New Jersey State Board of Accountancy

In response to the recent proposal for an alternative pathway to the standard 150-hour requirement for CPA licensure by the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA), the New Jersey State Board of Accountancy voted unanimously for the candidate to have the following:

      * Bachelor’s degree (which is usually 120 credits) – with 24 credits required in accounting and business

      * Two years of general experience (not competency-based)

The Board voted to ask the Division of Consumer Affairs and the Office of the Attorney General to find a sponsor to introduce legislation that would implement their positions. That process will take a few months. First, the Division has to review the Board’s request. If they agree, they would draft a recommendation to the Attorney General’s office, which would then review it from a policy and legal perspective. If they agree, the Attorney General would seek a sponsor to introduce a bill.

Applications are open until Nov. 25 to sit for the Registered Municipal Accountant (RMA) Exam on Dec. 6. Applications may be found on the Board’s website at www.njconsumeraffairs.gov/acc under the Applications and Forms tab. Completed applications should be emailed to accountancy@dca.njoag.gov. Study materials, including the past exam, may be found under the Study Materials tab. Questions can be sent to accountancy@dca.njoag.gov.

In responding to a question, the New Jersey State Board of Accountancy clarified that work experience in the field of accounting before graduating college does not count towards CPA experience for the candidate requirement even if college credit is awarded. The individual has to graduate college first for accounting work to count towards that criteria. 

The board said, in general, that the deadlines for taking lapsed parts of the CPA Exam are enforced. However, the board may review hardship exemptions to expired CPA Exam credit on a case-by-case basis. Candidates are encouraged to seek out exemptions, if needed, by contacting the Board office at accountancy@dca.njoag.gov and staff will discuss the supporting documents that should be submitted for the Board to review. Most candidates aren’t aware of this option. 

The New Jersey State Board of Accountancy reiterated that while it approved the 30-month CPA Exam extension on an interim basis until formal regulations are adopted, it appears that the National Association of State Boards of Accountancy (NASBA) is unaware of the extension. Executive Director Michaela Ross reported that the Board has notified NASBA several times of the extension approval and will continue to do so. She also stated that the New Jersey State Board of Accountancy can only answer questions regarding the extension that are specific to individuals, on a case by case basis. The Board cannot issue general guidance because the specifics of each case can vary greatly.

Candidates with questions are encouraged to take a screen shot of their Exam status from the NASBA Central Portal (includes 4 boxes for each exam part) https://cpacentral.nasba.org/ and send that along with their questions to accountancy@dca.njoag.gov

The New Jersey State Board of Accountancy agreed to approve the extension of the 18-month window to pass the CPA Exam to 30 months on an interim basis. CPA candidates now have 30 months from the date they pass their first section of the Exam to pass the other three parts. This applies to test candidates who have already taken one or more of the parts of the Exam as well as future Exam takers.  

The New Jersey State Board of Accountancy voted to endorse the new CPA Exam format slated to go into effect on Jan. 1, 2024. The new format, part of the CPA Evolution initiative developed by the AICPA and NASBA, extends the 18-month Exam passage rule to 24 months.

Board member Dan Geltrude reported on the latest developments across the country to achieve the educational requirements needed for licensure. Some believe the current 150-hour requirement, compulsory in almost all states, has acted as a financial and educational burden discouraging many students from pursuing CPA licensure. In New Jersey, PriceWaterhouseCoopers has teamed up with St. Peter’s University on a pilot program that allows students to receive 30 credits for working as paid staff. [Get more info on this program at the NJCPA’s May 2 free webinar.] Geltrude noted that Minnesota introduced legislation that offers a path to licensure that requires only 120 hours. This legislation, supported by the Minnesota Society of CPAs, has created a public rift between the Minnesota Society and the AICPA and NASBA, which oppose dropping the 150-hour requirement. The AICPA and NASBA believe that eliminating the 150-hour requirement will impact mobility and reciprocity in many states. AICPA President and CEO Barry Melancon has also stated that going back to 120 hours would make the public perceive the CPA profession as a trade instead of a profession. However, members of the board expressed strong disagreement with that assessment. Geltrude added that CPA groups across the country are closely watching the Minnesota legislation to see what happens. Geltrude suggested that the Board follow the same strategy of wait and see.

The New Jersey State Board of Accountancy voted to support the proposal to create an alternative path to achieve the 150 credit hours necessary for licensure. This proposal, which does not need Board or legislative approval, would allow students to get their final 30 credit hours by participating in a paid internship program — bringing down the cost of the 150-hour requirement. The Board said that such an internship program would also count towards the experience requirement. PwC and St. Peter’s University will be unrolling a pilot program in the fall.

In addition, the Board said that license wall certificates will be sent out starting this summer. They were suspended during the pandemic.

New Jersey State Board of Accountancy Executive Director Michela Ross said at the Board’s July 15 meeting that while its Newark office is still not open to the public, staff is beginning to transition back. There is no set date for the office to reopen.

Ross said that although the COVID-19 pandemic seems to be easing, the public must still communicate with the Board via email at accountancy@dca.lps.state.nj.us. All license applications should be sent by email, and applicants will receive a confirmation email back from the Board. If the application is approved, the applicant will receive an invoice from the Board.

She reminded the public that, due to the pandemic, the average wait time for processing an application is two months. Board President Ainsley Reynolds said the Board is trying to shorten response time, but too often the problem is that applicants do not fully follow instructions.

Ross stressed that CPAs and CPA candidates should not try to contact Board members directly but must go through staff. Board members have received inquiries from the public at work, home and their social media sites. Contacting Board members in this manner is an invasion of their privacy and will slow down the process.