Honorable Chairman, Mr. Bragman and Members of the Committee:

My name is Jo Ann Golden. I am the sole shareholder of a small public accounting firm in Herkimer, New York (although my "small" firm is the largest resident firm in Herkimer County.) I am here today to testify on the impact that the proposed changes to amend the provisions of the Education Law which govern the profession of Public Accounting will have on the sole proprietor/small firm practitioner especially in Upstate New York. I support full implementation of the amendments.

I was raised in Utica and continue to live there. I am a graduate of Utica College of Syracuse University with a Bachelor of Science degree in accounting. I also hold a Bachelor of Arts degree in mathematics and secondary education from State University of New Paltz having taught junior high school. Prior to my entenng the accounting profession, I was executive director of an agency that provided youth advocacy service, community research services, and public budget analysis.

Raised as the daughter of a public accountant, my first exposure to the accounting profession was very early. As a child my father would let me put checks in order when checks were returned by the bank with the statements, almost a thing of the past. If he were alive today, he would be in his eighties.

My accounting practice is located in Herkimer, New York in the same office space in which my father practiced. I have owned my own practice for four years having worked for local practitioners and my father in prior years. I serve some of the same clients as my father although now I serve many of the children and grandchildren. My clients are representative of the community I work in; large and small businesses, not for profits, individuals.

I am committed to my community and profession. Among my involvement, currently I serve as the Secretary of the New York State Society of Certified Public Accountants and as a member of its Executive Committee. I am President of the Board of Trustees of the Utica Public Library, a member of the Rotary Club of Herkimer and serve as Treasurer of Rotary District 7150.

My practice is a general one. I perform audits, (including Yellow Book audits), reviews, and compilations. This portion of my practice comprises about 50% of my practice. The remainder of the practice encompasses tax (40%) and other services miscellaneous in nature. Working, for me, I have three staff accountants (One individual is a CPA, two have passed the exam and are awaiting qualification for certification.). I have two support staff as well. We all live in the Mohawk Valley. All of the accountants hold degrees from universities in New York State. My client base is generally drawn from Herkimer, Oneida, Otsego and Fulton Counties.

How would various aspects of the proposed amendments affect my practice?

SCOPE OF PRACTICE:

I welcome the redefinition of the areas of practice covered by the amendments. Services performed under a Certified Public Accountant would be subject to rules of practice and subject to the same Scrutiny. This would certainly be in the public's interest. 150 HOURS: Although my staff and I fall under the "old" rules of 120 hours and two years of experience, as long as the curriculum of the five year program addresses the practical matters of practice, our students should be prepared. Practicums could be a part of the curriculum. As a matter of practice, we provide internships (paid) to students in local universities. We believe it is a help to them and to us. I am a firm believer that education provides a solid foundation for one's future.

Although the cost of the new program to the student will be higher, a master's level employee can generally command higher wages.

OWNERSHIP AND REGISTRATION OF A CPA FIRM:

As a Professional Corporation, with a sole shareholder, I had to receive permission from the State Education Department to start my firm. This is not the case for all forms of practice. To have a registration process would provide a standardized method for all firms. It could also be considered a possible means to raise revenues to cover the cost of implementation of the process.

In my small practice, I am being asked with more frequency to provide expertise in service areas in which we have not traditionally provided services. One such example would be computer services. Frequently, I must refer these services to others who may not necessarily understand the intricacies of the accounting profession. To be able to partner with a person who has these skills, could provide my clients with much needed services in a cost effective manner, a better service to the public. These "partners" would be subject the same strict standards we as CPA's must follow. This can only be a plus for the public interest.

COMMISSIONS AND FEES:

Although I do not foresee this as a part of my practice at this time, acceptance of fees and commissions on non-attest clients WITH disclosure does not appear to be a conflict. But, contingent fees may provide a way for clients with limited resources to obtain representation in matters where CPA's are in fear of taking the case because they will not be paid. Cases such as those against taxing, authorities, long tedious cases could benefit from the oversight of a CPA whose analytical skills can assist the client through the myriad of bureaucracy. Of course the services should only be provided for non attest clients with disclosure.

CONTINUING PROFESSIONAL EDUCATION:

I currently take a minimum of 40 continuing professional education hours per year. I do not find this to be a burden. Quite the contrary, it is a way for me to keep up with current and new issues.

PEER REVIEW:

Since I began my practice, I have been enrolled in the Peer Review Program. (The CPA firms I had worked for in prior years were also members of the program.) I find that it is a good selling point with clients. When I explain the rigorous review we go through, I believe this gives my clients additional confidence in my services. Although Peer Review does place a burden on a small office such as ours, it keeps us in check. For the public, this is another plus.

I was born and grew up in New York State, went to school in New York State, raised my family in New York State, own a home and vacation home here. I want to see New York State remain strong and competitive. I can only see that the passage of this amendment will strengthen not only the profession but provide protection to the public, a good environment for the growth of business in the state.