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PREPARATION OF MANAGEMENT REPRESENTATION LETTER The Application should be submitted including a management representation letter that states that: .:. Management accepts responsibility for the Application; .:. The Application is based upon management's best judgment of the most likely future conditions and management's planned course of action; and, .:. All significant information and documents relevant to the compensation adjustment process is available for review. PREP ARA TION OF EXPENSE INFORMATION Attachments 2A-2C are income and expense worksheets that are to be completed and included as part of the Application. Additionally, Attachment 2 C includes the income and expense projections reported in the Contractor's Projected Cost. The Contractor shall submit cost information for a total of three rate years: .:. Attachment 2A - Actual revenue and cost information for the prior year; .:. Attachment 2B - Actual year to date revenue and costs plus the projected revenue and costs for the remainder of the Current Year; .:. Attachment 2C - Forecasted revenue and costs for the Rate Year, Cost information shall be prepared for each category of service and for the entire SBWMA service area and included in the format of the attached worksheets. The categories of service are as follows: . Residential Rear-End Loader Solid Waste Service . Commercial Rear-End Loader Solid Waste Service . Commercial Front-End Loader Solid Waste Service . Industrial Roll-off Solid Waste Service . Residential Recycling Service . Residential Plant Material Services . Commercial Recycling SBWMA Compensation Adjustment Guidelines June 6, 2000 PAGE 13