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<br />Exhibit A <br /> <br />0 MMC may also provide suggested language for letters to be sent to the taxpayers <br />and/or SBE from the City (or from MMC on behalf of the City) urging cooperation in <br />promptly correcting the distribution error. <br /> <br />0 Respond to negative findings by SBE with timely reconfirmation documentation in <br />order to preserve the City's original dates of knowledge. <br /> <br />0 Receive and process registration control record information monthly. <br /> <br />0 Receive and process sales tax distribution reports quarterly. <br /> <br />0 Coordinate with the taxpayer and State Board of Equalization to make the necessary <br />corrections and collect eligible back quarters amounts. <br /> <br />0 Monitor and analyze the quarterly distribution reports with an audit focus on the <br />following: <br /> <br />1) Accounts with previously reported point-of-sale/use distribution errors to ensure <br />that the corrections are made for current quarters and all eligible back quarters. <br /> <br />2) Major accounts comprising 90% or more of the City's total sales tax revenue to <br />identify any irregularities or unusual deviations from the normal pattern (e.g. <br />negative fund transfers, significant decreases, unusual increases, etc.) and ensure <br />that the City is not receiving less revenue than it is entitled to. <br /> <br />3) Those accounts receiving deficiency assessments to ensure that the City receives <br />its local allocation <br /> <br />0 Identify opportunities for the City to recover local allocation on purchase transactions <br />subject to use tax. MMC will prepare the necessary documentation to facilitate <br />recovery, including assistance in preparing and filing the returns. <br /> <br />SUTA DETECTION TIMING CONSIDERATIONS <br /> <br />For each misallocated account detected, MMC will coordinate with the business and SBE to <br />make the necessary corrections plus retroactive adjustments for eligible amounts of sales/use tax <br />improperly distributed in prior quarters. MMC coordinates and communicates between typically <br />four parties; sales/operations personnel at the taxpayer's local operation, tax personnel at the <br />company's corporate headquarters, and State Board of Equalization personnel and the in- <br />state/out-of-state district offices. Correction of the account is considered to have been made <br />once the payments on identified taxpayer accounts are being properly allocated by the taxpayer <br />to the City in the period in which the payment was made. <br /> <br />As needed, MMC will represent the City before state officials, boards, commissions and <br />committees for the purpose of correcting sales tax distribution errors that have deprived the City <br />of revenue to which it is entitled. <br /> <br />TIMING <br /> <br />MMC shall commence auditing the sales/use tax and preparing the sales tax Query System <br />within 10 working days of receipt of a fully executed contract and Confidentiality Resolution <br />designating MMC as the authorized City Consultant to examine sales and use tax records. <br /> <br />10 <br />