Judges: K. N. AYERS
Agency: Department of Business and Professional Regulation
Latest Update: Oct. 12, 1977
Summary: Petitioner did not complete a substantially similar test in another state nor did he have the required four-year degree for accounting certificate.
76-2136.PDFSTATE OF FLORIDA
DIVISION OF ADMINISTRATIVE HEARINGS
JOSHUA A. FREEDMAN, )
)
Petitioner, )
)
vs. ) CASE NO. 76-2136
)
STATE BOARD OF ACCOUNTING, )
STATE OF FLORIDA, )
)
Respondent. )
)
RECOMMENDED ORDER
Pursuant to notice, the Division of Administrative Hearing, by its duly designated Hearing Officer, K. N. Ayers, held a public hearing in the above styled case on May 26, 1977 at West Palm Beach, Florida.
APPEARANCES
For Petitioner: Michael B. Small, Esquire
1665 Palm Beach Lakes Boulevard, Suite 500 West Palm Beach, Florida 33401
For Respondent: James S. Quincey, Esquire
Post Office Box 1090 Gainesville, Florida 32602
By a petition filed December 7, 1976 Joshua A. Freedman (Petitioner) contests the denial of his application for a reciprocal CPA certificate based upon Certificate No. CA 2872 issued by the State of Pennsylvania. On November 24, 1976 Respondent notified Petitioner that his application was denied because he was not a graduate of at least a four-year accredited college or university course as defined by Rule 21A-9.01 FAC. After the filing of the petition for hearing Respondent, on March 18, 1977, moved to amend denial of application to include as a second ground for denial that Petitioner had failed to obtain a grade of at least 75 on each portion of the Pennsylvania examination as required by Section 473.201(1)(a) F.S. to be equivalent to the examination mark required of Florida applicants for certification. Over objections of the Petitioner, the Motion to Amend was granted.
At the hearing Petitioner and the Executive Director of Florida State Board of Accountancy testified and 25 exhibits, including the deposition of the Chairman, Accounting Department, Temple University, were offered into evidence. Respondent moved for the imposition of sanctions on Petitioner for failure to respond to request for admissions. Upon Petitioner's assurance that response to the request for admissions would be made, the motion was denied and the request with response was admitted as late-filed Exhibit 17 to be submitted by Petitioner. This exhibit has not been received. However, during his testimony Petitioner responded to all of the subject matter contained in the Request for
Admissions. Objection to Exhibit 6 on grounds of relevancy was sustained. All other exhibits were admitted into evidence.
FINDINGS OF FACT
Joshua A. Freedman was issued a certificate in accounting from Temple University in 1945 (Exhibit 3). He attended evening classes at Temple during the periods 1937-1940 and 1944-1946. Transcript of Freedman's scholastic record at Temple University (Exhibit 1) shows he completed 56 semester hours during this period. The testimony of Dr. Laibstain (Exhibit 15) is that he completed
58 hours, includes 2 hours earned in 1965. Of the courses completed 26 semester hours were in accounting and 24 semester hours were classified as business courses.
Requirements for a certificate in accounting are shown in Exhibit 23 to be completion of 12 one-year courses, or a total of 48 credits. The courses so outlined meet three evenings a week for four years but the time period may be altered if the student attends more or less classes than three evenings a week.
A total of 124 semester hours is required by Temple University for a baccalaureate degree in accounting and the requirement has not been less than
120 semester hours since prior to Petitioner's matriculation.
Petitioner was issued CPA Certificate Number 2872 on 4-26-50 after having successfully passed the AICPA examination in Pennsylvania with grades of
75 in Law (1947) and 69 in Practice (1949)
Respondent stipulated that the only grounds for denying Petitioner's application for a reciprocal CPA certificate was his failure to complete the requirements for a baccalaureate degree and his failure to make a grade of at least 75 on the AI CPA examination- he took in 1949. With this stipulation the evidence regarding Petitioner's experience, professional qualifications and moral character become irrelevant to these proceedings.
In 1949-1950 Florida required its applicants for CPA certification to pass examinations in subjects including Auditing, Commercial Law, Theory of Accounts and Accounting Practices with a minimum grade of 75 in each subject. Florida has always required a passing grade of not less than 75 on CPA examinations given.
As a result of difficulties in obtaining information from certain states regarding the examinations and grades obtained for those seeking reciprocal CPA certificates in Florida, the Florida Board of Accountancy stopped accepting applications from applicants from these states for reciprocal CPA certification. This led to a meeting between the Pennsylvania Board and the Florida Board in 1974 at which the former agreed to provide all requested information to Florida and Florida agreed to accept the examination grades in which a mark of at least 75 was received as equivalent to the Florida examination even though the same subjects were not covered by the examination.
Prior to 1969 the Florida Board of Accountancy had certain discretions in granting reciprocal CPA certificates. The statute was amended in 1969 by what is now Section 473.201 F.S.
CONCLUSIONS OF LAW
Section 473.201 F.S. contains the requirement for issuance of reciprocal certificates to holders of CPA certificates from other states and provides in pertinent part:
"(1) Upon application, the board shall issue a reciprocal certificate to the holder of a valid, unrevoked certificate issued by,or under the authority of, another state or political subdivision of the United States only if:
The original certificate was secured as the result of a written examination which in the judgment of the board was equivalent of the examination given by
the board at the time the applicant
passed such written examination; provided, however, that if such written examination did not include the subject of ethics the application shall not be denied for that reason. In any event the board shall require all applicants to take and pass the same current open book examination in ethics given to applicants for the written
examination in the state before the issuance of a reciprocal certificate;
The applicant meets all the require- ments in effect, at the time of the ap- plication, for applicants to take the Florida examination..."
Section 473.08 F.S. lists the qualifications of applicants for CPA examinations in Florida and provides in pertinent part:
"(1)(d) Is a graduate of at least a 4-year accredited college or university course..."
Rule 21A-9.01 F.A.C. defines accredited college or university; however, no question was raised regarding the accreditation of Temple University. Respondent in effect stipulated that Temple University was and is an accredited university as defined by Rule 21A-9.01 F.A.C.
Thus, the primary issue is whether or not the issuance of a certificate in accounting to Freedman on June 1, 1945 following completion of 4 years of night school classes during which time he accrued 48 semester hours of credits, qualifies him as a graduate of a 4-year college or university course. The standard 4-year college course at Temple for full daytime students requires the completion of 124 semester hours for graduation and leads to the issuance of a baccalaureate degree. Further this is commonly understood to be the curricula taken by a graduate of a 4-year college or university course. No other reasonable interpretation of Section 473.08(1)(d) F.S. can be reached. More importantly this is the interpretation that has been placed on Section 473.08(1)(d) F.S. above quoted by the Florida Board of Accountancy for many years. Interpretation of a statute by the administrative body given the responsibility for implementing and enforcing it is entitled to great weight.
30 Fla. Jur. Statutes 1O9 and cases there cited.
With respect to the issue regarding Petitioner not making a grade of at least 75 on the AICPA examination he took in 1949 the statute above quoted is clear that in order to obtain a reciprocity certificate the original certificate must have been secured as the result of a written examination equivalent to the Florida examination given concurrently therewith. In order for an applicant to pass the Florida examination in 1949 a grade of at least 75 was required. Since Petitioner failed to obtain this grade he did not pass an examination equivalent to the Florida examination.
No issue was raised with respect to the validity of Section 473.201
F.S. so far as it involves the right of the legislature to establish reasonable grounds upon which to grant reciprocal certificates. Mercer v. Hemings 194 So.2d 479 (Fla. 1966) has obviously laid that issue to rest. From the foregoing it is concluded that Petitioner did not successfully complete an examination in Pennsylvania in 1949 equivalent to the examination a successful Florida applicant would have been required to complete in 1949 for certification; and that Petitioner, at the time of his application, did not meet the requirements for applicants to take the Florida examination because he was not a graduate of a 4-year college or university course as that term is intended by the Florida Statutes. It is therefore,
RECOMMENDED that the petition be dismissed.
DONE and ENTERED this 13th day of June, 1977, in Tallahassee, Florida.
K. N. AYERS Hearing Officer
Division of Administrative Hearings The Carlton Building
Room 530
Tallahassee, Florida 32304
(904) 488-9675
Filed with the Clerk of the Division of Administrative Hearings this 13th day of June, 1977.
COPIES FURNISHED:
James S. Quincey, Esquire
P. O. Box 1090 Gainesville, Florida 32602
Michael B. Small, Esquire Suite 500
1665 Palm Beach Lakes Blvd. West Palm Beach, Florida 33401
Mr. Douglas H. Thompson, Jr. Executive Director
Florida State Board of Accountancy
O. Box 13475 Gainesville, Florida 32604
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AGENCY FINAL ORDER
=================================================================
BEFORE THE DIVISION OF ADMINISTRATIVE HEARINGS, DEPARTMENT OF ADMINISTRATION
STATE OF FLORIDA.
JOSHUA FREEDMAN,
Petitioner,
vs. CASE NO. 76-2136
STATE BOARD OF ACCOUNTANCY, STATE OF FLORIDA,
Respondent.
/
FINAL ORDER
This cause proceeded to final hearing before the Hearing Officer assigned herein and said Hearing Officer has entered his Recommended Order dated June 13, 1977. The Petitioner filed Exceptions To Recommended Order by certificate of service on June 21, 1977. Such exceptions were considered by the Board atits next scheduled meeting on August 24, 197?. Petitioner was given notice of such meetings, requested an opportunity to appear and be heard in person which was granted by the Board.
The Board having reviewed the Recommended Order and Exceptions To Recommended Order filed by counsel for Petitioner, and having heard oral argument of Petitioner with respect to such Exceptions To Recommended Order and being duly advised of its judgment in the premises,
It Is Ordered that:
The Findings of Fact by the Hearing Officer in the Recommended Final Order are accepted with the following modifications:
The total number of semester credit hours completed at Temple University was 58 of which 28 hours are allocated to accounting, 28 hour are allocated to business courses, and 2 hours are allocated to English composition.
The examination taken by Petitioner upon which he was issued C.P.A. Certificate #2872 by the State of Pennsylvania was an examination prepared by and given by the Pennsylvania State Board of Accountancy and was not the AICPA examination for the applicable time in 1949.
The correction of such findings do not alter nor change the Hearing Officers conclusions of law nor his recommendation that the petition be dismissed.
With the above corrections of the findings of fact, the Hearing Officer's findings of fact; conclusions of law and Recommended Order are adopted as the findings of fact, conclusions of law and Final Order of the Board.
The Petition of Joshua A. Freedman filed herein is dismissed.
Ordered by the State Board of Accountancy at its regularly scheduled meeting August 24, 1977 in Jacksonville, Florida.
DOUGLAS H. THOMPSPON, JR.
Executive Director
State Board of Accountancy
COPIES FURNISHED:
K. N. Ayers, Hearing Officer Michael B. Small, Esquire Joshua A. Freedman
James S. Quincey, Esquire
Docket for Case No: 76-002136
Orders for Case No: 76-002136
| Issue Date |
Document |
Summary |
|
Aug. 24, 1977 |
Agency Final Order
|
|
|
Jun. 13, 1977 |
Recommended Order
|
Petitioner did not complete a substantially similar test in another state nor did he have the required four-year degree for accounting certificate.
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