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DocuSign Envelope ID:9822D5D4-600B-4A67-B07F-02E780760E1B <br /> d. Identify each revenue type or source that the Companies did not include in the <br /> determination of the utility users' taxes remitted to the City for the review period and <br /> verify correctly excluded. <br /> e. Reconcile revenues reported to the City to the revenues on third parry billing data on a <br /> test basis,depending on the findings noted and accuracy of the sample quarters tested. <br /> f. Obtain a sample of customer bills and verify the calculation of the tax on the bill. <br /> g. For each year,summarize every category of revenues reported to the City and reconcile <br /> these revenues to the utility users'taxes. <br /> 2.3 Procedures specific to Telecommunication Utility Users' Taxes <br /> a. Review the following,as applicable: enhanced service revenues,private line revenues, <br /> equipment lease and sales revenues, installation and maintenance agreement charges, <br /> late fees, non-sufficient funds fees, E911 charges, sales taxes, and state and federal <br /> USF charges.Determine that these items are appropriately treated in the determination <br /> of the gross revenues reported to the City. <br /> b. Review the allocations of any bundled products consistent with accounting <br /> requirements (Accounting Standards Codifications 605 and 606) to ascertain the <br /> correct amount subject to the UUT is being determined. <br /> c. Identify any exempt telecommunications revenues and determine if the customer meets <br /> the requirements for exempt status. <br /> d. Determine whether gross revenues generated from Indefeasible Right of Use ("IRU") <br /> agreements were correctly included in the revenue base to determine UUT payments <br /> to the City. <br /> e. Obtain a list of the reseller lease agreements.Determine whether revenues from reseller <br /> lease agreements were correctly included in the telecommunications revenue base to <br /> determine the UUT payments to the City or whether the reseller self-reports. <br /> f. Review the allocation percentage and method utilized to calculate allocated revenues, <br /> such as the long-distance revenues between intrastate and interstate. <br /> 2.4 Summarize Results and Issue Reports <br /> a. Analyze utility users' taxes reported to the City by category of revenues. <br /> b. Calculate under/overpayment of the amount due to the City, interest charges and <br /> applicable fees on under/overpayments of the utility users' taxes. <br /> c. Submit final reports to the City. The reports will include HdL findings, including a <br /> recalculation of the utility users' taxes and determination of any deficiencies plus <br /> applicable interest due to the City. <br /> 3. TECHNICAL ASSISTANCE AND SUBJECT MATTER EXPERTISE(OPTIONAL) <br /> 3.1 HdL may provide additional hours of general consulting to be utilized on an as-needed basis at <br /> the City's request. Such assistance may include technical assistance, subject matter expertise, <br /> education, participation in conference calls,responding to staff inquires via phone and email, <br /> reviewing staff reports to the City Council,assisting with responses to inquiries from the public, <br /> or other issues as may be requested by the City. <br /> SECTION 1L FEES &CHARGES <br /> 1. SUPPORT &INDUSTRY MONITORING SERVICES <br /> 1.1 Fees for performing support and industry monitoring services, including support & industry <br /> monitoring and operations management shall be charged at$3,000.00/month. <br /> City Council 23 — 31 7/16/2024 <br />