May 2001

AICPA Council Continues Plans for Global Credential, Membership Vote Likely

WASHINGTON—The American Institute of CPAs decided on May 2 to continue its plans for a global, interdisciplinary credential, voting overwhelmingly in favor of a resolution to launch a member information and response program for the controversial designation. The vote followed a 152:41 defeat of a New York State Society of CPAs resolution calling for the immediate termination of the proposed credential.

“The credential is an idea spawned by the AICPA Strategic Planning Committee to help members realize the full promise of the profession’s vision,” said former AICPA Chair and Strategic Planning Chair Robert K. Elliott. “The credential will enable CPAs and others to take ownership of the ‘market space’ needed to successfully offer knowledge-leveraging services. We are witnessing the birth of a major ‘market permission’ and it is critically important that it is the CPA profession in the delivery room. Frankly, if we don’t guide the birthing process and rear the infant, our competitors will.”

The adopted resolution, which was jointly presented by the California and Texas CPA societies at the sping meeting of the AICPA’s governing council, calls for continued educational efforts regarding the XYZ credential as well as member feedback, which will be discussed at Council’s fall meeting in October. AICPA Chair Kathy G. Eddy said $1.9 million has been set aside to fund the AICPA’s educational campaign.

The resolution also grants the AICPA permission for a membership referendum on the credential, which the Institute can mail after the fall meeting; however, the governing council reserves the right to rescind the referendum.

“It is not time to bring in Dr. Kevorkian for the credential,” said Donald L. Gursey, president of the California Society of CPAs, in defense of the resolution to prolong the credential. “We need to undertake an extensive education process so that AICPA members can, in addition to learning about the credential, offer us their feedback to improve the concept.”

The resolution requires a member vote on an AICPA bylaw change to permit the Institute to participate with others in offering an interdisciplinary credential. Ballots must be sent out no earlier than 90 days and no later than 180 days after the vote is authorized by Council. In this case, the 180-day period ends after the October Council meeting. Therefore, if Council changes its mind about the membership vote at its October meeting, it can rescind the decision.

“With this action, Council gave us the opportunity to reach out to our membership in a very special way,” said AICPA President Barry C. Melancon. “We will be working closely with the state societies to inform the membership just how important an interdisciplinary credential is to the success of the CPA profession. In the process, we will be learning about any changes individual CPAs feel are important to optimize the credential project.”