Loading...
R-87-1017 - 7/9/1987WHEREAS, the City of Round Rock is required to have an annual audit of all City funds; and WHEREAS, Pena Swayze and Company submitted an audit letter agreement to provide such services; and WHEREAS, the Council of the City of Round Rock is desirous of entering into an agreement with Pena Swayze and Company; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized to execute said audit letter agreement with Pena Swayze and Company, a copy is attached hereto for all intents and purposes. RESOLVED this 9th day of July, 1987. ATTEST: NE LAND, City Secretary RESOLUTION NO. /y 7,# MIKE ROBINSON, Mayor City of Round Rock, Texas DATE: July 7, 1987 SUBJECT: Council Agenda, July 9, 1987 ITEM: 12C - Consider a resolution authorizing the Mayor to enter into an agreement for an audit firm. The attached Agreement is to retain Pena Swayze and Company to perform the annual audit for the City of Round Rock. A rate of $35.00 per hour with a cap of $30,000.00 is proposed which is the same as last fiscal year. This will be the third year this firm has performed the audit. Gentlemen: PENA SWAYZE & CO. CERTJFJED PUBLIC ACCOUNTANTS June 22, 1987 Hon. Mike Robinson, Mayor Mr. Robert L. Bennett, City Manager Mr. Sam Huey, Assistant City Manager /Finance Director City of Round Rock Round Rock, Texas 101 We are pleased to have the opportunity to serve the City of Round Rock as independent auditors for the year ending September 30, 1987. The purpose of this letter is to confirm our understanding of the scope of our examination. We will perform an examination for the purpose of expressing an opinion on the fairness of the presentation of the City's general purpose financial statements for the year ending September 30, 1987. If our opinion is other than unqualified, we will fully discuss the reasons with you in advance. In addition to the general purpose financial statements, we will: Assist in the preparation of the City's Comprehensive Annual Financial Report for submission to the Government Finance Officers Association under its voluntary program for a Certificate of Achievement for Excellence in Financial Reporting. Report on compliance with laws and regulations. Report on internal control. Our audit will be a Single Audit made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A -128, Audits of State and local Governments, and will include tests of the accounting records of the City and other procedures we consider necessary to enable us to express an unqualified opinion that the financial state- ments are fairly presented in conformity with generally accepted accounting principles consistently applied and to report on the City's compliance with laws and regulations and its internal accounting controls as required for a Single Audit. MEMBER AMERICAN INSTITUTE AND TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 250 ROUND ROCK, TEXAS 78680 5121255 -2165 City of Round Rock Page 2 June 22, 1987 Although defalcations and similar irregularities may occasionally be disclosed by this type of examination, it is not designed for this purpose and should not be relied on to disclose fraud, should any exist. We will, of course, report to you anything that appears to us during our examination to be unusual or abnormal. As you know, City administrators have primary responsibility for properly recording transactions in the records, for safeguarding assets and for preparing accurate financial statements. Our basic audit function is to add reliability to those financial statements. Additionally, we will study the City's operations in order to make recommendations regarding the economy and efficiency with which you conduct your affairs. In order for our firm to complete our work in a timely manner and to maintain the level of fees we propose, our firm and the City must closely coordinate the audit work so that City staff disruption is minimized, and we receive timely City prepared reports, information and support. We feel that an efficient audit and timely report can be accomplished with the following schedule. PHASE OF WORK TIMING I. Interim field work Mid July/Mid August II. Confirmations End of September III. Year -end field work Late October IV. Review of report draft Early December V. Printing of report Mid December VI. Report delivery Mid January The City is to furnish the necessary and customary clerical staff to assist us in preparing detail trial balances and supporting schedules. We also understand that City staff will assist us by locating and submitting to us invoices, cancelled checks and other documents and records which we request. Prior to beginning each phase of the audit process, we would utilize City staff in the preparation of certain detailed audit schedules which we would format. In order for us to complete our work efficiently and to stay within the proposed range of audit fees, all City prepared schedules must be completed at the start of each phase. In conjunction with all phases of our examination, we will review the City's system of internal accounting controls. If we observe any material PEIVA SWAYZE & CO. CERTIFIED PUBLIC ACCOUNTANTS PROPOSED AUDIT SCHEDULE City of Round Rock Page 3 June 22, 1987 weaknesses, we will report them to you with recommendations for correcting those weaknesses. We will try to initiate ideas or observations that we believe will help achieve the objectives of the City. We will also be pleased to respond to inquiries you might have about financial or other business matters. Our fees are based on the time our personnel require to complete the engagement plus direct expenses. Individual hourly rates vary in accord- ance with the degree of responsibility and skill of those assigned to the audit. Our estimated fee for this examination is $24,000 for the general purpose financial statements. We anticipate that preparation of the comprehensive annual financial report would cost $4,000 - $6,000, inclusive of typing. Our fees are based on an effective hourly rate of $35. We estimate our examination will take approximately 900 manhours to complete. If unforeseen complications arise during the audit making it likely that the fee will exceed this amount, we will discuss the increase before proceeding. If you intend to publish or otherwise reproduce the financial state- ments and make reference to our firm name, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. If this letter defines the arrangements as you understand them, please sign and date the enclosed copy and return it to us. If not, please let us know what changes are needed. CONFIRMED Mike sistant City Date r ,PEISIASWAYZE&CO. CERTIFIED PUBLIC ACCOUNTANTS Sincerely, PENA SWAYZE & Finance Director Hon. Mike Robinson, Mayor Mr. Robert L. Bennett, City Manager Mr. Sam Huey, Assistant City Manager /Finance Director City of Round Rock Round Rock, Texas Gentlemen: PENA SWAYZE & CO. CERTIFIED PUBLIC ACCOUNTANTS June 22, 1987 We are pleased to have the opportunity to serve the City of Round Rock as independent auditors for the year ending September 30, 1987. The purpose of this letter is to confirm our understanding of the scope of our examination. We will perform an examination for the purpose of expressing an opinion on the fairness of the presentation of the City's general purpose financial statements for the year ending September 30, 1987. If our opinion is other than unqualified, we will fully discuss the reasons with you in advance. In addition to the general purpose financial statements, we will: Assist in the preparation of the City's Comprehensive Annual Financial Report for submission to the Government Finance Officers Association under its voluntary program for a Certificate of Achievement for Excellence in Financial Reporting. - Report on compliance with laws and regulations. - Report on internal control. Our audit will be a Single Audit made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in Standards for Audit of Governmental Organizations, Programs, Activities, and FU actions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A -128, Audits of State and Local Governments, and will include tests of the accounting records of the City and other procedures we consider necessary to enable us to express an unqualified opinion that the financial state- ments are fairly presented in conformity with generally accepted accounting principles consistently applied and to report on the City's compliance with laws and regulations and its internal accounting controls as required for a Single Audit. MEMBER AMERICAN INSTITUTE AND TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 250 ROUND ROCK, TEXAS 78680 512/255-2165 City of Round Rock Page 2 June 22, 1987 Although defalcations and similar irregularities may occasionally be disclosed by this type of examination, it is not designed for this purpose and should not be relied on to disclose fraud, should any exist. We will, of course, report to you anything that appears to us during our examination to be unusual or abnormal. As you know, City administrators have primary responsibility for properly recording transactions in the records, for safeguarding assets and for preparing accurate financial statements. Our basic audit function is to add reliability to those financial statements. Additionally, we will study the City's operations in order to make recommendations regarding the econany and efficiency with which you conduct your affairs. In order for our firm to complete our work in a timely manner and to maintain the level of fees we propose, our firm and the City must closely coordinate the audit work so that City staff disruption is minimized, and we receive timely City prepared reports, information and support. We feel that an efficient audit and timely report can be accomplished with the following schedule. I. Interim field work Mid July /Mid August II. Confirmations End of September III. Year -end field work Late October IV. Review of report draft Early December V. Printing of report Mid December VI. Report delivery Mid January The City is to furnish the necessary and customary clerical staff to assist us in preparing detail trial balances and supporting schedules. We also understand that City staff will assist us by locating and submitting to us invoices, cancelled checks and other documents and records which we request. Prior to beginning each phase of the audit process, we would utilize City staff in the preparation of certain detailed audit schedules which we would format. In order for us to complete our work efficiently and to stay within the proposed range of audit fees, all City prepared schedules must be completed at the start of each phase. In conjunction with all phases of our examination, we will review the City's system of internal accounting controls. If we observe any material PROPOSED AUDIT SCHEDULE PENA SWAYZE & CO. CERTIFIED PUBLIC ACCOUNTANTS PHASE OF WORK TIMING City of Round Rock Page 3 June 22, 1987 weaknesses, we will report them to you with recommendations for correcting those weaknesses. We will try to initiate ideas or observations that we believe will help achieve the objectives of the City. We will also be pleased to respond to inquiries you might have about financial or other business matters. Our fees are based on the time our personnel require to complete the engagement plus direct expenses. Individual hourly rates vary in accord- ance with the degree of responsibility and skill of those assigned to the audit. Our estimated fee for this examination is $24,000 for the general purpose financial statements. We anticipate that preparation of the comprehensive annual financial report would cost $4,000 - $6,000, inclusive of typing. Our fees are based on an effective hourly rate of $35. We estimate our examination will take approximately 900 manhours to complete. If unforeseen complications arise during the audit making it likely that the fee will exceed this amount, we will discuss the increase before proceeding. If you intend to publish or otherwise reproduce the financial state- ments and make reference to our firm name, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. If this letter defines the arrangements as you understand them, please sign and date the enclosed copy and return it to us. If not, please let us know what changes are needed. CONFIRMED Mike Sam Huey, Assistant City Imager /Finance Director Dat PEIVA SWAYZE & CO. URSINE° PUBLIC ACCOUNTANTS Sincerely, PENA SWAYZE . Travla County Office: 301 Congress Suite 2100 Austin Texas 78701 512/477 -6774 Garry Mauro Ed Wendler, Sr. Ken Manning Sam Kelley Rafael Quintanills, Jr. Pena Swayze & Co. P.O. Box 250 Round Rock, Texas 78680 Gentlemen: Mauro, Wendler, Sheets, Blume & Gutow Attorneys at Law November 12, 1987 Re: City of Round Rock Audit for Year Ending September 30, 1987 PENDING OR THREATENED LITIGATION Williamson County Office: 309 East Main Round Rock, Texas 78664 512/255-8877 Stephan L. Sheets Charles D. Crossteld Kevin Henderson Dallas County Office: 4144 N. Central Expressway Suite 580 Dallas, Texas 75204 214/824 -6922 James D. Blume Steve Gutow By letter dated October 1, 1987, Sam Huey, Assistant City Manager, has requested that I furnish you certain information in connection with your examination of the accounts of the City as of September 30, 1987, and for the period from that date to the date of my response. In addition to my being engaged to represent the City in specific litigation matters, I have now been retained as the Acting City Attorney. In such capacity I have reviewed the litigation and claims threatened or asserted against the City for which I have been retained. Subject to the foregoing and to the last paragraph of this letter, I have not been engaged to give substantial attention to, or represent the City of Round Rock in connection with, material loss contingencies coming within the scope of clause (a) of paragraph 5 of the Statement of Policy referred to in the last paragraph of this letter, except as follows: 1. In Re: Wallace Luersen: United States Bankruptcy Court for the Western District of Texas, Midland Division, Cause No. 87- 70333. a. Nature of Litigation: Debtor had filed a Motion to Terminate Lease between the Debtor as lessor and the City as lessee, on property on which the City had constructed substantial improvements consisting of a three story parking garage. In response to the City's motion vigorously protesting the Motion to Terminate, said Motion to Terminate was withdrawn. Pena Swayze & Co. November 11, 1987 Page 2 However, Debtor has now filed Adversary Proceeding No. 87 -7100 in the above - described Bankruptcy proceeding. The Debtor has named MBank Round Rock as a co- defendant. The complaint filed by the Debtor alleges that the City has committed trespass, fraud, and breach of contract and that the actions were motivated by bad faith and were malicious in nature and is therefore seeking punitive as well as actual damages. b. Progress of case to date: The summons and complaint were served on the City on October 28, 1987 . and a response to the complaint will be prepared by the law firm of Alvis, Carssow & von Kreisler. The response is due on or before November 26, 1987. c. Management's Response to Litigation: The City Council has authorized and directed me to vigorously defend the City against these allegations. However, the City acknowledges that Luerson is owed certain sums pursuant to the terms of the lease agreement and has made a settlement offer of approximately $95,000.00. From conversations with Debtor's attorney, it is believed that he would settle for approximately $155,000.00. d. Evaluation of Likelihood of Outcome: I can make no opinion based upon an independent review as to the merits of such claim. 2. Bill Albee Builders. Inc. vs. Louis Henna, Sr., Steger & Bizzell, Inc. and the City of Round Rock, Cause No. 86- 139 -C, in the 277th District Court of Williamson County, Texas. a. Nature of Litigation: Plaintiff purchased a tract of land located in the city of Round Rock from defendant Louis Henna. The tract is located along Onion Creek. Plaintiff hired defendant Steger & Bizzell to perform certain surveying and engineering work on the tract. Contrary to the alleged representations of Henna and the work performed by Steger & Bizzell, the City determined that virtually all of the tract is located within the 100 year flood plain. Plaintiff's claim against the City is based upon alleged delay and eventual denial of development and building permits. b. Progress of case to date: The lawsuit was originally filed in 1986 against Henna and Steger & Bizzell. The City was sued on September 21, 1987. An answer has been filed and the discovery process has begun. The case is set for a trial before a jury on August 1, 1988. Pena Swayze & Co. November 11, 1987 Page 3 c. Management's Response to Litigation: The City Council has authorized and directed me to vigorously defend the City against the allegations. d. Evaluation of Likelihood of Outcome: In my opinion based upon my conversations with various City employees involved in the matter, the material allegations contained in Plaintiff's petition are not true and it is unlikely that the City would suffer an adverse judgment for a significant amount of money. 3. Sabine Consolidated, Inc. vs The City of Round Rock, Cause No. 87- 256 -C, in the 26th District Court of Williamson County, Texas. a. Nature of Litigation: Sabine and the City entered into a written contractual agreement whereby Sabine agreed to provide labor and materials for the construction of a wastewater interceptor project. There was a disagreement regarding a $49,300.00 change order submitted by Sabine and the City declined to approve the change order or pay the amount requested. Sabine also seeks damages for alleged harm to its good name, reputation, and business relations, as well as damages due to reduced bonding capacity and the unwillingness of certain suppliers to extend credit. b. Progress of Case: The suit was served on the City on May 15, 1987 and an answer was filed on June 8, 1987. Depositions have been taken of Sabine's president and the City's engineer. The trial date has not yet been set. c. Management's Response to Litigation: The City Council has authorized and directed me to vigorously defend the City against the allegations. However, Sabine is owed at least a portion of its retainage, which totals approximately $30,000.00. The City has a claim against Sabine for liquidated damages for Sabine's failure to complete the job on time, which damages total some $12,500.00. d. Evaluation of Likelihood of Outcome: After taking the deposition of Sabine's president, it appears likely that Sabine's claim for damages for harm to its good name, reputation etc. are without merit. The claim for the change order is probably without merit, but it could possibly go against the City. The City undoubtedly owes at least a portion of the retainage but it has a good chance of prevailing on the liquidated damages claim. The City has project funds sufficient to cover the outstanding retainage amount. Pena Swayze & Co. November 11, 1987 Page 4 4 David L. Dorsett and Bill Nations vs. City of Round Rock Texas, Cause No. 86- 539 -C, 277th District Court of Williamson County, Texas. a. Nature of Litigation: This is a suit for declaratory judgment and for damages from an alleged breach of contract and an inverse condemnation. Plaintiffs purchased a tract of land from Wallace Luersen in 1983. Plaintiffs allege that in March of 1974 Mr. Luersen and the City entered into an agreement whereby Luerson conveyed certain property for a city park in exchange for water, wastewater and a public street being provided to the tract in question. Luersen transferred his rights in the alleged contract with the City to Plaintiffs. The Plaintiffs allege that the City breached the agreement. In addition Plaintiffs allege that the City entered onto their property and constructed a sewer line without benefit of an easement. Plaintiffs are asking for a declaratory judgment ordering the City to provide public water, wastewater and streets or for unspecified money damages; and to either order the City to remove the sewer line or for unspecified money damages. b. Progress of Case: This suit was served on the City on November 5, 1986. The City filed an answer on November 26, 1986. Several depositions have been taken. The trial date has not yet been set. c. Management's Response to Litigation: The City Council has authorized and directed me to vigorously defend the City against the allegations. d. Evaluation of Likelihood of Outcome: From my investigation of the facts it appears unlikely that a contract exists that requires the City to provide the amount of utility services claimed by Plaintiffs. Services are available to the tract now, just not in the capacities wanted by Plaintiffs. Even if a contract does in fact exist it is my opinion that a suit thereon is now barred by the statute of limitations. The City may be liable for damages for the sewer easement but the amount thereof should be minimal. 5. Round Rock County Road 170. LTD. vs. City of Round Rock Texas, Cause No. 86- 382 -C, 26th District Court of Williamson County, Texas. Pena Swayze & Co. November 11, 1987 Page 5 a. Nature of Litigation: Plaintiff and other nearby property owners and the City entered into a contract whereby the landowners would contribute funds on a pro -rata basis for the construction of water and wastewater system improvements and the City would administer the project. Pursuant to the terms of the contract, Plaintiff deposited ten percent (10 %) of its pro -rata cost. Plaintiff subsequently decided to withdraw from the project and demanded a refund of its deposit. The City refused and Plaintiff brought this suit to force the refund. b. Progress of Litigation: Plaintiff made a motion for summary judgment which was vigorously opposed by the City. The Judge denied the motion for summary judgment. The case has not yet been set for trial. c. Management's Response to Litigation: The City Council has authorized and directed me to vigorously defend the City against the allegation. d. Evaluation of Likelihood of Litigation: I am unable to give an opinion as to the likely outcome, but even if Plaintiff were to prevail, the amount of potential liability is fairly insignificant. I emphasize that any evaluation given as to the merit of a claim or defense or the likelihood of litigation is based on my present understanding of the facts of a particular case, which is subject to change virtually on a day -to -day basis. My present opinion should therefore not be taken in any way as a warranty of the actual outcome of litigation. The information set forth herein is as of the date of this letter and I disclaim any undertaking to advise you of changes which hereafter may be brought to my attention. As of September 30, 1987, the City was indebted to me for services and expenses in the amount of $6,035.29. This amount has since been paid in full. This response is limited by, and in accordance with, the ABA Statement of Policy Regarding Lawyers' Responses to Auditors' Requests for Information (December 1975); without limiting the generality of the foregoing, the limitations set forth in such Statement on the scope and use of this response (Paragraphs 2 and 7) are specifically incorporated herein by reference, and any description herein of any "loss contingencies" is qualified in its entirety by Paragraph 5 of the Statement and the accompanying Pena Swayze & Co. November 11, 1987 Page 6 Commentary (which is an integral part of the Statement). Consistent with the last sentence of Paragraph 6 of the ABA Statement of Policy and pursuant to the City's request, this will confirm as correct the City's understanding as set forth in its audit inquiry letter to us that whenever, in the course of performing legal services for the City with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, I have formed a professional conclusion that the City must disclose or consider disclosure concerning such possible claim or assessment, I, as a matter of professional responsibility to the City, will so advise the City and will consult with the City concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. SLS /gj cc: Sam Huey City of Round Rock 221 East Main Street Round Rock, Texas 78664 Robert L. Bennett 221 East Main Street Round Rock, Texas 78664 Mr. Robert Bennett City of Round Rock 221 E. Main Street Round Rock, Texas 78664 Dear Bob: RECEIVED SE? 1 b 1387 PEIiTA SWAYZE & CO. 00 CERTIFIED PUBLIC ACCOUNTANTS September 15, 1987 This continues our series of monthly letters on a variety of topics centered around personal and business finances. With our letter, we want to provide general information that is useful to you, your business associates or friends. While the subject matter addressed here may not be a current concern of yours, it may be a valuable future reference. Upon request we can provide you with a wide range of related subject material. Managing A Small Business - A Continuing Series The fact that 80% of all small businesses fail within four years of start up is alarming. Certainly, no entrepreneur enters the business arena with the intention of failing in four years or failing at all. Small business owners not only expect to survive but also to realize success. Becoming a successful small business is the result of many factors. One of the more important factors is planning. Planning for success involves clearly defining what type of small business you are and what kind of business you expect to be. To promote thinking of your company's future, we focus this month on the development and use of a business plan. Business Plan - Benefits A business plan benefits all companies regardless of size. For more established companies, the business plan defines where the company is in the business cycle. Knowing the state of your business is very important in helping to determine the future direction of your company. An analysis of past successes or even past mistakes will help in planning for the future. MEMBER AMERICAN INSTITUTE AND TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 250 ROUND ROCK, TEXAS 78680 5121255 -2165 Page 2 September 15, 1987 While nobody can predict the future, we all have to plan for it. Sane entrepreneurs will build their businesses to a certain size and then sell out. Still others build a company to achieve financial independence and someday pass the company to their children. By developing a business plan, you can clearly focus on the future of your business. Few businesses are exempt from the need for outside funds. Whether it be for working capital or funds to expand operations, most businesses will need some financing assistance. Todays lenders are asking, and sometimes demanding, that companies develop a business plan as a condition for obtaining significant loans. Having a business plan in place will demonstrate to lenders your sophistication as a business owner. Business Plan - The Elements Every business plan should include an executive summary, a business description, a marketing strategy and financial data. The executive summary begins the business plan by giving the reader a brief overview of the highlights of your plan. Following the executive summary is a description of your company. In this section, a history of the business is presented. It includes what business you are in, key company personnel, a description of operating facilities, main products or services offered and any other items that distinguish your company from competitors. Next, the plan focuses on marketing strategy. Begin this section by describing the company's place in its particular industry and a realistic estimate of growth potential for the near future. Describe your company's principal characteristics and list major customers and potential customers. Present your strategy for dealing with the competition, pricing and major trends within your industry. This should be the longest portion of the plan. Finally, your business plan should include relevant financial data. Present a condensed version of the the company's financial statements for the past five years and projections for several years into the future. Include in your projections, funds the company may require, how you will use any borrowed monies and how they will be repaid. Business Plan - Getting Started Knowing the benefits and elements of a business plan, you are now ready to get started. Begin by diagnosing the internal capabilities of your company. Evaluate your existing market strategy, pricing strategy, production strategy, organization and management and financial strategy. Following your internal diagnosis, evaluate external factors such as market developments, technological changes and economic developments. r PEA SWAYZE & CO. CERTIFIED PUBLIC ACCOUNTAMS Page 3 September 15, 1987 With the internal and external diagnosis complete, you can realistically set goals for the company. You will want to define market share goals, production goals, future research and development goals, organizational and management goals and financial goals. Goals provide benchmarks for the company to achieve and therefore should be made for one, three, five, ten and twenty year intervals, for example. In order to achieve the goals set for the company, a set of interacting sub -plans should be developed. For example, you need a sales sub -plan which allows the company to gain a market share necessary to meet market share goals. Establishing the necessary sub -plans should be viewed as defining the steps required to reach your desired level of success. A realistic business plan is one that allows for change. Business plans should be periodically reviewed and revised for new events. With a realistic business plan in place, you can avoid some of the pitfalls which cause small businesses to fail. In October, we will discuss the need for strict tracing of all loan proceeds. The Tax Reform Act of 1986 requires taxpayers to keep adequate records on the use of borrowed funds or be subject to loss of interest deductions. Our letter will illustrate ways to avoid losing interest deductions on borrowed funds. We hope this letter has been informative. If you have questions on your business plan, please contact any member of our firm and we will gladly assist you. PEVA SWAYZE & CO. CERTIFIED PUBLIC ACCOUNTANTS * Sincerely, PENA SWAYZE &