PROPOSED RULEMAKING
STATE BOARD OF ACCOUNTANCY
[49 PA. CODE CH. 11]
Continuing Education Program Sponsors
[30 Pa.B. 888] The State Board of Accountancy (Board) proposes to amend Chapter 11, to read as set forth in Annex A, by revising §§ 11.1, 11.4, 11.64, 11.65, 11.71 and 11.72; by adding §§ 11.69a and 11.71a, and by deleting § 11.70.
Background and Overview
The Board's proposal would revise the current regulatory scheme for approving sponsors of continuing education programs for certified public accountants and public accountants. Since the adoption of the current program sponsor regulations in 1979, the Board has granted approval to approximately 2,000 program sponsors. However, the Board has been unable to effectively monitor program sponsors' compliance with continuing education requirements, in part because of budgetary and staffing constraints and in part because of deficiencies in the program sponsor regulations themselves. These problems were identified in the April 1993 Legislative Budget and Finance Committee's (LBFC) Performance Audit of the Board's operations, which included a recommendation that the Board initiate improvements in the way it regulates program sponsors.
Because the Board lacks complete, up-to-date information about the educational offerings of its program sponsors, the amendments would require all previously approved program sponsors to apply for and obtain re-approval to maintain their eligibility to offer continuing education programs after December 31, 2000, and to biennially renew their approval thereafter. The amendments also would strengthen the procedures for initial program sponsor approval and withdrawal of approval; make program sponsors responsible for the development of continuing education programs as well as their presentation; provide for comprehensive offsite reviews (audits) of selected program sponsors to ensure compliance with continuing education standards; establish fees for initial program sponsor approval and renewal of approval; and exempt program sponsors registered with the National Association of State Boards of Accountancy (NASBA) from having to meet approval requirements.
Description of Amendments
§ 11.1 (Definitions)
Section 11.1 defines ''program developer'' as ''[a] party who has assumed the responsibility for compilation of material to be presented in a continuing education program and for the instructional design of the program,'' and ''program sponsor'' as ''[a] party who has assumed responsibility for presenting continuing education programs. The term designates a party who is not necessarily a program developer.'' Because the Board's proposal would make the program sponsor responsible for developing as well as presenting a continuing education program, the amendments would delete the definition of program developer and the second sentence of the definition of program sponsor.
§ 11.4 (Fees)
Section 11.4 lists the schedule of fees charged by the Board. There are currently no fees charged to program sponsors. The amendments would add fees of $145 for initial program sponsor approval and $120 for biennial renewal of program sponsor approval. The fees would defray the costs incurred by the Board in reviewing and processing applications for approval and renewal of approval and in performing offsite reviews of continuing education programs of selected program sponsors to ensure continued compliance with the Board's regulations. The assessment of fees relating to the approval of program sponsors was a recommendation of LBFC's Performance Audit.
§ 11.64 (Sources of continuing education credit)
Section 11.64 sets forth the various sources of continuing education credit (such as, National accounting organizations, colleges, universities, in-house programs) for licensees. The amendments would make clear that, effective January 1, 2001, continuing education credit will be awarded only for those program sponsors that are approved under the new § 11.69a (relating to approval of program sponsors).
§ 11.65 (Criteria for continuing education programs)
Section 11.65(a) prescribes the general criteria for continuing education programs. Subsection (b) sets forth the current procedures by which the Board approves program sponsors, while subsection (c) provides for biennial renewal of program sponsor approval. The amendments would revise and relocate the procedures for program sponsor approval and renewal of approval to § 11.69a.
§ 11.69a (Approval of program sponsors)
Section 11.69a would establish revised procedures for Board approval of program sponsors. Subsection (a) would require parties desiring to offer continuing education programs after December, 31, 2000, to comply with this section; the approval of the approximately 2,000 Board-approved program sponsors would expire December 31, 2000. The Board estimates that at least one-half of the approved program sponsors are no longer offering continuing education programs to licensees and, therefore, would not seek reapproval.
In accordance with a recommendation of the LBFC's Performance Audit, subsection (b) would exempt from the approval process those program sponsors that are members of the NASBA's National Registry of Continuing Professional Education Sponsors. The NASBA-registered program sponsors, which would be accorded deemed approved status by the Board, are already subject to strict approval requirements, including onsite reviews, to be eligible for NASBA-registration. There are currently about 35 NASBA-registered program sponsors in this Commonwealth.
Subsection (c) would require applications for program sponsor approval to include detailed information including titles, subject matter, and credit hours of programs offered; names, titles, and degrees of instructors; dates, locations and schedules of programs; program outlines and objectives; instruction and evaluation methods; admission requirements; and attendance certification methods. This information would enable the Board to make more informed assessments of the qualifications and credentials of prospective program sponsors. The Board anticipates that those currently approved program sponsors that apply for re-approval will have the required information readily available (much of it being updated versions of materials submitted to the Board at the time of original approval); as a consequence, currently approved program sponsors should not experience delays in having their applications for reapproval timely processed by the Board.
Subsection (d) would require statements made on applications for approval to be true and correct to the best of the applicants' knowledge.
Subsection (e) would require applications for approval to be reviewed by the Board's Continuing Education Committee, which would make recommendations to the Board for approval or disapproval. The Board would provide disapproved applicants with written notification of the reasons for disapproval; disapproved applicants could submit revised applications that address the Board's concerns. Individual Board members would not be permitted to review or vote on applications in which they have vested interests. These procedures would help to ensure that the Board's decisions on applications are thorough, fair and consistent.
Subsection (f) would provide for program sponsor approval numbers to be issued to approved program sponsors.
Subsection (g) would require program sponsors, excepting those registered with the NASBA, to renew their approval by January 1 of each even-numbered year, beginning with January 1, 2004. The biennial approval period would coincide with licensees' continuing education reporting period (that is, January 1 of an even-numbered year through December 31 of an odd-numbered year). Consistent with a recommendation of the LBFC's Performance Audit, program sponsors would have to include on their biennial renewal applications a listing of all current and planned program offerings, so that the Board may verify the relevancy of program subject matter to the public accounting profession. However, as with the biennial renewal of licenses of certified public accountants and public accountants, the biennial renewal of approval of program sponsors is not intended to be a fresh evaluation of the program sponsors' qualifications and credentials.
§ 11.70 (Responsibilities of program developers)
Section 11.70 sets forth the responsibilities of program developers in the areas of competency to engage in program development; determination of the level of program difficulty; recommendations for education and experience prerequisites; and periodic updating of program materials. Program developers are not subject to Board approval under the current regulations. The amendments would relocate the contents of this section to § 11.71 (relating to responsibilities of program sponsors).
§ 11.71 (Responsibilities of program sponsors)
Section 11.71 prescribes the responsibilities of program sponsors in the areas of disclosures to prospective participants, selection and evaluation of instructors, limitations on program enrollments, adequacy of facilities, program evaluation, retention of records, certificates of completion and promotional materials. The amendments would add to the responsibilities of program sponsors those responsibilities currently applicable to program developers under § 11.70. Program developers are not subject to Board approval under the current regulations. The Board believes that it would be able to more effectively regulate the quality of continuing education programs if program sponsors were accountable for both the development and presentation of continuing education programs. The amendments would not prevent program sponsors that lack expertise in program development from contracting with other parties for assistance in complying with program development requirements.
§ 11.71a (Offsite reviews of program sponsors)
Section 11.71a would make program sponsors subject to offsite reviews of their continuing education programs to ensure compliance with Board regulations. The reviews would involve indepth audits of the program materials, documents and records of selected program sponsors. The Board anticipates that about 20% of approved program sponsors would be subject to offsite reviews during each approval period.
This new section would give the Board more authority to monitor the quality of continuing education programs than is permitted under current regulations, and would provide a level of scrutiny that is not feasible under the initial approval and biennial renewal of approval procedures.
§ 11.72 (Program sponsor's failure to comply with continuing education requirements)
Section 11.72 provides that the Board may suspend the approval of program sponsors for noncompliance with the requirements of §§ 11.65 and 11.71. The amendments would enlarge the Board's authority in this area by specifying the following grounds for withdrawal of program sponsor approval: acquiring the Board's approval by misrepresentation; failing to comply with the requirements of §§ 11.65, 11.69a or 11.71; refusing to provide information requested by the Board an offsite review; and holding out as an approved program sponsor prior to being issued a program sponsor approval number. The amendments also would provide that proceedings to withdraw program sponsor approval must be taken subject to the notice and hearing requirements of the Administrative Agency Law, 2 Pa.C.S. §§ 501--508 (relating to practice and procedure of Commonwealth agencies).
Statutory Authority
Section 3(10) of the CPA Law (63 P. S. § 9.3(10)) empowers the Board to promulgate regulations relating to continuing education, including the qualifications of program sponsors. Section 6 of the CPA Law (63 P. S. § 9.6), empowers the Board to fix fees by regulation.
Fiscal Impact and Paperwork Requirements
The amendments would require program sponsors, effective January 1, 2001, to pay fees of $145 for initial approval and $120 for biennial renewal of approval. The Board estimates that about 1,000 currently approved program sponsors may seek to become approved under the Board's new regulatory format. The amendments would require the Board to incur costs in conducting onsite and offsite reviews of selected program sponsors. These costs would be defrayed by the fees for initial approval and biennial renewal of approval. The amendments would not have a fiscal impact on the Commonwealth's other agencies or its political subdivisions.
The amendments would require program sponsors, particularly those selected for offsite reviews, to provide detailed documentation to the Board regarding their continuing education programs. The amendments would require the Board to revise the forms that it currently uses for program sponsor approval. The amendments would not create new paperwork requirements for the Commonwealth's other agencies, the Commonwealth's political subdivisions, or other segments of the private sector.
Compliance with Executive Order 1996-1
In accordance with Executive Order 1996-1 (relating to regulatory review and promulgation), the Board, in developing the proposed amendments, solicited comments from the Pennsylvania Institute of Certified Public Accountants and the Pennsylvania Society of Public Accountants, the major professional associations representing the public accounting profession in this Commonwealth and two of its largest continuing education sponsors. The Board also published a notice in the Pennsylvania Bulletin seeking comments from other currently approved program sponsors as well as prospective program sponsors.
Regulatory Review
On February 7, 2000, as required by section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Board submitted copies of this notice of proposed rulemaking to the Independent Regulatory Review Commission (IRRC), the Senate Standing Committee on Consumer Protection and Professional Licensure, and the House Standing Committee on Professional Licensure. The Board also provided IRRC and the Committees with copies of a regulatory analysis form and a fee report form prepared in compliance with Executive Order 1996-1. Copies of these forms are available to the public upon request.
If IRRC has objections to any portion of the proposed amendments, it will notify the Board within 10 days following the close of the Committees' review period, specifying the regulatory review criteria that have not been met. The Regulatory Review Act sets forth procedures that permit IRRC, the General Assembly and the Governor to review any objections prior to final adoption of the amendments.
Public Comment
The Board invites interested persons to submit written comments, suggestions or objections regarding the amendments to Steven Wennberg, Esq., State Board of Accountancy, P. O. Box 2649, Harrisburg, PA 17105-2649 within 30 days following publication of this notice of proposed rulemaking in the Pennsylvania Bulletin.
THOMAS J. BAUMGARTNER, CPA,
ChairpersonFiscal Note: 16A-555. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 11. STATE BOARD OF ACCOUNTANCY
GENERAL PROVISIONS § 11.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
* * * * * [Program developer--A party who has assumed the responsibility for the compilation of material to be presented in a continuing education program and for the instructional design of the program.]
Program sponsor--A party who has assumed the responsibility for presenting continuing education programs. [The term designates a party who is not necessarily a program developer.]
* * * * * § 11.4. Fees.
(a) Following is the schedule of fees charged by the Board:
* * * * *
Initial application for program sponsor $ 145 Biennial renewal for program sponsor $ 120 * * * * *
CONTINUING PROFESSIONAL EDUCATION § 11.64. Sources of continuing education credit.
The following continuing education programs will be given 1 credit hour of continuing education credit for each 50-minutes of participation if they are in the subject areas in § 11.63 (relating to continuing education subject areas) and, beginning May 1, 2000, they are offered by approved program sponsors under § 11.69a (relating to approval of program sponsors).
* * * * * § 11.65. Criteria for continuing education programs.
[(a) In order to] To qualify as a continuing education program, a program shall:
* * * * * (2) Be at least 1 credit hour[, 50-minute period,] in length.
* * * * * [(b) A continuing education program may receive prior approval as a continuing education programs and be assigned a designated number of continuing education credits by the Board if the program sponsor provides, in writing and on a form provided by the Board, information required by the Board to document the elements of subsection (a), and, in addition thereto, avers that it will:
(1) Maintain and retain accurate records of attendance for a 5-year period.
(2) Retain a written outline for course materials for a 5-year period.
(3) Comply with the requirements of § 11.71 (relating to responsibilities of program sponsors).
(c) Prior approval for a continuing education program and the continuing education credit shall be renewed biennially and at such other times as the program is to be substantially altered. Applications for pre-approval of continuing education programs shall be submitted by the program sponsor at least 30 days prior to the date the continuing education program is to be offered.]
§ 11.69a. Approval of program sponsor.
(a) Initial approval. Except as provided in subsection (b), an individual or entity desiring to offer a program for continuing education credit under this chapter shall apply to the Board for approval as a program sponsor. The approval of previously approved program sponsors will expire December 31, 2000. Previously approved program sponsors desiring to offer continuing education programs after December 31, 2000, shall comply with this section.
(b) Exemption from approval. An individual or entity that is a member in good standing of the National Association of State Boards of Accountancy's National Registry of Continuing Professional Education Sponsors is deemed an approved program sponsor and is not required to submit an application for approval to the Board.
(c) Contents of application for initial approval. An application for approval shall contain the following information:
(1) The name and address of the sponsor.
(2) The title and source of continuing education credit as specified in § 11.64 (relating to sources of continuing education credit).
(3) The dates and locations of programs.
(4) The faculty names, titles and degrees.
(5) The program schedules (that is, title of subject, lecturer, time allotted, excluding breaks and lunches).
(6) The total number of credit hours requested for each program.
(7) The attendance certification method.
(8) The program objectives.
(9) The admission requirements.
(10) The program outlines.
(11) The instruction and evaluation methods.
(d) Sworn statements. Statements made in an application shall be sworn to be true and correct to the best of the applicant's knowledge.
(e) Board review of application for initial approval. An application will be reviewed by the Board's Continuing Education Committee, which will make recommendations to the Board for approval or disapproval. If an application is disap-proved, the Board will provide the applicant with written notification of its reasons for disapproval. An applicant may submit a revised application to address the Board's concerns. A Board member will not review or vote upon an application in which he has a vested interest.
(f) Approval number. Upon approval by the Board, an applicant will be assigned a program sponsor number.
(g) Biennial renewal of approval. An approved program sponsor shall renew its approval by January 1 of each even-numbered year, beginning with January 1, 2004. A renewal application shall list the program sponsor's planned program offerings for the upcoming renewal period.
§ 11.70. [Responsibilities of program developers] (Reserved).
[(a) Program level of difficulty. Program developers shall specify the level of knowledge to be imparted under the program. Such levels of knowledge may be expressed in a variety of ways, all of which should be informative to potential participants and sponsors. As an illustration, a program may be described as having the objective of imparting technical knowledge at such levels as basic, intermediate, advanced or overview, which might be defined as follows:
(1) A basic level program teaches fundamental principles or skills to participants having no prior exposure to the subject area.
(2) An intermediate level program builds on a basic level program in order to relate fundamental principles or skills to practical situations and extend them to a broader range of applications.
(3) An advanced level program teaches participants to deal with complex situations.
(4) An overview program enables participants to develop perspective as to how a subject area relates to the broader aspects of accounting or brings participants up-to-date on new developments in the subject area.
(b) Recommendation of education and experience prerequisites. Program developers shall clearly identify what prerequisites are suggested for enrollment. If no prerequisite is necessary, a statement to this effect should be made. Prerequisites should be specified in precise language so potential program participants can readily ascertain whether the program would be beneficial to them or whether the program is above or below their level of knowledge or skill.
(c) Development of the program. Programs shall be developed by individuals qualified in the subject matter and in instructional design. This subsection is not intended to require any individual program developer be both technically competent and competent in instructional design. Its purpose is to ensure that both types of competency are represented in the program's development. Mastery of the technical knowledge or skill in instructional design may be demonstrated by appropriate experience or educational credentials.
(d) Program review. The program developer shall review the course materials periodically to ensure that they are accurate and consistent with currently accepted standards relating to the program's subject matter. Between these reviews, errata sheets should be issued when appropriate, and obsolete material should be deleted; however, between the time a new pronouncement is issued and the issuance of errata sheets or removal of obsolete materials, the instructor is responsible for informing participants of changes. If, for example, a new accounting standard is issued, a program will not be considered current unless the ramifications of the new standard have been incorporated into the materials or the instructor appropriately informs the participants of the new standard.]
§ 11.71. Responsibilities of program [sponsors] sponsor.
In addition to [other responsibilities imposed on program sponsors] meeting the requirements in § 11.69a (relating to approval of program sponsor), [they] a program sponsor shall comply with the following:
(1) Program level of difficulty. A program sponsor shall specify the level of knowledge to be imparted under the program. The levels of knowledge may be expressed in a variety of ways, all of which should be informative to potential participants. As an illustration, a program may be described as having the objective of imparting technical knowledge at levels such as basic, intermediate, advanced or overview, which might be defined as follows:
(i) A basic level program teaches fundamental principles or skills to participants having no prior exposure to the subject area.
(ii) An intermediate level program builds on a basic level program to relate fundamental principles or skills to practical situations and extend them to a broader range of applications.
(iii) An advanced level program teaches participants to deal with complex situations.
(iv) An overview program enables participants to develop perspective as to how a subject area relates to the broader aspects of accounting or brings participants up-to-date on new developments in the subject area.
(2) Recommendation of education and experience prerequisites. A program sponsor shall clearly identify what prerequisites are suggested for enrollment. If no prerequisite is necessary, a statement to this effect should be made. Prerequisites should be specified in precise language so potential participants can readily ascertain whether the program would be beneficial to them or whether the program is above or below their level of knowledge or skill.
(3) Development of the program. A program sponsor shall ensure that programs are developed by individuals qualified in the subject matter and in instructional design. This subsection is not intended to require that any individual program sponsor be both technically competent and competent in instructional design. Its purpose is to en-sure that both types of competency are represented in the program's development, whether one or more persons are involved in that development. Mastery of the technical knowledge or skill in instructional design may be demonstrated by appropriate experience or educational credentials.
(4) Program review. A program sponsor shall review the course materials periodically to ensure that they are accurate and consistent with currently accepted standards relating to the program's subject matter. Between these reviews, errata sheets should be issued when appropriate, and obsolete material should be deleted. Between the time a new pronouncement is issued and the issuance of errata sheets or removal of obsolete materials, the instructor is responsible for informing participants of changes. If, for example, a new accounting standard is issued, a program will not be considered current unless the ramifications of the new standard have been incorporated into the materials or the instructor appropriately informs the participants of the new standard.
[(1)](5) Disclosure of prospective participants. [Program sponsors] A program sponsor shall disclose in advance to prospective participants the objectives, prerequisites, experience level, content, required advanced preparation, teaching method and number of continuing education credits involved in the program.
[(2)](6) Selection and review of instructors. [The] A program sponsor [has the obligation for selecting] shall select and [assigning] assign qualified instructors for the continuing education program. Although it is expected that instructors will be selected with great care, [sponsors] a program sponsor should evaluate the performance of the instructors at the conclusion of each program to determine their suitability for continuing to serve as instructors in the future.
[(3)](7) Number of participants and adequacy of physical facilities. [It is the responsibility of the] A program sponsor [to assure] shall ensure that the number of participants and the physical facilities are consistent with the teaching methods to be utilized. Because the learning environment is affected by the number of participants and by the quality of the physical facilities, [sponsors have] a program sponsor has an obligation to pay serious attention to both of these factors. The maximum number of participants for a case-oriented discussion program, for example, should be considerably less than for a lecture program. The seating arrangement is also very important. For discussion presentation, learning is enhanced as seating is arranged so that participants can easily see and converse with each other. If small group sessions are an integral part of the program format, appropriate facilities should be made available to encourage communication with a small group.
[(4)](8) Program evaluation. [Program] A program sponsor shall provide a program evaluation [shall be] in accordance with the following:
(i) [The sponsor shall provide some means of program evaluation.] Evaluations shall be solicited from both the participants and instructors. The objective of evaluations is to encourage [sponsors] the program sponsor to strive for increased program effectiveness. Programs should be evaluated to determine whether:
* * * * * (ii) Evaluations [might] may take the form of pretests for advanced preparation, post-tests for effectiveness of the program, questionnaires completed at the end of the program or later, oral feedback to the instructor or sponsor, and so forth. Instructors should be informed of their performance, and [sponsors] the program sponsor should systematically review the evaluation process to [insure] ensure its effectiveness.
[(5)](9) Attendance records. [Maintain] A program sponsor shall maintain and retain accurate records of attendance for a 5-year period.
[(6)](10) Course materials. [Retain] A program sponsor shall retain a written outline of course materials for a 5-year period.
[(7)](11) Certificate of completion. [Provide] A program sponsor shall provide participants with a certificate of completion evidencing satisfactory completion and attendance of the program.
[(8)](12) Promotional materials. [Identify] A program sponsor shall identify the subject area--see § 11.63 (relating to continuing education subject areas)--of the program in the promotional materials.
§ 11.71a. Offsite review of program sponsor.
A program sponsor shall be subject to an offsite review of its continuing education programs to ensure compliance with the requirements of this chapter. The review will involve an in-depth audit of all course materials, documents and records maintained by the program sponsor under this chapter.
§ 11.72. [Sponsor's failure to comply with continuing education requirements] Withdrawal of approval of program sponsor.
[Failure of the sponsor to comply with the requirements of §§ 11.65 and 11.71 (relating to criteria for continuing education programs; and responsibilities of program sponsors) may result in the suspension of the preapproved status for programs offered by the sponsor.] The Board, following notice and hearing under 2 Pa.C.S. §§ 501--508 (relating to practice and procedure of Commonwealth agencies), may withdraw the approval of a program sponsor that the Board finds guilty of:
(1) Having acquired the Board's approval by misrepresentation.
(2) Failing to comply with § 11.65, 11.69a or 11.71 (relating to criteria for continuing education programs; approval of program sponsor; and responsibilities of program sponsor).
(3) Refusing to provide information requested by the Board pursuant to an offsite review under § 11.71a.
(4) Indicating in any manner that it has been approved as a program sponsor prior to a program sponsor number having been issued to it.
[Pa.B. Doc. No. 00-289. Filed for public inspection February 18, 2000, 9:00 a.m.]
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