Richard P. Mills

NYS Commissioner of Education

By Louis Grumet

Many practicing CPAs are not fully aware of the Commissioner of Education's role in governing the accounting profession. Can you describe your responsibilities in this regard? Also, what is your relationship to the State Board for Public Accountancy and the board of regents?

The board of regents and the State Education Department have responsibility for the regulatory oversight for all of the 38 learned professions under section 6504 education law. This includes supervision of the entry to and practice of the professions. In this role, the regents set policy direction in the areas of licensing, practice, and discipline that are implemented on a day-to-day basis by the department. The State Board for Public Accountancy, along with the professional boards for each of the other professions, provides assistance and advice to the department and the board of regents on issues of practice and public protection. This occurs in many ways.

Under my direction, the deputy commissioner for the Office of the Professions is the officer in charge of the administration of professional regulation. Johanna Duncan-Poitier was appointed to this position because of her strong management skills, her dedication to public protection, and her commitment to ensuring that our customers receive the very best service possible. I meet regularly with Johanna to review the administrative and policy issues involved in professional regulation. At quarterly performance reviews, I meet with the staff and managers of that office to review and react to the progress that the office has made in areas such as the quality of licensing, the quality of the discipline process, and similar issues that can be reflected through performance measures and achievements.

We involve and seek the input of our professional state board members on many issues related to the profession of public accountancy. For example, the American Express acquisition of the nonprofessional assets of a public accountancy firm was resolved by the department through collaborative efforts including advice from the state board, input from the NYSSCPA, and many other stakeholders.

The most significant role in the oversight of the 38 professions is that of the board of regents. The board of regents is a lay governance body of 16 individuals who are exclusively dedicated to public protection. I am responsible for providing the leadership for my colleagues to achieve the critically important vision, mission, and strategic goals of the board of regents. Among the six goals identified in the regents' Strategic Plan is that "the public will be served by qualified, ethical professionals who remain current with best practice in their fields and reflect the diversity of New York state."

New York is a bit unique when comparing the regulatory system of the accounting profession with that of other states, specifically the role of the board of regents and the State Education Department. In your view, how does New York's structure work best to protect the public in professional regulation?

Our unique regulatory system enables the regents to regulate the professions with a constant focus on two important forces: public protection and the dynamic environment of all professional practice in this state. As a citizen (lay) body, the regents come to issues involving the professions with a lay, yet informed, perspective that considers the impact on the public as well as the impact on the profession. Without political or monetary influences, the board of regents also ensures that professional services are provided to the public in the most efficient and responsible manner possible. The regents provide a perspective from across all of the 38 professions when confronting challenges. For example, corporate practice of the profession is a critical issue not only for the accounting profession, but also for the health professions within the context of managed care. Consistent policies are needed to address these matters while tailoring policies to specific professions.

Where do you see the accounting profession headed in the next century?

The accounting profession and the department are embarking on an exciting new area. The clarification of business practices in public accountancy may create practice relationships that allow CPAs to have a broader role in a great variety of financial issues. Traditional accounting services will remain at the heart of CPA practice and will require the continued exercise of professional judgment and ethical practices. As business practices are evolving, the challenge for CPAs in this new era will be to maintain independent professional judgment working in a wide range of business settings and organizations while utilizing their skills in new and innovative ways.

As the types of services offered by public accounting firms are changing, CPAs will be expanding into more diverse areas of business and finance including advisory services, financial planning, etc. In order to serve the increasingly complex needs of the public and business community, public accountants will have to keep themselves current in terms of education and technology. The profession will also have to take care that it maintains the standards and the regulatory foundation that sets CPAs apart from the rest of the business world--those involving ethical, independent judgment.

How do the challenges facing the accounting profession compare to those of the other licensed professions that the State Education Department regulates?

The issue of commercialization of professional practice through corporate practice of the professions will continue to confront all of professional regulation. Professional services need to be provided directly from the licensing professional to the client or the patient to ensure the independent delivery of services for the protection of the public. Yet, access to professional services is heavily influenced by costs and profits and in some cases by technology. Several years ago, the legislature passed laws that allowed professionals licensed in several different professions to organize as one business entity. That began to cloud the corporate practice issue and the relationships between the licensee and the client or the patient. The health care field faces the same scenario with the evolution of managed care companies.

The challenge is to continue to promote and foster high standards of professional practice to ensure the highest quality and safest services possible for the public while allowing adequate access to those services. Today's environment is becoming more competitive and is challenging the licensees to look for increasingly efficient ways of providing professional services, to cut costs, and to potentially balance their professional services against the bottom line. It is the Office of the Profession's job to make sure efficiency and effectiveness do not compromise the quality of services the public receives.

As you know, the regents recently approved the 150-hour college curriculum as a requirement for CPA licensure in 2009. What are your views on this new regulation? How do you think it will better prepare CPA candidates?

Today and tomorrow's CPA must be prepared to compete in the increasingly complex and ever changing business environment. As the profession of public accounting has evolved, the educational preparation for this profession must similarly be upgraded. Such educational preparation needs to provide accounting and business knowledge as well as the skills needed for continued growth in a quickly changing global marketplace. As the CPA profession becomes increasingly complex, the 150-hour college curriculum will expand those skills needed by the members of the CPA profession to properly serve the public and be successful. As you know, the regents and the department are committed to high standards for all the individuals under our purview. The 150-hour requirement is a shining example of higher standards to ensure the highest quality of service to the public.

With the many career choices for today's college graduates, how can we ensure that the accounting profession continues to attract the best and the brightest students to become CPAs and work to protect the public interest?

New York state is the birthplace of the CPA profession in this country and has long held a leadership role in areas of finance and commerce. New York must ensure that our licensure and practice standards adequately protect the public while professional practice and technology evolves in all CPA licensing jurisdictions. For the profession to remain viable, the CPA must be allowed to professionally and ethically operate under competitive conditions. It is a sense of ethics, independence, accountability, and professionalism that sets the certified public accountant apart. We are challenged to create and enforce laws, regulations, and rules that enable the public to continue to rely on the integrity of the CPA profession with a sense of trust and confidence. The high level of professional competence required for New York licensees is a known standard nationwide.

Do you have any suggestions for increasing diversity in the accounting profession?

There are a number of approaches, some short-term, some long-term. Long term, we have to ensure that the standards in all of the schools throughout the state are equal to the task of preparing all individuals for success in these complex and challenging professions. Initiatives designed to do that include ensuring that students and guidance counselors are informed about the various career choices and promoting awareness of the professional alternatives throughout our elementary, middle, secondary and continuing education initiatives. As an example, annually, four or five hundred students attend the Somos el Futuro conference and are exposed to presentations from a number of professionals, including CPAs, designed to explore the students' interests in the various professions.