24-Proposal from McClanahan & Holmes LLP to perform an independent outside audit

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dll 'S3W10H UNY N11HtlNtll:):)W City of Paris August 4; 2009 Page 5 agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinioil on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditin Standards. OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the City has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB Circular A-133 Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of flle City's major programs. The puipose of those procedures will be to express an opinion on the City's compliance wifli requirements applicable to each of its major programs in our report on compliance issued pursuant to OMB Circular A- 133. Audit Adnunistration, Fees, and Other We eucourage our clients to adopt the procedure of having their personnel prepare working papers and analyses for use during the audit in order to minimize the clerical activities of our professional staff and resulting added cost. If engaged, a list of workpapers will be fuinished which can be prepared by your personnel prior to the final field work. At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form that sununarizes our audit findings. We will provide copies of our reports to the City; however, it is management's responsi- biliry to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summaiy schedule of prior audit findings, auditors' reports, and a corrective action plan) along with the Data Collection Fonn to the designated federal clearinghouse and, if appropriate, to pass-tlu-ough entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. At the conclusion of the engagement, we will provide infoimation to management as to where the reparting packages should be submitted and the number to submit. The audit documentation for this engagement will be the property of McClanahan and Holmes, LLP, and will constitute confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain workpapers available to a federal or state agency providing direct or indirect funding, or the United States General Accounting Office for puiposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such requests. If requested, access to such workpapers will be provided under the supeivision of McClanahan and Holmes, LLP personnei. Furthermore, upon request, we may provide photocopies of selected workpapers to the aforementioned parties. These parties may intend, or decide, to distribute the photocopies or infomiation contained therein to others, including other goveinmental agencies. The audit documentation for this engagement will be retained for a nunimum of five years after the report release or for any additional period requested by the cognizant or oversight agency for audit or pass-tlu-ough entity. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we ,vill contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. . s„ 12" pi 4