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

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Cherry Bekaert Proposal for City of Santa Ana / Provide working and/or training session to the City pertaining to any accounting implementations and reporting requirements under the GASB standards. / Set up a schedule with management to coordinate weekly check -ins, milestones and timelines. / Mobilize team members and provide client and project overview to discuss deliverables. Phase 2- Completeness and Implementation Documentation / Evaluation of any new potential lease or SBITA contracts entered into during the year. Identify/Review the Population of Leases (current operating leases, capital asset listings, source of cash receipts) and SBITAs (current IT arrangements, capital asset listings, source of cash receipts) and management to compile a population of agreements, including those contracts with a lease embedded within. / Collect and Categorize Data: Gather all supporting agreements, amendments, and extensions, and group agreements with similar characteristics. / Extract and input into DebtBook Key Terms and Conditions: Review information gathered and identify key terms and conditions such as the lease term, options to extend or terminate, payment terms, service or maintenance components, and analysis of the incremental borrowing rate used as the discount rate. / Perform necessary fieldwork including weekly or bi-weekly client meetings to discuss progress. / Assist with updating the incremental borrowing rate to be used utilizing the template provided by DebtBook Phase 3- Entries, Disclosure, and Go Forward / Prepare journal entries to record the subscription liability and right of use subscription asset, lease liability and leased assets, lease receivable and deferred inflow of resources; assist the City with drafting new leasing and/or SBITA policy, including the impact of updated control environment surrounding the initiation, approval, processing and recording of transactions impacted; and assist with drafting footnote disclosure / Work with the City in running the Day 1 journal entry along with the transition entry necessary to catch up to the current period based on implementation completion date. / Work with the City in the drafting and developing the GASB 87 & GASB 96 annual disclosures / Conduct "day 2" accounting training and use of software Provide deliverables will include but are not limited too; technical GASB implementation memos; database setup which includes key lease/contract terms abstracted and inputted into lease software; and/or supporting working papers. We also commit to being here for the City following this engagement if you run into issues or have questions around monthly journal entries, ongoing compliance questions/issues, changes to the control environment and/or annual reporting disclosures. We have developed the following service offerings to assist with compliance and provide long- term business solutions: / General diagnostics discussion with management / Consultation and interpretive guidance, including GASB interpretations / Checklists and other tools for GASB 87 and GASB 96 implementation / Assistance with tool identification and vendor evaluation / Assistance in identifying additional reports and data needed f. References / Review of your management's GASB 87 and GASB 96 GAAP policies and practices / Compare and contrast reviews for the ability of your entity's current processes and controls and IT systems to meet the requirements of GASB 87 or GASB 96 ► Analysis of potential impact on debt covenants / Assistance with implementation and IT system changes, if necessary, through Cherry Bekaert's IT system partners. 17