ACTUARIAL ANALYSIS/GENERAL AUTOMOBILE & WORKERS COMPENSATION
III ~~
AGREEMENT
THIS AGREEMENT, made and entered into this l4"'day of ~,
and between the CITY OF CLEARWATER, FLORIDA, a municipal corporation,
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~by
hereinafter
referred to as "City", and Ernst & Young LLP, a firm of Certified Public Accountants, located at
100 North Tampa Street, Tampa, Florida 33601, hereinafter referred to as "Contractor'"
WITNESSETH
WHEREAS, the City maintains a$elf~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, THEREFORE, the parties agree as follows:
1. This agreement relates specifically to the City's fiscal year ending September 30,
2000. The Contractor shall perform an actuarial analysis of the City's general, automobile, and
Workers 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, 2000. The Contractor will
include in the annual report all disclosures necessary to comply with GASB Statement Number
10.
3. Following the completion 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
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. 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 November 21,
2000, 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 January 15,
2001.
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.
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IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed the day and year first above written.
CITY OF CLEARWATER, FLORIDA
Btf).J/i.; .~.~~--- JL
William B. Horne, II
Interim City Manager
Approved as to form:
Attest:
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J~e Hayman
Assistant City Attorney
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Witnesses:
Attest: ~u~~ (2. ~
s:/agreement/Ernest & Young 00
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