Item 12 Contract to Cherry Bekaert Advisory LLC for Governmental Accounting Standards Board

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(9)CITY OF SANTA ANA I. BACKGROUND Incorporated in 1886, Santa Ana, a Charter City, established a Council -Manager form of government in 1952. The City Council is composed of seven members; the Mayor elected at large and six Council members elected by ward, who appoint the City Manager, City Attorney and Clerk of the Council. The City of Santa Ana (City) is a full -service City with a diverse population of approximately 310,000. The City's eleven agencies provide all the traditional municipal services, as well as water utility, library system, 20-acre zoo, City Jail, Police Department, and contracts with the Orange County Fire Authority for provision of fire services. For the Fiscal Year (FY) 2024-25, the City employs approximately 1,200 full-time positions and has a citywide budget of $734.1 million, including the General Fund budget of $404.8 million. The City of Santa Ana is located 10 miles inland from the Pacific Ocean, 33 miles southeast of Los Angeles and 90 miles north of San Diego. The City, which is the county seat of Orange County, encompasses an area of approximately 27 square miles and is the 11th largest by population in California. For more information, please visit https://www.santa-ana.org/ II. OVERVIEW OF PROJECT The City of Santa Ana (City) is seeking proposals from qualified consultants (Proposers) to assist in the implementation of Governmental Accounting Standards Boards (GASB) Statement No. 101 (Compensated Absences) and reviewing the GASB 87 (Leases) and 96 (Subscription -Based Information Technology Arrangements (SBITA)) contracts/agreements. The selected consultant would provide comprehensive services to coordinate and complete projects by deadline specified by City staff. See EXHIBIT I for complete Scope of Services. The City anticipates a budget of $100,000 for the duration of this contract, although more funding may become available during the lifetime of the contract. The term "Vendor", "Proposer", and "Contractor" shall refer to any legal entity or entities submitting a proposal in response to this Request for Proposals (RFP). GASB 87 and 96: The City is currently using a cloud -based software, DebtBook, to track leases and SBITA's. The City received white glove services from DebtBook for both GASB 87 and 96 and the initial review of agreements and data entry in DebtBook have been completed. The City has developed policies and established its materiality threshold at $100,000. The City implemented GASB 87 in FY2021-22. Approximately 80 leases were reviewed during the implementation and 25 were reported as lease receivable and liability in the FY21-22 Annual Comprehensive Financial Report (ACFR). For FY 2023-24, the City reviewed 20 new leases, updated the status of existing leases, and reported 32 leases in the ACFR. The City implemented GASB 96 in FY2022-23. Approximately 120 software agreements were reviewed during the implementation and 16 were reported as SIBTA liability in the FY22-23 ACFR. For FY2023-24, the City reviewed 13 new agreements, updated the status of existing agreements, and reported 23 agreements as SBITA liability in the ACFR. City of Santa Ana RFP No. 25-025 Page 3 of 33