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HomeMy WebLinkAboutContract 53599 Retirement 800.521.0498 P:248.799.9000 � F:248.799.9020 1 www.grsconsulting.com R S Consulting CITY SECRETARY r.nFITRACT NO. 53 q February 26, 2020 Mr. Reginald Zeno Chief Financial Officer City of Fort Worth,Texas 200 Texas Street Fort Worth,Texas 76102 Reginald.Zeno@fortworthtexas.eov Re: GASB 68 Engagement Letter for the City of Fort Worth Dear Mr.Zeno: We are writing to provide an engagement letter for actuarial services relating to GASB 68 financial reporting for the City of Fort Worth. By acknowledging and dating this engagement letter,we and the City of Fort Worth ("the City")agree to the scope,work product and terms described herein. We will perform the actuarial calculations necessary for the City to comply with GASB Statement No. 68 for the fiscal year ending September 30,2020. As such,the actuarial valuation will be performed as of December 31,2018 and rolled-forward to the measurement date of September 30,2019. For the fully compliant valuation,we will prepare a formal report including all of the actuarial information necessary for the City to comply with GASB Statement No. 68. Specifically,the report will include the following information: • Summary of Population Statistics • Description of the Measurement of the Net Pension Liability • Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption • Schedule of Changes in the Employers'Net Pension Liability and Related Ratios • Schedule of Employer Contributions • Notes to Schedule of Contributions • Pension Expense • Statement of Outflows and Inflows Arising from Current and Prior Reporting Periods • Recognition of Deferred Outflows and Inflows of Resources The City's GASB Statement No. 68 Actuarial Valuation Report will be prepared using the same assumptions, methods and procedures use to prepare the GASB Statement No. 67 Actuarial Valuation Report prepared for the Employees' Retirement Fund of the City of Fort Worth. The work papers for this engagement are the property of Gabriel, Roeder,Smith &Company(GRS). While we may be requested to make certain work papers available to auditors or to regulators pursuant to authority given by law or regulation, access to the requested work papers will be provided under supervision of GRS personnel. Furthermore, upon request,we may provide photocopies of selected work papers to regulatory agencies. These regulatory agencies may intend or decide to distribute the One 800 1 Southfield,Michigan 48076-3723 Mr. Reginald Zeno February 26, 2020 Page 2 photocopies or information contained therein to others, including other governmental agencies.The costs of responding to such requests are not included in our engagement fee quoted below; if GRS is required to comply with such a request City will be responsible for our associated fees in an amount not to exceed $10,000. The City's management has responsibility for the financial statements and all representations contained therein. Management also has responsibility for preventing and detecting fraud,for adopting sound accounting policies and establishing and maintaining effective internal control to maintain the reliability of the financial statements and to provide reasonable assurances against the possibility of misstatements that are material to the financial statements. This responsibility extends to the use or misuse of the results of our GASB Statement No. 68 Actuarial Valuation Report, presentations at on-site meetings (if applicable) and during telephone conferences. The report and presentation materials (if applicable) may be provided to parties other than the City only in their entirety and only with the permission of the City. Because of the importance of management's representations as to the completeness and accuracy of the information,documents and data it provides to GRS,the City agrees to release GRS and its personnel from any claims, liabilities,costs and expenses relating to our services under this letter attributable to any misrepresentations in the representation letter referenced above. Furthermore,GRS agrees to maintain the applicable employee data secure and confidential. Any dispute concerning this engagement will be resolved internally and, if not,then by mediation and with waiver of any jury trial and with venue at the place where the services are rendered. Except for gross negligence or willful misconduct, GRS liability hereunder will be limited to our fees. In the event that GRS is requested pursuant to subpoena or other legal process to produce its documents relating to this engagement in judicial or administrative proceedings to which GRS is not a party,the City shall reimburse GRS at standard billing rates for its professional time and expenses, including reasonable attorney's fees, incurred in responding to such request at a total amount not to exceed$50,000. The fee for the City's GASB Statement No. 68 Actuarial Valuation Report for the fiscal year ending September 30, 2020 will be$4,850. Further,the report will be delivered within two weeks of GRS receiving acknowledgement copy of this agreement. Should you have any questions regarding these matters, please do not hesitate to contact us. We thank you and the other City officials for your confidence in our firm and look forward to continuing to work with you in the years ahead. 11G R S Mr. Reginald Zeno February 26,2020 Page 3 If you have any questions regarding this engagement letter, please do not hesitate to contact us. Sincerely, R. Ryan Falls, FSA, EA, MAAA Senior Consultant GRS