South Dakota uses a rolling three-year continuing professional education cycle. CPAs must complete 120 hours over any three-year period, with a minimum of 20 hours annually. The state does not require a specific number of ethics hours.
General requirement
CPAs must complete at least 120 hours of CPE during a rolling three-year period. A minimum of 20 hours must be completed each year.
The reporting period runs July 1 through June 30. License renewal occurs annually by July 31.
Understanding the rolling three-year cycle
Each year, CPAs calculate their total CPE hours for the current year plus the previous two years. This total must equal at least 120 hours.
As each new year begins, the oldest year drops out of the calculation. The rolling total always includes only the most recent three years.
Ethics requirement
South Dakota does not require a specific number of ethics CPE hours. Ethics courses are accepted as qualifying CPE but are not mandatory.
New licensees
CPAs whose certificate was issued less than one year before the renewal date are not required to complete CPE until the next renewal cycle begins.
Credit limitations
- Published materials: Maximum of 60 hours (50% of total requirement).
- Instruction/teaching: Maximum of 60 hours per three-year period.
- Behavioral or motivational courses: Maximum of 24 hours for CPAs in public practice.
- Self-study: Must be provided by NASBA QAS or National Registry sponsors.
- Nano learning: Accepted in 0.2-hour increments.
Credit calculation
- Standard measurement: One CPE credit equals 50 minutes of instruction.
- Instruction: Credit equals presentation time plus preparation time, with preparation limited to two times the credit awarded to participants.
- Repeat presentations: Credit allowed only if the material is substantially revised and requires significant additional study.
- Self-study and group programs: Credit may be earned in 0.2 or 0.5-hour increments after the first full hour.
- University credit: 15 CPE hours per semester hour and 10 CPE hours per quarter hour.
- Noncredit courses: One CPE hour per classroom hour.
Carryforward
South Dakota does not allow carryforward of excess CPE hours. Because of the rolling three-year structure, excess hours naturally fall out of the calculation as older years expire.
Extensions
The Board may grant a one-time 90-day extension to complete CPE requirements. Additional extensions require a formal request and approval from the Board.
Nonresident CPAs
Nonresident CPAs may satisfy South Dakota’s CPE requirements by meeting the requirements of the state where their principal place of business is located.
If that state does not require CPE, the CPA must comply with South Dakota’s requirements.
Inactive status
CPAs may request inactive status to maintain their license without completing CPE. To return to active status, licensees must complete 24 hours of CPE within the 12 months preceding the reactivation application.
Acceptable subject areas
Acceptable CPE subjects include accounting, auditing, consulting services, taxation, management, specialized knowledge, ethics and personal development, provided the course maintains or improves professional competence.