We will develop a comprehensive business plan for your operations. Initially, this involves working with management to develop specific short-term and long term goals and objectives. These objectives will be specific to your operations and will be based on your input and our experience. The project will then be approached in a systematic and logical manner to ensure that you achieve your goals and objectives. We will perform a detailed review and evaluation of the system of internal controls. This will involve the identification and analysis of specific elements of internal controls as they relate to the following components of the accounting system: Accounts Receivable Inventory (if applicable) Accounts Payable Cash Receipts Cash Disbursements Payroll Other segments of the accounting cycle, as necessary In addition, we will evaluate the management's philosophy, organizational structure and other non-financial operations as we consider necessary under the circumstances. Our approach to evaluating the system of internal controls will be as follows: Through inquiry and observation, we will obtain a thorough understanding of the system of internal accounting controls as they relate to the Control Environment, Accounting System and Control procedures. In order to evaluate the Control Environment we will consider management's involvement in instituting and supervising control procedures. We will also consider the qualifications of the accounting staff, including but not limited to the staff's experience, education, and attitude. We will also review budgets, forecasts and other estimates prepared by management. We will consider and evaluate management's attitude and motivation in establishing and maintaining a system of policies and procedures. We will evaluate the Accounting System. In order to achieve this, we will gain an understanding of the flow of information through the system. This involves a study of the manual procedures currently employed. It also involves evaluating the computer system and its applications. We will gain an understanding of the duties performed by each member of the accounting staff, including personnel in management positions. We will evaluate how transactions are authorized and by whom. We will analyze how computer input and output data are generated and utilized. We will identify and analyze the different types of supporting documents used and how subsidiary journals and ledgers are maintained. We will review information processing procedures. We will evaluate Control Procedures currently in place. We will also search for the existence of common control procedures. These include, but are not limited to, proper segregation of duties, restricted access to assets, the preparation of reconciliations, the existence of review procedures, and the use of pre-numbered documents. We will also examine information processing routines and procedures. When we have gained a thorough understanding of the internal control structure, we will document that understanding and present our findings to you. The form and extent of this documentation will be influenced by the size and complexity of the entity being studied, as well as by the entity's existing internal control structure. Documentation may take the form of flowcharts, checklists or questionnaires. We will present our findings in a manner which is best suited for your needs. We will inform you of any deficiencies in the design or operation of the internal control system that come to our attention. We will also inform you of any material weaknesses in the system. A material weakness is a situation whereby material errors would not be detected by an employee in the normal course of their duties. We would also notify you of any errors or irregularities that come to our attention during our study of the internal control system. While our procedures will be sufficient to achieve the stated objectives, they cannot be relied upon to uncover all errors or irregularities which may exist. Once we have evaluated the system of internal controls, documented our findings and identified any deficiencies, we will design and implement the appropriate corrective actions. Those corrective actions will depend upon the nature and extent of the deficiencies and will be designed specifically for your needs. Our suggestions may consist of, but would not be limited to, written procedures, such as office and accounting manuals, staff evaluation procedures, the establishment of an internal audit function, staff and management training programs and the establishment of audit, budget and finance committees. The proper design and implementation of an internal control system will provide management with the ability to generate meaningful financial information. The existence of this information will allow management to make intelligent, informed decisions. An effective system also provides management with a tool for safeguarding assets, evaluating personnel and assessing overall operational efficiency. The overall objective of the study and evaluation of the internal control system is to provide management with the tools it needs to meet its goals and objectives. We will assist management in developing a plan to achieve this. Based on the procedures discussed above, we will work with your business to develop a formal Business Plan. We will recommend specific actions to deal with specific problems. Those actions will depend on, among other factors, our findings from the study of the internal control system. We will also consider non-accounting factors, such as competition, demographics, and banking relationships. Our professional staff has had years of experience in developing effective business plans for our clients. At Dischino & Associates we take a proactive, "hands-on" approach to problem solving. We have found that, working in both proprietary and non-profit environments, our experience and expertise has allowed us to provide the solutions to our client's concerns. We feel confident that we will be able to provide your business with a plan specifically suited to its needs. 2007 Dischino & Associates, P.C. All rights reserved.