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Mayfield Village Engagement Letter August 3, 2010 Page 4 procedures report (AUP) in lieu of a SAS 70 report.) Our staff can discuss SAS 70 and possible monitoring controls you might use with you. Youare responsible for'informing ourstaff of.'the service organizations your Village uses, anti for monitoring these. service organizations' performance. Service organizations of which we are aware are: • RITA, which process income taxes for the Village, • Cuyahoga County, which process property tax collections on your Villages' behalf, and • Life Force management, which completes ambulance billing for the Village. Please confirm to us that, to the best of your knowledge, the above listing is complete. Of the service organizations above, those for which we believe the complexity of processing and volume of transactions warrant a SAS 70 (or AUP) report are: • RITA, which process income taxes for the Village, and • Life Force management, which completes ambulance billing for the Village. Without an acceptable SAS 70 or AUP report for the above-listed organizations, generally accepted auditing standards may require us to qualify our opinion on your Village's financial statements due to an insufficiency. of audit evidence regarding service organization transactions included in your Vllage's financial statements. You are responsible for communicating the need for a SAS 70 or AUP report to these service organizations. Representations from Management Your Responsibilities At the conclusion of the engagement, the Village's management will provide to us a representation letter that, among other things, will confirm, to the best of their knowledge and belief: • Management's responsibility for preparing the financial statements in conformity with the village's accounting basis; • The availability of original financial records and related data, the completeness and availability of all minutes of the legislative or other bodies and committee meetings; • Management's responsibility for the entity's compliance with laws and regulations; • The identification and disclosure to the auditor of all laws, regulations, and provisions of contracts and grant agreements directly and materially affecting the determination of financial statement amounts and; • The absence of fraud involving management or employees with significant roles in internal control. Additionally, we will request representations, as applicable, regarding: • The inclusion of all component units, and the disclosure of all joint ventures and other related organizations; • The proper classification of funds; • The proper approval of reserves of fund equity; • Compliance with laws, regulations, and provisions of contracts and grant agreements, including budget laws or ordinances; compliance with any tax or debt limits, and any debt covenants; • Representations relative to GASB-required supplementary information; include only for OCBOA audits. • The identification of all federal assistance programs, and compliance with grant requirements.