its inception, Henry & Horne has been an active member of the chambers future. clients firm’s the the into evolves it which as profession accounting the in as well as live, employees communitiesand the to back give a 50-year to reaffirming commitment by anniversary golden its celebrates Horne & Henry communities --isoneofthemostdistinctive aspects ofHenry&Horne.” think our culture -- our caring attitude toward one “I another, our clients said. and our Jones Wendell firm the of partner managing former communities,” their in involved be to employees“We’ve and partners our encouraged always State Board ofAccountancy. Arizona the to Fleming Gary partner Horne & Henry appointed Napolitano JanetGovernor Arizona 2007, In board. accountancy the to 2002, in began Former Arizona Gov. Jane D. Hull had appointed him to a 5-year term, which Support Group, was Forensic elected and Valuation of president director of firm’s managing the the Bays, Arizona Don State2005, In Board of Accountancy. for the Phoenix Chapter of the American Women’s Society of CPAs. Henry &Horne Celebrates50 Years Hearts of Hearts of Serving Itsof Serving Neighbors andPeers Gold 21 , Henry & Horne has helpedFor Arizonanearly businesses 50 start,years grow and thrive with their companies. We are committed to understanding our clients’ businesses and personal finances and to strengthening their financial performance. We have a broad base of services to meet our clients’ needs: from estate specialists, to international tax experts, and everything in between. Wendell Jones

Best of all, the people at Henry & Horne understand that our clients trust us with their most personal and business financial information. We take that trust very seriously.

The next 50 years will bring even more change, expanded client needs and new expectations. We will continue to evolve to meet our client’s future needs. What will never change is our strong commitment to people. Jim Crampton

Audit & Accounting Services Financial Statements • Financial Statement Audits, Reviews and Compilations for virtually any form of non-public entity. Consulting and Agreed Upon Procedures Accounting Gary Fleming • Write-up • Payroll • Sales tax • Certified QuickBooks Advisors • Full service outsourcing

Automotive Industry Services • Auditing Chuck Inderieden • Consulting • CPA TuneUp®

Cost Segregation Looking Forward Looking Employee Benefit Services • Auditing Debra Callicutt • Consulting • Pension and ESOP Formation and Compliance

Estate, Trust & Gift Services • Planning • Consulting • Compliance 22 Brad Dimond Governmental Services • Yellowbook, Performance and Single Audits • Consulting • Compliance and System Evaluation

Mark Eberle International Tax Consulting Services • Tax • Consulting • Compliance

Not-for-Profit Services • Audit and Accounting • Tax Compliance Kathy Hostetler • Consulting

Research & Development Tax Credit Services Tax Consulting/Compliance Services • IRS/State/Local Compliance Chuck Goodmiller • Tax Planning • Business Succession Planning • Retirement Planning • Tax Audit Representation • Forecasts and Projections

Valuation & Forensic Services • Full services Business Valuation Donny Kretschmar • Merger and Acquisition • Litigation Support

Henry & Horne, LLP Locations Tempe Office Scottsdale Office 2055 East Warner Road 7098 East Cochise Road Wendell Peters Suite 101 Suite 100 Tempe, AZ 85284 Scottsdale, AZ 85253 Phone: (480) 839-4900 Phone: (480) 483-1170

Casa Grande Office 711 East Cottonwood Suite C Casa Grande, AZ 85222 Christine Brueser Candace Tooke Phone: (520) 836-8201 23 Henry & Horne in the 1970s (Continued from page 9) 1975 Sun City office established as of January 1. 1976 Gail Horne became Managing Partner of the firm, succeeding his co-founding partner Marvin Henry. 1977 Chandler office established as of October 1. 1977 Wendell Jones became a Partner in the Firm. 1978 Scottsdale office moved from 4320 North Scottsdale Road (McCune Building; had been numbered 600 North Scottsdale Road) to 7300 East Camelback Road. 1978 In May, the Casa Grande office moved from 110 East Florence Boulevard to new offices at 711 East Cottonwood Lane, Suite C. 1979 In conjunction with publishing the first issue of the Henry & Horne Advisor newsletter in November 1979, Mark Eberle, then-partner in the Scottsdale office, re-created the firm’s logo by hand, using coins and a ruler. Now done by computer graphics, the look of the logo remains the same. 1979 Mark Eberle became Partner in the firm. 1979 Mark Eberle in the Scottsdale office produced the firm’s first newsletter, dated Nov. 6, 1979, primarily for employees, but later expanded and mailed to clients. Slogan on newsletter: “Only by better performance and better product can our service surpass in value others.” 1979 Phoenix office moved from 222 W. Osborn to 3620 N. Third St. on Sept. 22. The two-story building was leased by the firm and contained about 4,000 sq. ft. on each floor. The Henry & Horne administrative offices, headed by Gail Horne as managing partner of the firm, were located on the second floor. 1979 The Pinetop office opened July 1, 1979. A part-time office at first, the firm shared office space with a real estate agent. 1979 Firm bought the practice of Waldo Brooks as of November 1, helping to expand the Sun City office. 1979 Firm had a basketball team that played against other accounting firms. 1979 Norris L. Mortenson, who joined the firm in 1958, received his CPA certificate in 1961, became a partner in the firm in 1965, retired from the firm in 1979. Henry & Horne in the 1980s (Continued from page 11) 1982 Firm purchased Osborne I portable computers, “used by our partners and staff for training purposes, to gain a working knowledge of their uses and limitations. This hands-on experience is improving our ability to provide competent assistance to clients in the market for microcomputers. In addition, the Osbornes are being used effectively in the client service area for income tax projections, financial modeling, testing assumptions and various mechanical exercises. Within the firm, they are used extensively in the administrative area.” The Pinetop, Tucson and Parker offices acquired Northstar micro-computers, which allowed outlying offices to process their clients’ financial statements, ledgers, budget reports, depreciation schedules and tax planning schedules in their own offices. The firm’s administrative offices used a larger IBM computer. 1983 Show Low office established as of December 1. Pinetop office expanded through the acquisition of another Pinetop accounting practice. Show Low office was located in the Asia Garden Plaza at 97 West Deuce of 24 Clubs. 1983 Oswald & Bailey, CPAs, joined the Tucson offices of Henry & Horne. Ray E. Oswald, CPA, became resident partner-in-charge of the combined offices at 5501 North Oracle Road, Suite A. 1984 Jim Barrington became Partner in the Firm while Jim Crampton became Partner of the Pinetop office. 1984 Firm co-founder Marvin Henry passed away. 1985 Payson office established as of May 1, the firm’sth 16 office, and was located at 200 West Frontier Street, Suite P Bonanza Square. 1985 The firm successfully completed its first independent peer review of accounting and auditing practice. “After thorough study of our procedures and work practices, the reviewers concluded that our firm complies with the stringent quality control standards established by the American Institute of Certified Public Accountants (AICPA),” the firm’s summer 1985Advisor told clients. 1986 On February 1, Mark Eberle opened a second Scottsdale office, located at 7845 E. Redfield Road in the Scottsdale Airpark. 1986 Henry & Horne was instrumental in assisting its client, Lake Havasu City, obtain the award of Certificate of Conformance, issued whenever a municipality’s comprehensive annual financial report meets the standards established by the Governmental Finance Officers Association, the national financial oversight body of state and local entities. Lake Havasu City was the smallest city in Arizona to receive the award. The firm had audited the financial statements of Lake Havasu City for several years. 1987 Henry & Horne, LLP established its first Firm Administrator position, and the firm set up its Administrative Office, which included the Administrator, Information Technology, Marketing Department and Human Resources. 1987 Firm co-founder and Managing Partner Gail Horne retired. Mel Anderson became the third Managing Partner of the firm. 1987 In December 1987, the firm joined the Associated Accounting Firms International (AAFI) in order to share technical and management information with other member firms to better serve clients. AAFI, founded in 1958 with its headquarters in Washington, D.C., was composed of 32 public accounting firms in the U.S., one in Canada and three in the U.K. in 1987. The firm later changed affiliations to Moore Stephens, and then to Leading Edge Alliance. 1988 The firm’s first Marketing Director was hired. 1988 The firm purchased several fax (facsimile) machines “in response to the growing needs of our clients…and have already found it very useful in our daily routine…” according to the winter 1988 Advisor. 1988 Tempe, Mesa East and Chandler offices merged -- becoming the East Valley Regional Office -- and located in the newly constructed Pennington Place building at 1955 West Baseline Road, Suite 101, Mesa. The Mesa Central office, previously located at 12 North Center Street, relocated to 7246 East Main Street, Suite 3, Mesa, serving as a satellite office for the new East Valley regional office. 1988 The firm moved its administrative offices, including electronic data processing, to 4655 E. Lakeshore Drive in Tempe. 1988 The firm acquired the practice and office building of Mitchell & Mason CPAs, thus expanding the Tucson office, moved to 6049 E. Grant Road in the Old Farm Executive Park. 1988 Henry & Horne, LLP began firm-wide consolidation, during which many of the smaller offices were sold or consolidated into the Mesa or Scottsdale offices. Henry & Horne in the 1990s (Continued from page 13) 1994 Connie Harmsen was promoted to Firm Administrator. 1994 Kathy Hostetler became a Partner when the Phoenix office merged with Scottsdale. She had joined the firm in October 1983. 1994 In mid-June, over 1,000 randomly selected clients were asked to participate in a survey to determine their overall satisfaction with the firm over the past year. Ninety-two percent of the respondents ranked their overall satisfaction as above average to excellent. 1994 Effective August 29, Henry & Horne, Certified Public Accountants became Henry & Horne, Professional Liability Company (PLC), strictly an organizational change. 1994 Henry & Horne tallied the ballots for the Annual Emmy Awards of the Rocky Mountain Southwest Chapter. Television, cable stations and design agencies from Arizona, Utah, Wyoming and El Centro, California submitted entries. The firm continues to tally ballots for this award program every year. 1995 The firm affiliated with a temporary staffing company, Creative Financial Staffing (CFS), to provide clients and constituents with high quality financial personnel. 1995 The firm’s Advisor newsletter first introduced the concept of “Electronic Commerce” to its clientsand constituents in its regular “Tech Talk” column. 1995 The firm merged its East Mesa staff into its East Valley Regional office in Mesa as of September 25. 1995 With the firm’s growing stature as a consultant to the not-for-profit sector, Kathy Hostetler, Donna Laubscher and Mel Anderson conducted a Not-for-Profit seminar August 24, “Standards, Strategies and Responsibilities,” for clients, constituents and invited participants. 1995 Gary Fleming became the Firm-wide Director of Taxation. 1995 As of December 1, 1995, the firm’s Show Low staff relocated to the firm’s Pinetop office, while still maintaining a presence in Show Low to ensure clients received the best service possible. 1996 Gary Fleming became a Partner in the Firm. 1996 The firm successfully completed the fifth independent peer review of accounting and auditing practice. The review was conducted by Atkinson & Co. Ltd., an Albuquerque, NM-based CPA firm. The reviewers determined that Henry & Horne complied with the stringent quality control standards issued by the American Institute of Certified Public Accountants. 1996 In September 1996, the firm added another location for clients, constituents and employees – cyberspace – when the firm’s Internet web site www.hhcpa.com went online. Y2K Notification 1996 In August, Chuck Inderieden was hired by the Scottsdale office to 26 establish the firm’s Estate, Gift and Tax Department. 1997 On the occasion of its 40th anniversary, the firm was operating nine offices with a staff that consisted of 12 partners and approximately 80 full-time staff members. 1997 Mark Eberle started the firm wide professional development program called Rainmaking. 1997 Henry & Horne expanded its Automotive Department through an acquisition of Hank Santostefano’s accounting and consulting practice. 1997 Kathy Hostetler was appointed to State Board of Accountancy’s Audit and Accounting Standards Committee, serving for six years. 1997 Jim Barrington became the Firm-wide Director of Audit and Accounting. 1997 The firm established Henry & Horne Financial Services, L.L.C. to provide financial advisory services to its clients. The firm was set up to assist clients and coordinate efforts in the areas of placing investments, retirement and estate planning, income tax planning and evaluating insurance needs. 1998 Wendell Jones became the fourth Managing Partner of the Firm. 1998 As of January 18, the firm joined the growing American Business Appraisers network as the seventh affiliated firm with exclusive rights to the Arizona market. Business valuation became the firm’s newest niche service. 1998 Through itsAdvisor newsletter, the firm began warning its clients and constituents to prepare for potential “Y2K” Year 2000 technology glitches. 1998 Working with several cost segregation engineers Gary Fleming established the Cost Segregation niche for the firm. 1999 Scottsdale consolidated its airpark and downtown offices into a newly constructed building at 7098 East Cochise Road near the intersection of Scottsdale Road and Shea Boulevard.

Henry & Horne in the 2000s (Continued from page 15) 2005 In June, the firm changed its name to Henry & Horne, LLP -- a change in entity structure. 2005 Don Bays, CPA, CVA, Managing Director of Business Valuation and Litigation Support Service for Henry & Horne LLP, was elected president of the Arizona State Board of Accountancy, effective July 1, 2005. 2006 ThePhoenix Business Journal and BestCompaniesAZ (BCAZ) named Henry & Horne to its 2006 list of Best Places to work for the fourth consecutive year. 2006 Jim Barrington retired from the firm after 22 years as a partner. 2007 Arizona Governor appointed Henry & Horne partner Gary Fleming to the Arizona State Board of Accountancy. Some photos within the publication are credited to the following: Casa Grande Valley Historical Society SRP Research Archives Tempe Historical Museum Greyhound Lines, Inc. Scottsdale Historical Society Bingham Equipment Company Gail Horne Scottsdale Area Chamber of Commerce