August 4, 2017 Scott Gilliland, Mayor Village of Lithopolis, 11820 Lithopolis Road, NW Lithopolis, Ohio 43136 Dear Mr. Gilliland: This Letter of Arrangement between the Village of Lithopolis (the Village) and the Auditor of State sets forth the nature and scope of the services we will provide in conducting special audit procedures for the Village, the Village’s required involvement, and assistance in support of our services and other terms and conditions designed to ensure that our professional services achieve our mutual objectives Summary of Services The following procedures will be performed for the period January 1, 2015 through January 31, 2016: © Determine whether payroll payments to Former Mayor, Eric Sandine were calculated correctly and in accordance with Village policy. © Determine whether leave accruals and payouts to Former Mayor, Eric Sandine were calculated correctly and in accordance with Village policy. These procedures will relate only to the items specified and will not extend to any financial statements of the Village as a whole, We will include any findings resulting from our procedures in the Village's financial audit report for the year ended December 31, 2016. The 2015-2016 financial audit is being conducted by Balestra, Harr & Scherer, CPAs, Inc. ‘8 ast Broad Street, Ninth Floor, Columbus, Ohio 43215-2506 Phone: 614-466-3340 or 800-202-0370 worw.ohlaaudltor.govVillage of Lithopolis, August 4, 2017 Page 2 of 3 Our Responsibilities We are responsible for completing the procedures and for reporting any exceptions. We have no responsibility to perform procedures beyond those described above. However, if other matters come to our attention indicating potential findings for recovery, federal questioned costs, or significant noncompliance with contract provisions, grant agreements, or local, state, and federal laws or regulations, we may determine that additional procedures are required. A description of the additional procedures and the results of applying those procedures will be reported. Additional procedures applied will be included as an amendment to this letter of arrangement. Access to Records The Village will provide in a timely manner accounting records, schedules and supporting information as requested during the engagement. We also require your timely communication of all significant accounting and financial reporting matters related to the special audit objective, as well as any clerical assistance as mutually agreed upon and as is normal and reasonable in the circumstances. You should recognize that the Auditor of State has the statutory authority to issue subpoenas for records and documents necessary to complete the engagement. Should the Auditor of State incur significant costs associated with subpoenaing such documents; the costs of such process may be billed to you over and above the engagement fee stated in the letter of arrangement. Public Access to Our Report Under Revised Code Section 117.26, an audit report becomes a public record under Section 149.43, Revised Code, when copies of the report are filed with the public officers enumerated in the Revised Code. When copies of the Village’s financial audit report are filed, our working papers related to these procedures become available to the public upon request, subject to information protected for criminal investigations, by attorney-client privilege or by local, state or federal law, ‘Engagement Fee ‘We estimate the cost to perform the procedures outlined in this letter will not exceed $2,460. We will notify you if we believe that we will exceed our original estimate. You should recognize that the Auditor of State has the statutory authority to proceed with this special audit even if you do not agree to the cost estimate, ‘The estimated fee does not include charges incurred by the Auditor of State, if necessary, in association with the issuing of subpoenas for records required to complete the special audit.Village of Lithopolis August 4, 2017 Page 3 of 3 Acceptance of Terms Signing and returning this letter to us indicates you have read this letter, and agree with the terms and procedures. If you wish to discuss additional procedures or modification to these procedures, please contact me at 614-728-8541. Dave Yost Auditor of State of Ohio Sa Randall E. Turner Deputy Director Public Integrity Assurance Team ACCEPTED BY: Scott Gilliland, Mayor Date “Council President Date