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Home My WebLink About2015-160Af mw L., Gabriel Roeder Smith & Company one F.xst 1;rowvard .Blvd. 934.527.1E 16 phone GR Conulranrs ` Actuaries Suite Spy 954.525:0083 Mr Fr. Laudcrd.iIc,FL 33301-1304 mvww.gabrielroedereoni November 29, 2015 Ms. Diane Bernardo, CPA Finance Director Indian River County Office. Clerk of Court & Comptroller 1840 25th Street, 3rd Floor -Finance Vero Beach, FL 32960 Re: GASB 45 OPEB Engagement Letter for the Indian River County Dear Ms. Bernardo: We are writing to. provide an .engagement letter for actuarial services relating to GASB 45 Other Post= Employment Benefts ("OPEB"). By signing and dating this engagement letter, we and the Indian River County C'County") agree to the scope, work product and terms described herein: This engagement letter is fashioned after those commonly provided for auditing services. Fully compliant .actuarial valuations will :be performed as of October 1, 2015, 2017 and 2019, as. well as Various abbreviated letter reports as needed. For the fully compliant valuations; we will prepare formal Reports including an Executive .Summary, tables or charts presenting the development of the results; descriptions of all primary actuarial assumptions and methods, and summaries of the plan benefits. The base Actuarial Valuation Report will. be .,performed assuming, that the current prefunded planwill continue. 'The`Valuation.Report will present results of the implicit.and% explicit.subsidy provided by the County to all employees. All Indian River County employees are covered under self insured medical plan. The reports will. provide actuarial figures necessary for compliance with GASB Statement Nos. 43, 45, 74 and 75 for all OPEBs, presented in total; without any breakouts by enterprise fund or by functon(program. Indian River County will be responsible for determining any such breakouts and for the narrative material required for the Notes. 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 ORS 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 photocopies or information contained thereip: to others, including other governmental, agencies. Indian River County 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 andestablishing 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 OPEB Actuarial Valuation Reports, presentations at on-site meetings and, during telephone conferences. The Report and presentation materials may be provided to parties other than Indian River County :only in heir -entirety and only with the;vermission of the County. Upon execution of this letter of engagement, we will prepare an official 'and formal data. request Jetter. The County will compile and transmit all employee and retiree census data as requested'in electronic form MsiDianeBernardo November 29, 2015 Page 2 and in the format requested. The County will collect and transmit all documentation and other inf6rmation requested regarding the other post employment benefits provided. The County agrees that all information, documents and data we requesvin connection with our Actuarial, valuation will be I made available to us, that anall such information, documents d data provided to us will personnel be, complete and accurate, that we will have ;the full. cooperation of Indian, Rivet County's; 0 nriel and.1 vendors, that the County Will issue a. representation letter 1rbm inanagement'conc6thing these matters, and that .GRS may rely upon, such information, documents and data With no.duty: to'inquireofaudit such. 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 County agrees torelease ORS and its,personnel from any -claims,, liabilities, costs . and expenses relating to our sieices %Lffider this letter attributable to ,rv, hiformation'supplied.by the C . oupty, or is Vendors. Furthermore, QRS agrees to maintain the employee data secure and cohfidential. Any dispute ,,.concerning this engagement will be resolved internally And, if not then by arbitration and with waives of any jury trial and With Venue at the place where the services are rendered. Th . The provisions :of this agreement shall be construed, interpreted and --governed according to the laws of the State of Florida. Except for gross negligence or willfUl misconduct, ORS liability hereunder will be limited to our fees and the County will indemnify GRS from third party .claims to the extent .permitted by Florida law. In the event that GRS is requested pursuant to.subpoena pro bpoeria -or other leg4lprocess, to . produce its documents relating to this engagement in judicial 6radministrAtiNie proceedings to which GRS is not A party, the its hat time A expenses, including County shall reimburse GRS at standard, billing. -rates. for i, professio t and e reasonable attorney's ,fee, incurred in respondhig to such request. Indian River County is a public agency. subject to Chapter 19, Florida Statutes. As required by law, and ubj q only to the: extent required by law, GRS shall comply with Florida's Public Records Law. GRS is not acting on behalf of the County in providing actuarial and consulting services, as defined by st.atutes'. and. pr inte . reted by the Florida Attorney General AdvisoryLegal Opinions. As: required by law, and. only to the extent required by law, GRS shall: (1) Keep and maintain public records that ordinarily and necessarily would be required by the County in orderto perform the. service. (2) Provide the public with. access to public records on the same terms and conditions 1hat the County would provide the records and!at a cost that -does not dxceed.the cost.pTpv.ided: in chapter . rPq 1. 1. . I. . 19' or as 'otherwise, provided. by 1 1 aw.. (3) Ensure that pubik records. that are exempt, or confidential and exempt from Public records -disclosure requirements are not disclosed except asauthoii;kedby'law (4) Meet all requirements for retaining public records. and transfer, at no cost, to the County all public records in possession of the Consultant upon termination -of the Agreement and destroy any duplicate public records that are exempt or :confidential and exempt from public records disclosure requirements. All, records -stored electronically must be provided to the County, in a format that is compatible with the information technology systems of the County. Failure of the Consultant to comply with t . hese requirements shall be a material breach of this. Agreement. GAbrieJ'Rmd9iS.qiJth & C-OliNmy Ms. Diane BernOrdo NoVember 29, 2015 Page 3 V816 ifai Milo Induded One R" and YE 913011 7 For YE936116 NA For YE 9MI16 NA S n,000 u NA Me Letter: For One Letter: For NA S 3.006 Roll -forward Update Leuers fi YE 917417 YE 913417 VtK V uatira 0op T;J(t&xvq 'OUtJM Two Full Reports (Funding and Accounting) ForYE 9130118 NA NA NA For -YE0130/18 7,000 and YE 9/30/19 Two Update WA, urilesS NA Letters: For YE NA One Letter-.. For S 10,000 Roll-for.ard UpdateLcmers si gnifleant changes 950118 and for YE YF 913419 wmq Hai Vaitiaii"'dii, n Two Full Repons (Funding and Accounting) For 9/30110 NA NA NA For YF 9W20 S 17,000 and YE. "01211 Twoupdite unless NA Utters: ForYE NA One Lenen. For S 6,009 Roll-for%2rd Vpdate LettersNA, Significant changes 9130120 And f6r YE 9/3921 $ 66,000 * Arty years above that require , updates. or, roll forwards to a later , fiscal year; it is presumed that:no "significant I changes" have occurred between the valuation - date and either the.reporting date or the date, the'letter or report is prepared, whereby the previous valuation would be adjusted so as to apply to the later year. GASB standards perr 41 .fully m y Compliant valuations every other.year unless significani changes occur, in, which. case a new fully compliant valuation must he performed Ifdfully compliant valuation were required or requested by the County for the intervening -time, the cost would be developed pursuant to additional fees as per below. Fees will be- payable on monthly invoices for work in -progress. One on-site meeting, for the duration of the:basdAOdemeiitis, inclu,de.4'- Th.Oteistio.separate fee for .telephone ronfer.etites. No0thersurveys,or other I . . projects are contemplated in the scope of this engagement. An additional Z-ye,ar extension including one full actuarial valuation as of October 1, 2021 may be considered as mutually agreeable to, bothparties. Additional'studies, comparisons with other Counties, forecasts, asset -liability modeling, assistance with setting the return assumptions or other set . V . ices will ill be performed upon request with. AM revisions to the initial draft requested by County staff . may require additional fees. Additional fees billed on an hourly basis will be based upon the following hourly rates in effect during the six,-yqar contract period. If well- defii defined, GRS would be pleased to quote fixed fees for such optional consulting services in adv'ance. Gabriel Roeder Smith &-Company Ms. Diane Bernardo November 29, '201 S Page 4 GRS Staff Classification" I3ourly Rate Senior Consultants $440 to $550 Consultants $290 to $400. Senior Analysts (including Actuaries classified: as Senior Analysts) $225 to $350 Analysts $170:to $250 There ue no expenses outside of the hourly rates. We stand behind these results and are available to :assist management in other strategic. areas for. controlling the OPEB `liabilities. This letter of engagement may be renewed for one additional period of two :years by mutual agreement of both parties which should be subject to the rates mentioned in the first table above (page 3). Please ;return this signed agreement and retain a copy for your records, Should you have any questions regarding these matters, please do not hesitate to contact us. we thank you and :the other Indian: River County officials for your confidence in our firm and look forward to continuing to work with; you•in the years ahead. If you have any questions. regarding this. engagement: letter, please do not hesitate to contact us. Sincerely, For the Indian River County Rn6 Solaci . hatrma►� James J. Rizzo, ASA, MAAA Print.Name Senior. Consultant and Actuary Gabriel, Roeder, Smith & Company r Authorized Signature Date APPROVED:AS TO FORD AND LEOAL°SUFFI caent CO Gabriel; Roeder Smith & Company