ACTUARIAL ANALYSIS-GENERAL/AUTOMOBILE/WORKERS COMP
AGREEMENT
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THIS AGREEMENT, made and entered into this ~ day of ~~ _,
2003, by and between the CITY OF CLEARWATER, FLORIDA, a municipal corporation,
hereinafter referred to as "City", and Ernst & Young LLP, a firm of Certified Public
Accountants, located at 1 Independent Drive, Jacksonville, Florida 32202, hereinafter
referred to as "Contractor";
WITNESSETH
WHEREAS, the City maintains a self-insurance program and is desirous of having
an actuarial analysis performed on all of its liability accruals, and
WHEREAS, the Contractor is in the business of public accounting and providing
casualty actuarial services, is fully qualified to meet their requirements of applicable City,
State, and Federal law, and desires to perform the necessary services;
NOW, THE.REFORE, the parties agree as follows:
1. This agreement relates specifically to the City's fiscal year ending September
30, 2003. The Contractor shall perform an actuarial analysis of the City's general,
automobile, and Workel's Compensation liability accruals, currently accounted for as a part
of the City's self insurance fund. The analysis will include, but not necessarily be limited to,
a computation of the "IBNR" (incurred but not reported) liabilities as of September 30,2003.
The Contractor will include in tht: annual report all disclosures necessary to comply with
GASB Statement Number 10.
3. Following the '.::Dmpletion of the actuarial review, the Contractor shall issue a
report summarizing the findings of the actuarial analysis of the Central Insurance Fund.
4. The Contractor shall retain all working papers for a minimum of five (5)
years, unless notified in writing by the City of the need to extend the retention period. The
Contractor shall make working papers available, upon request, to the following parties or
their designees:
~ City of Clearwater
~ U.S. Department of Housing and Urban Development
~ U.SD. General Accounting Office (GAD)
~ Parties designated by the federal or state governments or by the City of Clearwater as
part of an audit quality review process
~ Auditors of entities of which the City of Clearwater is subrecipient of grant funds
In addition, the Contractor shall respond to the reasonable inquiries of successor
auditors and allow successor auditors to review working papers relating to matters of
continuing accounting significance.
5. The Contractor shall prepare and submit to the City no later than October 10,
2003, a detailed schedule of the list of documents needed from the City including the related
date required. The Contractor shall complete performance under this contract by November
20, 2003.
6. The Contractor shall bill the City and the City shall pay the Contractor for the
performance of the services under this contract on the basis of the Contractor's normal and
customary charges for such services, plus ordinary out-of-pocket expenses customarily stated
separately by the Contractor in his general practice, the same to be separately stated and
..
itemized. The total amount of this contract including out-of-pocket expenses shall not
exceed $9,750. The City may, by amendment of this agreement, increase these maximum
fees and/or extend the completion date upon the Contractor's showing evidence of conditions
which require substantially more time than would generally be required to perform the
prescribed services. Progress payments will be made periodically for work completed to-
date based on invoices submitted by the Contractor. The sum of such progress payments
shall not exceed 80% of the maximum specified above. The final payment will be made
within 30 days of receipt of the final actuarial reports.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed the day and year first above written.
CITY OF CLEARWATER, FLORIDA
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William B. Home, II
City Manager
Approved as to form:
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Attest:
'z~_
Assistant City Attorney
Cy t ia E. Goudeau
Cit lerk
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By:
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Attest:
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