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Michigan Jurisdiction for CPE


Last Modified: 4/9/2020


Contents

Important Note:

March 2020: Note from the MI Board: Update Related to COVID-19: Given the current national emergency related to COVID-19, now through the end of the education cycle on June 30, 2020, the MI Board will recognize CPE that is taken through all electronic means, including webinars, self-study, elearning, etc. relative to fulfillment of CPA license renewal requirements for accounting and auditing (A&A), ethics (including MI-specific ethics), and general education hours.

Link(s)

Michigan State Board of Accountancy Website

Michigan CPE Rules


Upcoming Rule Change(s)

Compliance Period

An annual fiscal period which begins on 7/1 and ends on 6/30.

Reporting Period and Method

Reporting is done biennially in odd-numbered years on 7/31. Reporting forms are mailed to licensees in June of odd-numbered years.

Responsibility for documenting the successful completion of CPE requirements rests solely with the licensee. A licensee shall retain evidence to support fulfillment of the CPE requirements for a period of four years after submission of the CPE report for biennial renewal.

Requirements

Restrictions

New Licensees

New licensee periods begin on the date of licensure and end on the next 6/30 after licensure. The department shall deem a person granted an original certificate of CPA to have complied with all CPE requirements through the CPE period ending 6/30 of the year in which the certificate was granted.

CPE Credit Calculation

The department shall give CPE credit based on the length of a qualifying program, with 50 minutes of continuous instruction constituting 1 qualifying hour. One-half-credit of CPE shall be granted for every additional 25 minutes of instruction, after the 1st hour of credit is earned. The department shall not allow credit for CPE hours for time expended for outside study, except as provided under self-study.

For the purpose of this rule, "continuous instruction" means education time not including breakfast, lunch, or dinner periods, coffee breaks, or any other breaks in the program.

Group programs: A licensure applicant or licensee shall receive CPE credit for attendance at a group program that is in compliance with all of the following requirements:

The department shall measure the hours spent attending CPE group programs as follows:

Subjects qualifying for CPE include each of the following:

Self-study programs: A licensure applicant or licensee shall receive CPE credit for an individual self-study program that is in compliance with all of the following requirements:

A licensee shall not receive credit for repeating a self-study program or course or another self-study program or course that has substantially the same content during a CPE period.

Teaching and Repeat Credit Calculation

Each hour of classroom work as a teacher, instructor, speaker, or lecturer at an educational institution, or each hour spent conducting a group program as a teacher, instructor, lecturer, speaker, or seminar discussion leader, equals 3 CPE hours for the initial session of the course or program taught.

The department shall not give additional credit for subsequent repetitious sessions during the same CPE period.

Carryover Credit

Updated 6/17/2018: CPAs who have earned more than 40 hours of continuing education in a year may carry over the excess hours to the next year, with the following limitations:

Any hours in excess of the required 40 hours for each CPE period may be carried over to the following CPE period up to a maximum of 40 hours.

Carryover credit maintains its "format" characteristics.

Exemptions

CPAs not in public practice are exempt from the CPE requirements.

The Board may make exceptions to the CPE requirements for reasons of health, military service, or other good cause.

Entry or reentry into practice of public accounting:

The department shall prorate, from the date of licensure, the qualifying hours required for the CPE period in which the license is granted.

Extensions

Although the Compliance Period for Michigan is annual, reporting is tracked biennially. A licensee who does not earn sufficient qualifying hours during the CPE period may be allowed to renew a license upon reporting 80 qualifying hours and an additional 4 hours of CPE credit for each month of time needed to remove the deficiency.

The department may waive the requirement for additional hours upon a showing by the licensee that the additional hours would present an undue hardship on the licensee.

Notes on Upcoming Rule Change(s)

Revise Compliance Report to reflect annual CPE Period instead of biennial Reporting Period:

In the February 1 Release, the Michigan Compliance Report views will change. Instead of each report containing 2 annual periods (7/1, ODD YEAR - 6/30, ODD YEAR), the new reports will show Michigan in a year-by-year basis, beginning AFTER the 6/30/2015 2-year period.

This was done because the informal Michigan rule of allowing “carryback” credits (from Year 2 to Year 1) is no longer acceptable to the MI Board after 6/30/2015. Also, by having annual periods, this allows you to accurately view a professional’s annual requirements, sub-requirements, restrictions, remainders and carryover credits in a clearer way. Having annual Compliance Reports also allows you to add an extension to any annual period where there may be a deficiency. Note that the new rules engine will add 4 penalty credits for each month of extension that is added (per Michigan regulations).

The tables below show the before and after details.

Before February 1 Release

Display Period Period Dates Years Notes
Current 7/1/2017 – 6/30/2019 2-Year Period Allows Carryback Credits from FY2019 to FY2018
Previous 7/1/2015 – 6/30/2017 2-Year Period Allows Carryback Credits from FY2017 to FY2016
Previous2 7/1/2013 – 6/30/2015 2-Year Period Allows Carryback Credits from FY2015 to FY2014
Previous3 7/1/2011 – 6/30/2013 2-Year Period Allows Carryback Credits from FY2013 to FY2012
Previous4 7/1/2009 – 6/30/2011 2-Year Period Allows Carryback Credits from FY2011 to FY2010

After February 1 Release

Display Period Period Dates Years Notes
Current 7/1/2017 – 6/30/2018 1-Year Period No Carryback Credits; Can Add Extension to 2018
Previous 7/1/2016 – 6/30/2017 1-Year Period No Carryback Credits; Can Add Extension to 2017
Previous2 7/1/2015 – 6/30/2016 1-Year Period No Carryback Credits; Can Add Extension to 2016
Previous3 7/1/2013 – 6/30/2015 2-Year Period Allows Carryback Credits; Can Add Extension to 2015 Only
Previous4 7/1/2011 – 6/30/2013 2-Year Period Allows Carryback Credits; Can Add Extension to 2013 Only


Additional Notes on revised periods:

The February 1 Release will reprocess ALL Michigan Compliance Reports to conform with the periods noted above. The Current, Previous and Previous2 reports will also be recalculated using the new rules engine. However, the Previous3 and Previous4 reports will NOT be recalculated using the new rules engine so that their calculations will be preserved from the pre-February 1 Release. If you want to recalculate Previous3 and Previous4 Compliance Reports, you must unlock them.

Removal of Additional Credits Applied Column:

With the February 1 Release, the Additional Credits Applied column will be removed. In the past, this column could be comprised of Fresh Credits Earned, Carryback Credits Applied, Carryover Credits Applied and ‘spillover’ credits (i.e., extra A&A or Ethics credits that were being applied to the General category). In the February 1 Release this column is removed because carryback is no longer applied from 7/1/2015 going forward. Also, you will be able to clearly see the carryover that is applied from the Previous Compliance Report.

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