HINDERLITER, DE LLAMAS AND ASSOCIATES (“HDL”)

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