Setting and Administration of Illinois CPE Requirements
Lifelong education and professional development are an essential part of being a Certified Public Accountant (CPA). Continuing Professional Education (CPE) is a form of professional education focusing on educational activities licensed by state accountancy boards to expand the knowledge and skills of CPAs to close the gap between education and hands-on experience. While it is an assist in maintaining professional competence, CPE is also a requirement for CPAs to maintain their licenses.
In Illinois, CPE requirements for CPAs are governed by the Illinois Department of Financial and Professional Regulation (IDFPR) under the Accountancy Act of 2008. The IDFPR requires CPAs licensed in Illinois who plan to renew their license to complete 120 hours of CPE every three years. The IDFPR provides a comprehensive list of qualifying CPE programs , including seminars, self-study courses, conference attendance, subject update tools, and certificate programs.
Of the 120 required CPE hours, Illinois CPAs must complete a minimum of 20 CPE hours per year, with no fewer than 4 CPE hours being in subjects related to rules and standards of the profession as found in Illinois Compiled Statutes (ILCS) 5/8. Shedding some light on compliance and expectations, we will more fully explain this CPE-hour requirement and its relation to Illinois law in our subsequent articles.
Mandatory CPE Hours for Illinois CPAs
Mandatory Continuing Professional Education ("CPE") July 1, 2018 through June 30, 2021 For CPAs with an Illinois license, a minimum of 120 total CPE hours are required every three-year period to maintain licensure. This is a modest increase over the previous 100-hour requirement embraced by the Illinois Department of Financial and Professional Regulation ("IDFPR"). For most licensees, the reporting deadline is June 30 of the designated renewal year, and the subsequent triennial period also ends on June 30. There is some flexibility built into the IDFPR’s CPE policy that allows CPAs to complete 20 of the 120 hours in non-qualifying subjects while also granting an additional 30 days for "reasonable cause."
While licensees need to accumulate 120 CPE hours to maintain licensure, this is not an annual requirement. Unlike Washington, which requires 40 CPE hours per year and has updated its regulations to follow the 2018 Uniform CPA Examination syllabus, Illinois does not have distinct CPE requirements for initial licensure versus license renewal. While CPE reports are submitted every three years, many professionals in Illinois treat each individual year as being equivalent to 40 CPE hours. So instead of accumulating only 120 hours for the entire three-year period, CPAs often abide by a uniform 40 CPE hours annually during even-numbered years.
Additionally, the IDFPR’s policy states that Illinois licensees are expected to accumulate 20 out of the 120 CPE hours as "Ethics" and 8 as "Taxation" courses. The education can be taken any year – but must be at the time of reporting.
Approved CPE Subject Areas and Formats
The Illinois Board of Accountancy specifies that all CPE courses must be in subject areas directly related to the practice of accounting and auditing, or such other technical or managerial subjects that will enhance a CPA’s professional skills. Acceptable subjects are generally in the areas of accounting, auditing, taxation, personal development, management, finance, computer/software and specialized industries.
Of the 120 hours that CPAs in Illinois are required to complete during a two-year period, no more than 60 hours may be in personal development subject areas. There are no restrictions on where the 24 hours of ethics training must be taken.
CPAs can complete CPE using classes, seminars, webinars and self-study programs. However, there are limitations on certain types of training. For example, online self-study programs are accepted, but not beyond 50 percent of the total required amount. The Nevada State Board does not accept CPE credit for informal "on the job" training. Online delivery systems and group study formats are preferred as opposed to self-study. This doesn’t mean that self-study would be denied, only that it is more likely to be limited.
A few examples of the acceptable subject areas include financial reporting, financial or economic forecasting, business valuation, financial modeling, enterprise risk management, investment and portfolio management, wealth management, practice management and consulting, personal and corporate taxation, management and philanthropy, accounting and auditing standards, internal auditing, and forensic accounting.
Reporting and Compliance Periods
Illinois CPAs can report their CPE Meeting requirements electronically at the IDFPR (Illinois Department of Financial & Professional Regulation) website. This report must be submitted every two years consistent with their license renewal period. The report includes the licensee name, license number, and proof of satisfactory completion of the required continuing education courses (number of credits, content areas, title, course location, and date of completion).
Non-compliance at the time of renewal can result in non-renewal of the license (after the late fees are assessed) . Licensees will receive courtesy emails alerting them to their non-compliance, and finally a certified letter will notify the licensee that their license will not be renewed for failure to comply.
It is the responsibility of the licensee to maintain a record of all continuing education courses completed during the course of the renewal cycle with proof of satisfactory completion in the same format as required by the IDFPR for a period of five years from the date of the course. Licensees may be selected for audit and they shall make their records available for review by the Department during normal business hours at the licensee’s place of business.
Extensions and Exemptions
While the goal of Illinois CPE requirements is to ensure that CPAs stay current in the profession, the state does allow for exemptions in certain instances. For example, if an individual has practiced in Illinois for at least 20 years, they may be eligible for a CPE exemption; however, this exemption cannot be invoked until the end of the two-year period for which CPA license renewal is requested. Often, licensed CPAs who have worked 20 years or more in the profession are older and have also completed leadership, management, or other technical training as part of their career. To receive the exemption, a request must be sent to the Illinois Department of Professional Regulation (IDFPR) at least 30 days prior to the expiration of the license, accompanied by the fee for the renewal period. A renewal period is a two-year cycle during which a license must be renewed in order for it to continue and be considered active. An extension may also be sought in special circumstances in which full compliance with the two-year CPE requirement may not be possible. For instance, an extension may be granted in cases of illness or injury supported by adequate documentation filed with the IDFPR. An extension may also be granted for a period of less than 12 consecutive months during which the license has been in inactive status. This has specific provisions and must not constitute a full license renewal period. However, 25 percent of the relevant CPE requirements must be met during an extension year for a CPA to retain their license.
Selecting a Licensed CPE Provider
When it comes to selecting a Continuing Professional Education (CPE) provider in Illinois, most CPAs will first check in with their professional associations. Leading organizations such as the Illinois CPA Society (ICPAS), where this blogger is currently enrolled as a CPE course instructor, and CPA Crossroads Online have made strong reputations for themselves as trusted CPE providers. Independent reviews of these sites are a good way to determine their quality and reputation, and the ICPAS is endorsed by the Illinois Board of Accountancy. Of course, it should go without saying, but only work and take courses from quality, well-known CPE providers.
Another way to weed out the bad providers is by checking for a guarantee. Quality CPE providers will usually offer some sort of refund policy within 30 days of the date of the CPE course purchase. If the provider does not have this feature, either skip to the next one or just make sure that the content of the CPE course is exactly what you need. Also, reputable providers of online CPE courses will be visible to the government’s IRS EXEMPT organizations CPE directory, which lists all CPE providers that are qualified by the Internal Revenue Service. Hopefully, the providers you are considering will show up there.
But perhaps the best way to fully vet a CPE provider is to "go viral" by reading CPA blogs . Most professional accounting blogs will have sections dedicated to reviews and write-ups of continuing education courses.
In addition, peer recommendations are another way to find reputable CPE providers. Ask your fellow CPAs and colleagues in the marketplace who they think are the best providers, and why. But be careful: It doesn’t matter if the CPA offering an opinion on a CPE course or provider is your closest friend; you should be critical. Remember that CPAs are still human, unfortunately.
Last, while CPE provider quality is important, CPAs should really be concentrating on the content more than anything. According to the Illinois State Board of Accountancy, CPE course requirements state that a CPA has to get at least 120 units of CPE every three years in order to stay licensed. But remember, just because a provider is known to be quality doesn’t ensure that the courses it offers will be right for you. It is obviously vital to conduct due diligence on the provider, but equally important to know that CPE courses may or may not necessarily cover the topics you need to stay licensed, and many will not.
The bottom line is being diligent in the makeup of your CPE professionals so that you can focus on your day job as a CPA without worrying about your licensing status or your next CPE course.