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Deliverables <br />SUTA Detection and Documentation <br />MuniServices shall represent the City for purposes of examining CDTFA records pertaining to sales & use tax and transaction & <br />use tax to identify errors and omissions. MuniServices' procedures for detecting and documenting misallocations are as follows: <br />1. Review applicable provisions of the City's municipal code and ordinance adopted by the City to determine <br />applicability. <br />2. Procure a computer tape of sales & use and transactions & use tax permit records from the CDTFA. <br />3. Analyze sales tax and transactions tax distribution reports provided by the CDTFA for five or more of the <br />most recent consecutive quarters. <br />4. Clean-up, standardize and computerize data from City's quarterly sales tax/transactions tax distribution <br />reports provided by CDTFA for previous quarters (as applicable), current quarter (as applicable) and each <br />future quarter service is provided. <br />5. Prepare an aggregated list of business entities on electronic media; this list is derived from multiple <br />private and public sources (hard copy and electronic), including specialized business listings and <br />directories, the City's sales & use tax and transactions & use payment files, and an electronic copy of the <br />City's Business License Tax registry, updated no less than twice per year. <br />6. Clean, standardize and integrate, in address -order, each entity's business name, address and payment file <br />information, to eliminate redundancies, using MuniServices' proprietary software. <br />7. Physically canvas commercial/industrial area within the City's borders. <br />8. Develop a target list of potential point of sale/use reporting errors/omissions based on: <br />a. An electronic comparison of MuniServices' comprehensive inventory against the CDTFA's quarterly <br />distributions for the City, and <br />b. An analysis of each potentially misallocated account based on proprietary guidelines established by <br />MuniServices. <br />9. Meet with designated City official(s) to review service objectives and scope, MuniServices workplan <br />schedule, public relations and logistical matters. <br />10. Contact personnel in sales, operations and/or tax accounting at each target business to determine <br />whether a point-of-sale/use reporting error exists. (Note: this is accomplished with the highest regard to <br />discretion and professional conduct. MuniServices' allocation audits are predicated on a non -controversial, <br />constructive public relations approach which emphasizes the importance of each business to the City and <br />the mutual benefits of correcting reporting errors.) <br />11. Provide to the City and CDTFA reports addressing each taxpayer reporting error individually, including the <br />business name, address, telephone number, California sales tax permit number, individuals contacted, <br />date(s) of contact, nature of business, reason(s) for error, recommended corrective procedure and, if <br />available, estimated sales & use tax and transactions and use tax revenue which should be forthcoming to <br />the City. <br />12. MuniServices may also provide suggested language for letters to be sent to the taxpayers and/or CDTFA <br />from the City (or from MuniServices on behalf of the City) urging cooperation in promptly correcting the <br />distribution error. <br />13. Respond to negative findings by CDTFA with timely reconfirmation documentation in order to preserve the <br />City's original dates of knowledge. <br />14. Receive and process registration control record information monthly. <br />15. Receive and process sales tax distribution reports quarterly. <br />16. Coordinate with the taxpayer and CDTFA to make the necessary corrections and collect eligible back <br />quarter's amounts. <br />17. Monitor and analyze the quarterly distribution reports with an audit focus on the following: <br />a. Accounts with previously reported point-of-sale/use distribution errors to ensure that the <br />corrections are madefor current quarters and all eligible back quarters. <br />b. Major accounts comprising 90% or more of the City's total sales tax and transactions tax <br />