September 1999

AICPA Revamps Education Programs

Eliminates Three CEAs; Creates New Academies

By Danielle D'Angelo

Effective May 2000, the AICPA will discontinue three of its Certificate for Education Achievements programs. Instead, it has created new "academies," each offering correlated curriculum centered around a specific CPA specialty.

The CEA programs eliminated are business valuation (NBV), personal financial planning process (PFPP), and tax planning for closely held businesses (TAX). The AICPA will maintain the advanced business valuation (BVA) certificate program although its enrollment process will change.

The initial six academies, which will start accepting enrollees later this year, are treasury management, corporate tax management, fraud examinations, exempt organizations, tax advisers for small businesses, and investment advisory services. Coursework will begin in May. The AICPA established these academies in part to allow members to benefit from an "academy approach" to CPE that offers member more options, according to Kirk Drussel, senior marketing manager of professional development.

"It gives us an opportunity to organize our curriculum," Drussel said. "Members can take a seminar or self-study approach to learning, and also do not have to enroll in the academy to take courses."

The AICPA maintained the BVA certificate because it is a popular program with curriculum that helps prepare members for the business valuation accreditation exam.

"We didn't want to eliminate one with such large market share," said Susan Longo, publisher of professional development at the AICPA's division in Texas.

(The AICPA recently centered its CPE operations in Texas following its acquisition of Professional Development Institute. See the March issue of The Trusted Professional for more on the AICPA/PDI merger.)

Academy vs. CEA

To join an academy, members must pay a $325 initial application fee and an annual $200 fee thereafter. Enrollees obtain "fellow" standing in the academy after completing the specified educational requirements, and the annual fee then reduces to $150.

In most cases, educational requirements include 80 CPE hours, of which 64 focus on specified technical subjects and 16 address personal attributes and leadership skills. Each course requires successful completion of a take-home competency exam to receive credit toward fellow standing. In addition, fellows must complete eight hours of relevant continuing education each year.

By comparison, the current CEA programs cost $250 for enrollment and require 64 CPE hours and successful completion of take-home competency exams for each course. While participants must take specific courses to receive their certificate, the current programs do not require additional annual CPE hours or fees.

Academy benefits include online networking opportunities for CPAs with similar interests; a technical mentor available for online consultations; periodic electronic newsletters and other aids; discounts on selected products, technical material, subscriptions, and other educational opportunities; and marketing tools and tips.

AICPA promotional materials also state that the academies offer "nationally recognized educational status." The AICPA said that a marketing plan is in place to provide the CPA with recognition as an expert. However, Kirk and Longo said the Institute will not commit advertising dollars to promote the academy distinction to the general public but will instead provide marketing support to the individual fellows. The AICPA will promote the academies on its website.

More Academies Planned

AICPA staff in New York City and Texas jointly developed the new academies, including deciding the specialty areas and creating curriculum. According to Drussel and Longo, some AICPA members served in an advisory role.

Drussel and Longo also said that future plans call for more academies in other specialty areas. While pertinent committees or other AICPA member groups may play a role in academy development, the function appears to be largely staff driven.

"I make that decision," Longo said, commenting on how the AICPA will determine new academies. "We have an excellent product proposal process that we follow."

Transition Programs in Place

To help current CEA enrollees complete their requirements, the AICPA has developed a number of transition options. TAX enrollees must complete their requirements by April 30, 2000 to receive a certificate. They also may roll over their status into the new tax academy.

To receive NBV and PFPP certificates, current CEA enrollees must complete requirements by April 30, 2001. The AICPA will continue to offer some business valuation seminars that will qualify for the NBV certificate, but in most cases, enrollees can complete the requirements for these two programs through self-study courses.

CEA members also may join any of the new academies, and in some cases, CEA coursework will transfer to satisfy fellow requirements. To encourage participation, the AICPA will waive the enrollment fee for one academy for CEA members who join by December 31, 1999. Recent CEA enrollees also can request a refund of their $250 fee.

The AICPA was unable to confirm the number of people currently enrolled in CEA programs.

"That number is proprietary information," Geoff Pickard, vice president of communications, said. "There are a lot."