Proposal for Governmental Accounting Standards Board (GASB) Consulting Services City of Santa Ana
March 18, 2025 l RFP #25-025
Danny Martinez, CPA, CGFM
Partner, Cherry Bekaert Advisory LLC
P 512.838.3176
E [email protected]
1925 Century Park E #1700, Los Angeles, CA 90067
cbh.com
Exhibit 3
Proposal for City of Santa Ana
Contents
a. Cover Letter ................................................................................................................................................ 1 b. Services Provided ...................................................................................................................................... 3 c. Agreement Statement ................................................................................................................................. 4 d. Firm and Team Experience ........................................................................................................................ 5 e. Proposed Work Plan ................................................................................................................................ 15 f. References ................................................................................................................................................ 17
2.Cost Proposal ............................................................................................................................................ 19 Appendix A – Attachments & Certifications .................................................................................................. 21 Attachment B – Standard Terms & Conditions ............................................................................................ 28
Proposal for City of Santa Ana
1 a. Cover Letter
March 18, 2025
Sarah Ro, Accounting Manager
City of Santa Ana – Finance and Management Services
20 Civic Center Plaza
Santa Ana, CA 92701
Dear Sarah:
Cherry Bekaert is pleased to submit this proposal for Governmental Accounting Standards Boards (GASB) No. 87, 96, and 101 consulting services to the City of Santa Ana (the City). The field of governmental accounting and financial management is dynamic for both the City and your external auditors and advisors. Pronouncements from the GASB can have significant impact on your internal accounting and external reporting, and maintaining compliance with current and upcoming standards is critical to public trust, effective decision making, comparability and benchmarking, and accountability to your constituents.
At the same time, local governments are in an environment of accelerated change and greater expectations from the constituents they serve, combined with numerous operational and compliance issues that either contribute to or prohibit long-term growth and strategic success. In addition to new accounting standards, staffing shortages, uncertainty at the Federal level and increasingly complex grant compliance impose significant challenges on the City.
In the face of these challenges, it is critical to have the right government accountant providing the proper technical guidance, reducing the demands on government staff and allowing organizations to focus on their constituents. To help, we have a national team of governmental accounting advisors and a GASB-as-a-Service offering covering new accounting standards consulting and implementation to financial close and ACFR preparation to help our clients manage effectively, efficiently and responsively. We are one of the largest providers of audit and accounting services to the state/local government market, bringing unique insight on the operations and business of the public sector to the City.
We understand this engagement includes:
GASB 87 and 96
Data collection, contract and agreement review, accounting and reporting updates with necessary documentation and support.
Assistance with discount rate determination utilizing DebtBook template Data input, review, and/or updates for identified lease and SBITA contracts in DebtBook and preparation of journal entries and footnote disclosures
GASB 101
Assessment of the City’s current practices and liabilities for compensated absences. Methodology determination, data collection, and historical trend analysis. Calculation and preparation of year-end schedules, journal entries, and footnote disclosures for GASB 101.
Ongoing and as-needed supplemental support for future GASB pronouncements and annual reviews/updates to GASB 101.
With Cherry Bekaert, the City will benefit from:
A comprehensive, established four-phase implementation approach that has been successfully deployed on GASBs 87 and 96 and currently being utilized on GASB 101, and team members experienced with DebtBook for reporting, journal entry posting and handling reporting queries.
Proposal for City of Santa Ana
2 Tailored training from industry experts who have presented at national conferences, including the GASB 101 training at the National Government Finance Officers Association conference, and multiple team members who served at the Governmental Accounting Standards Board.
Government accounting advisory expertise from a team who provide advisory services year-round, with implementation of new GASB standards one of the core services offerings. Our unique national approach ensures you are never put second to audit or other competing deadlines. Ready-built templates, checklists, and tools for GASB 101 that have been utilized by other governments and updated based on implementation lessons learned that will be tailored to align with the City's needs. Service team with experience implementing GASB 87 at several large California governments We commit to perform all services in a timely manner. Our engagement procedures will be tailored specifically to the City's needs, streamlined through years of experience with similar organizations. We would consider it a privilege to partner with the City and we look forward to helping you achieve current and future goals. With Cherry Bekaert, you can rely on a Firm that meets it commitment to the highest level of quality service, a commitment that separates Cherry Bekaert from other firms.
Thank you again for this opportunity. If you have questions about this proposal or require additional information, please feel free to contact us directly. We would also love the opportunity for our partner, Danny Martinez, to be able to present our service approach and all of the things we've built to support our clients with GASBs 87, 96, and 101.
Sincerely,
Cherry Bekaert
Danny Martinez, CPA, CGFM
Partner, Cherry Bekaert Advisory LLC
Government & Public Sector Accounting Advisory Lead
P: 512.479.6000
Proposal for City of Santa Ana
3 b. Services Provided
A description of proposed services to be provided and how they meet the needs of the City as described in Exhibit I – Scope of Services.
Cherry Bekaert will provide the City with a comprehensive, efficient approach in the implementation of GASB 101 and ongoing support for GASB 87 and 96. Our methodology takes our clients from a limited understanding of the pronouncement to having journal entries, disclosures and go-forward training in four streamlined steps. Your engagement will generally follow the framework summarized below and detailed in the Proposed Work Plan.
Throughout the engagement we will have weekly status meetings where we go over our joint accountability tool, which provides visibility to all parties on tasks that are being worked on, responsible parties, committed due dates, and detailed action items for each of the next two (2) weeks of the project. Based on our unique structure as a national team focused solely on governmental accounting projects, we can scale up as quickly as any other firm in the country.
Phase Brief Description
Understanding
the Statement
For GASBs 87 and 96, this phase includes requesting contracts, evaluating the current state of SBITA and leases in DebtBook, and reviewing working papers. For GASB 101, this involves conducting interviews with responsible parties, requesting initial PBC lists, evaluating prior compensated absences balances, and reviewing working papers. We will deliver customized training to your implementation team to ensure they understand the standard and to promote effective communication and information gathering during the project's early stages.
Additionally, we will hold collaborative sessions to break down the scope of work into specific tasks, assigning responsible parties and setting due dates.
Completeness
and
Implementation
Documentation
For GASBs 87 and 96, this phase includes gathering contracts, reviewing for the presences of a lease or SBITA, and gathering data inputs for entry into DebtBook. Additionally, this phase will include assistance with lease or SBITA termination or renewal options during the year and assistance with lease or SBITA modifications or revisions during the year. For GASB 101, we will capture the different leave types offered by the City for further evaluation under GASB 101.
This may include a review of your policies, payroll register, and trial balance to identify all potential compensated absences. We conduct walkthroughs with your HR and Payroll departments to ensure a comprehensive listing of compensated absences. The gathered information is then populated into a customized spreadsheet for your review and acceptance.
Policies and
Procedures
For GASB 87 and 96, we will evaluate your current policies and procedures for leases and SBITAs to ensure a consistent approach is used for any management determinations. For GASB 101, we will evaluate the current processes and controls around accounting for compensated absences and provide recommendations for improvement. We also assess the clarity of your policies and procedures, offering suggestions to enhance them. If the approach for calculating compensated absences liability is not already defined or needs to be updated based on GASB 101, we assist in determining the appropriate method. We document the implementation year and ongoing policies and procedures to ensure completeness and accurate information capture.
Entries,
Disclosure, and
Go Forward
For GASB 87 and 96, this phase will include the preparation of lease and SBITA journal entries and disclosures. For GASB 101, this phase includes the preparation and calculation of GASB 101 compensated absences liability based on the steps described above. We will help with complex leave calculations and prepare the necessary journal entries, ensuring consistency.
We also assist with preparing and reviewing the required disclosures. To wrap up the implementation, we conduct final training sessions to prepare you for handling GASB 101 requirements going forward. Our team members have been providing training sessions on GASB 101 since late 2022. Danny Martinez, proposed engagement partner, will lead these sessions; Danny has presented on GASB 101 at the National Government Finance Officers Association conference and is also presenting at the upcoming National Association of State Controllers Conference. Our team includes two (2) members who previously served at GASB, including senior associate Bailee Steinle, who was at GASB while 101 was being finalized.
Proposal for City of Santa Ana
4 Cherry Bekaert has already created certain tools for GASB 101 implementation to streamline effort for the City, including a GASB 101 Compensated Absence Evaluator, Implementation Memo and Liability Calculation Tool, among others. All these tools can be tailored to the City’s needs. We will also work with the City to create additional tools to capture all necessary items for liability calculation.
c. Agreement Statement
Proposal shall include a statement outlining your concurrence or reference to concerns previously submitted with any and all provisions as contained in EXHIBIT II – Sample Agreement of this RFP (if any).
As with any contractual relationship, Cherry Bekaert’s desire to enter into a contract with the City is based on reaching a mutually positive negotiation of terms and conditions. After reviewing the RFP and Draft Agreement, we would like to offer some alternative language for your consideration, which was provided and acknowledged during the Q&A period per RFP Section D, Exceptions:
H. DATA RETENTION – we request the following changes: “All materials, documents, data or information obtained from the City Data files or any City medium furnished to Contractor in the performance of an awarded contract will at all times remain the property of the City. Such data or information may not be used or copied for direct or indirect use by Contractor after completion or termination of this Contract without the express written consent of the City. All materials, documents, data or information, including copies, must be returned to the City at the end of the contract. Nothing herein shall be deemed to affect in any way the Contractor's right to retain one copy of the Confidential Information in its files to comply with professional standards or for archival purposes, provided, however that such copy shall be protected in accordance with the terms of this Agreement. All data, documents and other products used, developed, or produced during response preparation of the RFP will become property of the City. All responses to the RFP shall become property of the City. Proposer information identified as proprietary shall be maintained confidential, to the extent allowed under the California Public Records Act.” P. NEGOTIATIONS – we request including our standard terms and conditions in the final executed contract. A copy of the same has been included in this document for your review. 5. OWNERSHIP OF MATERIALS – We request the following change: “This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement, not to include Consultant's work papers, (“Documents & Data”)…” 7. INDEMNIFICATION – we request the following changes: “Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of Consultant's breach of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any covered action set forth by by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Proposal for City of Santa Ana
5 Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor. Notwithstanding anything to the contrary herein, the maximum aggregate liability of Contractor with respect to its indemnification obligations under this Contract shall not exceed the sum of five million dollars ($5,000,000.00).”
13. EXCLUSIVITY AND AMENDMENT – We request the following change: “…T he parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City unless mutually agreed to in writing executed by both parties…”
20. MISCELLANEOUS PROVISIONS – we request the following change and have included our standard terms and conditions within this document: “c. All Exhibits, including the Contractor's terms and condition, referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement.” Insurance Requirements – Please note that Professional Liability policy carrier will not name the City as an Additional Insured. We also request the “Acceptability of Insurers” requirement be changed to a current A.M. Best rating of no less than A-:VII.
Included in our response as Appendix are our standard terms and conditions for consulting/advisory services. d. Firm and Team Experience
i. A general description of the firm, including size and number of employees working directly with the City on this agreement.
Ranked among the largest assurance, tax and advisory firms in the U.S., Cherry Bekaert provides guidance and support that helps our clients move forward to reach their organizational goals. “Cherry Bekaert” is the brand name under which Cherry Bekaert LLP and Cherry Bekaert Advisory LLC, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. Cherry Bekaert Advisory LLC is not a licensed CPA firm. Cherry Bekaert LLP is a licensed CPA firm that provides attest services, and Cherry Bekaert Advisory LLC and its subsidiary entities provide business advisory and non-attest services spanning the areas of transaction advisory, risk and accounting advisory, digital solutions, cybersecurity and tax. For more details, visit cbh.com/disclosure.
For more than 75 years, global corporations,
public/private businesses and the public sector
have relied on Cherry Bekaert to guide them
forward. We provide digitally-driven, industry-
aligned advisory, tax, and assurance services,
leveraging practical knowledge and proven
experience to design and deliver highly tailored
solutions that help clients meet their financial,
operational, and strategic goals and objectives.
Our experienced professionals can offer guidance
through rapid growth and times of accelerated
change. Let us be Your Guide Forward by
delivering on our commitments to superior client
service through:
Attention to Detail and Quality: Outstanding service qualifications amplified by our commitment to prioritize your business and provide practical and timely support
Efficient, Business-Practical Guidance: High levels of senior level involvement, continuity of service professionals and expertise on a year-round basis
Value-Driven Relationships: Streamlined, focused attention on your strategic, operational and financial objectives
Proposal for City of Santa Ana
6 Vault Top Ranked
Awards
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Vault Accounting 25: The VAULT ACCOUNTING 25 is compiled using a weighted formula that reflects the issues accounting professionals care most about, combining quality of life rankings (such as culture, satisfaction, work/life balance, and compensation) with overall prestige.
2024 Best Accounting Firms for Audit & Assurance: Accountants across the nation rate the top firms in their practice areas.
Accounting Today
Top 100 Firms 2024
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Regional Leaders 2024 - Southeast Region
INSIDE Public
Accounting (IPA) IPA Top 100 Firms 2024
Engagement Team
The Cherry Bekaert team responsible for the City's account brings specialized governmental accounting knowledge, with a deep understanding of GASB 87, 96, and 101, as well as current and future pronouncements. The team is led by Danny Martinez and Scott Anderson, who served as the AICPA Technical Issues Committee GASB Chair and as a GASB Practice Fellow, respectively. Senior associate Bailee Steinle, who was a GASB Postgraduate Technical Assistant during the development of GASB 101, and senior associate Tatiana Britton, who has extensive experience with GASB implementations, are the primary accountants on most of our GASB 101 projects. Additionally, the engagement team is proficient in using DebtBook and stays updated on its latest features and product updates to ensure the heights level of service for our clients.
What sets our team and approach apart from our competition is Cherry Bekaert's designated government advisory group that works on these types of projects year-round. This means the City's project will never be put second to competing deadlines. We ensure frequent and direct access to the partners, directors and managers who maintain responsibility for the engagement, employing a high ratio of partners and senior managers to staff. This allows the Firm to staff and supervise engagements with a higher level of experienced staff than most firms.
Name & Role Professional Summary
Danny Martinez,
CPA, CGFM
Partner
Danny is a licensed CPA with over 18 years of experience providing advisory and training services to a wide range of governmental and public sector entities, including state agencies, municipalities and their component units, special districts, counties, school districts, tribal governments, airports, ports, hospitals, higher education institutes, including assisting many large California governments with GASB 87 implementation. As the leader of the Government & Public Sector Accounting Advisory group, he is responsible for the quality and growth of all of the Firm’s Government/GASB accounting and financial reporting assistance, financial statement/ACFR writing, and Surge Team accounting advisory services. Danny is the past Zone 3 (GASB) Chair of the American Institute of Certified Public Accountants (AICPA) Technical Issues Committee
Scott Anderson,
CPA
Director
As the Firm's public sector Technical Director and a current member of the AICPA's State and Local Government Expert Panel, Scott advises clients and audit teams in all phases of auditing and financial reporting. He oversees engagement planning, performance of audit tests, report writing and overall audit quality. He has extensive experience with Uniform Grant Guidance and the audit requirements of governments. As a GASB Practice Fellow, Scott was on the forefront of evolving standards. Scott’s involvement in the standard setting process provides us with unique insights and access to future developments.
Proposal for City of Santa Ana
7 Jack McKee,
CPA, CGFM
Senior Manager
Jack has spent the past nine years specializing in providing audit and advisory services to governments of all sizes, including municipalities, state agencies, counties, school districts, colleges, special districts, and tribes. His experience includes audit preparation and fieldwork, policy and procedure creation, lease implementation, SBITA review, Debtbook implementation, GASB technical accounting assistance, internal control review, risk assessments, state compliance review, and ACFR preparation and review. Jack has helped numerous governmental entities implement new accounting standards. Services to these clients included the review and classification of SBITA and Lease contracts, amortization schedule creation, journal entry preparation, and drafting of new footnotes for the implementation.
Vicki Dallas,
CPA, CITP
Senior Manager
Vicki has more than 10 years providing audit and advisory services to government entities of all sizes, including municipalities, counties, school districts, and special districts, including audit engagements with Single Audits. Her experiences include fund reporting, internal controls, budgeting, GASB 87, Leases and GASB 96, Subscription Based IT Arrangements (SBITA) implementation, Debtbook implementation, GASB technical accounting assistance, including cash, capital assets, and SEFA reconciliations, assistance with financial accounting software, and financial statements, including Annual Comprehensive Financial Reports, preparation, and review.
Nicholas
Keathley, CPA,
CFE, CITP
Manager
Nicholas has over four years of experience auditing governmental and Not-for-Profit entities, including performing Single Audits. He has audited complex areas including pension and OPEB, leases, and debt refunding, amongst other areas. He also serves on the Annual Comprehensive Financial Report (ACFR) preparation team and has assisting with various account reconciliation projects
Bailee Steinle
Senior Associate
Bailee has spent her entire career working with state and local governments and is a leader in the firm's GASB 101 implementation team. Prior to joining Cherry Bekaert, she spent one year in the Postgraduate Technical Assistant program at the Governmental Accounting Standards Board (GASB), allowing her to bring a unique perspective and background in financial standard setting to our clients. As a result of her time spent as a member of the teams developing standards that are set to become effective for governmental entities over the next few years, she is able to provide insights and expertise as standards continue to develop.
Tatiana Britton,
MBA
Associate
Tatiana is an Associate who's dedicated her entire career to servicing governmental clients and is a leader of the firm's GASB 101 implementation team. Since she joined Cherry Bekaert, she has worked with over 40 different cities and counties, state agencies, school districts, colleges/universities, , as well as privately-owned businesses. She primarily focuses on the implementation of new accounting standards, financial data compliance/control reviews and complex accounting ledger reconciliations. As lead staff, Tatiana assists with accounting standard compliance services and physical asset / accounting record compliance review projects to help clients overcome financial reporting, compliance and accounting challenges. ii. Firm’s nearest address serving the City of Santa Ana and headquarters address.
Our nearest office is in Los Angeles (1925 Century Park E, Suite 1700, Los Angeles, CA 90067), and our headquarters in is North Carolina (3800 Glenwood Ave, Ste 200, Raleigh, NC 27612). The proposed engagement team is part of our national Government accounting advisory team, located across our Firm. We have collaborated with clients like the City to employ technology and tools that provided high quality engagements with flexible scheduling and greater cost efficiency. However, we understand building knowledge and trust for complex accounting pronouncements is important and frequent interaction is necessary. We utilize Microsoft Teams to meet remotely with clients and Suralink® to stay engaged with the City throughout the engagement. We understand that remote/virtual work does not work for all parts of the engagement and will determine appropriate on-site time and resources for the needs of the City. We will work
Proposal for City of Santa Ana
8 with your staff to determine what procedures/activities can be conducted remotely versus on-site during the planning phase.
iii. Name and contact information of the supervising Project Manager/Principal Agent, to be assigned to the agreement..
Primary Point of Contact
Danny Martinez, CPA, CGFM
Partner, Cherry Bekaert Advisory LLC
Government Accounting Advisory Leader
Contact Information P: 512-838-3176 | E: [email protected] iv. Resumes for all key staff proposed describing relevant experience.
Your proposed engagement team has guided many public sector clients through GASB implementation engagements and has the capacity to provide targeted consulting services to meet your deadlines. On your service team you have the past GASB Zone Chair of the AICPA's Technical Issues Committee and a current AICPA State and Local Government Expert Panel Member. In addition, two members of the service team previously served at GASB during the time when GASB 87, 96, and 101 were being issued. Lastly, we've selected team members who have worked on other Debtbook implementation engagements. Because of our national approach, we are able staff our engagements with professionals who have a higher level of experience than most firms. You can also expect timely and helpful responses to time sensitive questions; our team is available to you year-round. Bios of the key proposed professionals who will be assigned to this engagement begin below. We commit to providing these key resources on this contract with the City.
Danny Martinez, CPA, CGFM
Partner, Cherry Bekaert
Advisory LLC
Government & Public Sector
Accounting Advisory Leader
Danny is a licensed CPA with over 18 years of
experience providing advisory and training services to
a wide range of governmental and public sector
entities, including municipalities and their component
units, state agencies, counties, school districts, tribal governments, airports, ports, hospitals, and higher
education institutes. Danny previously assisted the
City of Los Angeles, Port of Long Beach, Port of
Los Angeles, San Diego County Regional Airport
Authority and Los Angeles World Airports with
GASB 87 Implementation.
As the leader of the Government & Public Sector
Accounting Advisory group, he is responsible for the
quality and growth of all the Firm’s Government/GASB
accounting and financial reporting assistance, financial statement/ACFR writing, accounting modernization,
and Surge Team accounting advisory services. Under
his leadership the Firm had significant growth in these services and achieved high client satisfaction and
retention scores.
He has presented on various governmental industry
and accounting topics at national and regional
conferences, including on GASB 101 implementation at
last year's national GFOA conference and this year's
National Association of State Controller's (NASC)
conference.
Danny is the past Zone 3 (GASB) Chair of the
American Institute of Certified Public Accountants
(AICPA) Technical Issues Committee, a group that
provides a voice for its constituents in the standard-
setting process. In addition, Danny is a founding
member of the firm’s Government Standards Outlook
Committee, a group of technical leaders in the firm that keeps abreast of all upcoming GASB, OMB, and
AICPA changes and provides comment letters to those
standard setting bodies.
Education
B.S. in Accounting, University of Southern California
Areas of Expertise
GASB Technical Accounting Assistance
Internal Control Evaluation and Modernization
Audit Preparation and Remediation
ACFR Writing
Professional & Civic Involvement
Past GASB Zone Chair, AICPA Technical Issues
Committee
Association of Governmental Accountants, Dallas
and New Mexico Chapters
Proposal for City of Santa Ana
9 Scott Anderson, CPA
Director, Cherry Bekaert
Advisory LLC
Government & Public Sector
Technical Director
A licensed Certified Public Accountant in Florida, North Carolina, and Virginia, Scott has served the Firm’s
clients since 2005. As the Firm's public sector
Technical Director, Scott advises clients and audit
teams in all phases of auditing and financial reporting.
He oversees engagement planning, performance of
audit tests, report writing and overall audit quality. He has extensive experience with Uniform Grant Guidance
and the audit requirements of governments in Florida,
Virginia and North Carolina.
Clients have sought Scott’s knowledge in expertise on
current technical developments in governmental
accounting. He is a GASB alum, serving as a Practice
Fellow for two years, returning to Cherry Bekaert with
vast experience in governmental account and financial
reporting standards. As a GASB Practice Fellow, Scott
was on the forefront of evolving standards. Scott’s
involvement in the standard setting process provides
us with unique insights and access to future
developments.
Scott has also instructed at a number of external
conferences and seminars, representing both the firm
and the GASB, and webinars sponsored by the Firm on
various technical GASB topics. Scott's professional
involvement includes committees and panels, including
the AICPA State and Local Government Experts Panel
and the Government Finance Officers Association
Special Review Committee.
Education
Master of Accounting, North Carolina State University
Bachelor of Arts, Utah State University
Professional & Civic Involvement
American Institute of Certified Public Accountants
AICPA State and Local Government Expert Panel
Member
GFOA Special Review Committee
GASB Practice Fellow Program
North Carolina Association of Certified Public
Accountants
Government Finance Officers Association
Jack McKee, CPA, CGFM
Senior Manager, Cherry Bekaert
Advisory LLC
Government & Public Sector
Advisory Services
Jack has spent the past nine years specializing in
providing audit and advisory services to government
entities of all sizes, including municipalities, state
agencies, counties, school districts, colleges, special districts, and tribes. His experience includes audit
preparation and fieldwork, policy and procedure
creation, lease implementation, SBITA review, grants
management, federal award compliance, GASB
technical accounting assistance, internal control
review, risk assessments, state compliance review,
and ACFR preparation and review. Jack has helped
numerous governmental entities implement new
accounting standards. Services to these clients
included the review and classification of SBITA and
Lease contracts, amortization schedule creation,
journal entry preparation, and drafting of new footnotes for the implementation.
Additionally, Jack works with government and not-for-
profit organizations that expend federal and state
funding. Services to these clients include OMB
Circular/Uniform Grant Guidance compliance, policy
review, SEFA and Data Collection Form preparation,
lost revenue calculation review, and Single Audit
preparation. Jack has also conducted training to clients across a full spectrum of topics and speaks at
conferences on a regular basis.
Education
B.S. in Accounting, Northern Illinois University
Areas of Expertise
Governmental Accounting Pronouncement
Implementation
ACFR or Financial Statement Writing or Refresh
Accounting Transformation
Audit Preparation and Year-End Close Assistance
Financial & Single Audit Finding Remediation
GASB Technical Accounting
Strategic Accounting Projects
Surge Team Urgent Accounting Assistance
Training & Continuing Professional Education
Proposal for City of Santa Ana
10 Professional & Civic Involvement
Tennessee Society of CPAs, Government and Not-
for-Profit Committee
Association of Government Accountants
Tennessee GFOA
Founding member of Cherry Bekaert’s
Governmental Standards Outlook Committee
Vicki Dallas, CPA, CITP
Senior Manager, Cherry Bekaert
Advisory LLC
Government Accounting Advisory
Services
As a Senior Manager in the Firm’s Government and
Public Sector based out of El Paso, Texas, Vicki has
spent the past 10 years specializing in providing audit and advisory services to government entities of all
sizes, including municipalities, counties, school
districts, and special districts, including audit
engagements with Single Audits. Her experiences
include fund reporting, Uniform Guidance compliance,
internal controls, budgeting, GASB 87, Leases and
GASB 96, Subscription Based IT Arrangements
(SBITA) implementation, GASB technical accounting
assistance, including cash, capital assets, and SEFA
reconciliations, assistance with financial accounting
software, including QuickBooks, and financial
statements, including Annual Comprehensive Financial
Reports, preparation, and review.
Education
Master of Accounting, New Mexico State University
Bachelor of Science, Southwestern Assemblies of God
University
Areas of Expertise
Governmental Accounting Pronouncement
Implementation
Internal Control Evaluation and Transformation
Risk Advisory
GASB Technical Accounting Assistance
Grants Management
Federal Award Compliance
Professional & Civic Involvement
American Institute of Certified Public Accountants
Texas Society of CPAs
President - AGA, El Paso Chapter
Nicholas Keathley, CPA, CFE,
CITP
Manager, Cherry Bekaert Advisory
LLC
Nicholas has over four years of experience auditing
governmental and Not-for-Profit entities, including
performing Single Audits. He also serves on the Annual
Comprehensive Financial Report (ACFR) preparation
team and has assisting with various account
reconciliation projects. He has audited complex areas
including pension and OPEB, leases, and debt
refunding, amongst other areas. As an auditor, he
planned and performed risk assessments and tests of
controls, conducted fieldwork and testing, and drafted
financial statements for various governmental and Not-
for-Profit entities. Nicholas had to consider the risks related to information technology (IT) as part of the
financial statement risk assessment by gaining an
understanding of an entity’s IT control environment and identifying and evaluating IT controls. Nicholas often
had to test significant IT controls to lower the assessed risk over IT controls to an acceptable level. Examples
of IT controls he often tested include: application, user access, backup and recovery, and security
management controls. Control deficiencies and
recommendations were communicated with the entity.
Education
Master of Accountancy, The University of Texas Rio
Grande Valley
Bachelor of Business Administration, Accountancy,
The University of Texas Rio Grande Valley
Areas of Expertise
Governmental & Not-for-Profit Accounting/Auditing
Governmental and Not-for-Profit Financial
Statements
Texas Governmental Auditing and Accounting
Federal Grants Compliance
IT General Controls and Application Controls
Internal Control over Financial Reporting
Financial Close and Reporting
Professional & Civic Involvement
Member of the American Institute of Certified
Public Accountants (AICPA)
Member of the Texas Society of Certified Public
Accountants (TXCPA)
Member of Association of Certified Fraud
Examiners (ACFE)
Proposal for City of Santa Ana
11 Bailee Steinle
Senior Associate, Cherry
Bekaert Advisory LLC
Government Accounting
Advisory Services
Bailee has spent her entire career working with state
and local governments. Prior to joining Cherry Bekaert, she spent one year in the Postgraduate Technical
Assistant program at the Governmental Accounting
Standards Board (GASB), allowing her to bring a
unique perspective and background in financial
standard setting to our clients.
As a result of her time spent as a member of the teams
developing standards that are set to become effective
for governmental entities over the next few years, she
is able to provide insights and expertise as standards
continue to develop
Education
B.S., in Business Administration and Accounting,
Nebraska College of Business
Areas of Expertise
Governmental Accounting Pronouncement
Implementation
Accounting Advisory
Grants Management
Federal Award Compliance
Internal Control Evaluation and Transformation
Tatiana Britton, MBA
Associate, Cherry Bekaert
Advisory LLC
Government & Public Sector Risk
Advisory
Tatiana is an Associate with three years of accounting
advisory experience. Since she joined Cherry Bekaert,
she has worked with over 40 different school districts, colleges/universities, cities and counties, as well as
privately-owned businesses. She primarily focuses on
the implementation of new accounting standards,
financial data compliance/control reviews and
accounting ledger reconciliation. As lead staff, Tatiana assists with accounting standard compliance services
and physical asset / accounting record compliance
review projects to help clients overcome financial
reporting, compliance and accounting challenges.
Prior to Cherry Bekaert, Tatiana had six years of full
cycle accounting and financial data compliance
experience, including working with the Pennsylvania
Army National Guard to conduct an operational review
to identify risks and improve payroll efficiency and
effectiveness. She collaborated with her fellow
Guardsmen in order to develop strategies to address
and identify potential risks.
Education
MBA, Kutztown University of Pennsylvania
B.S, Accounting, East Stroudsburg University of
Pennsylvania
Areas of Expertise
Compliance Data Collection and Review
Governmental Accounting Pronouncement
Implementation
Financial Data and Accounting Ledger Review
Bank Reconciliation
Bookkeeping
Accounts Receivable and Accounts Payable
Reconciliation
Capital Asset Reconciliation
Capital Assets and Physical Inventory Audit
v. A description of the Proposer’s experience in providing similar services to those requested in this RFP.
Cherry Bekaert's Government & Public Sector (GPS) team has a deep understanding of the complex challenges local governments face, focusing on the areas of highest need to enable and improve the transparency, efficiency and effectiveness government reporting. With extensive knowledge and experience of government accounting and audit
Proposal for City of Santa Ana
12 requirements, we are one of the largest providers in the public sector space, serving clients around the nation; we provide targeted services to 200 municipalities, counties, public authorities/boards, school districts, and state agencies, ranging in size from $2 million to $9 billion.
Local governments face extreme staffing challenges and knowledge drain, leaving them with open budgeted positions and without technical accounting knowledge. At the same time, the Governmental Accounting Standards Board (GASB) requirements are becoming increasingly complex and operational needs are expanding from unprecedented federal funding. We understand the distinct challenges that government finance and accounting managers face, and our GPS Advisory team provides a comprehensive GASB-as-a-Service offering that helps governments overcome them. While other professional services firms may have significant governmental accounting expertise, Cherry Bekaert has a dedicated team of professionals who only provide governmental accounting advisory services. This provides governments with the confidence that their needs will not be placed second to competing audit regulatory deadlines.
We provide accounting services specific to the public sector—everything from financial close assistance and account reconciliation to internal control reviews, technical accounting, standards implementation, and ACFR preparation — to help our clients manage effectively, efficiently and responsively. We understand your unique challenges and remain up-to-date with industry developments to help you take advantage of growth opportunities and promote sustainable, compliant operations.
The Firm frequently produces targeted thought leadership, which is available at the Guidance section of our website.
Cherry Bekaert is also proud to have several team members who worked with the GASB on technical matters. Our professionals were on the forefront of evolving standards, including GASB 1010. This involvement provides unique insights we can share with our clients. Our capabilities include:
Implementation of New Accounting Standards
Over the years, we have assisted our clients with GASB pronouncement implementation, providing research and advice to resolve many complex accounting issues, including:
Assisting with analysis of the accounting and reporting aspects of compensated absences (GASB 101) Assisting with analysis of the accounting and reporting aspects of subscription-based technology agreements (GASB 96)
Assisting with analysis of the accounting and reporting aspects of public-public or public-private partnerships (GASB 94)
Assisting with analysis of the accounting and reporting aspects of lease accounting (GASB 87) Assisting with analysis of the reporting aspects of fiduciary activities (GASB 84) Providing assistance interpreting the fair value measurement and disclosure requirements under GASB 72 and the guidance for certain external investments pools and participants under GASB 79 Annual Comprehensive Financial Report (ACFR) Writing
Many governments are finding that they do not have the bandwidth and/or the technical expertise to draft their ACFRs and decide to outsource or co-source this work to us. These reports are often 100 to 200 pages and go through multiple layers of review, each resulting in changes that frequently need to be made in many places throughout the document. Leveraging Cherry Bekaert to prepare your ACFR affords you with the in the following benefits:
Begin with a template ACFR created using Government Finance Officer’s Association Framework and tailored to your organization's needs, which rolls forward from year to year with minimal rework Employ engagement management software to ensure consistent groupings year over year Assistance with cash, modified accrual and full accrual accounting conversion entries Assistance with net position and fund classification calculations, including net investment in capital assets Completion of multiple reviews by governmental accountants Ability to access account groupings in Excel format to easily disaggregate basic financial statement balances Proposal for City of Santa Ana
13 The GFOA Certificate of Achievement for Excellence in Financial Reporting is highly recognized as the epitome of financial accountability and quality reporting. As a firm, we have provided support in obtaining and maintaining the certification to more than 75 governments, with several of our partners/directors participating in the program as certificate reviewers. As with all our GFOA submitting entities, we will assist you in any way necessary to help you receive this award every year. We will review your ACFR in comparison to our Firm’s standard governmental reporting checklist and the current GFOA reporting checklist to help ensure that the Annual Report is in compliance with the certificate program requirements. Additionally, we will review the prior year GFOA comments to ensure that they have been properly addressed and/or corrected.
Account Reconciliation and Financial Close Assistance
We provide on-demand accounting and financial close support for many financial statement areas to government and public sector organizations who are significantly behind on their accounting and reporting. We also offer more targeted services such as assistance with bank reconciliations or reconciling capital assets across multiple systems. Examples of accounting reconciliation and financial close assistance we provide include:
Analytical review of trial balance
Bank reconciliations and outstanding items
analysis
Grant closeout, investigation and reconciliation
assistance
Revenue and expense recognition for grant and
other funds
Data comparison between multiple accounting
systems
Review and analysis of payroll data for
completeness and accuracy
Accounts receivable or accounts payable
reconciliations
Fund allocation calculations and journal entries
Subledger reconciliations and analysis
Fixed asset reconciliations and depreciation
calculations
Pension and other post-employment benefit
calculations
Preparation and reconciliation of the schedule of
expenditures of federal and state awards
Audit PBC (prepared by client) list assistance
Financial Management Policy and Procedure Refresh
Recently, many governments have made significant operational changes within their accounting and finance function, often due to staffing challenges or moving to a more remote or hybrid working environment. These changes lead to outdated or inaccurate policies and procedures that do not reflect the day-to-day reality of the organization. We work with governments to refresh their policies and procedures to take advantage of the efficiencies they've found as well as benchmark them against other governments and provide additional opportunities for improvement. Examples include:
Cash Management procedures for receiving, depositing and disbursing cash and cash equivalents Accounts Payable procedures for verifying invoices, purchasing cards, and travel and per diem requests Accounts Receivable procedures for billing, recording and collecting, including the process for managing outstanding balances and tax collections
Budgeting procedures for developing, approving and monitoring the government's budget Capital Asset procedures for acquiring, recording and disposing of fixed assets to maintain fixed asset records Payroll procedures for processing payroll, including calculating and withholding taxes and other deductions. Grant Management procedures for grants and other external funding sources, including the process for applying for grants, monitoring grant spending and reporting on grant activities Financial Reporting procedures that encompass preparing financial statement and other financial reports, including the process for ensuring accuracy and compliance with accounting standards Enterprise Resource Planning (ERP) and Accounting Module Implementation or Remediation Assistance Many governments see the need to implement new accounting systems to reap the benefit of newer technology and the efficiencies these systems provide. When implementing these systems, it is important to have the governmental Proposal for City of Santa Ana
14 expertise necessary to ensure that charts of accounts and all related modules are implemented appropriately. Cherry Bekaert has decades of experience both as the project manager on the implementation of these systems as well as providing remediation work when an implementation does not go as expected.
Internal Control and Compliance Evaluation and Transformation Lending or granting federal and state funds and ensuring compliance from subrecipients involves significant, new and changing compliance complexities that many public sector organizations may be unfamiliar with. We assist governments with evaluation of their internal control and compliance structure or those of their related entities as subrecipients. Our support extends beyond compliance and seeks to help funding recipients identify efficiencies or implement templates and checklists to enhance their processes going forward.
Tailored Training and CPE
The field of governmental accounting and fiscal management is dynamic for both the City and its external consultants.
Pronouncements from the following bodies all have significant impact on this sector:
Government Accounting Standards Board (GASB) (altering internal accounting and external reporting) AICPA (modifying audit standards and procedures)
OMB (creating new compliance demands associated with the expenditure of federal funds) With staffing shortages and average employee tenures decreasing, it is imperative that governmental accounting and finance personnel receive adequate training to perform their roles and responsibilities. We maintain a robust library of trainings on a variety of governmental accounting and financial reporting topics and can deliver/facilitate targeted training to your teams. All proposed service team members have more than 40 hours of relevant continuing education during each of the last two years, including the continuing education required by Government Auditing Standards.
Experience
A list of current and recent clients includes:
Alaska Railroad
Alliance Health*
Augusta Richmond County, Georgia
Broward Metropolitan Planning Organization, Florida
Cabarrus County, North Carolina
Central Florida Tourism Oversight District
Central New Mex
Chesapeake Public Schools, Virginia
Chicago Transit Authority, Illinois
Cincinnati Metropolitan Housing Authority, Ohio
City of Asheville, North Carolina*
City of Chesapeake, Virginia*
City of Deming, New Mexico
City of Fayetteville, North Carolina
City of Fort Myers, Florida*
City of Kerrville, Texas
City of Hallandale Beach, Florida
City of Livonia, Michigan*
City of Richardson, Texas
City of Roanoke Rapids, North Carolina
City of Suffolk, Virginia
Florida Agricultural & Mechanical University
Fayetteville State University, North Carolina
Forsyth County, North Carolina*
Greater Raleigh Visitors and Convention Bureau
Georgia Regents Real Estate Corporation
Hampton City Schools, Virginia*
Hampton Roads Sanitation District, Virginia
Louisville Metropolitan Housing Authority, Kentucky
Mecklenburg County Sheriff’s Office, North Carolina
North Carolina Central University
North Carolina Department of Environmental Quality
North Carolina Department of Information
Technology
North Carolina Department of Cultural and Natural
Resources
North Carolina Department of Public Instruction
Newport News Public Schools, Virginia
Oneida Nation
Orange County Public Schools, Florida
Richmond Metropolitan Transportation Authority
Roosevelt County, New Mexico
Proposal for City of Santa Ana
15 City of Vero Beach, Florida
City of Winston-Salem, North Carolina
Central New Mexico Community College
Collier County Public Schools, Florida
Columbia County, Georgia*
Community College of Philadelphia
Cumberland County, North Carolina
Eddy County, New Mexico
ElectriCities of North Carolina
Escambia County School District*
Fairfax County Department of Housing and
Community Development, Virginia
Sandhills Center, North Carolina
St. Johns County School District, Florida
St. Lucie County School District, Florida
State of Oklahoma
State of Rhode Island
Town of Holly Springs, North Carolina
University of Mary Washington*
University of Memphis
Virginia Beach Public Schools, Virginia
William James City County Schools, Virginia
*DebtBook was utilized by client for GASB 87, 94,
and 96
e. Proposed Work Plan
Proposed Approach, including: i. Anticipated approach to performing services as specified herein; ii. Suggestions or special co ncerns the evaluation committee should take into consideration (if any); iii. Description of deliverables and implementation plan. Pro poser shall submit a general description of the deliverables, implementation plan, and timeline. iv. Data requirements from the City, if an y GASB 101 Implementation
Cherry Bekaert has developed a comprehensive four phase approach to implementing GASB 101, Compensated Absences that we are currently providing to governments throughout the country. This four-phase approach takes our clients from not knowing about the pronouncement to having journal entries, disclosures, and go-forward training. The Scope of Services provided by the City aligns very closely with our approach and achieves the primary objectives of your RFP to ensure full compliance with GASB 101 and help align current accounting practices for the new accounting standard. Cherry Bekaert’s Comprehensive Four-Phase Implementation Approach includes:
Phase/Activities Deliverables
Phase 1: Understanding the Statement
1.0 Training and initial discussion on GASB 101 Compensated Absences GASB 101 Presentation
1.1 Assistance with general communication and information gathering within the organization (for decentralized organizations or systems) Tailored GASB 101 Memo
Phase 2: Completeness and Implementation Documentation
2.0 Provide Cherry Bekaert" GASB 101 Summary" Excel template to assist with the capture of compensated absences applicable to the organization and potential liability recognition
Compensated Absences
Summary Excel Template
2.1 Complete detailed review of client's policies, payroll register, and trial balance to assist in the identification of all potential compensated absences
Annotated documents and a list
of identified compensated
absences
2.2 Conduct walkthroughs with HR and Payroll departments to assist in the discovery of the government's full compensated absences listing List of identified compensated
absences
2.3 Populate Cherry Bekaert "GASB 101 Summary" Excel template for client review and acceptance
Completed Compensated
Absences Summary Excel
Template
Phase 3: Policies and Procedures
3.0 Assess current state processes and controls around accounting for compensated absences and provide recommendations for improvement Accounting Policy
Recommendations
3.1 Assess clarity of client's policies and procedures (e.g., more likely than not determination, termination assumptions, flows assumption, accumulation assumptions) and provide recommendations for improvement
Accounting Policy
Recommendations
Proposal for City of Santa Ana
16 Phase/Activities Deliverables
3.2 Assist client with determining the approach to be used for calculating compensated absences liability, if not already in policy or if changing based on the implementation of GASB 101
Accounting Policy
Recommendations
3.3 Document implementation year and go-forward policies and procedures to address completeness, information capture, and subjective determinations
Implementation Memo
Phase 4: Entries, Disclosure, and Go Forward
4.0 Assist with calculation of GASB 101 compensated absences liability based on the client's determined approach
Compensated Absences
Computation Tool
4.1 Assist with complex leave calculations based on multiple leave payout percentages or allocations (i.e., police and/or fire departments) Compensated Absences
Computation Tool
4.2 Assist with preparation of GASB 101compensated absences journal entry, including allocation of liability if necessary
Journal Entry
4.3 Review client-prepared GASB101 compensated absences journal entry for consistency with GASB 101
Journal Entry
4.4 Assist with preparation and/or review of GASB 101disclosures Updated and Reviewed Note Disclosures
4.5 Conduct final GASB 101 training (preparing client to handle going forward)
Go-Forward Presentation
Cherry Bekaert has a team of government advisors that provides these services year-round and can get started on this project as soon as the week after the contract is signed. From the start of services to the completion of training development will be eight weeks.
Sample Tools/ Templates
&Training Materials
Cherry Bekaert has developed
proprietary tools and templates
to help with GASB 101
implementation, which we will
use for this engagement.
Below are samples of our
Compensated Absences
Liability Calculation and
Compensated Absences
Leave Analysis Summary
Tools.
GASB 87 and GASB 96
Review and Update
The lease accounting standard change was one of the most disruptive changes to accounting in over 40 years, and as one of the nation’s top public sector audit firms, Cherry Bekaert has been helping local governments understand and plan to address the myriads of accounting and reporting requirements related to GASB 87 and GASB 96 since our 2019 audit season. To assist the City with maintaining compliance and audit readiness, this engagement will focus on helping the City review lease universe completeness, including embedded leases and materiality threshold, and re- evaluating the design and/or implementation of appropriate processes, procedures and control functions. Our general methodology includes:
Phase 1- Understanding the Statement
Scoping and objective call with the City, which includes initial high-level overview of standards as well as discussion of type of leases and SBITA contracts in scope.
Proposal for City of Santa Ana
17 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
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.
f. References
Customer Name City of Fayetteville, North Carolina
Contact Individual Jeff Yates, Assistant City Manager
Address 433 Hay Street, Fayetteville NC, 28301
Phone Number 910.433.1474
Proposal for City of Santa Ana
18 Email [email protected]
Contract Amount $914,000
Year January 2023 - Present
Description of
supplies,
equipment, or
services provided
Wide range of accounting, financial and pre-financial audit services for fiscal years 2022 - 2025 .
We started by gaining an understanding of the entity's system of internal controls after their ERP implementation, similar to what would have been done in a financial statement audit. The purpose was to better develop tailored accounting and financial reconciliation procedures necessary for significant transaction cycles that had yet to be reconciled. The reconciliations included bank reconciliations (including pooled cash), accounts receivable and payable subledgers, capital assets, and fund balance classification, among others. Portions of the reconciliations were fully outsourced while others were done in conjunction with City finance staff. As part of the co-sourced account and financial closing process, we proposed journal entries and assisted with preparation of the final trial balance for the auditors.
The City was required to implement GASB 87 as part of their fiscal year 2022 closing procedures and also decided to implement GASB 96 a year early. We assisted with the implementation of both of these standards, which included template creation for departments lease/subscription contract identification, detailed review of contracts, data analytics on the City’s General Ledger to identify embedded leases, assistance developing go-forward policies and procedures, and required journal entries and disclosures. We also assisted with note disclosures and other procedures related to the drafting of the Annual Comprehensive Financial Report.
Customer Name City of Fort Myers
Contact Individual Christine Tenney, Director of Financial Services Address 2200 Second Street, Fort Myers, FL 33901
Phone Number 239.321.7186
Email [email protected]
Contract Amount $247,500
Year November 2023 - Present
Description of
supplies,
equipment, or
services provided
We assisted the City with ACFR preparation, which included:
Coordinating with the City’s finance department to develop a timeline for completion, including team member assignments and review responsibilities Providing a template with a list of items (statements, schedules, footnotes, Stat tables) needed
Holding weekly status update meeting to ensure progress goals were met Assisting with:
o Full accrual journal entries
o Long-term debt, pension and OPEB footnotes
o Government-wide reconciliations
o Identifying and correcting grouping issues
o Completion of the basic financial statement s within the City's software (Statement Builder)
Performing multiple reviews of the ACFR before submission to the City’s external auditors. Helping the City ensure that GFOA requirements were met Customer Name City of Richardson, TX
Contact Individual Herman Chavez, CPA, Controller
Address 2360 Campbell Creek Blvd. Suite 550 Richardson, TX 75082 Phone Number 972.744.4062
Email [email protected]
Contract Amount $321,500
Year June 2023 - Present
Proposal for City of Santa Ana
19 Description of
supplies,
equipment, or
services provided
The City needed bank reconciliation support for an entire fiscal year, particularly for transactions from January to September 2023 that were not reconciled because of a new ERP system implementation. We created a data capture template for all 19 departments and interviewed multiple personal early in the project to understand the nature of several transactions made. We also proposed a blueprint for automating this process in the future. This approach streamlined the City's reconciliation template to reduce reconciliation time for monthly close from three weeks to one week. We are also providing best practice recommendations and remediation efforts for departments that need improvement in their reconciliation process.
Customer Name North Carolina Department of Public Instruction Contact Individual Jessica Mapes, Accounting C ontrols & Reporting Manager Address 301 North Wilmington Street, Raleigh, NC 27601-2825 Phone Number 984.236.2373
Email [email protected]
Contract Amount $107,885
Year September 2022 - Present
Description of
supplies,
equipment, or
services provided
Cherry Bekaert prepared the financial statements for the Department for the years ending June 30, 2022, and 2023. The Department's financial information was spread across several software platforms, requiring extensive reconciliations to ensure that billions of dollars in federal and state grant funding could be accurately disaggregated by individual subrecipients for the mandatory supplementary schedules. Cherry Bekaert also assisted with cash basis, modified accrual and full accrual journal entries, and helped the Department build new disclosures for GASB 87 and
96. As part of the financial statement preparation, Cherry Bekaert provided the Department with an in-depth understanding of the mapping of their account structure, flow of information from different software platforms, and closing journal entries. This increased transparency enabled the Department to have a more seamless review of the financials during the audit process.
Additionally, the fiscal year 2023 financial statement preparation was completed several months earlier than had been historically possible for the Department. This additional time allowed for a more thorough review of the financials without the pressure of a looming deadline.
Customer Name North Carolina Department of Information Technology (NCDIT) Contact Individual Beth Lane, Finance Director
Address 301 North Wilmington Street, Raleigh, NC 27601-2825 Phone Number 919.609.3421
Email [email protected]
Contract Amount $102,000
Year November 2021 - Present
Description of
supplies,
equipment, or
services provided
Assisted NCDIT with the implementation of GASB 96, Subscription-Based Information Technology Arrangements. NCDIT has very complex subscription arrangements that required deep analysis and discussion with multiple parties to arrive at the appropriate accounting treatments. In addition to technical contract review, we documented completeness and other implementation considerations, prepared journal entries and related disclosures, and provided Day 2 go-forward training. The following year, we provided NCDIT with Year 2 support related to both GASB 87 and GASB 96. Prior to these engagements, we also provided internal service fund audit and agreed-upon procedures to NCDIT.
2.Cost Proposal
We understand and appreciate your desire for professional service providers who are not only highly qualified, but who are also cost-conscious and cost-effective about the work they perform. We are mindful that cost is always a consideration in selecting a professional services firm. Accordingly, we have structured our fee based on our strong desire to develop a mutually rewarding, long-term relationship. Our fees are generally based on the time required to complete the work at our established billing rates. Our fees are also based on other factors such as the complexity of Proposal for City of Santa Ana
20 the work, the skill required, time limits, the experience and abilities of our personnel, and the value of the services rendered.
Within the table below you will see our hourly rates for these services. A key benefit of our engagements is that we can scale up or scale down the level of effort in certain areas based on client budget. We also provide a detailed WIP summary each week so our clients are completely aware of where they are within their budget and what areas the fees correspond to.
Experience Level Hourly Consulting Rates
Partner/Principal $295
Managing Director/Director $275
Senior Manager $250
Manager $210
Senior Associate $185
Associate $165
The fee below by fiscal year and task is based on the anticipated number of hours needed on the engagement. Should the engagement take fewer hours, you will only be billed for the hours incurred. Our total fiscal year 2025 fee is $42,550 and our total fiscal year 2026 fee is $19,500. This leaves an additional $37,950 for optional supplemental services if the City were to use the entire $100,000 budget identified. As stated in the RFP, the City is not obligated to spend the entire $100,000 and will only be billed for time incurred. Please note the reduction in fee in fiscal year 2026 is based on the fact that GASB 101 is largely an implementation year challenge and the tools and templates created in year one make this standard easier to manage in subsequent years.
Service Hours Fee
Fiscal Year 2025
GASB 87 40 $7,400
GASB 96 40 $7,400
GASB 101 150 $27,750
Total Year One 230 $42,550
Fiscal Year 2026
GASB 87 40 $7,800
GASB 96 40 $7,800
GASB 101 20 $3,900
Total Year Two 100 $19,500
Optional supplemental services contingent upon availability of funds 200 $37,950 Total Fee for Initial of Agreement 530 $100,000
Additional Details
Renewal - Cherry Bekaert agrees not to increase annual fees by more than five (5) percent per year, over the prior year, for the three (3) annual renewals. This five percent (5%) limit does not apply to any new services added during the term of this Agreement.
A change in fees will apply should the scope of work change significantly. Should this occur, or there is a change in scope because of a change in your operations, we would meet with you to obtain your agreement on any increase in the fee ranges before proceeding.
Out-of-Scope Services
We encourage open lines of communication throughout the year as part of our services. Generally, we do not bill for routine telephone consultations, including calls received during the year regarding compliance questions.
However, should a matter require major research or services not included above, we will bill for these services at established hourly rates as rendered. Before beginning any additional work outside the scope of this proposal, we will discuss anticipated fees with your management to obtain understanding and approval, as well as any anticipated discount based on the timing and complexity of the service.
Proposal for City of Santa Ana
21 Appendix A – Attachments & Certifications
Proposal for City of Santa Ana
22 Proposal for City of Santa Ana
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27 Proposal for City of Santa Ana
28 Attachment B – Standard Terms & Conditions
Proposal for City of Santa Ana
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