Laserfiche WebLink
<br />Christine Calderon <br />City of Santa Ana <br />Page 11 of 15 <br /> <br />ATTACHMENT 3 <br /> <br />DESCRIPTION OF AGREED-UPON PROCEDURES <br /> <br />1. Nature of Engagement: <br /> <br />This will be an agreed-upon procedures engagement. Our basic engagement will be a <br />review of franchise fees paid by Adelphia Communications to the City for a one-year <br />period beginning January 2005 and ending December 2005. <br /> <br />2. Agreed-Upon Procedures Review: <br /> <br />In connection with this engagement, we will review Adelphia's books and records to assist <br />the City in determining if the Company has paid the City the appropriate franchise fees, for <br />the calendar year. Our review will consist of the following procedures: <br /> <br />Phase 1 <br /> <br />a. Shortly after we receive a signed engagement letter or contract, we will send a <br />document request to the City, The letter will include a request for the following <br />documents: <br /> <br />. Franchise fee returns filed with the City by Adelphia Communications for the period <br />from January 1, 2005 through December 31, 2005. <br />. Rate and Channel Information <br /> <br />b. We will prepare and forward general questionnaires to Adelphia Communications with <br />questions related to franchise fees paid by Adelphia Communications to the City. <br /> <br />c. We will review the Cable Television Franchise Agreements and any Transfer <br />Agreements between the City and Adelphia Communications to identify definitions of <br />"gross revenues," franchise fee rates, late payment provisions, etc. <br /> <br />Phase 2 <br /> <br />We will request that copies of certain books and records of Adelphia Communications be <br />forwarded to DECO's office in Irvine or to CSG's office in Piedmont. In connection with <br />the review of these records: <br /> <br />a. We will review Adelphia Communications' internal controls and systems and <br />procedures for accounting for gross revenue and franchise fee payments. We will <br />identify the various types of revenue recorded by Adelphia Communications. <br /> <br />b. We will identify Adelphia Communications' method for the aliocation of non-specific <br />revenues between franchise areas (such as Home Shopping revenues). <br /> <br />EXHIBIT II <br />