Author: RBT CPAs

What to Know about Rental Assistance Demonstration (RAD) Conversions

One way Public Housing Authorities (PHAs) address living conditions in properties is via a Rental Assistance Demonstration (RAD) conversion. This changes how a rent subsidy is delivered to a property, while allowing owners to access additional capital. Residents have the same benefits, rights, and protections. However, the process of transitioning from traditional public housing to RAD involves several complexities that PHAs need to understand.

Understanding RAD Conversions: RAD allows PHAs to access additional funding sources for the purpose of maintaining, repairing and/or replacing public housing properties. As a result, affordable housing stock can be improved and preserved. Under this program, public housing properties are converted to the Section 8 program to ensure they remain affordable on a permanent basis.
Benefits of RAD Conversions: Conversion to RAD can provide several benefits. These include access to private sources of capital to make critical repairs and improvements, a stable and predictable funding source, and a reduction in the regulatory and administrative burdens of public housing.
The Conversion Process: The RAD conversion process is complex and involves multiple stages. PHAs must inform residents, hold at least two resident meetings at multiple stages, apply to HUD for approval, complete a physical conditions assessment, develop a financing plan, secure commitments from private or public lenders, and then convert the units (plus temporarily relocate residents, if necessary).
Role of an Accountant: An accountant can play a critical role in guiding a PHA through a RAD conversion. They can help in preparing the financial projections required for the application, reviewing the financing plan, and ensuring compliance with the financial reporting requirements of the Section 8 program.
Risk Management: While RAD conversions offer numerous benefits, they also present some risks. These might include potential displacement of residents during renovations, changes in tenant rent contributions, and possible non-compliance with HUD regulations. PHAs need to carefully consider these risks and develop appropriate risk management strategies.
Resident Engagement: Resident engagement is a critical aspect of RAD conversions. Before submitting a RAD application, PHAs are required to inform and consult with residents (including the Resident Advisory Board). This includes notifying residents about the proposed conversion, holding at least two meetings with residents to discuss the plan and solicit feedback, and providing regular updates on the progress of the conversion. After receiving a Commitment to enter into a Housing Assistance Payment (CHAP) contract, the PHA must have at least two additional resident meetings to share updates and get feedback.

Understanding RAD conversions can be challenging. However, with the right information and guidance, PHAs can successfully navigate this process to improve the quality and sustainability of their housing stock. It is essential for PHAs to collaborate with experienced professionals in the field, such as accountants, to ensure a smooth and compliant conversion process. To learn more, refer to the HUD RAD Resident Fact Sheet.

If you are interested in learning more or getting started with your RAD conversion, RBT CPA accounting professionals are available to help. (We can also support your tax, audit, and advisory needs). To learn more, give us a call today.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Measuring Success: A Refresher on Key Performance Indicators

Do you ever look at certain companies, whether global sensations or local favorites, and wonder – what is it that makes them such strong front-runners in competitive environments? Imagine the potential impact on local businesses and local economies if we could figure that out. After all, strong local businesses build strong local economies, and that benefits everyone.

Of course, there’s a myriad of factors that contribute to accomplished businesses, from having a compelling value proposition that meets certain needs or desires to brand, strategy, customer service, employee engagement, and more. Still, one of the most fundamental but critical drivers of business success is this: setting, monitoring, and measuring key performance indicators (KPIs).

A KPI measures activity that is critical to successfully compete in the marketplace. It can show when something is working well and should continue, while pointing to potential issues and necessary course corrections to keep a business and its employees focused and on track.

A business may have three or four overall KPIs and require each business function and individual employees to set KPIs as well. This way, all efforts are aligned to drive common goals.

In addition to evaluating critical activity, a KPI must be realistic, specific, and quantifiable. It should highlight areas where increased efficiency/decrease in use of resources can be achieved, and illustrate progress over time.

Implementing and tracking KPIs provides reliable data to streamline decision-making, encourages teamwork by promoting cooperation, and offers clarity for workers in terms of performance expectations. (As an added bonus, they can also help identify seasonal trends.)

Setting a KPI is just the start – the real value comes from regularly checking in to see if progress is being made and having a clear course of action once the results of the KPI are known.

Implementing KPIs can increase your business’ efficiency and production capability. An added benefit, KPIs can generate a positive attitude among team members by letting individuals know how they contribute to a business’ success. Setting, monitoring, and measuring KPIs regularly can reenergize your team and align everyone to work together to achieve the same goals. For information on KPIs, see our story: “Are You Using the Right KPIs for Your Brewery?”

If you are interested in learning more, RBT CPA advisory services professionals are available to help. (We can also support your tax, audit, and advisory needs). To learn how we can be Remarkably Better Together, give us a call today.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Local CPA Firm Celebrates 55 Years of Being Remarkably Better Together

FOR IMMEDIATE RELEASE

It was March 1, 1969. Joe Vanacore, CPA, did the unthinkable at the time. He left the security and reputation of a large accounting firm during tax season to start his own business. With one client, a local restaurant – The Ship Lantern Inn, Vanacore put a stake in the ground to create a different kind of accounting firm based out of a small office in Newburgh, New York. Today, that company – RBT CPAs – celebrates the 55^th anniversary of when it first opened its doors for business.

Now, over 150 team members work out of RBT’s five locations throughout the Hudson Valley and in New York City. It has been recognized as a best place to work; a People’s Choice winner for tax preparation, financial planning, workplace innovation, and best overall employer; an Inside Public Accounting Top 200 Firm; and an Accounting Today top 100 firm to work for and top tax firm.

RBT Managing Partner Mike Tuturro attributes the company’s success to three factors: clients, colleagues, and community. He explains, “We value the trust clients place in us to deliver an exceptional experience marked by professionalism and integrity. We never take that for granted and I believe that’s why most people, businesses, and other organizations that become our clients stay our clients.”

In fact, the company’s very first client – The Ship Lantern Inn (multi-year winner of Best of the Hudson Valley and Ulster County Best Restaurant) – is still a client today. Third-generation owner Mike Foglia says, “I was 12 or 13 working in the restaurant when Joe would come by to review our books. He and my grandfather hit it off right away. My grandfather became a mentor to Joe and in turn Joe became a mentor to me. Next year, The Ship Lantern Inn celebrates its 100^th anniversary and I can honestly say one of the reasons we’re reaching that milestone is the support and guidance we got from RBT CPAs. They are accountants who demand accountability. They are always straightforward and honest and stress the importance of doing things the right way. When you have the best, there’s no reason to change.”

Today’s leadership at RBT CPAs demands the same from today’s team members. Mike Tuturro explains, “When it comes to colleagues, we really look for a particular type of person to join our team. They have to be smart go getters who will always go above and beyond to deliver exceptional value and results. They have to be willing to learn from the generation before them and then pass on that knowledge and opportunity to the up-and-coming generation. And they have to have the drive to give back and make a difference in the communities where we live and operate. Have no doubt – it is our people who have made us what we are today and who will carry on our legacy well into the future.”

Mike also notes that many of its team members were born, raised, and educated in surrounding communities and have a vested interest in giving back. Out of respect for its Hudson Valley roots, the company has a firm policy to never send work outside the U.S.A. – a tactic used by many firms today to drive profit margins.

Mike says, “We want our clients to be 100% confident that local RBT CPAs team is doing the work and handling their financial information, from start to finish. Plus, we believe hiring local people and keeping jobs in the communities where we operate is simply the right thing to do.”

Over the years, the firm’s name changed a number of times to reflect new partners resulting from acquisitions and internal promotions. Eventually, when the list of names became too much of a mouthful, they landed on RBT CPAs, stemming from the belief that the firm, clients, colleagues, and local communities are Remarkably Better Together.

When Business Slows Down, New York’s Shared Work Program Helps You Retain Valued Employees

Perhaps the only thing harder than finding valued employees these days is having to lay off employees when business slows down. The New York State Department of Labor (NYS DOL) has a long-standing program that gives you an alternative to lay-offs. It’s called The Shared Work Program. Here are some highlights…

Who Is Eligible?

If you have two or more full-time employees in NYS; you have paid into unemployment insurance for at least four consecutive calendar quarters; and participation helps your organization avoid layoffs, you are eligible to apply.

What Is the Shared Work Program?

Rather than lay off valued talent during a slow period, the program allows you to reduce hours across the board for all employees or within a defined workgroup. Employees who are impacted can make up a portion of lost wages due to a reduction in hours via unemployment insurance.

For example, let’s say work is slowing down. Rather than lay off employees in the XYZ department, you file a Shared Work Plan with the NYS DOL and receive approval to reduce XYZ employees’ hours 20% for 10 weeks. Impacted employees can file for Unemployment Insurance and collect 20% of their weekly benefit. (That’s in addition to the reduced pay they receive from you for working the reduced hours.) As a result, the employees have more income than if they were laid off, and you have a valuable way to retain employees.

When should I get the process started?

Reach out to the Shared Work Program less than one month before the proposed start date. You’ll use that time to create a Shared Work Plan and apply for program approval.

Where can I learn more and apply?

For program details – including FAQs, informational videos, a program fact sheet, references from organizations and employees who have benefited from the program, how to apply, and more, click here.

Why does the NYS DOL offer this program?

This win-win program supports organizations during challenging times by helping them retain valued employees. At the same time, it helps employees stay employed and make up a portion of wages lost due to a reduction in hours.

How?

Develop a Shared Work plan and then apply online. You’ll be assigned a dedicated representative to help guide you. Approvals are granted within 48 hours and can be adjusted weekly. Once business picks up, you can quickly resume normal operations with the same employees you have come to count on…and who knows they can count on you.

We hope this reminder proves useful. Please know you can always count on RBT CPAs for all your accounting, tax, audit, and advisory needs. To learn more, give us a call today. RBT CPAs does not outsource work to any other country. All of our work is prepared in the U.S.A.

Our Thoughts on the IRS’s $80 Billion Plan

Since April 6, the Internal Revenue Service’s (IRS’s) $80 billion plan – funded under the Inflation Reduction Act (IRA) – has fueled a lot of analysis and speculation among media sources, industry groups, political parties, and American taxpayers in general.

While numerous resources sharing their opinions cater to certain demographics and affiliations, only time will tell whose interpretation is most accurate (or whether they are all accurate in some way). In the meantime, we at RBT CPAs have taken a detailed look at the plan, as well as thoughts from other sources. Following is our initial take on what is sure to be the topic of many office and dinner discussions in the days ahead.

To start with the basics, the plan defines five key objectives, which will be achieved through 42 key initiatives with over 190 programs and 200 milestones between 2023 and 2031:

Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible
Quickly resolve taxpayer issues
Expand enforcement on taxpayers with complex tax filings and high dollar noncompliance
Operate more effectively using innovative technology, data, and analytics
Attract, retain, and empower a highly skilled, diverse workforce and culture

Based on these objectives alone, we think it is fair to say the plan is comprehensive and addresses the critical components required to transform the agency and bring it into the 21^st century. Upon a closer look at the plan, some additional observations began to emerge:

There is going to be more to the story.

The first page indicates the plan covers 2023 to 2031. Yet, most of the milestones outlined in the plan appear to be accomplished by 2025 and 2026. While we agree it is strategic to reassess and refine plans along the way, we do believe this opens the door for a sequel to the plan in a few years, and there is no telling how the story will play out.

The main goal is hiding in plain sight.

Although there is a lot of emphasis on service, technology upgrades, and building a skilled workforce and the right culture, it is striking how often the plan references and returns to enforcement. When you look purely at the financial investment and timeline, it is clear the biggest priority is to address the “tax gap.” Over half the planned investment targets enforcement. Most of the milestones for enforcement show progress being driven by 2025. Even the mission statement published at the start of the plan seems to make clear what’s the top priority: “Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.”

Even with multiple references to the enforcement focus being on high income and high wealth individuals, partnerships and corporations, we can’t help but notice the four words that follow the discussion on how this will impact those making under $400,000 annually: “All efforts will comply with your directive not to use IRA resources to raise audit rates on small businesses and households making under $400,000 per year, relative to historic levels.” So, while there is no doubt enforcement will primarily target high income earners, the same percentage of lower earners audited today will continue to be audited in the future. The enhanced workforce and technology capabilities, we speculate, may result in audits garnering more income for the IRS than in the past.

We do not know how far back the new-and-improved IRS will reach in terms of enforcement.

As noted on the IRS webpage on audits, “Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually do not go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly, most audits will be of returns filed within the last two years.” We only mention this because it goes hand in hand with our prior point: with more enforcement, not only will there be more audits, but each one may be more fruitful for the IRS than what they are now.

There are three key “ifs” that may impact the plan’s execution.

First, each program in the plan highlights numerous co-dependencies or contingencies – meaning all the stars will have to align for this to be executed as planned.

Second, there are a number of references to the importance of annual IRS funding and increases for inflation. Should this not occur, funding for the plan – and its impact – may erode. (See Commissioner Werfel’s cover memorandum stating: “To cover steady state operations, annual discretionary appropriations must be fully maintained at the FY 2022 level, including growth for inflation and pay raises. Any reduction in annual discretionary funds – including not providing for inflationary increases to maintain current levels – will require IRA funding to be shifted to general operations.”)

And third, the plan relies on a significant uptick in all types of staffing at the same time the talent pool is shrinking and competition to attract and retain highly skilled talent – including accountants and technology specialists – is fierce.

Everyone will be impacted by the plan.

Page 132 of the plan defines stakeholders. It says: “Within this Plan, taxpayers are referred to broadly and include all people and groups whom we serve, including: • Individuals and families • Businesses large and small • Charities and other tax-exempt organizations • International taxpayers • Federal, state, and local governments • Tribal nations • Tax professionals and others who assist and serve taxpayers.” Translation: While there will be a lot of focus on high earning, wealthy individuals and institutions, everyone is going to feel the impact somehow. Exactly how remains to be seen.

One other thought:

While some are still calling for the IRS to reallocate the budget so there’s equal emphasis on service, technology and enforcement, the fact is the IRS does not have the discretion to change how funds are allocated. Still, with groups like the American Institute of Certified Public Accountants calling for a more equitable allocation of funds, you never know…

This story will be continued in the days, months and years ahead. We will be sure to keep you updated and share our thoughts as things unfold. If in the meantime, you have any questions or need accounting, tax, auditing, or advisory services, RBT CPAs is here for you. Just give us a call. NOTE: This alert shares RBT CPAs’ initial interpretations. It should not be construed as legal or financial advice or direction.

Visions Human Resource Services, LLC’s Kelly Caldwell, Admitted to the Partnership

FOR IMMEDIATE RELEASE

Visions Human Resource Services, LLC, an affiliate of RBT CPAs, takes great pleasure in announcing that Kelly Caldwell of Saugerties, New York has been named Partner.

Kelly graduated from SUNY Ulster with an associate degree in Individual Studies, earned a Paralegal certificate from Marist College, and received a Certificate in Leadership from The Chamber Foundation, Inc. She also has her certification as a Senior Human Resources (SHRM-SCP) Professional from the Society of Human Resources Management (SHRM). She joined Visions Human Resource Services in 2022.

Kelly is very active in her community, volunteering with several organizations including the Kingston Chapter of the Association of Junior Leagues International and the Kingston Chapter of Kiwanis International. She is also the Mid-Hudson Chapter President for SHRM and a member of SHRM’s New York State Council and Insights Panel.

Kelly is a lifelong Hudson Valley resident. Since 2009, she has lived in Saugerties with her daughter Bailey.

She says, “Being a partner enables me to bring another level of experience and knowledge to client engagements. In addition to specializing in human resources, I now share many of my clients’ concerns and priorities as a business owner. This will make me even more effective at helping business owners with everything related to having employees, so they’re freed up to focus on what they need to do to succeed in the core of their businesses.”

Visions Partner Janet Gianetta says, “I am very pleased and proud for Kelly to be a Partner in Visions HR. She is a highly skilled, Certified HR professional and is an excellent resource for our clients.”

RBT Managing Partner, Michael Turturro adds, “Congratulations to Kelly! We are thrilled to have Kelly as a Visions HR Partner and know she is going to do great things for our clients and other Hudson Valley businesses in the future.”

RBT CPA’s Kirstyn Cerone, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Kirstyn Cerone, CPA, of Montgomery, New York, has been admitted to the Firm as a Partner.

Kirstyn has been with the Firm since 2013, when she graduated Mount Saint Mary College with an Accounting degree and subsequently earned an MBA. Kirstyn works out of the Client Advisory Services Department in the Newburgh office. She is also Treasurer for the Business Council of Greater Montgomery and on the parent advisory board at the Children’s Hospital of Philadelphia for the spina bifida program. Kirstyn grew up in Montgomery, where she now resides with her husband Dave and son David.

Of her new role, Kirstyn says, “I am most excited about being able to play a leadership role in advancing the firm by helping our clients and my team develop, grow, and succeed.”

Managing Partner, Michael Turturro adds, “Kirstyn is one of the most genuine people you’ll ever meet. She is whole heartedly committed to treating her clients and team the way she wants to be treated and to going above and beyond to help them succeed. RBT is lucky to have her as a Partner and we can’t wait to see the amazing things she is going to do in the years ahead.”

RBT CPA’s Chris Seger, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Chris Seger, CPA, of Montgomery, New York, has been admitted to the Firm as a Partner.

Chris graduated from Coastal Carolina University with a bachelor’s degree in Accounting in 2014 and a master’s degree in Accounting with a focus on taxation in 2015. He joined RBT CPAs in 2015 as a member of the Client Advisory Services team in Newburgh, and earned his CPA in 2016.

Chris strives to make a difference in the local community. He is a board member of the New York State Society of CPAs Mid-Hudson Chapter and Walden Rotary member. Chris is also treasurer and a board member of Independent Living, Inc., which advocates and strives to provide the highest quality of life for all.

Chris was born in Lake Katrine and grew up in New Paltz. After moving south for college, he returned to the Hudson Valley, building a home in Montgomery with his wife Katrina and his children Harlow and Grayson. In his spare time, Chris enjoys working on home projects and cars.

He says, “RBT is a wonderful place to work. The firm is very client focused and makes client relationships the main priority. It is our goal to get to know our clients and support them in ways that allow us to see their businesses grow.”

Managing Partner, Michael Turturro adds, “Chris has a tremendous amount of energy and enthusiasm, which he puts into everything he does. I look forward to watching him grow as a leader and major contributor to our clients’ and company’s success.”

RBT CPA’s Kurtis Nordahl, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Kurtis Nordahl, CPA, of Modena, New York, has been admitted to the Firm as a Partner.

Kurtis has a bachelor’s degree in math, a bachelor’s degree in accounting and an MBA from SUNY New Paltz. He joined RBT in Client Advisory Services in the Newburgh office in 2012 and earned his CPA in 2014. Kurtis is currently treasurer of the local Southern Ulster Rotary. He also serves as treasurer for ARC of the Greater Hudson Valley and is on the finance committee for the Community Foundation of Orange and Sullivan.

Kurtis grew up in the Hudson Valley, where his father ran a small business and his two sons – Zakary and Lukas – currently attend the same school district he and his wife Ashley did growing up. In his free time, he enjoys long distance running and cross-country skiing, as well as being an active and involved dad.

He is excited to begin his new role at RBT and says, “We’re innovative. We listen to our clients and team members and try to implement change when we can. I also believe in our commitment to quality. You can get taxes done anywhere, but we really care about the work and getting it done right.”

Managing Partner, Michael Turturro adds, “Kurtis keeps his eye on the prize and works tirelessly to achieve what he sets his mind to. He will undoubtedly deliver a lot of value to our company, clients, and team in the years ahead.”

RBT CPA’s Nicholas Watkins, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Nicholas Watkins, CPA, of New Windsor, New York, has been admitted to the Firm as a Partner.

Nick graduated from SUNY New Paltz with an Accounting degree in 2013 and joined RBT CPAs’ Tax Department in the Newburgh office in 2015. Nick is on the local Board for the New York State Society of CPAs, serves as the group’s Secretary, and chairs the NextGen Committee. He is also President of the Mid-Hudson Bowling Association responsible for promoting the sport of bowling through leagues, tournaments, and fundraisers.

Nick grew up in the Hudson Valley. An avid bowler, you’ll likely find him at the lanes at least once a week or watching or attending a New York sporting event as a huge Mets, Jets, and Rangers fan. On becoming partner, Nick says, “A lot of people have helped me get to where I am, and I want to do the same for others – to help them get to the next level in their career.”

Managing Partner, Michael Turturro adds, “Nick is a focused, thoughtful, and tenacious professional who continuously delivers value to our team, clients, and firm. He is a welcome addition to our partnership. We know there are great things ahead for Nick and RBT.”