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RECEIVEC�
APR - _ 2020 C TY SECRUARY
CITY OF FORT WORTN t'ONTRACT NO. 53
February 26,2020 rrN''T. 'NARY
Mr. Reginald Zeno
Chief Financial Officer
City of Fort Worth,Texas
200 Texas Street
Fort Worth,Texas 76102
Reeinald.Zeno@fortworthtexas.gov
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 selecteJ_wor.L--
papers to regulatory agencies. These regulatory agencies may intend or decide to distribute the EAL RECORD
powo - I
One Towne Square I Suite 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.
GRS
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,
G Qt.-4- m
R. Ryan Falls, FSA, EA, MAAA
Senior Consultant
GRS