and Enrolled Agents

Montana (MT) CPA Continuing Education (CPE) Requirements

Listed below are some of the Montana CPA CPE requirements that apply to online continuing education. BestCPE designs its courses to meet the credit hour requirement by the Montana State Board of Public Accountancy. Please use the official rules from the Montana State Board of Public Accountancy as the official documentation for any questions related to Montana CPA CPE.

GENERAL REQUIREMENTS

(1) During the three-year period, ending the June 30th immediately preceding the permit year of January 1 through December 31, applicants for a permit to practice must complete 120 hours of acceptable continuing education credit, except as otherwise provided.

(2) At least two hours of the 120 hours of acceptable continuing education credit must consist of knowledge and the application of ethics or the codes of professional conduct of certified public accountants and licensed public accountants.

(3) Applicants who have already met the full basic requirement by the end of any June 30th reporting period may elect to have excess continuing education hours taken during the immediately preceding months of May and June apply to the subsequent reporting period.

(4) Applicants who have not completed their full basic requirements by the end of any June 30th reporting period may elect to have qualified continuing education hours taken during the immediately following months of July and August apply to the previous reporting period.

STATEMENT ON STANDARDS FOR FORMAL CONTINUING EDUCATION PROGRAMS

(1) To help ensure that practitioners receive quality continuing professional education, appropriate standards are needed. With appropriate standards, programs are less likely to vary in quality of development and presentation and in measurement and reporting of credits.

(2) Moreover, the large number of programs available throughout the United States , the varying backgrounds of credentials of sponsoring organizations, and the mobility of participants in these programs create measuring and reporting problems that suggest the need for nationally uniform standards. The purpose of this statement is to provide such uniform criteria.

(3) Throughout these rules the term "programs" refers to both formal group and formal self-study programs. A group program is an educational process designed to permit a participant to learn a given subject through interaction with an instructor and other participants. When a group program complies with the standards in these rules it becomes a "formal" group program. All other group programs are informal. A self-study program is an educational process designed to permit a participant to learn a given subject without major interaction with an instructor. For a self-study program to be "formal":

(a) the sponsor of it must provide a certificate upon evidence of satisfactory completion, such as a completed workbook or examination, and

(b) it must comply with the standards in these rules. "Sponsors" are the organizations responsible for presenting programs and are not necessarily program developers. However, it is their responsibility to see that their programs comply with all the standards of these rules.

STANDARDS FOR CPE PROGRAM DEVELOPMENT

(1) The program should contribute to the professional competence of participants.

(a) The fundamental purpose of continuing education is to increase the practitioners professional competence. A professional person is one characterized as conforming to the technical and ethical standards of his profession. This characterization reflects the expectation that a person holding himself out to perform services of a professional quality needs to be knowledgeable within a broad range of related skills. Thus, the concept of professional competence is to be broadly interpreted. It includes, but is not restricted to, accounting, auditing, taxation, and management advisory services. Accordingly, programs contributing to the development and maintenance of other professional skills also should be recognized as acceptable continuing education programs. Such programs might include, but not be restricted to the areas of communication, ethics, quantitative methods, behavioral sciences, statistics, and practice management.

(2) The stated program objectives should specify the level of the knowledge the participant should have attained or the level of competency he should be able to demonstrate upon completing the program.

(a) Program developers should clearly disclose what level of knowledge and/or skill is expected to be imparted under a particular program. Such levels 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 such levels 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 in order 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 a 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.

(3) The education and/or experience prerequisites for the program should be stated.

(a) All programs should clearly identify what prerequisites are necessary 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 they qualify for the program or whether the program is above or below their level of knowledge or skill.

(4) Programs should be developed by individual(s) qualified in the subject matter and in instructional design.

(a) This standard is not intended to require that 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 a 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.

(b) "Instructional design" is a teaching plan that considers the organization and interaction of the materials as well as the method of presentation such as lecture, seminar, workshop, or programmed instruction.

(5) Program content should be current.

(a) The program developer must review the course materials periodically to assure 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 where appropriate and obsolete materials 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 the 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.

(6) Programs should be reviewed by a qualified person(s) other than the preparer(s) to ensure compliance with the above standards.

(a) In order to ensure that programs meets the standard for program development, they should be reviewed by one or more individuals in the subject area and in the instructional design. Any one reviewer need not be competent in both the program subject matter and in instructional design, but both aspects of a program should be reviewed. However, it may be impractical to review certain programs, such as a short lecture given only once; in these cases, more reliance must be placed on the competence of the presenter.

STANDARDS FOR CPE PROGRAM PRESENTATION

(1) Participants should be informed in advance of objectives, prerequisites, experience level, content, advance preparation, teaching method(s) , and recommended contact hours credit.

(a) In order for potential participants to most effectively plan their continuing education, the salient features of any program should be disclosed. Accordingly, brochures or other announcements should be available well in advance of each program and should contain clear statements concerning objectives, prerequisites (if any) , experience level, program content, the nature and extent of advance preparation, the teaching method(s) to be used, and the amount of credit the program is designed to qualify for.

(2) Instructors should be qualified both with respect to program content and teaching methods used.

(a) The instructor is a key ingredient in the learning process in any group program. Therefore, it is imperative that sponsors exercise great care in selecting qualified instructors for all group programs. A qualified instructor is one who is capable, through background, training, education, and/or experience, of providing an environment conducive to learning. He should be competent in the subject matter and skilled in the use of the appropriate teaching method(s) . Although instructors are selected with great care, sponsors should evaluate their performance at the conclusion of each program to determine their suitability for continuing to serve as instructors in the future.

(3) Program sponsors should encourage participation only by individuals with appropriate education and/or experience.

(a) So that participants can expect programs to increase their professional competence, this standard encourages sponsors to urge only those who have the appropriate education and/or experience to participate. The term "education and/or experience" in the standard also implies that participants will be expected to complete any advance preparation. An essential step in encouraging advance preparation is timely distribution of program materials. Although implementing this standards may be difficult, sponsors should make a significant effort to comply with the spirit of the standard by encouraging

(i) enrollment only by eligible participants,

(ii) timely distribution of materials, and

(iii) completion of any advance preparation.

(4) The number of participants and physical facilities should be consistent with the teaching method(s) specified.

(a) The learning environment is affected by the number of participants and by the quality of the physical facilities. Sponsors have an obligation to pay serious attention to these two 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 a discussion presentation, learning is enhanced if 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 available to encourage communications within a small group. In effect, class size, quality of facilities, and seating arrangements are integral and important aspects of the educational environment and should be carefully controlled.

(5) All programs should include some means for evaluating quality.

(a) Evaluations should be solicited from both participants and instructors. The objective of evaluations is to encourage sponsors to strive for increased program effectiveness. Programs should be evaluated to determine whether:

(i) objectives have been met,

(ii) prerequisites were necessary or desirable,

(iii) facilities were satisfactory,

(iv) the instructor was effective,

(v) advance preparation materials were satisfactory,

(vi) the program content was timely and effective. Evaluations might take the form of pre-tests for advance 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 should systematically review the evaluation process to ensure its effectiveness.

STANDARDS FOR CPE PROGRAM MEASUREMENT

(1) All programs should be measured in terms of 50-minute contact hours. The shortest recognized program should consist of one contact hour.

(a) The purpose of this standard is to develop uniformity in the measurement of continuing education activity. A contact hour is 50 minutes of continuous participation in a group program. Under this standard, credit is granted only for full contact hours. For example, a group program lasting 100 minutes would count for two hours. However, one lasting between 50 and 100 minutes would count only for one hour. For continuous conferences and conventions, when individual segments are less than 50 minutes, the sum of the segments should be considered one total program. For example, five 30-minute presentations would equal 150 minutes and should be counted as three contact hours. For universities or college courses, each semester hour credit should equal 15 hours toward the requirement. A quarter hours credit should equal 10 hours.

(b) Sponsors are encouraged to monitor group programs in order to accurately assign the appropriate number of credit hours for participants who arrive late or leave before a program is completed.

(c) Since credit is not allowed for preparation time for group programs, it should not be granted for the equivalent time in self-study programs. Self-study programs should be pre-tested to determine average completion time. One-half of the average completion time is the recommended credit to be allowed. For example, a self-study program that takes an average of 800 minutes to complete is recommended for eight "contact hours" of credit.

(2) When an instructor or discussion leader serves at a program for which participants receive credit and at a level that contributes to his or her professional competence, credit should be given for preparation and presentation time measured in terms of contact hours.

(a) Instructors and discussion leaders should receive credit for both preparation and presentation. For the first time they present a program, they should receive contact hour credit for actual preparation hours up to two times the class contact hours. If a course is rated at eight contact hours, the instructor could receive up to 24 contact hours of credit (16 hours for preparation and eight hours for presentation) . For repetitious presentations the instructor should receive no credit unless he can demonstrate that the subject matter involved was changed sufficiently to require significant additional study or research.

(b) In addition, the maximum credit for preparation and presentation should not exceed 50 percent of the total credit an instructor or discussion leader accumulates in a reporting period. For example, if a discussion leader's state required 40 hours of continuing education yearly, and he actually taught 16 hours and took 30 hours to prepare, the most credit he could claim would be 20 hours.

STANDARDS FOR CPE REPORTING

(1) Participants in group or self-study programs should document their participation including:

(a) sponsor,

(b) title and/or description of content,

(c) date(s)

(d) location, and

(e) number of contact hours. Documentation should be retained for an appropriate period.

(f) This standard is designed to encourage participants to document their attendance at a group program or participation in a self-study program. State laws or regulations may dictate the length of time to retain documentation. In the absence of legal specifications, a reasonable policy would be to retain documentation for five years from the date the program is completed. For self-study programs evidence of completion would normally be the certificate supplied by the sponsor.

(2) In order to support the reports that may be required of participants, the sponsor of group or self-study programs should retain for an appropriate period:

(a) record of participation,

(b) outline of the course (or equivalent) ,

(c) date(s) ,

(d) location,

(e) instructor(s) , and

(f) number of contact hours

(g) Because participants may come from any state or jurisdiction, the appropriate time for the sponsor to retain this information is not dependent solely on the location of the program or sponsor. To satisfy the detailed requirements of all jurisdictions, a retention period of five years from the date the program is completed is appropriate. The record of attendance should reflect the contact hours earned by each participant, including those who arrive late or leave early.

PROGRAMS WHICH QUALIFY

(1) A specific program qualifies as acceptable continuing education if it is a formal program of learning which contributes directly to the professional competence of an individual permitted to practice public accounting and such program meets the minimum standards of quality of development and presentation and of measurement and reporting of credits set forth in the Statement on Standards for Formal Continuing Education Programs published by the National Association of State Boards of Accountancy or such other educational standards as may be established from time-to-time by the board.

(2) The board anticipates that individuals will maintain the high standards of the profession in selecting quality programs.

ACCEPTABLE SUBJECT MATTER FOR QUALIFYING PROGRAMS

(1) The following general subject matters are acceptable so long as they contribute to the basic professional knowledge and competence of the individual and meet the minimum standards of quality or development and presentation and of measurement and reporting of credits set forth in the Statement on Standards for Formal Continuing Education Programs published by the National Association of State Boards of Accountancy

(a) accounting and auditing,

(b) taxation,

(c) management,

(d) computer science,

(e) communication arts,

(f) mathematics, statistics, probability and quantitative application in business,

(g) economics,

(h) business law,

(i) functional fields of business: finance, production, marketing, personnel relations, business management and organization;

(j) specialized areas of industry (e.g., film industry, real estate, farming, etc.) ,

(k) administrative practice (e.g., engagement letters, personnel, etc.) .

(2) Areas other than those listed above may be acceptable if the individual can demonstrate that they contribute to their professional competence. The responsibility for substantiating that a particular program is acceptable and meets the requirements rests solely upon the individual.

ACCEPTABLE PROGRAMS

(1) The following group programs qualify for credit if they meet the standards specified in the preceding rule :

(a) professional education and development of programs of national, state and local accounting organizations.

(b) technical sessions at meetings of national, state and local accounting organizations and their chapters.

(c) university or college courses (both credit and non-credit courses) .

(d) formal in-firm education programs.

(e) programs of other organizations (accounting, industrial, professional, etc.) .

(f) committee meetings of professional societies which are structured as formal educational programs.

(g) dinner, luncheon and breakfast meetings which are structured as formal educational programs.

(h) firm meetings for staff and/or management groups which are structured as formal educational programs. Portions of such meetings devoted to the communication and application of general professional policy or procedure may qualify. However, portions devoted to firm administrative, financial and operating matters generally would not qualify.

CREDIT HOURS GRANTED - GENERAL

(1) Continuing education credit will be given with a minimum of 50 minutes constituting one hour. One-half continuing education credit increments (equal to a minimum of 25 minutes) are permitted after the first credit has been earned in a given learning activity. For university or college courses, each semester unit of credit shall equal 15 hours toward the requirement. A quarter unit of credit shall equal 10 hours

CREDIT FOR FORMAL INDIVIDUAL STUDY PROGRAMS

(1) Formal self-study programs shall be pretested by the developer to determine average completion time.

(a) Interactive self-study programs shall receive continuing education credit equal to the average completion time, if the sponsor is recognized and approved by NASBA's CPE quality assurance service (referred to as a NASBA QAS sponsor) or NASBA's national registry of CPE sponsors (referred to as a NASBA registry sponsor). An interactive self-study program is designed to use interactive learning methodologies that simulate a classroom learning process that provides significant ongoing, interactive feedback to the participant regarding the participant's learning progress.

(b) All other interactive and noninteractive self-study programs receive continuing education credit equal to one-half of the average completion time.

(2) Individuals claiming credit for such correspondence or formal individual study courses are required to obtain evidence of satisfactory completion of the course from the program sponsor. Credit is allowed in the period in which the course is completed, except as allowed in ARM

REPORTING REQUIREMENTS

(1) On or before July 31 permit holders shall give evidence to the board that their continuing education requirements have been met for the reporting period ending June 30 prior thereto.

(2) Persons who use the two-month carry-back provision of ARM 24.201.2106 (5) shall file their reporting forms by July 31, listing the course(s) they are planning to attend or complete. If the course(s) listed are not completed, they must notify the board office in writing immediately, but not later than August 31. Such notification(s) shall explain why the course(s) were not completed and provide a plan to meet the continuing education requirements.

EVIDENCE OF COMPLETION - RETENTION

(1) Primary responsibility for documenting the requirements rests with the individual and evidence to support fulfillment of those requirements should be retained for a period of five years after the completion of educational courses.

(2) Satisfaction of the documentation requirements, including the retention of attendance records and written outlines, may be accomplished as follows:

(a) The individual must retain a copy of the course outline prepared by the course sponsor along with the following information:

(i) name of sponsoring organization,

(ii) location of program,

(iii) title of program or description of content,

(iv) dates attended,

(v) hours claimed.

(b) For courses taken for scholastic credit in accredited universities and colleges (state, community or private) , evidence of satisfactory completion of the course will be sufficient; for non-credit courses taken, a statement of the hours of attendance, signed by the instructor, must be obtained by the individual.

(c) For formal individual study programs, written evidence of completion must be obtained by the individual.

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