Bookkeeping Agreement
EUGENE O. HARRISON, CPA
THOMAS G. ARNETT, CPA
HARRI SON & ARNETT
CHARTERED
CERTIFIED PUBLIC ACCOUNTANTS
717 ROACH STREET, SALINA, KANSAS 67401
PHONE: (785)827-7244
FAX: (785)827-0048
August 26, 2004
City of Salina
Attn: Rod Franz
This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and
limitation ofthe services we will provide. We will perform bookkeeping services described in attached e-mail of
August 26, 2004.
Our work in connection with this bookkeeping engagement is not intended to result in the submission or issuance
of financial statements by Harrison & Arnett, Chtd., as defined by Statement of Standards for Accounting and
Review Services issued by the American Institute of Certified Public Accountants. A submission or issuance of
financial statements as defined by professional standards requires that the accountant present to a client or third
parties financial statements that the accountant has prepared manually or through the use of computer software.
By your signature below, you understand that the issuance of financial statements as defined above is outside the
scope of this engagement. If you require any financial statements, we will prepare them for you, subject to the
terms and conditions of a revised engagement letter.
None of the above services are management functions and we will not make any management decisions in
performing these services. The responsibility for management functions and decisions remains with your
management.
Our fee will be limited to $500 per transaction month.
We shall be pleased to discuss this letter with you at any time.
If the foregoing is in accordance with your understanding, please sign the copy of this letter in the space provided
and return it to us.
Sincerely,
Thomas G. Arnett, CPA
Acknowledged:
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Title
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Date
Franz, Rod
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From:
Sent:
To:
Subject:
Tom Arnett [tarnett@salina.kscoxmail.com]
Thursday, August 26, 2004 11:47 AM
'Franz, Rod'
RE: Engagement Letter
Message Flag:
Flag Status:
Follow up
Flagged
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C of
gagement letter
From: Franz, Rod [mailto:rod.franz@salina.org]
Sent: Thursday, August 26, 2004 10:41 AM
To: Tom Arnett (E-mail)
Subject: Engagement Letter
We can proceed with the arrangement we talked about the other night on the Bank Reconciliation engagement.
Following is a description of the arrangement as I understand it, with a little more detail than we discussed--particularly
with regard to the dates. We can be somewhat flexible with that, but one of the goals of the project is to keep it more
timely than it has been in the past, along with the internal control improvments associated with having it done by a party
not engaged in other financial transactions.
Harrison& Arnett will perform the monthly bank reconciliation for the City of Salina KAnsas for a period of six months
(month being defined as the "transaction month':.} The first month to be covered will be the reconciliation for the month
ending July 31, 2004. City staff will accumulate the required source documentation and have it available by the first
working day of the month following the 10th. The goal is to have the reconciliation completed by no later than the close of
business on the first working day followig the 20th of the month. This obviously is not possible for July, and August might
be a stretch. However, we would anticipate that September would be completed by October 21.
The objective is to systemize and standardize the reconciliation process within the six month period, and to be able to
assign it to the appropriate level of staff capacity necessary to perform the function. At the close of the six months, we will
jointly evaluate the results and determine the appropriate fees that would apply, should the engagement be extended.
The fee for the six month period covered by the letter of engagement is to be based on time and materials, not to exceed
$500.00 per month.
If you would let me know when you can start on July, we will have the material assembled for you.
Please give me a call if you have any additional questions or concerns, otherwise, if you would prepare an engagement
letter covering the project, I will sign it and we can get started.
Thanks.
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