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

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Finance and Management Services www.santa-ana.org/finance Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 20, 2025 TOPIC: Award a Contract to Cherry Bekaert Advisory LLC for Governmental Accounting Standards Board (GASB) Consulting Services AGENDA TITLE Contract to Cherry Bekaert Advisory LLC for Governmental Accounting Standards Board (GASB) Consulting Services (General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Cherry Bekaert Advisory LLC to provide Consulting Services to implement new GASB standards for a total amount not to exceed $156,000 for a two-year period beginning with the fiscal year ending June 30, 2025 through June 30, 2026, with a provision for three, one-year extensions for the fiscal years ending June 30, 2027, June 30, 2028, and June 30, 2029. (Agreement No. A-2025- XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The Governmental Accounting Standards Board (GASB) issues accounting and financial reporting standards that state and local governments must follow under Generally Accepted Accounting Principles (GAAP). These standards help make financial information reliable, transparent, and comparable, so the public and decision -makers can better understand and evaluate how government funds are managed. The City of Santa Ana is required to follow GASB standards to ensure that the City's audited Annual Comprehensive Financial Report (ACFR) is prepared in accordance with GAAP and GASB financial reporting requirements. This also helps the City remain compliant and eligible to continue receiving state and federal grant funding. In recent years, GASB has issued several complex new standards, including GASB 87 (Leases), GASB 96 (Subscription -Based Information Technology Arrangements), and GASB 101 (Compensated Absences). These new requirements have created significant challenges for many government agencies, including Santa Ana, due to their technical complexity and tight reporting timelines.