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DocuSign Envelope ID:9822D5D4-600B-4A67-B07F-02E780760E1B <br />d. Identify each revenue type or source that the Companies did not include in the <br />determination of the utility users' taxes remitted to the City for the review period and <br />verify correctly excluded. <br />e. Reconcile revenues reported to the City to the revenues on third party billing data on a <br />test basis, depending on the findings noted and accuracy of the sample quarters tested. <br />f. Obtain a sample of customer bills and verify the calculation of the tax on the bill. <br />g. For each year, summarize every category of revenues reported to the City and reconcile <br />these revenues to the utility users' taxes. <br />2.3 Procedures specific to Telecommunication Utility Users' Taxes <br />a. Review the following, as applicable: enhanced service revenues, private line revenues, <br />equipment lease and sales revenues, installation and maintenance agreement charges, <br />late fees, non -sufficient funds fees, E911 charges, sales taxes, and state and federal <br />USF charges. Determine that these items are appropriately treated in the determination <br />of the gross revenues reported to the City. <br />b. Review the allocations of any bundled products consistent with accounting <br />requirements (Accounting Standards Codifications 605 and 606) to ascertain the <br />correct amount subject to the UUT is being determined. <br />c. Identify any exempt telecommunications revenues and determine if the customer meets <br />the requirements for exempt status. <br />d. Determine whether gross revenues generated from Indefeasible Right of Use ("IRU") <br />agreements were correctly included in the revenue base to determine UUT payments <br />to the City. <br />e. Obtain a list of the reseller lease agreements. Determine whether revenues from reseller <br />lease agreements were correctly included in the telecommunications revenue base to <br />determine the UUT payments to the City or whether the reseller self -reports. <br />f. Review the allocation percentage and method utilized to calculate allocated revenues, <br />such as the long-distance revenues between intrastate and interstate. <br />2.4 Summarize Results and Issue Reports <br />a. Analyze utility users' taxes reported to the City by category of revenues. <br />b. Calculate under/overpayment of the amount due to the City, interest charges and <br />applicable fees on under/overpayments of the utility users' taxes. <br />c. Submit final reports to the City. The reports will include HdL findings, including a <br />recalculation of the utility users' taxes and determination of any deficiencies plus <br />applicable interest due to the City. <br />3. TECHNICAL ASSISTANCE AND SUBJECT MATTER EXPERTISE (OPTIONAL) <br />3.1 HdL may provide additional hours of general consulting to be utilized on an as -needed basis at <br />the City's request. Such assistance may include technical assistance, subject matter expertise, <br />education, participation in conference calls, responding to staff inquires via phone and email, <br />reviewing staff reports to the City Council, assisting with responses to inquiries from the public, <br />or other issues as may be requested by the City. <br />SECTION IL FEES & CHARGES <br />1. SUPPORT & INDUSTRY MONITORING SERVICES <br />1.1 Fees for performing support and industry monitoring services, including support & industry <br />monitoring and operations management shall be charged at $3,000.00/month. <br />