Q A_2.docx

What is your definition of an audited balance and income statement sheet? Our SEC filing (10K)? Our estimating system approval?

ANSWER: From http://www.investorwords.com/325/audited_financial_statements.html: “A company's financial statements which have been prepared and certified by a Certified Public Accountant (the auditor). In the U.S., the auditor certifies that the financial statements meet the requirements of the U.S. GAAP. An auditor can have an unqualified opinion, in which he or she agrees with how the company prepared the statements, or a qualified opinion, in which he or she states which aspects of the company's statements he or she does not agree with. In extreme cases, the auditor may express no opinion on financial statements at all, in the case that the scope of the audit was insufficient.”

From the Federal Accounting Board Standards Handbook:

http://www.fasab.gov/accounting-standards/authoritative-source-of-gaap/accounting-standards/fasab-handbook/index.html

SFFAC 2 - Page 26 and 27 Financial Reporting For An Organizational Entity

74. Meeting the four objectives of Federal financial reporting in the most efficient manner suggests that reporting entities issue a financial report that would include the following:

• management’s discussion and analysis;

• statement of financial position (commonly referred to as balance sheet);

• statement of net costs;

• statement of changes in net position;

• statement of custodial activities, when appropriate;

• statement of budgetary resources;

• statement of financing;12.2

• statement of program performance measures;13

• accompanying footnotes;

• required supplementary information; and

• other accompanying information.