24 Del. Admin. Code § 100-7.0 - Issuance and Renewal of CPA Permits to Practice and Maintenance of Competency

7.1 Reciprocity

7.1.1 This regulation provides 2 distinct routes for an individual already licensed in another state to obtain a reciprocal permit to practice in Delaware. Individuals may qualify for a reciprocal permit to practice as described in 24 Del.C. § 109 (substantial equivalency) or as described in Section 108(c)(2) and subsection 7.2 of this regulation. Individuals with a principal place of business in another state may offer or render services in Delaware pursuant to substantial equivalence (see 24 Del.C. § 109).

7.1.2 If the substantial equivalency standard set out in 24 Del.C. § 109 is not applicable, the Board shall issue a reciprocal permit to practice to the holder of a certificate, license or permit issued by another state provided that the applicant meets each of the following requirements:

7.1.2.1 Has successfully completed the CPA examination. Successful completion of the examination means that the applicant passed the examination in accordance with the rules of the other state at the time it granted the applicant's initial certificate, license or permit.

7.1.2.2 Has satisfied the 4-in-10 experience requirement set out in 24 Del.C. § 108(c)(2)(b).

7.1.2.3 Has experience of the type required under the 24 Del.C. § 107(f) and this regulation for issuance of the initial permit to practice.

7.1.2.4 Has met the continuing professional education ("CPE") requirement pursuant to 24 Del.C. § 108(e).

7.2 CPE requirements for renewal of permits to practice

7.2.1 Hours Required

7.2.1.1 Each permit holder must have completed at least 80 hours of acceptable CPE each biennial reporting period. Each biennial reporting period ends on June 30 of each odd-numbered year. The 80 hours of acceptable CPE submitted must have been completed in the immediately preceding 2-year period and must include 8 credit hours in accounting or auditing and 8 credit hours in taxation and 4 credit hours in a Delaware specific ethics course approved by the Board as set forth in subsection 7.2.3.2. In addition to these 20 specified hours, each permit holder must complete at least an additional 20 credit hours in either accounting, auditing, or taxation.

7.2.1.2 Each permit holder must complete at a minimum 20 hours of CPE in each year of the reporting period.

7.2.2 Reporting Requirements. License renewal may be accomplished online at www.dpr.delaware.gov. Each permit holder shall attest as to whether the CPE was completed as required by subsection 7.2.

7.2.2.1 Attestation shall be completed electronically.

7.2.2.2 Audits will be performed by the Board to ensure compliance with the CPE requirements.

7.2.2.2.1 The Board will notify permit holders within 180 days of June 30 of each biennial renewal period that they have been selected for audit.

7.2.2.2.2 Permit holders selected for random audit shall be required to submit a summary of their CPE attendance on a Board approved log with verification within 30 days of the date of notification of selection for audit.

7.2.2.3 Verification shall include such information necessary for the Board to assess whether the course or other activity meets the CPE requirements in subsection 7.2. Verification must include the following information:

* Date of course;

* Location of course, if applicable;

* Field of study;

* Sponsor of course;

* Title of course or description of content;

* Number of hours claimed; and

* Type of instructional/delivery method.

7.2.2.4 The Board shall review all documentation submitted by permit holders pursuant to the audit. If the Board determines that the permit holder has met the CPE requirements, their permit shall remain in effect. If the Board determines that the permit holder has not met the requirements, the permit holder shall be notified and a hearing may be held pursuant to the Administrative Procedures Act. The hearing will be conducted to determine if there are any extenuating circumstances justifying the noncompliance with the CPE requirements. Unjustified noncompliance with the requirements set forth in this regulation shall constitute a violation of 24 Del.C. § 117(6) and the permit holder may be subject to one or more of the disciplinary sanctions set forth in 24 Del.C. § 118. The Board has the authority to enter into a consent agreement with the permit holder prior to conducting a hearing.

7.2.3 Proration. CPE requirements shall be prorated for new permit holders or holders of permits issued upon re-entry from inactive status pursuant to subsection 7.2.11.4 only. Thereafter all permit holders are required to complete at least 80 hours of acceptable CPE biennially.

7.2.3.1 If the initial permit or permit issued upon re-entry from inactive status was issued less than 1 year prior to the renewal date, there shall be no CPE requirement for that period. The requirement of a minimum of 20 hours to be completed in each year shall be waived.

7.2.3.2 If the initial permit or permit issued upon re-entry from inactive status was issued at least 1 year, but less than 2 years prior to the renewal date, the CPE requirement shall be 40 hours for that period, and the requirement of a minimum of 20 hours to be completed in each year shall be waived. The 40 hours of CPE shall consist at a minimum of 8 credit hours in accounting or auditing and 8 credit hours in taxation and 4 credit hours in a Delaware specific ethics course approved by the Board.

7.2.4 Exceptions. The Board has the authority to make exceptions to the CPE requirements for reasons of individual hardship including health, military service, or other good cause. Requests for exceptions shall be made in writing and received by the Board prior to the applicable renewal period.

7.2.5 Qualified Programs

7.2.5.1 CPE activities are learning opportunities that contribute directly to a licensee's knowledge, ability, and competence to perform their professional responsibilities. CPE activities should address the licensee's current and future work environment, current knowledge and skills, and desired or needed knowledge and skills to meet future opportunities or professional responsibilities.

7.2.5.2 The following learning activities shall qualify for CPE credit:

7.2.5.2.1 A learning activity that is coordinated and presented by a qualifying CPE program sponsor as set forth in subsection 7.2.6. The sources of qualifying learning activities include the following:

7.2.5.2.1.1 Group Programs. Group programs include any group live or group internet-based programs. Group live programs are those in which participants engage simultaneously in learning activities in a group environment with real time interaction of a qualified instructor or subject matter expert that provides the required elements of attendance monitoring and engagement. Group internet-based programs are those in which an individual participates in simultaneous learning with other participants through the internet with real time interaction of an instructor or subject matter expert and built-in processes for attendance and interactivity.

7.2.5.2.1.2 Self-Study Programs. Self-study programs are defined as a program of learning completed individually without the assistance or interaction of a real time instructor.

7.2.5.2.1.3 Blended Learning Programs. Blended learning programs are defined as an educational program that includes both a learning activity in which the participant has control over time, place or pace of learning and a group program in which participants engage simultaneously in learning activities and incorporates different instructional delivery methods or instructional strategies or different levels of guidance. Blended learning programs must employ instructional strategies that clearly define learning objectives and guide the participant through a program of learning. Pre-program, post-program, and homework assignments should enhance the learning program experience and must relate to the defined learning objectives of the program.

7.2.5.2.1.4 Nano Learning Programs. Nano learning programs are completed individually without the assistance or interaction of a real time instructor that is designed to permit a participant to learn a given subject in a minimum of 10 minutes and less than 20 minutes through the use of electronic media (including technology applications and processes and computer-based or web-based technology). A nano learning program differs from a self-study program in that it is typically focused on a single learning objective and is not paper based. A nano learning program is not a group program. Nano learning is not a substitute for comprehensive programs addressing complex issues. Nano learning programs must employ instructional strategies that clearly define a minimum of one learning objective, guide the participant through a program of learning, and provide evidence of a participant's satisfactory completion of the program. Satisfactory completion of the program must be confirmed at the conclusion of the program through a qualified assessment. Review questions or other content reinforcement tools may be included in a nano learning program.

7.2.5.2.1.5 Instructor/Developer of CPE programs in subsections 7.2.5.2.1.1, 7.2.5.2.1.2, 7.2.5.2.1.3, 7.2.5.2.1.4, 7.2.5.2.2, and 7.2.5.2.4 of this regulation.

7.2.5.2.2 A college or university course that is coordinated and presented by a qualifying university or college. No CPE shall be permitted for attending or instructing college or university courses considered to be basic or introductory accounting courses or CPA exam preparation/review courses. No CPE credit shall be given for non-credit courses.

7.2.5.2.3 Authorship of published articles, books, or other publications relevant to maintaining or improving professional competence.

7.2.5.2.4 Specialized group learning activity that is coordinated and presented by a person, firm, association, corporation, or group, other than a qualifying CPE program sponsor as defined in subsection 7.2.6. These programs are generally related to topics of specialized knowledge field of study by persons or organizations with expertise in these specialized industries.

7.2.5.2.5 Participation and work on a technical committee of an international, national, or state professional association, council, or member organization or a member organization of a governmental entity that supports professional services or industries that require unique and specific knowledge in technical fields of study.

7.2.6 Qualifying CPE Sponsors. The following are deemed to be qualifying CPE program sponsors provided they offer activities that comply with Section 7.0 this regulation:

7.2.6.1 Persons, firms, associations, corporations, or other groups that are members of NASBA's National Registry of CPE Sponsors.

7.2.6.2 Recognized national and state professional accounting associations and their local affiliates.

7.2.6.3 Universities or colleges accredited at the time the CPE program was delivered by virtue of accreditation by an organization recognized by the Middle States Commission on Higher Education or by a comparable regional accrediting organization.

7.2.6.4 Accounting firms with an active firm permit to practice or its equivalent.

7.2.6.5 Persons, firms, associations, corporations, or other groups that are approved by the Board to offer Delaware-specific ethics.

7.2.7 Evidence of CPE Completion. Acceptable evidence for completion of qualifying learning activities shall include the following:

7.2.7.1 For programs or courses as set forth in subsections 7.2.5.2.1 and 7.2.5.2.2, acceptable evidence includes a certificate of completion or transcript issued by the qualifying CPE program sponsor.

7.2.7.2 For activities as set forth in subsection 7.2.5.2.3, acceptable evidence includes a copy of the publications that names the licensee as author or contributor; a statement from the licensee supporting the number of CPE credits claimed; and the name and contact information of the independent reviewer or publisher.

7.2.7.3 For programs or courses as set forth in subsection 7.2.5.2.4, acceptable evidence includes a certificate of attendance or other verification supplied by the program sponsor. If a certificate of attendance or other verification is not available, then acceptable evidence includes copies of the course agenda, program materials, or other documents attributable to the learning activity.

7.2.7.4 For activities as set forth in subsection 7.2.5.2.5, acceptable evidence must include a written certificate of the licensee setting forth all of the following:

7.2.7.4.1 The nature of the activity (e.g., topic or specific new competency acquired), the items discussed, and source/materials considered.

7.2.7.4.2 The dates on which the learning activity occurred.

7.2.7.4.3 The number of CPE credits attributed to the learning activity.

7.2.7.4.4 Details of the relevance of the learning activity to the participant's current or future development.

7.2.8 Computation of CPE Credits. Each approved CPE course, program, or activity shall be measured by program length, with 1 50-minute period equal to 1 CPE credit. Computation of CPE credits for qualifying CPE programs shall be as follows:

7.2.8.1 Group programs and blended learning programs. A minimum of 1 credit must be earned initially, but after the first credit has been earned, credits may be earned in 1/2-credit increments.

7.2.8.2 Self-study. A minimum of 1 credit must be earned initially, but after the first credit has been earned, credits may be earned in 1/2-credit increments. The maximum credit toward meeting the CPE requirement with self-study must not exceed 30% of the total requirement.

7.2.8.3 Nano-learning. The credit to be earned for a single nano-learning program is 1/5 credit. The maximum credit toward meeting the CPE requirement with nano learning must not exceed 5% of the total requirement.

7.2.8.4 For blended learning programs, CPE credit must be equal the sum of the CPE credit determination for the various completed components of the program.

7.2.8.5 An instructor/developer of qualifying CPE programs included in group programs, self-study programs, and blended learning programs may receive CPE credit for actual preparation time up to 2 times the number of CPE credits to which participants would be entitled, in addition to the time for presentation. For repeat presentations, CPE credit can be claimed only if it can be demonstrated that the learning activity content was substantially changed, and such change required significant additional study or research. Not more than 50% of the total CPE credits required for the CPE reporting period can be claimed for instructor/developer CPE credit.

7.2.8.6 Authors of published articles, books, and other publications may receive CPE credit for their research and writing time to the extent it maintains or improves their professional competence. For the author to receive CPE credit, the article, book, or CPE program must be formally reviewed by an independent subject matter expert. Not more than 25% of the total CPE credits required for the CPE reporting period can be claimed for author CPE credit.

7.2.8.7 For courses that are part of the curriculum of a university, college or other educational institution, each semester hour credit shall equal 15 CPE credits, and each quarter hour credit shall equal 10 CPE credits. CPE credit for instructing a college or university course shall be twice the credit that would have been granted participants for the first presentation of a specific course or program and none thereafter, except if the course content has been substantially revised. To the extent a course has been substantially revised, the revised portion shall be considered a first presentation. Not more than 50% of the total CPE credits required for the CPE reporting period can be claimed for instructor CPE credit.

7.2.8.8 Not more than 25% of the total qualifying CPE credits for a CPE reporting period may consist of a combination of the learning activities defined in subsections 7.2.5.2.4 and 7.2.5.2.5.

7.2.8.9 The following table summarizes the manner in which CPE credits may be accumulated through different types of learning activities:

Qualifying CPE Program pursuant to subsections 7.2.5.2.1	Minimum initial credit that must be earned	After first credit has been earned, credit may be earned in these increments	Maximum credit allowed per reporting period
Group	1	1/2	100%
Blended Learning	1	1/2	Based on program maximum
Self-Study	1	1/2	30%
Nano Learning	1/5	Not applicable (single nano-learning program is 1/5 credit)	5%

7.2.9 Evidence of Completion and Retention of Records

7.2.9.1 Primary responsibility for documenting the Board's CPE requirements rest with the applicant. Evidence in support of the requirements shall be retained for a period of 5 years after completion of the educational activity.

7.2.9.2 Sufficiency of evidence includes retention of course outlines and such signed statements of attendance as may be furnished by the sponsor.

7.2.9.3 For courses taken pursuant to subsection 7.2.8.7 an official college transcript will be considered evidence of satisfactory completion.

7.2.10 Composition of CPE. CPE credit hours may be satisfied by general subject matters so long as they contribute to the professional competence of the individual practitioner. Such general subject matters include the following areas:

* Accounting

* Auditing

* Business Law

* Communications and Marketing

* Computer Software and Applications

* Economics

* Finance

* Information Technology and Data Analytics

* Management Services

* Personnel Relations, Business Management and Organization

* Regulatory Ethics

* Personal Development

* Specialized Knowledge

* Taxation

7.2.11 The Board may make an exception to the requirement set out in subsection 7.2.1 for a CPA permit holder who has been granted inactive status and who does not perform or offer to perform one or more kinds of services involving the use of accounting or auditing skills, including the issuance of reports on financial statements or other compilation communication, or of one or more kinds of management advisory, financial advisory or consulting services, or the preparation of tax returns or the furnishing of advice on tax matters. Those requesting inactive status and those granted inactive status must comply with all of the following requirements.

7.2.11.1 Permit holders who request inactive status must do so on forms prescribed by the Board. Inactive status is not valid until approved by the Board.

7.2.11.2 Permit holders granted an exception by the Board must place the word "inactive" adjacent to their CPA title on any business card, letterhead or any other document or device, with the exception of their CPA certificate, on which their CPA title appears.

7.2.11.3 Permit holders granted an exception by the Board must comply with a re-entry c CPE requirement defined by the Board as set out in subsection 7.2.11.4 and must request re-entry on forms prescribed by the Board and be approved for re-entry before they may discontinue use of the word "inactive" in association with their CPA title.

7.2.11.4 Permit holders requesting re-entry must comply with the CPE requirement as set out in subsection 7.2.1.1. Only CPE completed in the 2-year period prior to the date of application for re-entry will qualify. If the CPE is completed in less than 2 years, then the requirement of a minimum of 20 hours in each year does not apply.

7.2.12 CPAs who hold expired permits as of July 1, 2016 and who failed to reinstate their permit during the 2015-2017 renewal period must meet all of the requirements for initial issuance of permits to practice.

Notes

24 Del. Admin. Code § 100-7.0

20 DE Reg. 820 (4/1/2017)
21 DE Reg. 53 (7/1/2017)
25 DE Reg. 871 (3/1/2022)
27 DE Reg. 978 (6/1/2024) (Final)