Exhibit 99. (c) (25)
Mercury Air Group
Projected SOX Compliance Costs
External | Internal | |||||||||||||||||||
Range | ||||||||||||||||||||
Low | High | Est Hrs | Rate | Est $ | ||||||||||||||||
Project Scope (6) | 75 | 100 | 100 | 65 | 7 | |||||||||||||||
Documentation/Testing/Remediation (1) | ||||||||||||||||||||
Hrs. Rate | ||||||||||||||||||||
4,199 150 | 630 | 945 | 3,149 | 65 | 205 | |||||||||||||||
Increased Audit Fees (2) | 125 | 500 | 200 | 65 | 13 | |||||||||||||||
System Enhancements (3) | ||||||||||||||||||||
Larkspur Document Control | 30 | 40 | ||||||||||||||||||
System Enhancements | 100 | 400 | 200 | 65 | 13 | |||||||||||||||
Personnel (4) | ||||||||||||||||||||
Internal Auditor | 150 | 300 | ||||||||||||||||||
Systems/Consultant | 100 | 150 | ||||||||||||||||||
Policies & Procedures Documentation | 10 | 100 | 2,000 | 65 | 130 | |||||||||||||||
Total | $ | 1,220 | $ | 2,535 | 5,649 | $ | 367 | |||||||||||||
Notes:
(1) | External based on project scope from Casey Group. Internal hours estimated at 75% for interviews, assisting on tests, review, remediation and training.Update, have estimate from Parsons consulting for Documentation and remediation for $700K plus costs on a time and materials contract. Does not include writing test scripts nor does it include testing. | |
(2) | Estimated based on PWC’s experience with accelerated clients. Range from 50% to 200% of audit fees depending on complexity, centralization, etc. | |
(3) | Document tracking system. | |
(4) | Hire/contract IA function. Sofware systems consultant/full-time. | |
(5) | Policies and procedures template. | |
(6) | Actual cost for Casey Group was $98K. |
Mercury Air Group
Projected Ongoing SOX Compliance Costs
External | Internal | |||||||||||||||||||
Range | ||||||||||||||||||||
Low | High | Est Hrs | Rate | Est $ | ||||||||||||||||
Project Scope | ||||||||||||||||||||
Documentation/Testing/Remediation (1) | ||||||||||||||||||||
Hrs. Rate | ||||||||||||||||||||
640 125 | 80 | 120 | 1,000 | 65 | 65 | |||||||||||||||
Increased Audit Fees (2) | 100 | 400 | 160 | 65 | 10 | |||||||||||||||
System Enhancements | ||||||||||||||||||||
Larkspur Document Control | — | — | ||||||||||||||||||
System Enhancements | — | — | — | |||||||||||||||||
Personnel (3) | ||||||||||||||||||||
Internal Auditor | 150 | 300 | ||||||||||||||||||
Systems/Consultant | 100 | 150 | ||||||||||||||||||
Increased Legal Fees (4) | 50 | 200 | 300 | 125 | 38 | |||||||||||||||
Policies & Procedures Documentation | — | — | - | |||||||||||||||||
Total | $ | 480 | $ | 1,170 | 1,460 | $ | 113 | |||||||||||||
Notes:
(1) | Will still need outside consultants to assist in the continued testing that needs to be performed. | |
(2) | Based on memo from BDO, they are estimating a 10 to 20% reduction from the initial year fees. | |
(3) | Hire/contract IA function. Sofware systems consultant/full-time. | |
(4) | Increased legal fees based on discussion with Wayne Lovett at 50% of increased audit fees. |