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LS • • INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES To Mr. John Kachirsiky, President Santa Ana Police Officers Association Santa Ana, California To the Management of the City of Santa Ana Santa Ana, California We have performed the procedures enumerated below on the Santa Ana Police Officers Association (hereafter, the Association)'s medical insurance trust fund's excess fund balance calculation for the year ended December 31, 2023. The Association is responsible for the medical insurance trust fund's excess fund balance calculation. The Association has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of calculating and verifying the excess fund balance of the medical insurance trust fund pursuant to the Association's agreement with the City of Santa Ana (hereafter, the City) for the year ended December 31, 2023. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures performed and the associated findings are as follows: Health Plan Agreement 1. We obtained a copy of the Agreement between the City and the Association, which establishes a medical insurance trust fund (hereafter, the Trust) for employees of the bargaining unit. We summarized the significant terms of the Agreement. We also obtained an understanding of the role of a third party to administer the Trust on behalf of the Association. Results: Under the terms of the Agreement, the Association must maintain a Trust for the sole purpose of providing and administering health, dental, and long-term disability plans, which may include medical prescriptions, vision care, and/or long-term disability insurance for employees in the bargaining unit. Employees contribute toward the cost of health plan premiums at amounts determined by the Association. In addition, the City makes monthly contributions to the Trust based on the number of actively employed enrollee members in the bargaining unit. All costs of providing and administering the Trust's health benefit plans are the sole responsibility of the Association. The City's contributions may be used to cover administrative costs of the program up to the maximum amount stipulated in the Agreement. The Association has designated Union First Solutions as the third-party administrator of the Trust. Internal Controls 2. We inquired with medical insurance trustee personnel and obtained an understanding of the accounting procedures used by the trustee to administer the Trust. We reviewed these procedures, which included bank reconciliations, cash receipts and cash disbursements transactions for health care benefits, for any significant internal control weaknesses. Results: No exceptions were identified as a result of applying this procedure. PrimeGlobal nn""A` °°°"°'�� °ry d&cmnrigg Pima