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Village of Mayfield March 8, 2023 Page 5 Service Organizations: Service organizations are other governmental entities, organizations or companies that provide services to you, as the user Village relevant to your internal controls over financial reporting. Service organizations process transactions reflected in your Village's financial statements, and therefore fall within the scope of our audit. While service organizations are responsible for establishing and maintaining their internal control, you are responsible for being aware of the service organizations your Village uses, and for establishing controls to monitor the service organization's performance. Because the complexity of service organization transaction processing can vary considerably, your monitoring activities can vary accordingly. When transaction processing is complex and the volume of transactions is relatively high, obtaining and reviewing a service organization auditor's Independent Service Auditor's Report on Management's Description of a Service Organization's System and the Suitability of the Design and Operating Effectiveness of Controls Report (Type 2 Service Organization Control Report (SOC 1)) may be the most effective method of meeting your responsibility to monitor a service organization, and may also be the only efficient means by which we can obtain sufficient evidence regarding their internal controls. AT -C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities' Internal Control Over Financial discusses the aforementioned report. (In some circumstances, we can accept a suitably -designed agreed-upon procedures report (AUP) in lieu of a SOC 1 report.) You are responsible for informing our staff of the service organizations your Vintage uses, and for monitoring these service organizations' performance. Service organizations of which we are aware are: • Regional Income Tax Agency, which collects your Village's income taxes. • Life Force Management, which bills and collects your Village's EMS charges for services. • Cuyahoga County, which bills and collects your property taxes. 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 SOC 1 (or AUP) report are: • Regional Income Tax Agency, which collects your Village's income taxes • Life Force Management, which bills and collects your Village's EMS charges for services Without an acceptable SOC 1 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 Village's financial statements. You are responsible for communicating the need for a SOC 1 or AUP report to these service organizations. REPRESENTATIONS FROM MANAGEMENT Upon concluding our engagement, management and, when appropriate, those charged with governance will provide to us written representations about the audit that, among other things, will confirm, to the best of their knowledge and belief: • management's responsibility for preparing the financial statements and relevant disclosures 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 Village's compliance with laws and regulations;