A CPA Exam Task Force, consisting of leadership from both the Nebraska Board of Public Accountancy (State Board) and the Nebraska Society of CPAs, was formed earlier this year to explore changes that may be needed to keep students progressing to licensure within Nebraska. During meetings this past spring, the Task Force considered a course of action on two important issues affecting CPA candidates in Nebraska: 1) whether to lengthen the timeframe, or window, for a candidate to complete all four sections of the Uniform CPA Examination (exam), and 2) whether to change to a 120-hour education requirement to sit for the CPA exam.
The Task Force was led by State Board Chairman Melissa Ruff, CPA of Deloitte. Also representing the State Board were State Board Vice Chairman Jeff Kanger of First State Bank Nebraska and Sarah Borchers, DBA, CPA of the University of Nebraska at Kearney. Representing the Nebraska Society of CPAs were Society Chairman Lori Egger, CPA of CyncHealth; Society Vice Chairman Kelly Martinson, CPA of Lutz; and Dr. Tom Purcell, CPA of Creighton University.
Changes to Exam Window Now Underway
Based on recommendations provided by the Task Force, the State Board, at its July 14 meeting, took action to proceed with amending current regulations to lengthen the exam window. Amendments to the regulations also met with the approval of the Nebraska Society of CPAs Board of Directors at its Aug. 23 meeting.
The proposed changes primarily revolve around the CPA exam and involve extending the timeframe available to candidates for passing all four sections of the exam. Currently set at 18 months, this window would be extended to 30 months. This move aligns with the April recommendation by the National Association of State Boards of Accountancy (NASBA) Uniform Accountancy Act (UAA) Committee, which called for all State Boards to transition from an 18-month window to a 30-month window, aiming to support candidates in passing the exam and to bolster the overall CPA pipeline.
In a recent survey conducted by the Nebraska Society of CPAs, the majority of Nebraska CPAs responding to the survey expressed their support for the transition to a 30-month timeframe. However, these changes will not go into effect until regulations within Title 288, Chapter 6 receive approval from the State Board, undergo a public hearing, obtain approval from the Nebraska Attorney General’s Office, and are endorsed by the Governor’s Policy Research Office following submission to the Nebraska Secretary of State’s Office. It is anticipated that this change will not be finalized until the end of this year or early 2024.
The State Board also addressed at its July 14 meeting the situation concerning current candidates who have successfully passed at least one section of the exam as of Jan. 1, 2023. The State Board approved a 12-month extension for these candidates, based on the anticipated transition to a 30-month timeframe, as discussed above. The State Board determined that the 12-month extension for candidates with existing credit as of Jan. 1, 2023, was justified, considering it was beyond the candidates’ control as outlined within Chapter 6 regulations. Affected candidates are currently being notified of the State Board’s decisions by NASBA CPA Examination Services (CPAES). CPAES is the entity that processes applications, evaluates credentials, and reports exam scores on behalf of 35 states and jurisdictions, including Nebraska.
Proposed Bill Would Allow Candidates to Sit for Exam With 120 Hours of Education
The CPA Exam Task Force delved into a second issue pertaining to the prerequisite number of college credit hours a candidate must complete before being eligible to sit for the CPA exam.
Following the Task Force’s suggestions, the State Board voted to direct its staff to collaborate with the Society in revising the existing requirement. Under this proposed change, a candidate seeking to take the CPA exam in Nebraska would be eligible to do so after the completion of a bachelor’s degree, or 120 semester hours of qualifying academic credit. Right now, Nebraska law requires that a candidate complete 150 hours of college education before being eligible to take the CPA exam (excluding current provisional windows). Implementing this adjustment would require amendments to the Nebraska Public Accountancy Act (PAA) and approval from both the Nebraska Legislature and Governor Jim Pillen.
The Society’s recent survey, mentioned above, revealed that most Nebraska CPAs agreed with the change to allow candidates to sit for the CPA exam with 120 hours of qualifying education, as is permitted in nearly every other state in the country.
A bill amending the PAA to allow candidates to sit for the CPA exam with 120 hours of education has been drafted, and the Society Board of Directors approved moving forward with the proposed legislation during its Aug. 23 meeting. As a result, Society staff will proceed to find a state senator to introduce the bill and work with bill drafters to ensure the proposed legislation is in proper legal form. We are hopeful that the bill will be introduced during Nebraska’s 108th Legislature, Second Session, which commences Jan. 3, 2024.
In addition, the State Board’s Education Advisory Committee (EAC) will continue to review and provide input on regulations within Title 288, Chapter 9 to assist the State Board in determining the mandatory subject areas and education requirements before a candidate is allowed to sit for the exam at 120 hours.
Amendments to Chapter 9 will begin when and if the PAA is amended to allow candidates to sit at 120 hours of education.
Anyone with questions and/or comments on these proposed changes should contact State Board Executive Director Dan Sweetwood at (402) 471-3595 or dan.sweetwood@nebraska.gov or Society President Joni Sundquist at (402) 476-8482 or joni@nescpa.org.
The Nebraska State Board of Public Accountancy administers public accountancy law in Nebraska. Six of the eight State Board members are CPAs with active permits to practice and two are members of the public.
The Nebraska Society of CPAs is a professional membership organization that supports and represents CPAs by providing resources, education, and advocacy to enhance their professional growth and development. The Society Board of Directors is the official decision-making body of the Society and presently consists of 13 member CPAs.
