Management has reviewed the recommendation of its auditors to establish a more effective review and reconciliation process as a customary part of its accounting system that recognized transactions such as revenue and expenses in the proper period. It is also recommended that accounts receivable should not have accounts receivable in its chart of accounts since it only recognizes revenue when received. It was also suggested that the general ledger is reconciled on a quarterly basis to the supporting schedules. Management understands the recommendations set forth. Due to the nature of the business, USAPEEC will continue to use accounts receivables for reimbursable and invoiced transactions throughout the year, those accounts will be zeroed out at year end to accurately record the revenues for the year. Furthermore, Management will no longer record prepaid expenses but will expense them when invoices are paid. Examples of this are insurances, taxes, computer support, etc. Management also plans to reconcile on a quarterly basis for ease of reporting. New software is being implemented to help with the work load for existing employees in an effort to help streamline procedures and report more accurately.