Every NRSmith and Associates, PS client is served by a professional who is experienced in accounting and auditing, taxation, management advisory services, systems installation and support, or personal financial planning as dictated by the engagement.

Our professional staff has a diversity of experience in the practice of public accounting and governmental finance. We are not just auditors or "tax specialists." We have a broad background of dealing with governments and nonprofit organizations. This means a fresh perspective founded on experience.

Since we are a local firm, we are not required to look to larger headquarters for decisions, nor must we support a home office. This allows for more efficient communications, resulting in better services to clients.

Providing financial information to our clients in a timely and accurate manner is a commitment that we feel can not be compromised. Meaningful, well-organized financial records ensure that your business operations will run more efficiently on a daily basis. Our firm provides a full range of cost effective accounting services including the following:

*General ledger & financial statement preparation

*Bookkeeping (Monthly/Quarterly/Annual)

*Accounting system setup for new businesses

*Computerized payroll services

*Business tax return preparation (Sales & Use/Business Property)

*Personal financial statements

*Litigation support

Asset protection, or wealth preservation, plan makes the enforcement of judgments against protected assets nearly impossible and allows the owner of protected assets to retain substantial control over these assets. Our firm can assist you with an asset protection plan that may include family limited partnerships, or offshore trusts.

The Certified Public Accountant's professional responsibility, when associated with a financial statement, is the cornerstone of our professional practice.

We recognize the right conferred by Washington State to express an opinion on your financial statements and the responsibility that this right entails. The independent auditing of financial statements and the preparation of review and compilation financial statements constitute the largest area of our practice.

State and federal grantor or regulatory agencies, bankers, contributors, analysts and the public use these statements to make important decisions about you.

It is in your interest that these statements be accurate, timely and include the required disclosures. We strive to define the user's needs to meet disclosure requirements, while applying generally accepted accounting principles applicable to governments and nonprofit organizations. We particularly emphasize that our professionals keep current with the ever-changing standards applicable to governments and nonprofit organizations to assure the requirements of oversight agencies are met.

It is our goal to take the audit, review or compilation engagement and add value beyond simply meeting the requirements of third parties.

We view our role in the financial reporting process as an opportunity to provide constructive solutions for maximizing your company's profitability and efficiency. We provide financial reporting on all three levels of assurance:

*Audit- an intensive examination with the highest level of assurance

*Review - some analytical procedures conducted with limited assurance

*Compilation - based upon client information provided and used primarily for internal use.

Meaningful, well-organized financial records ensure that your business operations will run more efficiently on a daily basis and are the foundation of a successful business. Our qualified staff can assist you with the day-to-day tasks associated with bookkeeping.

We gauge our worth by the personal and business successes of our clients. We can help your business identify areas negatively affecting profitability and growth and develop solutions that are practical and technically sound. In addition to acting as a sounding board for management, we provide comprehensive, flexible strategies that address the issues affecting your business.

Effective coordination of the transition of your business to your successors is critical to ensure its continued success once you decide to remove yourself from the company's day to day operations. With a solid background in tax and other financial matters, we are fully qualified to address the complex issues of business continuation and can assist you in developing a strategically sound plan.

Whether you are thinking of buying a new business or in the midst of a difficult divorce, the amount attached to the value of your business is important. We can provide useful and objective analysis to assist you in the valuation of any business in which you have an interest.

Structuring the purchase or sale of a business properly is a critical step in the process of buying or selling a business. Our competent staff has experience to guide you through the acquisition/disposition process by addressing such issues as cash flow analysis and tax considerations.

We gauge our worth by the personal and business successes of our clients. We can help your business identify areas negatively affecting profitability and growth and develop solutions that are practical and technically sound. In addition to acting as a sounding board for management, we provide comprehensive, flexible strategies that address the issues affecting your business. The following is just a few of the areas in which we provide consulting services:

*Accounting software selection and implementation

*Type of entity selection

*Business valuations

*Buying/selling a business

*Computer systems

*Financial & retirement decisions

*Estate, trust & gift planning

The accounting and tax issues involved with employer-provided benefit plans can be overwhelming. We can assist with the development, implementation and administration of your employee benefit plan.

Effective estate and gift planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order.

Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order.

Pending or existing litigation can result in the need for a qualified professional to present his/her opinion to support or oppose evidence submitted to the court. Our level of competence allows us the opportunity to function as expert witnesses in such cases.

Forecasting is a necessity when trying to effectively manage and lead a business to profitability. From simple projections to complex financial modeling, our experienced staff can assist you in achieving your company's financial goals.

A properly structured financial plan enables you to face any financial challenge that may present itself at each stage of your life. Through the financial planning process, we can help you assess your financial needs and develop strategies that will enable you to achieve your goals and strengthen your financial security.

We can assist you in the preparation of your financial statements in accordance with professional standards, but express no opinion or any other form of assurance on the underlying information included in them. The financial statements produced can be a useful tool for management for making financial decisions.

We use accounting and auditing skills to provide an analysis of financial records in conjunction with dispute resolutions, as well as fraud and theft investigation. Our damage measurement methods can determine the extent of financial loss and illegal accounting practices.

We use accounting and auditing skills to provide an analysis of financial records in conjunction with fraud and theft investigation. Our damage measurement methods can determine the extent of financial loss and illegal accounting practices.

During our years of experience dealing with many taxing authorities, we have achieved a level of competence that can ensure our clients they are being properly represented before the various federal and state tax agencies.

Managing the resources you have accumulated is vital to achieving financial success.

As a complement to our financial planning, we also offer investment management services to assist you with this. NR Smith and Associates is registered with the Securities and Exchange Commission (SEC) to provide investment services in Washington State.

If you choose to have us manage your portfolio, we monitor your investments on an ongoing basis and report to you quarterly on the progress of your portfolio. We will recommend modifications as deemed necessary.

Our fees for these services are based on a percent of the total assets under our management, not on commissions. For example: The fee for investment portfolio management is .25% per quarter of the first $500,000; .1875% on the next $200,000 and .125% of the amount in excess of $700,000, which amounts to 1%, .75% and .50% respectively of the total portfolio assets under management on an annual basis. Whereas, the hourly rates for personal financial planning services range from $120 to $140 per hour and the clerical rate is $52 per hour. By being fee-based financial planners, we believe this allows us to maintain objectivity.

At NRSmith and Associates you receive individual attention from qualified professionals. Our team of professionals has attained respective certification and licensing in their respective fields of expertise and are updated via continuing education and training.

Our focus on your needs is obtained through your input. We do it together. As explained in the Personal Financial Planning section of services, we obtain an understanding of your financial situation, life goals, and investment risk tolerance. With this information we, together with you, develop an investment policy statement that describes the types, percentage, and composition of investments. The Letter of Agreement for Investment Management clearly sets forth the objectives, assessment of your risk tolerance, investment time frames, and benchmarks to assess actual performance.

With the Letter of Agreement for Investment Management, we are able to develop an asset allocation plan to meet your specific needs. In that we do not receive commissions for financial products sold, the selection will be in your best interest and not based on our financial needs.

We use Schwab Institutional - a division of Charles Schwab & Co. Inc. - as the broker/dealer for our client's investment accounts and custodian for their investment assets. As custodian, Schwab insures each account's assets for $100,000,000*. We do not at any time have custody of our client's cash investments or any of their other assets. Our sole authority is to invest the account's assets on a discretionary basis within the framework of the client's Investment Policy Statement.

*The Securities Investor Protection Corporation (SIPC) provides up to $500,000 to protect the assets in the accounts held in a separate capacity, with a limit of $100,000 for claims of between investment cash balances. In addition, Aetna Casualty & Surety Company of America provides up to $99,500,000 of protection for securities. It is important to note that the account protection offered by SIPC and Aetna does not protect against losses due to market fluctuations. Schwab Institutional is a registered trademark of Charles Schwab & Co. Inc. and that NRSmith and Associates, PS is not owned by Schwab Institutional and Schwab Institutional does not recommend or endorse any particular investment manager.

As you develop your investment strategy, we will act as your sounding board. We can help you and your investment advisor build an investment portfolio that takes into consideration the impact of taxes and produces a favorable after-tax return.

Litigation support involves the quantification of economic damages pursuant to existing or pending litigation using accounting and auditing techniques. We have experienced competent staff who can compile information efficiently to assist in the calculation and documentation of any potential economic loss or damages.

Even the most qualified managers can benefit from competent, objective feedback. We can help your company's management team develop long-term objectives and specific strategies to facilitate your business' future growth and success.

With the growing complexity of management and the availability of new technology, even the most experienced executives rely upon outside experts for specialized service.

Management consulting has a major and growing role in our firm. Identifying your needs and proposing solutions are important to us. By using accounting information, we provide management with objective and independent operations input.

Services to accomplish your objectives include: strategic planning and goal setting, break-even analysis, costing of services, cash flow projections, operating budgets, capital expenditure budgets, computer selection and implementation, accounting control systems, systems designs, financial report review and analysis, development of performance measures, development of federal grant applications and reports, and staff training programs.

Finding the right business partner for your company can be a difficult task. We can assist you in the merger or acquisition process by assessing such critical elements as tax considerations; product/service compatibility; competitive tactics and position; financial impact; and cash flow considerations.

Qualified retirement plans (e.g. defined-contribution or defined benefit plans, Keoghs, SEPs…) can provide significant tax advantages for closely held businesses and self-employed individuals. Our qualified staff can assist you in evaluating the type of pension plan that will best serve the retirement needs of you and your employees.

One of the most valuable tools available to accumulate wealth is the retirement plan. Most closely held businesses and individuals benefit from the tax deferral options available. In many instances, deferred compensation programs will also encourage employee loyalty and reduce costly turnover.

Along with the benefits, however, come increased responsibilities to the employer, both in terms of administrative requirements and fiduciary liabilities. NRSmith and Associates, PS is uniquely qualified to assist you in both areas.

We can help you develop and maintain an investment portfolio for your company retirement plan that will meet fiduciary standards for prudence. In addition, we can provide the expertise you need to maintain your plan in compliance with the numerous and ever changing testing and reporting requirements demanded by various government agencies.

At NRSmith and Associates you receive detailed attention from qualified professionals. We provide continuing education and training for our professionals to help them do a better job for you. We focus on you and your needs with a well trained team!

BACKGROUND & EXPERIENCE
The backgrounds of financial planners can vary as much as the services offered. The planner's education and experience should demonstrate a solid foundation in financial planning and a commitment to keeping current. In addition to the following questions, ask the planner to describe his or her specific financial planning work experience.

Norman R. Smith, CPA/PFS/CFP

What is your educational background?
BA - Business Administration
MBA - Tax

Financial planning education & designations:
Personal Financial Specialist (PFS)
Certified Financial Planner (CFP)
Certified Public Accountant (CPA)

How long have you been offering financial planning services?
Over forty years

What continuing education in financial planning do you pursue?
More than 30 hours of continuing professional education per year

Are you a member of any professional financial planning associations?
National Association of Fee Only Financial Planners (NAFPA)
American Institute of Certified Public Accountants (AICPA)
Washington Society of Certified Public Accountants (WSCPA)

Will you provide me with references?
Yes

Have you ever been cited by a professional or regulatory governing body for disciplinary reasons?
No

Will you or an associate work with me?
I will work with you or you may work with Deborah Kelley, CFP.

Deborah Kelley, CFP

What is your educational background?
BA - Liberal Arts

Financial planning education & designations:
Certified Financial Planner (CFP)
Enrolled Agent (EA)

How long have you been offering financial planning services?
Over seventeen years

What continuing education in financial planning do you pursue?
More than 30 hours of continuing professional education per year.

Are you a member of any professional financial planning associations?
National Association of Personal Financial Advisors (NAPFA)

Will you provide me with references?
Yes

Have you ever been cited by a professional or regulatory governing body for disciplinary reasons?
No

Will you or an associate work with me?
I will work with you or you may work with Norman R. Smith, CPA/PFS/CFP.

Services

Financial planners provide a range of services. It is important to match client needs with services provided.

Does your financial planning service include:

• A review of my goals.

Advice On:

• Retirement planning
• Investment planning
• Tax planning
• Estate planning
• Insurance planning
• Integrated financial plans
• Other: NRSmith and Associates provides financial planning services in all of the areas indicated above, plus retirement plan administration.

Do you provide a written analysis of my financial situation and recommendations?
Yes

Is the analysis tailored to my personal needs and goals?
Yes

Does your financial planning service include recommendations for specific investments or investment products?
If requested.

Do you offer assistance with implementation?
Yes

Do you offer continuous, ongoing advice regarding my financial affairs, including advice on noninvestment financial issues?
Yes

Do you take possession of, or have access to my assets?
No

COMPENSATION

Financial planning costs include what a consumer pays in fees and commissions. Comparison between planners requires full information about potential total costs. It is important to have this information before entering any agreement.

How is your firm compensated?
Fee Only

How is your compensation calculated?
NR Smith and Associates is compensated by fees only, as calculated below:

• FINANCIAL PLANNING
  
  Financial planning services provided by Norman R. Smith are based on hourly rate of $140.
  
  

  Financial planning services provided by Deborah Kelley are based on hourly rate of $125.

• INVESTMENT MANAGEMENT
  
  Annual Fee based on percent of total assets under management
  
  1.00% - $0 to $5OO,OOO
  
  0.75% - $501,000 to $700,000
  
  0.50% - $701,000 +

Satisfaction is guaranteed for services provided and billings rendered; if a client/investor is not satisfied, we investigate the matter and report our findings, as prescribed in our Code of Ethics. If a client/investor chooses to terminate our services regardless of circumstance, we will refund fees already billed on a pro rata basis.

If you earn commissions, approximately what percentage of your firm's commission income comes from:

NR Smith and Associates does not receive any commission income.

REGULATORY COMPLIANCE

The SEC requires if an individual or firm holds out to the public as providing financial planning services, that under most circumstances, they are required to be registered with either the SEC or the state in which the individual practices.

Are you or your firm registered as an Investment Advisor with the U.S. Securities and Exchange Commission (SEC) and/or with the appropriate regulatory authorities in this state?

Yes, NR Smith and Associates is registered with the Securities and Exchange Commission (SEC).

Successful implementation and periodic review of your financial plan will ensure financial independence during your working years and through your retirement years.

*Review - some analytical procedures conducted with limited assurance

*Compilation - based upon client information provided and used primarily for internal use.

A Supreme Court justice once said that citizens have the right to pay the least amount of taxes possible under the law. We become familiar with our clients' tax obligations and keep abreast of ever-changing tax law to ensure that their taxes are kept current and to a minimum.

We offer professional tax preparation services by trained staff, including CPAs with graduate degrees in taxation. And, we do more than just prepare tax returns for our clients. We also analyze each client's tax situation and offer tax planning services that help to maintain a lean tax profile.

Our clients work hard to earn their money. Nevertheless, there comes a time when they dream about retirement and reflect on who will inherit their assets. We offer retirement and estate planning services to help our clients enjoy the fruits of their labor in their golden years. This entails planning their estates so their heirs are provided for according to our clients' desires.

Tax planning and preparation form a winning combination for our successful individual and business clients. Whether you are an individual or a multi-tiered partnership, our experienced staff can develop tax strategies that take advantage of new tax laws and legislation.

We prefer to take a proactive vs. reactive approach to tax services. By keeping current on new tax laws and legislation, we are in a position to identify key tax planning opportunities that minimize both your current and future tax liabilities. We provide our individual and business clients with the taxation expertise and knowledge that they deserve throughout the year. Tax services offered include but are not limited to:

*Tax planning & return preparation

- Individuals

- Corporations

- Partnerships

- LLCs/LLPs

- Estates, trusts & gift

- Not-for-profit organizations

*Taxing authority representation

*Divorce and support issues

*Tax effects of buying/selling a business