Kool April Nights Inc

“Preparer provides an electronic copy which is distributed to the all board members by the president for review.”

“The board reviews potential conflicts of interest annually and when they arise.”

“AVAILABLE UPON REQUEST”

“Client Note 1 - SCHEDULE G - PAGE 2, PART II, COLUMN A -----------------------------------------------------------------KOOL APRIL NITES SPECIAL EVENT - ANNUAL CAR SHOW HELD EACH APRIL---------------------------------------------------------------- TOTAL RECEIPTS $ 293,490 LESS CONTRIBUTION PORTION OF RECEIPTS 129,629 LESS EXPENSES 163,861 -------- NET SPECIAL EVENT $ -0- ======== EXPENSE DETAIL -------------- ADVERTISING $ 40,576 AWARDS 2,304 BANK CHARGES 2,583 INSURANCE 5,897 LIVE ENTERTAINMENT 11,805 OFFICE AND SUPPLIES EXPENSE 8,257 REGISTRATION EXPENSE 10,962 FACILITY RENT 33,526 SHOW RENTAL-TENT 9,317 VENDOR EXPENSE 501 CONTRACT LABOR 3,785 SECURITY 7,621 OTHER PROMOTIONS/SHOW EXPENSE 26,727 ------ TOTAL EXPENSE $ 163,861 ======== PROCEEDS FROM THE ANNUAL CAR SHOW ARE DONATED TO LOCAL CHARITIES EACH YEAR.”

“Client Note 2 - CAPITALIZATION POLICY1 PURPOSE THIS ACCOUNTING POLICY ESTABLISHES THE MINIMUM COST (CAPITALIZATION AMOUNT) THAT SHALL BE USED TO DETERMINE THE CAPITAL ASSETS TO BE RECORDED IN THE COMPANYS BOOKS AND FINANCIAL STATEMENTS.2 - CAPITAL ASSET DEFINITION AND THRESHOLDS A "CAPITAL ASSET" IS A UNIT OF PROPERTY WITH A USEFUL LIFE EXCEEDING ONE YEAR AND A PER-UNIT ACQUISITION COST EXCEEDING $2,500 OR, IF HIGHER, THE AMOUNT ALLOWED BY IRS REGULATIONS AND PROCEDURES. CAPITAL ASSETS WILL BE CAPITALIZED AND DEPRECIATED OVER THEIR USEFUL LIVES. THE COMPANY WILL EXPENSE THE FULL ACQUISITION COST OF TANGIBLE PERSONAL PROPERTY BELOW THESE THRESHOLDS IN THE YEAR PURCHASED.3 - CAPITALIZATION METHOD AND PROCEDURE ALL CAPITAL ASSETS ARE RECORDED AT HISTORICAL COST AS OF THE DATE ACQUIRED. TANGIBLE ASSETS COSTING BELOW THE AFOREMENTIONED THRESHOLD AMOUNT ARE RECORDED AS AN EXPENSE FOR THE COMPANY'S ANNUAL FINANCIAL STATEMENTS OR BOOKS. IN ADDITION, ASSETS WITH AN ECONOMIC USEFUL LIFE OF 12 MONTHS OR LESS MUST BE EXPENSED FOR BOTH BOOK AND FINANCIAL REPORTING PURPOSES.4 - DOCUMENTATION INVOICES SUBSTANTIATING THE ACQUISITION COST OF EACH UNIT OF PROPERTY ARE TO BE RETAINED FOR A MINIMUM OF 5 YEARS.”