Chicago Appraisal Times
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Chicago Appraisal Times Volume 6, Issue 1 Spring 2014 President’s Letter It was great to see so many of you at treated to a presentation from Special Chapter events over the past fiscal year. Agent Luigi G. Mondini. Special Agent As we near the end of our fiscal year Mondini is one of 14 FBI special agents let’s recap our journey. assigned to the FBI’s Art Crime Team. Approximately 20 members attended Our year began with the annual Opening this great event. Night Event. It was held on August 22, Upcoming Events 2013, at the South Branch Tavern and On September 20, 2013, we held our Grill. The South Branch Tavern and Annual Golf Outing at the Indian Lakes End of Year Dinner Grill is located in downtown near the Resort in Bloomingdale, Illinois. In June 5, 2014 Chicago River. In addition to great food addition to golf this year we added a Embeya and drink this event provided our continuing professional education (CPE) members an opportunity to socialize component to the meeting. Chapter 7 Hour USPAP Course with friends and make new ones. We members Jay Loudermilk and Park July 21, 2014 had approximately 40 members and Johnson presented a discussion related UBS Tower guests attend this event. to Fair Value for Financial Reporting Engagements. See page 8 for more info. Because we limit participation for the Opening Night Event to 40 members the Jay and Park collaborated to discuss RSVP list fills up quickly. In fact, this how a bargain purchase transaction gain year we had to turn a few members should be recognized and how to work away. In the future years keep an eye together on fair value multidisciplinary out for this event and signup as soon as valuation assignments. Jay provided an you can. However, if you do sign-up intangible asset/business valuation please come to the event or let us know perspective and Park provided a if something changes and you can’t tangible/fixed asset perspective. make it. Approximately 40 Chapter members and guests enjoyed this event. On September 13, 2013, we held the Have ideas for chapter Behind the Scenes: FBI – Art Crime Because this event was so successful we seminars, events, or Team Event. The Chapter owes a thank- look forward to continuing the Annual speaker suggestions? Let you to Lela Hersh and Patty Atwood for Golf Outing as a CPE event in future us know! organizing this fantastic event. Due to years. Start practicing your golf game administrator@ asachicagochapter.org Lela and Patty’s hard work we were (Continued on page 2) 1 (Continued from page 1) On March 31, 2014, Sandra Tropper taught a 7-Hour now because the Annual Golf Outing and CPE Event USPAP update class. The attendance was very strong, is just around the corner. in fact, we had to limit participation in this event due to venue constraints. Attendance was influenced, in On December 4, 2013, we visited the Palmer House part, by the new ASA BV discipline reaccreditation Hilton for a behind the scenes guided tour. Patty requirements. Lela Hersh did a great job arranged this Atwood did a great job arranging this event. In event. addition to the tour we enjoyed a taste of the famous Palmer House brownie. Approximately 15 members In conclusion, thank you for supporting the Chapter attended this event. through your attendance and participation at our meetings. Keep an eye open for the upcoming end of On January 23, 2014, the Chapter teamed up with the the year sit down dinner and the USPAP class that is Business Valuation Association (BVA) of Chicago to scheduled for July. host the annual State of the Capital Markets Event. Our speakers included: Martin Battaglia, a managing I hope to see you at upcoming Chapter events. director with Deloitte Corporate Finance LLC; Elliott G. Farkas, a managing director at William Blair & Best regards, Company’s Corporate Finance Department; and Rick Mattoon, a senior economist and economic advisor in the economic research department of the Federal Reserve Bank of Chicago. Kevin M. Zanni, ASA As usual this event turned out to be great. Judy Moody President, Chicago Chapter did a terrific job organizing and coordinating this event with the BVA. PS. Don’t forget to sign-up for ASA Chapter events at: http://www.asachicagochapter.org/events.html Machinery & Equipment Market Remains Volatile By Mike Ackerman, ASA, MTS Chair he equipment market current economic uncertainty has remains extremely vola- caused this change in equipment market tile. This volatility was value, and I do not expect a quick turna- consistently demonstrat- round in the marketplace. ed by reference to equip- Business Valuation Tment auction prices over the last few Planning for the future, our members Mr. Thomas Czupta, ASA months. Potential pur- should be aware that the Mr. Thomas Thomas, ASA chasers’ reaction to “I do not expect a International Manufac- MTS available equipment has turing Technology Mr. James F. Arvin, ASA become much more crit- quick turnaround in Show, 2014 Edition, Mr. Tony Vescovi, ASA ical. The newer, nicer, the marketplace.” will be at McCormick shinier CNC or manual Place in Chicago Sep- equipment is still attract- tember 8-13, 2014. This ing good buyer interest and returning event promises to showcase new and mostly more than acceptable values. amazing technology. See However, the number of participating www.IMTS.com for more information. Please welcome the following potential buyers has not returned to the new members: level expected several years ago. Stay warm. Business Valuation The window of acceptable age for com- Mr. Peter J. Wilhelm puter controlled equipment has short- Mr. Jack D. Ritchey ened to closer to 5 years rather than the MTS previous 10. Older manual equipment Mr. Scott Huennekens has become far less valuable. I believe Mr. Eric Wilensky 2 Behind the Scenes: FBI-Art Crime Team By Patty Atwood, ASA, Personal Property Chair Participants at the luncheon were treat- heirs of the thief. However these heirs ed to a PowerPoint presentation which were allowed to keep some of the sto- presented numerous art crime team len works. projects that were successfully com- pleted and a listing of certain ongoing Special Agent Mondini noted that a investigations. Special Agent Mondini majority of stolen art property is discussed the grand theft at the Gard- brought to the United States and is ner Museum, Boston in 1990, and the sold in the underground black market. ongoing investiga- As compared to other tion related to the counties, the US has n September 13, stolen property. only 14 art crimes Spe- 2013, the Chica- cial Agents, while Italy go Chapter of Another interest- has 300, France has ASA was treated ing project that 100, and Spain has 50. Oto a presentation by FBI Special Agent Special Agent Mondini Special Agent, Luigi Mon- Mondini worked also discussed signature dini. Special Agent Mondini on was a case in- forgery and, how the is one of 14 Special Agents volving Italian statute of limitations working in the FBI’s Art Books and Antiq- inhibits prosecution. Crime Team. The Art Crime uities. This prop- Team was formed after the erty was stolen For more information 2003 looting of the National from Italy over the about the FBI’s Art Museum of Iraq. course of numer- Crime Team please re- ous years and it was later recovered fer to http://www.fbi.gov/about-us/ Special Agent Mondini’s from a Berwyn, Illinois home. More investigate/vc_majorthefts/arttheft. jurisdiction includes the specifically, this stolen property in- The FBI keeps a national database of states of Illinois, Wisconsin, cluded letters written by kings, Vatican stolen art and cultural property – called Indiana and Minnesota. In documents penned by Catholic popes, the National Stolen Art File (NSAF), it addition to Special Agent and a handwritten book preface by can be found at: http://www.fbi.gov/ Mondini, Special Agent Bri- Italian dictator Benito Mussolini. Ap- about-us/investigate/vc_majorthefts/ an Adkins participated in the proximately 1600 stolen items were arttheft/national-stolen-art-file. event. returned to Italy through the estranged ASA 7 Hour USPAP Class By Lela Hersh, ASA, Chicago Chapter VP On Monday, March 31, thirty two Chicago Chapter members joined Sandra Tropper, ASA for a 7-Hour USPAP update. The class was held in the UBS building on the second floor. Participants included those from BV, PP, G&J and MTS. Ms. Tropper discussed all the major USPAP changes including: Revisions to the Preamble Editing of the Ethics Rule USPAP instructor Report Options Sandra Tropper, ASA Revisions in the Competency Rule Revision to the definitions in the Assignment Results and Scope of Work Due to the overwhelming need for appraisers to fulfill their USPAP obligations and the benefit of the question and answer forum, the Chicago Chapter will reoffer this program on Monday, July 21. Please see the website for de- tails: http://www.asachicagochapter.org/events.html#USPAP 3 Educational Opportunities New SBA Requirements By Patty Atwood, ASA, Personal Property Chair By Jeffrey Kirk, ASA, Real Property Chair One of ASA’s most important tasks is to provide A June 2011 news release brought to light competency educational opportunities for our members. Planned by issues that can occur when a valuation includes real estate thoughtful ASA members, who devote hundreds of along with personal property and/or business valuation. The volunteer hours, these are outstanding programs. Please news release recommended that in order for the valuation to join me in taking advantage of and/or helping spread the be competent in all areas the appropriate discipline word.