Happenings at May Council meeting.

Following are some of the more significant actions and events that took place at the AICPA governing Council meeting May 21-23:

* Council members were informed of the upward trend for CPA exam candidates. An increase of 48% in the number of candidates and an increase of 31% in the number of scheduled sections were seen between the first year of the computer-based test and the second testing year (ended Mar. 2006).

* An update was provided on the upcoming launch of the Young CPA Network. The goal of the initiative, announced by chair Leslie Murphy at her inaugural address last Oct., is to connect young CPAs to the profession through such resources as an e-newsletter and a dedicated Web site.

* Success with the 360 Degrees of Financial Literacy campaign continues. Having completed its second year in May, the program has achieved 300 million exposures through the media and has received more than 12 million hits to its award-winning consumer Web site (www.360financialliteracy.org).

* A resolution was approved to allow public (i.e., non-AICPA) members to serve on the Peer Review Board, not to exceed 25 % of committee membership. By expanding membership on the board, the PRB believes it would gain the viewpoints and perspectives it needs to operate effectively. The board also stated it would be better equipped to deal with issues and address changes in practice and in the legislative/regulatory environment.

* Reaching a significant milestone, the Personal Financial Specialist credential met its Council-mandated target of credential holders. Nearly 3,700 CPAs now have earned the PFS mark, which recognizes excellence in financial planning.

* Council approved a resolution to broaden eligibility to become an AICPA Associate and to remove the five-year limit on how long a person can remain an AICPA Associate. The section will now be open to any person who passes the CPA Exam, without regard to whether they are in the process of obtaining the necessary work experience or 150 hours of education. A new Non-CPA Faculty Associate category will be available to accounting educators at colleges and universities who are not CPAs, with the objective of strengthening ties with those educators who influence career decisions for college students. Lastly, the Council voted down a proposal to change the criteria for receiving Honorary Life Membership from 40 consecutive years of AICPA membership to 50 consecutive years.

* Council also approved changes to the Implementing Resolution for Rule 505 of the Code of Professional Conduct to remove non-CPA owner 150 hour and CPE requirements, to provide that non-CPA owners must be actively engaged as members of the firm or its affiliates but need not provide services to clients, to provide for firms that include affiliate structures, and to harmonize the AICPA members' responsibility scope to be consistent with those changes, and with other sections of the Code of Professional Conduct.

* Ralph B. Bender of Baton Rouge, La., was given the 2005 AICPA Public Service Award for Individuals. Bender was cited for his breadth of community service. He has served on the boards of more than 20 local organizations, including Capital Area United Way, Junior Achievement of Greater Baton Rouge & Acadiana Inc., Congregation B'nai Israel, Boy Scouts of America, Girl Scouts Audubon Council Inc., Jewish Federation of Greater Baton Rouge and the Community Fund for the Arts.

* KraftCPAs PLLC of Nashville won the 2005 AICPA Public Service Award for Firms. The firm regards community service as a goal for its professional staff, and the firm's leadership actively helps employees find community service opportunities. Currently, KraftCPAs' members and employees serve as the committee chairs for or on the boards of more than 60 local nonprofit organizations.

* The 2006 Distinguished Achievement in Accounting Education Award was presented to Karen V. Pincus, S. Robson Walton Professor of Accounting and Chair of the Department of Accounting at the University of Arkansas. Pincus has received numerous recognitions for teaching excellence, curriculum development and service to the accounting, academic and practicing professions. Most notably, she received the American Accounting Association Innovation in Accounting Education Award for designing and implementing a completely new curriculum approach to accounting education.

* Council approved the Institute's proposed operating budget for fiscal year 2006-2007.