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Bookkeeping Agr - 2006 " HARRISON & ARNETT CHARTERED CERTIFIED PUBLIC ACCOUNTANTS EUGENE O. HARRISON, C.P.A. THOMAS G. ARNETT, C.P.A. 717 ROACH STREET. SALINA, KANSAS 67401 PHONE: (785) 827-7244 FAX: (785) 827-0048 City of Salina Finance Department 300 West Ash Salina, KS 67401 The following is a partial list of services available from Harrison & Arnett, Chartered. We hope to better meet your expectations of service from our firm by clearly identifying the particular services to be provided and their frequency. Our services will cover the year ended September 30, 2005, and each year thereafter. You are responsible for management decisions and functions, and for designating an individual with suitable skill, knowledge, or experience to oversee any bookkeeping services, tax services, or other services we provide. You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services. You are responsible for establishing and maintaining internal controls, including monitoring ongoing activities. None of the services can be relied on to detect errors, fraud, or illegal acts that may exist. However, we will inform you of any material errors and of any evidence or information that comes to our attention during the performance of our compilation procedures that fraud may have occurred. In addition, we will report to you any evidence or information that comes to our attention during the performance of our compilation procedures regarding illegal acts that may have occurred, unless they are clearly inconsequential. We have no responsibility to identify and communicate significant deficiencies or material weaknesses in your internal control as part of this engagement. We have marked the frequency of the services that we expect to provide. Please review the information below and make any changes necessary. Monthly Quarterly Annually Bookkeeping Services Record journals Post general ledger Post other ledgers (specify) Reconcile bank statements Prepare payroll checks Post earnings records Prepare payroll tax returns Prepare W-2s Prepare sales tax returns Other bookkeeping services (specify) Prepare 1099's x MEMBERS OF DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS KANSAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Monthly Quarterly Annually Financial Statements Compiled Financial Statements Balance sheet Statement of income and retained earnings Statement of cash flows Notes Supplementary information Special statements (specify) Tax Services Federal income tax return State income tax return State franchise report State annual report Tax planning or consultations Other tax services (specify) Profit Sharing Plans Participants' accounting Form 5500 series Other Services (Specify) If, for any reason, we are unable to complete the compilation of your financial statements, we will not issue a report on such statements as a result of this engagement. We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign and return it to us. Si~/~ , Accepted by' ~ Date: I 2-/ 1¿J! Ór;- 7-