20:75:04:00.  Definitions.  Terms used in this chapter mean:

 

          (1)  "Advanced," learning activity level that describes programs most useful for individuals with mastery of the particular topic.  This level focuses on the development of in-depth knowledge, a variety of skills, or a broader range of applications.  Advanced level programs are often appropriate for seasoned professionals within organizations; however, they may also be beneficial for other professionals with specialized knowledge in a subject area;

 

          (2)  "Basic," learning activity level that describes the program level most beneficial to a CPA or PA new to a skill or attribute.  These individuals are often at the staff or entry-level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area;

 

          (3) "Blended learning program," an educational program incorporating multiple learning formats;

 

          (4) "Continuing professional education" or "CPE," an integral part of the lifelong learning required of a CPA or PA to provide competent service to the public.  The set of activities that enables a CPA or PA to maintain and improve their professional competence;

 

          (5)  "CPE credit," fifty minutes of participation in a learning activity. A one-half CPE credit increment equals 25 minutes and a one-fifth CPE credit increment equals 10 minutes;

 

          (6)  "CPE program sponsor," an individual or organization responsible for setting a learning objective, facilitating the delivery of a program of study that meets the requirements of this chapter and that achieves the stated learning objective, and maintains the documentation required by board standards as outlined in chapter 20:75:04.  The term, CPE program sponsor, may include associations of accounting professionals, as well as employers who offer in-house programs;

 

          (7)  "CPE program developer," an individual or organization responsible for the development of a course of study designed to meet a proscribed learning objective;

 

          (8)  "Evaluative feedback," specific response to incorrect answers to questions in self-study programs explaining why that specific answer is wrong.  Unique feedback must be provided for each incorrect response, as each one is likely to be wrong for different reasons;

 

          (9)  "Group program," an educational process designed to permit a participant to learn a given subject through interaction with an instructor and other participants either in a classroom setting, conference setting, or by using the internet;

 

          (10)  "Independent study," educational process designed to permit a participant to learn a given subject under a learning contract with a CPE program sponsor;

 

          (11)  "Informal continuing professional education," continuing professional education offered by an organization not in the business of providing continuing professional education, which contributes to, increases, or maintains competency levels of CPAs and PAs;

 

          (12)  "Instructional methods," delivery strategies such as case studies, computer-assisted learning, lectures, group participation, programmed instruction, teleconferencing, use of audiovisual aids, or work groups employed in group self-study, independent study programs, or other innovative programs;

 

          (13)  "Intermediate," learning activity level that builds on a basic program most appropriate for a CPA or PA with detailed knowledge in an area.  Such individuals are often at the mid-level within the organization, with operational and/or supervisory responsibilities;

 

          (14)  "Internet-based programs," a learning activity through a group program or self-study program that is designed to permit a participant to learn the given subject matter via the internet;

 

          (15)  "Learning activity," an educational endeavor that maintains or increases professional competence;

 

          (16)  "Learning contract," a written contract signed by an independent study participant and a qualified CPE program sponsor prior to the commencement of the independent study, that specifies the nature of the independent program and the time frame over which it is to be completed, specifies that the output must be in the form of a written report to be reviewed by the CPE program sponsor or qualified person selected by the CPE program sponsor and outlines the maximum CPE credit to be awarded for the independent study program, limiting credit to actual time spent;

 

          (17)  "Learning objectives," measurable outcomes that participants should accomplish in a learning activity. Learning objectives must be useful to program developers in deciding appropriate instructional methods and allocating time to various subjects;

 

          (18)  "Learning plans," structured processes that assist a CPA or PA in guiding their professional development. They are dynamic instruments used to evaluate and document learning and professional competence development.  This may be reviewed regularly and modified as a CPA's and PA's professional competence needs change.  Plans include:

 

               (a)  A self-assessment of the gap between current and needed knowledge, skills, and abilities;

               (b)  A set of learning objectives arising from this assessment; and

               (c)  Learning activities to be undertaken to fulfill the learning plan;

 

          (19)  "Nano learning program," a tutorial program designed to permit a participant to learn a given subject in one-fifth CPE credit increments through the use of electronic media (including technology applications and processes and computer-based or web-based technology) and without interaction with a real-time instructor. 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;

 

          (20)  "Non-group," programs include self-study programs, independent study programs, nano learning program, service as an instructor, lecturer, or discussion leader, or publishing of articles, books, or continuing professional education programs;

 

          (21)  "Overview," learning activity level that provides a general review of subject area from a broad perspective. These programs may be appropriate for professionals at all organizational levels;

 

          (22)  "Personal development," a field of study that covers such skills as communication, managing the group process, dealing effectively with others, interviewing, counseling, and career planning;

 

          (23)  "Pilot test," sampling of at least three independent individuals representative of the intended participants to measure the representative completion time to determine the recommended CPE credit for self-study programs;

 

          (24)  "Principal place of business," as defined in SDCL 36-20B-1;

 

          (25)  "Professional competence," having requisite knowledge, skills, and abilities to provide quality services as defined by the technical and ethical standards of the profession. The expertise needed to undertake professional responsibilities and to serve the public interest;

 

          (26)  "Program of learning," a collection of learning activities that are designed and intended as continuing professional education that comply with the standards;

 

          (27)  "Reinforcement feedback," specific responses to correct answers to questions in self-study programs. Such feedback restates why the answer selected was correct;

 

          (28)  "Self-study program," an educational process designed to permit a participant to learn a given subject without major involvement of an instructor. Self-study programs use a pilot test or word count formula;

 

          (29)  "University or college," shall mean an accredited institution as described in § 20:75:02:12;

 

          (30)  "Update," a learning activity level that provides a general review of new developments. This level is for participants with a background in the subject area who desire to keep current;

 

          (31)  "Word count formula," a method used to determine the recommended continuing professional education credit for self study programs that uses a formula including word count of learning material, number of questions and exercises, and duration of audio and video segments.

 

          Source: 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 35 SDR 305, effective July 1, 2009; 39 SDR 33, effective September 5, 2012; 41 SDR 111, effective January 19, 2015; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.

          General Authority: SDCL 36-20B-12(3).

          Law Implemented: SDCL 36-20B-27.

 

          20:75:04:01.  Standards for continuing professional education program measurement. The following standards are used to measure the hours of continuing professional education credit:

 

          (1)  Fifty minutes of participation in each approved CPE course, program, or activity is equal to one CPE credit;

 

          (2)  For blended learning programs in which individual segments are less than 50 minutes, the sum of the segments should be considered one total program, with credit granted based on the sum of the various completed components of the program;

 

          (3)  For group programs, independent study, and blended learning programs, a minimum of one CPE credit must be earned initially, but after the first CPE credit has been earned, credits may be earned in a one-fifth or one-half increments;

 

          (4)  For self-study, a minimum of one-half CPE credit must be earned initially, but after the first one-half CPE credit has been earned, credits may be earned in a one-fifth or one-half increments;

 

          (5)  For nano learning, the CPE credit to be earned for a single nano learning program is one-fifth CPE credit;

 

          (6)  Informal CPE credit is limited to those portions of committee or staff meetings that are designed as programs of learning and comply with this section to qualify for CPE credit. The amount of credit awarded shall be the time actually spent meeting and measuring a specific learning objective;

 

          (7)  Accredited university or college courses count as 15 hours for each semester hour and 10 hours for each quarter hour;

 

          (8)  Non-credit university or college courses shall be awarded credit only for the actual classroom time spent in the non-credit course. Credit is not granted to participants for preparation time;

 

          (9)  Instructors or discussion leaders of learning activities may receive credit for both preparation and presentation time provided the activities maintain or increase their professional competence and qualify as credit for participants. Instructors may receive up to two times the number of CPE credits to which participants would be entitled, in addition to the time for presentation. For repeat presentations, CPE credit may be claimed only if it can be demonstrated that the learning activity was substantially changed and such change required significant additional study or research;

 

          (10)  The board may grant credit for the writing of published articles, books, or CPE programs to include credit for research and writing time provided the board determines the activity maintains or improves professional competence. The article, book, or CPE program must be formally reviewed by an independent party. CPE credits should be claimed only upon publication. Not more than half the three-year continuing professional education credit required may be gained through publications;

 

          (11)  Self-study CPE credits must be based on a pilot test of the representative completion time. A sample of intended professional participants should be selected to test program materials in an environment and manner similar to that in which the program is to be presented. CPE credits should be recommended based on the representative completion time for the sample. To provide satisfactory completion of the course, a self-study program must require participants to successfully complete a final examination with a minimum passing grade of 70 percent before issuing CPE credit for the course;

 

          (12)  Self-study word count formula begins with a word count of the number of words contained in the text of the required reading of the self study program and should exclude any material not critical to the achievement of the stated learning objectives for the program. Examples of the information material that are not critical and therefore excluded from the word count are: course introduction, instructions to the learner, author and course developer biographies, table of contents, glossary, and appendices containing supplementary reference materials. Review questions, exercises, and final examination questions are considered separately in the calculation and should not be in the word count. The word count for the text of the required reading of the program is divided by 180, the average reading speed of adults. The total number of review questions, exercises, and final examination questions is multiplied by 1.85, which is the estimated average completion time per question. These two numbers plus actual audio and video duration time, if any, are then added together and the result divided by 50 to calculate CPE for the self study program.

[#of words/180)+actual audio and video duration time + (# of questions * 1.85)]/50=CPE credit;

 

          (13)  Independent study CPE credits recommended by a CPE program sponsor or developer may not exceed the time the participant devoted to complete the learning activities specified in the learning contract.

 

          Source: 29 SDR 16, effective August 14, 2002; 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 35 SDR 305, effective July 1, 2009; 39 SDR 33, effective September 5, 2012; 41 SDR 111, effective January 19, 2015; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.

          General Authority: SDCL 36-20B-12(3).

          Law Implemented: SDCL 36-20B-27.

 

          20:75:04:05.  Non-group continuing professional education program criteria. Non-group continuing professional education program criteria.  The non-group programs qualify as acceptable continuing professional education programs if they meet the requirements of § 20:75:04:02 and include the following:

 

          (1)  Independent-study programs must be designed to permit a participant to learn a given subject, one-on-one, under the guidance of a CPE program sponsor. Participants in an independent study program must:

 

               (a)  Meet the documentation requirements of § 20:75:04:15; and

 

               (b)  The program sponsor must be approved by NASBA's National Registry of Continuing Professional Education Sponsors or NASBA's Quality Assurance Service;

 

          (2)  Self-study programs must employ learning methodologies that clearly define learning objectives, guide the participant through the learning process, and provide evidence of a participant's satisfactory completion of the program. Credit will not be granted in excess of the amount determined to be given for each course through the program pilot testing or word count formula. Participants in self-study programs must:

 

               (a)  Meet the documentation requirements of § 20:75:04:15; and

               (b)  The program sponsor must be approved by NASBA's National Registry of Continuing Professional Education Sponsors or NASBA's Quality Assurance Service;

 

          (3)  Service as an instructor, lecturer, or discussion leader. Credit is not given for repeated presentations of the same program;

 

          (4)  Published articles, books, or continuing professional education programs. A CPA or PA may be given credit for research and writing time upon determination by the board that the CPA's and PA's competency has been maintained or increased as a result of the activity;

 

          (5)  Nano program learning. A tutorial program designed to permit a participant to learn a given subject in one-fifth CPE credit increments through the use of electronic media and without interaction with a real-time instructor must:

 

               (a)  Meet the documentation requirements of § 20:75:04:15; and

               (b)  The program sponsor must be approved by NASBA's National Registry of Continuing Professional Education Sponsors or NASBA's Quality Assurance Service.

 

          Source: 29 SDR 16, effective August 14, 2002; 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 41 SDR 111, effective January 19, 2015; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.

          General Authority: SDCL 36-20B-12(3).

          Law Implemented: SDCL 36-20B-27.

 

          20:75:04:13.  Criteria for independent study Repealed.

 

          Source: 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.

 

          20:75:04:15.  Documentation for continuing professional education credit. A CPA or PA must document the credit claimed with the following acceptable evidence of completion:

 

          (1)  For group programs, a certificate or other verification supplied by the CPE program sponsor;

 

          (2)  For self-study programs using a pilot test, a certificate of completion from the CPE sponsor that has been approved by NASBA's National Registry of CPE Sponsors or NASBA's Quality Assurance Service after satisfactory completion of an examination;

 

          (3)  For self-study programs using the word count formula, a certificate of completion from the CPE sponsor that has been approved by NASBA's national registry of CPE sponsors or NASBA's quality assurance service after satisfactory completion of the course;

 

          (4)  For instruction credit, a certificate, program outline, or other verification supplied by the CPE program sponsor;

 

          (5)  For a university or college course that is successfully completed for credit, a record or transcript of the grade the participant received;

 

          (6)  For university or college noncredit courses, a certificate of attendance issued by a representative of the university or college;

 

          (7)  For published articles, books, or CPE programs:

 

               (a)  A copy of the publication, or in the case of a CPE program, course development documentation, that names the writer as author or contributor;

 

               (b)  A statement from the writer supporting the number of CPE hours claimed; and

 

               (c)  The name and contact information of the independent reviewer or publisher;

 

          (8)  For independent study programs, a certificate of completion from the CPE sponsor that has been approved by NASBA's National Registry of CPE Sponsors or NASBA's Quality Assurance Service after satisfactory completion of the course;

 

          (9)  For nano learing program a certificate of completion from the CPE sponsor that has been approved by NASBA's national registry of CPE sponsors or NASBA's quality assurance service after satisfactory completion of the course.

 

          Source: 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 41 SDR 111, effective January 19, 2015; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.

          General Authority: SDCL 36-20B-12(3).

          Law Implemented: SDCL 36-20B-27.

 

          20:75:04:17.  Standards for continuing professional education program sponsors of independent-study learning activities. Repealed.

 

          Source: 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.

          20:75:04:18.  Standards for continuing professional education program sponsors of self-study programs. Repealed.

 

          Source: 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 41 SDR 111, effective January 19, 2015; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.

 

          20:75:04:22.  Continuing professional education program developer's criteria for retention of pilot test records. Repealed.

 

          Source: 31 SDR 97, adopted December 17, 2004, effective July 1, 2005; 45 SDR 84, effective December 20, 2018; effective July 1, 2019.