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HomeMy WebLinkAboutAgreement_General_06/08/2016 (2) GRS Gabriel Roeder Smith & Company One East Broward Blvd. 954.327.1616 phone Consultants & Actuaries Suite 505 954.525.00$3 fax Ft. Lauderdale, FL 33301.1872 wwwgabrielroedercom June 6, 2016 Mr. Michael Couzzo, Jr. Village Manager The Village of Tequesta 345 Tequesta Dr. Tequesta, FL 33469 -0273 Re: GASB 45 OPEB Engagement Letter for the Village of Tequesta Dear Mr. Couzzo: We are writing to provide an engagement letter for services relating to GASB 45 Other Post - Employment Benefits ( "OPEB "). By signing and dating this engagement letter, we and the Village of Tequesta (the "Village ") agree to the scope, work product and terms described herein. This engagement letter is fashioned after those commonly provided for auditing services. We will perform the "Alternative Measurement Method" calculations necessary for the Village to comply with GASB Statement No. 45 for the fiscal year ending September 30, 2016. The report will 'include numbers applicable to 2016 and 2017 as well. However, if there are significant changes made to your OPEB program after your valuation date, the numbers presented for 2016 -2017 will not be useable and will need to be recalculated. The year ending 2018 will fall under a new accounting standard (GASB Statement No. 75), requiring a new report. We will provide actuarial advice concerning assumptions and a final Report reviewed and signed by an actuary. This service includes full telephone access to our actuaries and analysts during and after the process. It should be understood that this is not an actuarial valuation because the calculations will fail various actuarial standards of practice on account of following the GASB's Alternative Measurement Method. The Report will provide figures necessary for compliance with GASB Statement No. 45 for all OPEBs, presented in total, without any breakouts by union or employee groupings and no breakouts by enterprise fund or function. The Village 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 GRS personnel. Furthermore, upon request, we may provide photocopies of selected work papers to regulatory agencies. These regulatory agencies may intend or decide to distnbute the photocopies or information contained therein to others, including other governmental agencies. The Village'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 Mr. Michael Couzzo, Jr, June 6, 2016 Page 2 OPEB Report, presentations at on -site meetings and during telephone conferences. The Report and presentation materials may be provided to parties other than the Village only in their entirety. Upon execution of this engagement letter, we will conduct a telephone conference to gather more information and send the data request to you or to the Village to complete on an Excel Sheet. The Village will compile and transmit all employee and retiree census data and other insurance data in the Excel file provided The Village agrees that all information, documents and data we request in connection with our Report will be made available to us, that all such information, documents and data provided to us and will be complete and accurate, that we will have the full cooperation of the Village's personnel and vendors, that the Village will issue a representation letter from management concerning these matters, and that GRS may rely upon such information, documents and data with no duty to inquire or audit 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 Village agrees to release GRS and its personnel from any claims, liabilities, costs and expenses relating to our services under this letter attributable to any â–ºmisrepresentations in the representation letter referenced above. Furthermore, GRS agrees to maintain the employee data secure and confidential. Any dispute concerning this engagement will be resolved internally and, if not, then by arbitration and with waiver of any jury trial. Except for gross negligence or willful misconduct, GRS liability hereunder will be limited to our fees. Our fee for this Report is $4,000; payment is due upon completion of the Report. There is no separate fee for telephone conferences or other expenses. No other surveys or other projects are contemplated in the scope of this engagement, Additional studies, on -site meetings, comparisons with other Cities, or other services will be performed upon request with, whenever possible, fixed fee quotes provided in advance. We stand behind these results and are available to assist management in other strategic areas for controlling the OPEB liabilities. 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 Village officials for your confidence in our firm and look forward to working 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 Village of.Te uesta James J. Rizzo, ASA, MAAA Print me Senior Consultant and Actuary Gabriel, Roeder, Smith & Company A . Signature D ADDENDUM Public Records: In accordance with Sec. 119.0701, Florida Statutes, the Contractor must keep and maintain this Agreement and any other records associated therewith and that are associated with the performance of the work described in the Scope of Services. Upon request, the Contractor must provide the public with access to such records in accordance with access and cost requirements of Chapter 119, Florida Statutes. Further, the Contractor shall ensure that any exempt or confidential records associated with this Agreement or associated with the performance of the work described in the Scope of Services are not disclosed except as authorized by law. Finally, the Contractor shall retain the records described in this paragraph throughout the performance of the work described in the Scope of Services, and at the conclusion of said work, transfer to the Village, at no cost to the Village, all such records in the possession of the Contractor and destroy any duplicates thereof. Records that are stored electronically must be transferred to the Village in a format that is compatible with the Village's information technology systems.