Meeting Minutes:
Friday, May 6, 2005
Volume 12; Issue 15

 

Table of Contents


Committee Reports

Membership Report
(Click here to go to the Membership page)

We were joined today by Bob & Sally Becker.  They are have been invited to join MABE in the realtor position.  Their office is located at the corner of Baseline and Pennington.  They do both commercial and residential realty.

Mark Grant revisited our group today and brought in part 2 of his membership application.  If there are no objections to this applicant, Mark will be invited to join our group.

Roger Carpenter will get in touch with Roy Anderson about his pending application.

Mark Grant
GTI Contractors Inc.
Sponsoring Member: Gus Dekavallas
Part 1 of Application: Completed
Visited Group:  04/29/05
Part 2 of Application:
 Completed
Status:
IN PROGRESS

Roy Anderson
Granite Transformations
Sponsoring Member: Roger Carpenter
Part 1 of Application: Completed
Visited Group:  04/29/05
Part 2 of Application:
 
Status: IN PROGRESS

The mentoring committee would like to meet with all new members next Friday immediately following the regular meeting.  The purpose of the meeting is to tell new members about MABE and to go over their expectations of the group as well as the groups expectations of them.

Social Report
(Click here to go to the Social Event page)

No report...just pictures.

Speaker Coordinator Report
(Click here to go to the Speaker Schedule)

Main Speaker

  • 05/13/05     Bob Uber
  • 05/20/05     Joe Zingale
  • 05/27/05     No Meeting
  • 06/03/05     Round Table - Negotiating Leases

Spotlight Speaker

Treasurer Report

Only one member still owes dues for the current quarter.


Leads Report

46-06, 44-04, 17-24, 42-02, 29-46, 12-05, 18-15, 18-10, 18-28 (x2), 18-23, 05-07, 05-06, 05-25, 05-28, 49-17, 10-32, 45-13, 21-13, 21-24, 47-21, 22-13, 22-26, 22-23, 04-45, 04-21, 27-35, 31-34 (x2), 31-41, 14-13, 43-02, 40-19, 02-40, 25-45, 25-39, 51-41, 51-28.

This week's leads focus...


Business Spotlight Floodlight

Roman Okonowski was today's Business Floodlight.  Here is what he had to say...

The state of Arizona has a new law affecting uninsured drivers.  It is now extremely important that you have current insurance ID cards in your vehicle at all times.  They now have the authority to impound your car on-sight and you could be looking fines starting at $700!

If you think it takes a while for your claim to get processes...It has been several years after 9-11 and the WTC is still in the news.  The first jury declared that this was one occurrence.  The second jury declared that it was two occurrences.  They will now go to a third jury trial.  No money has been settled.  The carriers are in financial trouble so pieces may never be paid.

2004 was the first year since 1978 that underwriters saw a profit.  Unfortunately, they seem to be repeating the same mistakes that got them in trouble before.

Employment practice liability.  Coverage is available.  Be careful.  Arizona is a right to work state but you are not exempt from federal law.

Do you volunteer on a board?  Does your home owners policy cover any potential liability?  Probably not.  Be sure the organization has directors and officers liability insurance.

Just another reminder that if everything were covered, they would only need one page to tell you.  Insurance is not an exciting commodity but it is a valuable one.  You need to have it and you need to understand it.  Know your exposure.  Self insure out of understanding, not ignorance.


Notable Mentions

USE TAX - Mike Whalen received a letter from the Arizona Department of Revenue.  They want him to audit himself.  He was asked to go back four years and calculate how much use tax he owes the state.  Has anyone else had this happen?

This tends to happen every 10 years when the state government needs a bump in revenue.  They target industries.  When they did this 10 years ago they targeted the service industries.  Their goal is not only to raise much needed revenue but to get you started paying use tax from now on.  The department is under-funded and under-staffed.  Sending the letter and asking you to do the work is the cheapest route for them to take.


Main Speaker 

Mark Dreher
Wallace, Plese + Dreher, L.L.P.

Mark grew up in Michigan.  He was an only child but became very close to a friend across the street.  They are still close to this day.  His mom worked for Ford and his dad worked for a manufacturing company.  They moved here 4 years ago. 

Mark graduated from the University of Michigan and went to work in Detroit for a CPA firm.  He was fortunate to work on one really good client, Discount Tire Co.  They brought him to Arizona.  He loved the weather and it was a better economy here.  In September of '81 he made the move.

His first job in Arizona was for one of the largest local firms.  He started as a senior accountant and worked his way up to partner.  In the interim, the firm was sold to a large national firm.  He soon found out that being one of 400 partners didn't mean much accept that he was now personally exposed to any liability.

In 1991 Mark decided that it would be in his best interest to leave the firm.  He was 100% vested so he took his money and signed a non-compete agreement.  He then went to work as CFO of ComCare.  This was as close to working for the government as he ever wants to get.

In 1993 his non-compete agreement expired.  He partnered with some friends from the old firm and started Wallace, Plese + Dreher.  In 1997 they hired their first real employee.  Since then they have grown to a staff of 22 people and have moved twice to accommodate their growth. 

Accounting for small businesses is a lot different from that of large companies.  The rules are pretty complicated.  And they have been made even more complicated with the 2001 Enron & WorldCom situations.  The rules that resulted have had a big effect on the accounting industry.  CFO's and the like face a lot of liability which they won't accept without compensation.  Same with the professional services.  Accountant fees are up 25-40% and legal fees have risen as well.  It is costly for public firms to follow compliance laws.  Many firms are shifting to private companies.

Four firms dominate the industry.  They are the only ones qualified to audit the largest firms in the world.  There is a huge demand for accountants.  New graduates are getting jobs right out of college starting at $80,000.  Unfortunately, they are overworked doing boring jobs and they are only learning the compliance rules.

Mark's firm is going to a paperless system.  He is hopeful that this will mean he never has to look for a file again.  They are also evaluating the effectiveness and worth of using a tax notebook system.   One thing they will not do is hire a company in India that has $6.00/hr employees entering important financial data into records for them.

Mark is also actively involved with the East Valley Partnership (EVP).  He helped start this group almost 13 years ago.  They are dedicated to improving business in the East Valley.  One of their first big projects was getting the Superstition Freeway built along with our first hospital and branch of the court house.  One of the projects they are focusing on now is developing the NW Pinal County are.  There is 250 square miles of state trust property undeveloped and they state doesn't have the financial means to develop it.  The EVP is raising the money privately.  Contact Mark if you would like to learn more about this project.

 

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