B efore 9/11/01 CPAs
and other financial planners had a tough time
convincing the public of the importance of
disaster-recovery planning, except perhaps in
locations with a history of earthquakes, floods or
tornadoes. That’s all changed as recent disaster
victims comprehend the value of the help created
for them by four of the country’s public-spirited
organizations. In keeping with increased national
awareness of the need for preparedness and
recovery, the AICPA, the AICPA Foundation, the
National Endowment for Financial Education (NEFE)
and the American Red Cross came together to help
families and individuals deal with the financial
repercussions that accompany a disaster. The
result of their joint efforts is Disaster
Recovery: A Guide to Financial Issues, the
first comprehensive, authoritative and easy-to-use
guide for people affected by disasters. The
guide’s success far exceeds expectations. Provided
free to the general public, more than 85,000
copies are in the hands of CPAs, local American
Red Cross chapters and disaster victims. In
addition, the Red Cross Web site from which the
guide can be downloaded has had over 650,000 hits.
Kathryn Forbes, CPA, president of the AICPA
Foundation, vice-chairman of the American Red
Cross board of governors and chairman of the Red
Cross audit committee, said the guide, issued in
April, has already proved its value many times
over. She cited a number of examples, including
last spring’s devastating tornadoes in the Midwest
and the early summer hurricane and related floods
that battered the Gulf Coast, where the Red Cross
and local CPAs used the guide. “We’ve been able to
help greatly with clothing and shelter needs and
with mental health needs. Now we’re also
addressing the equally important financial needs.
I’m proud of the Red Cross and I’m proud of our
profession,” said Forbes. Randy Ryan,
manager of personal financing planning for the
AICPA, echoed the positive outcomes arising from
the collaboration between the organizations: “The
feedback we’re getting about the guide has been
extremely positive. With the help of the Red Cross
and CPAs, it is getting into the hands of people
who need it when they need it most. For example,
we know there was much demand in the hard-hit
Middle Atlantic states after Hurricane Isabel.”
INVALUABLE ADVICE AT HAND
Pivotal in the guide’s ability to help
disaster victims as they rebuild their lives and
their homes are its style and organization. It is
divided into three parts: “First Days,” “Next
Weeks and Months” and “Moving On”—leading the
reader from the aftermath of the disaster to
long-term planning, including suggestions on how
to be financially prepared for any eventuality.
The material dovetails with the practical
and emotional impacts of a disaster—allowing
victims to deal with financial matters in
manageable chunks without being overwhelmed and
without overlooking any steps needed for financial
recovery. With a user-friendly format and tone,
the 32-page publication helps people get back on
their feet. The topics include
Collecting and replacing vital
documents.
Contacting organizations that can
provide both immediate and long-term help.
Step-by-step procedures for
collecting medical and disability benefits.
Steps to take upon the death of a
loved one.
Determining income sources in the
weeks and months following the disaster.
Dealing with debts and expenses.
Guidelines for determining whether to
take legal action.
What to do in the event of property
loss.
Emergency preparedness.
According to NEFE director of collaborative
programs, Brent Neiser, CFP, the guide helps
“disaster victims move from financial bewilderment
and paralysis to financial action and recovery.”
Resource Information
Disaster Recovery: A Guide to
Financial Issues was jointly
written and produced by NEFE (National
Endowment for Financial Education) and the
AICPA with funding for ongoing printing
provided by the AICPA Foundation. It is
being distributed primarily through local
chapters of the American Red Cross. For
more information on NEFE, visit www.nefe.org
. You can view and download a free
copy of Disaster Recovery: A Guide
to Financial Issues from
www.redcross.org/services/disaster/beprepared/financeprep.html
. You also can purchase a hard copy
(product no. 017231JA) by calling the
AICPA at 888-777-7077 or by fax at
1-800-362-5066, or you can order it
online at www.cpa2biz.com/store
. CPAs interested in
volunteering their services in the event
of a disaster should contact their local
Red Cross chapter or visit the Red Cross
Web site at
www.redcross.org and click on
Volunteer Services.
Practitioners also can earn CPE
credit by taking the “Emergency Business
Planning: Are You Prepared for
Disaster?” course (product no.
731163JA). For more information or to
register, call the Institute at
888-777-7077 or go to
www.cpa2biz.com .
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HARDSHIPS HAPPEN EVERY DAY
Disasters are not always
catastrophic events involving hundreds or
thousands of people. According to the Red Cross,
fire is the most common disaster individuals face,
with more than 150 families across the country
forced from their homes every day. In 2002 alone,
local Red Cross chapters provided relief to
victims of more than 60,000 single-family home
fires. In total, for fiscal year 2003 the Red
Cross responded to 71,647 disaster incidents or
one every 73 minutes; 80,276 individuals were
given a safe place to stay in Red Cross shelters
and 138,036 families received financial assistance
from the Red Cross to meet their emergency needs.
For this reason CPAs should look at
Disaster Recovery: A Guide to Financial
Issues as a vital tool to help individuals
whose lives are in turmoil after a catastrophe.
Meloni Hallock, CPA/PFS of Ernst and Young LLP,
Los Angeles, and a long-time volunteer at the Red
Cross, sees an essential and ongoing role in
financial disaster recovery for CPAs and the
guide. “A destroyed home may not be a large-scale
disaster, but for the family it is a major one.
The guide aids CPAs in providing the help that
makes the transition back to normal life a
reality.” Anthony Pugliese, CPA, is
vice-president of member innovation at the AICPA.
He can be reached at
apugliese@aicpa.org . Anat Kendal, CPA, is
director of financial planning for the AICPA. She
can be reached at akendal@aicpa.org
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In Good Hands CPAs, long
known for their community involvement and
volunteerism, are using the guide to establish
even stronger ties to individuals and to help
local organizations. Last October
thousands of homes were lost when fires ravaged
Southern California, and Clar Rosso, director of
communications at the California Society of CPAs,
received numerous member requests for
disaster-assistance materials, including
Disaster Recovery: A Guide to Financial
Issues. She cites the following examples of
how California CPAs are helping victims reclaim
their lives. Lynette Atchley, CPA, CFP,
from San Bernadino, has been working extensively
with the family of James McDermith, a CPA who died
of an allergic reaction to smoke inhalation; the
smoke was so bad he died in the driveway of his
home in San Bernardino. She has also stepped in to
offer post-disaster financial advice to several of
McDermith’s clients who suffered losses from the
fires. Daniel D. Morris, a San Jose-based
CPA, was more than glad to offer advice and
assistance to a bishop of the Church of Jesus
Christ of Latter-Day Saints who needed practical
ways to help his church members. Using the
materials provided by the state society, Morris
offered insurance and tax information as well as
the phone numbers of agencies and other sources of
assistance. The Texas Society of CPAs
embarked on a pilot program with the Dallas
chapter of the Red Cross to train CPA volunteers
to use the guide in working with disaster victims,
said Christi Stinson, CPA and COO of the Texas
society. The program will subsequently roll out to
CPA volunteers across the state. The guide
is proving to be an especially valuable community
outreach vehicle for CPAs in smaller firms. Ken
Dodson, CPA, PFS, of King/Dodson Financial
Advisors Inc., recently appeared on NBC in Ohio to
publicize it. He suggested a CPA’s house of
worship would be an outstanding place to
distribute it—the guide would be on hand, with
CPA-backed assistance, in the event of any
disaster. CPAs who wish to establish
stronger immediate and long-term ties to their
communities can share the guide with their
neighbors, clients and colleagues in a variety of
ways including
Making the guide available as an
office “take one.”
Using it as part of ongoing financial
planning and contingency-management advice to
clients.
Partnering with the Red Cross and
other disaster-relief organizations in presenting
a community-wide financial disaster-preparedness
program, using the guide as a handout.
Putting post-disaster financial
planning on the agenda and making the guide
available at state and local CPA chapter meetings.
Sponsoring presentations of the guide
at local community service organizations such as
the Kiwanis, Rotary clubs and chambers of
commerce. “With this guide, it is hoped
the public will see more and more that CPAs are
the people to turn to to recover from the
financial consequences of a disaster. It’s another
way we can be their trusted advisers,” said Susan
Waters, CEO of the California Society of CPAs. |