R99-14 ACCEPTING THE PROPOSAL AND AUTHORIZING A CONTRACT

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• � Ms. Rolanda Johnson The City of Decatur February 10, 1999 Page Two Management's Responsibilities The financial statements are the responsibility of management. This responsibility includes the maintenance of an effective control environment, proper recording of transactions in accounting records, the safeguarding of assets, and the selection and application of accounting principles to provide fairly presented financial statements. Management is also responsible for identifying and ensuring that the entity complies with applicable laws and regulations. We will make inquiries of certain members of management regarding representations contained in the financial statements and the effectiveness of the internal control over financial reporting. At the conclusion of our audit, we will also request certain written representations from management about the financial statements and related matters. Because of the importance of management's representations to the effective performance of our services, the City releases Olive and its personnel from any claims, liabilities, costs, and expenses relating to our services under this letter attributable to any misrepresentations made to us by management. We will request workpapers and other schedules of management to provide us with the basic information for our audit. We expect this information to be complete, accurate and timely. Errors or delays may result in modification of our procedures or a delay in the delivery of our report. Management must give us advance written notice if our report is to be included in any other document, filed with a regulatory agency, copied or reproduced in whole or in part for any reason, or used in any similar way. We have a responsibility as auditors to review any related materials included in any such filings, documents, reproductions, etc. Additionally, management is responsible for maintaining appropriate accounting records, as the audit workpapers are our property and will be retained by us in accordance with our retention policy. Year 2000 Because many computerized systems use only two digits to record the year in date fields (for example, the year 1998 is recorded as 98), such systems may not be able to accurately process dates ending in the year 2000 and after. The effects of this problem will vary from system to system and may adversely affect an entity's operations as well as its ability to prepare financial statements. An audit of financial statements conducted in accordance with generally accepted auditing standards is not designed to detect whether the systems relied on by the City are Year 2000 compliant. It is the City`s responsibility to ensure that their systems and systems relied upon, such as those of its vendors, service providers, or any other third parties, are Year 2000 compliant. However, for the benefit of management, we may choose to communicate matters that come to our attention relating to Year 2000 compliance. Other Services Our Audit will be expanded and extended as necessary to also allow us to complete the following required reports as of the indicated dates: