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<br />Exhibit A <br /> <br />SUTA DETECTION AND DOCUMENTATION <br /> <br />MMC shall represent the City for purposes of examining SBE records pertaining to sales and use <br />tax to identify errors and omissions. MMC's procedures for detecting and documenting <br />misallocations are as follows: <br /> <br />D Review applicable provisions of the City's municipal code and ordinance adopted by <br />the City to detennine applicability. <br /> <br />D Procure a computer tape of sales/use tax pennit records from the State Board of <br />Equalization (SBE). <br /> <br />D Analyze sales tax distribution reports provided by the SBE for five or more of the <br />most recent consecutive quarters. <br /> <br />D Clean-up, standardize and computerize data from City's quarterly sales tax <br />distribution reports provided by SBE for previous quarters, current quarter and each <br />future quarter service is provided. <br /> <br />D Prepare an aggregated list of business entities on electronic media; this list is derived <br />from multiple private and public sources (hard copy and electronic), including <br />specialized business listings and directories, the City's sales and use tax payment <br />files, and an electronic copy of the City's Business License Tax registry, updated no <br />less than twice per year. <br /> <br />D Clean, standardize and integrate, in address-order, each entity's business name, <br />address and payment file infonnation, to eliminate redundancies, using MMC's <br />proprietary software. <br /> <br />D Physically canvas commercial/industrial area within the City's borders. <br /> <br />D Develop a target list of potential point of sale/use reporting errors/omissions based <br />on: <br /> <br />1) An electronic comparison of MMC's comprehensive inventory against the SBE's <br />quarterly distributions for the City, and <br /> <br />2) An analysis of each potentially misallocated account based on proprietary <br />guidelines established by MMC. <br /> <br />D Meet with designated City official(s) to review service objectives and scope, MMC <br />workplan schedule, public relations and logistical matters. <br /> <br />D Contact personnel in sales, operations and/or tax accounting at each target business to <br />detennine whether a point-of-sale/use reporting error exists. (Note: this is <br />accomplished with the highest regard to discretion and professional conduct. MMC's <br />allocation audits are predicated on a non-controversial, constructive public relations <br />approach which emphasizes the importance of each business to the City and the <br />mutual benefits of correcting reporting errors.) <br /> <br />D Provide to the City and SBE reports addressing each taxpayer reporting error <br />individually, including the business name, address, telephone number, California <br />sales tax pennit number, individuals contacted, date(s) of contact, nature of business, <br />reason(s) for error, recommended corrective procedure and, if available, estimated <br />sales/use tax revenue which should be forthcoming to the City. <br /> <br />9 <br /> <br />