2. The Top Ten Financial Mistakes Cooperatives Make Presented for the Florida Electric Cooperatives Association May 20, 2010 David Johns, CPA Manager, Jackson Thornton & Co., P.C.

5. Number 10: Not knowing enough about your cooperative or industry. Audit Top Ten List

7. Number 9: Assuming your auditor knows a lot about your company or industry. Audit Top Ten List

9. Number 8: Spending too much preparation time in the wrong areas. Audit Top Ten List

11. Number 7: Poor communication between the accounting department and the rest of the cooperative. Audit Top Ten List

13. Number 6: Not preparing your own financial statements for internal use and not performing analytical procedures. Audit Top Ten List

15. Number 5: Not questioning the auditor on why they need that certain report. Audit Top Ten List

17. Number 4: Blowing off internal controls. Audit Top Ten List

19. Number 3: Not having support for the reconciliations you give the auditor. Audit Top Ten List

21. Number 2: Not having a well-formed, documented, and communicated fraud policy. Audit Top Ten List

23. Number 1: Not having an active, informed audit committee. Audit Top Ten List

24. David Johns 615-869-2035 David.Johns@jacksonthornton.com www.jacksonthornton.com Thank You!