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

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a• Cherry Bekaert Proposal for City of Santa Ana 3.2 Assist client with determining the approach to be used for calculating compensated absences liability, if not already in policy or if changing based on the implementation of GASB 101 3.3 Document implementation year and go -forward policies and procedures to address completeness, information capture, and subjective determinations 4.0 Assist with calculation of GASB 101 compensated absences liability based on the client's determined approach 4.1 Assist with complex leave calculations based on multiple leave payout percentages or allocations (i.e., police and/or fire departments) 4.2 Assist with preparation of GASB 101 compensated absences journal entry, including allocation of liability if necessary 4.3 Review client -prepared GASB101 compensated absences journal entry for consistency with GASB 101 4.4 Assist with preparation and/or review of GASB 101 disclosures 4.5 Conduct final GASB 101 training (preparing client to handle going forward) Accounting Policy Recommendations Implementation Memo Compensated Absences Computation Tool Compensated Absences Computation Tool Journal Entry Journal Entry Updated and Reviewed Note Disclosures Go -Forward Presentation Cherry Bekaert has a team of government advisors that provides these services year-round and can get started on this project as soon as the week after the contract is signed. From the start of services to the completion of training development will be eight weeks. Sample Tools/ Templates &Training Materials Cherry Bekaert has developed proprietary tools and templates to help with GASB 101 implementation, which we will use for this engagement. Below are samples of our Compensated Absences Liability Calculation and Compensated Absences Leave Analysis Summary Tools. GASB 87 and GASB 96 Review and Update The lease accounting standard change was one of the most disruptive changes to accounting in over 40 years, and as one of the nation's top public sector audit firms, Cherry Bekaert has been helping local governments understand and plan to address the myriads of accounting and reporting requirements related to GASB 87 and GASB 96 since our 2019 audit season. To assist the City with maintaining compliance and audit readiness, this engagement will focus on helping the City review lease universe completeness, including embedded leases and materiality threshold, and re- evaluating the design and/or implementation of appropriate processes, procedures and control functions. Our general methodology includes: Phase 1- Understanding the Statement Scoping and objective call with the City, which includes initial high-level overview of standards as well as discussion of type of leases and SBITA contracts in scope. 16