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HomeMy WebLinkAboutResolution #5459 - engagement letter with Lauterbach and Amen to prepare GASB 74/75 actuarial valuations April 30, 2023 through April 30, 2026 RESOLUTION NO.5459 A RESOLUTION APPROVING AN ENGAGEMENT LETTER WITH LAUTERBACH AND AMEN TO PREPARE GASB 74/75 ACTUARIAL VALUATIONS FOR THE CITY OF CANTON FOR APRIL 30,2023 THROUGH APRIL 30,2026 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CANTON, ILLINOIS,AS FOLLOWS: 1. That the engagement letter attached hereto and incorporated herein as"Exhibit A" is hereby approved. 2. That the Mayor, or his designee, and/or the Treasurer of the City of Canton are authorized and directed to execute said engagement letter on behalf of the City of Canton. 3. That this Resolution shall be in full force and effect immediately upon its passage by the City Council of the City of Canton,Illinois, and approval by the Mayor thereof. PASSED by the City Council of the City of Canton,Illinois, at a regular meeting this 19th day of December,2023,upon a roll call vote as follows: AYES:Alderpersons Chamberlin, Grimm,Lovell,Hale, Gossett,Ketcham,Lingenfelter NAYS:None ABSENT:Alderperson Nelson APPROVED: 4� � Kent McDowell,Mayor AT ST: drea J. ith-Walters,City Clerk M - 668 N.RIVER ROAD • NAPERVILLE,ILLINOIS 60563 Lauterbach & Amen, LLP 7/ j,1 PHONE 630.393.1483 FAX 630.393.2516 i www.lauterbachamen.com I CERTIFIED PUBLIC ACCOUNTANTS May 18,2023 Members of the Board of Trustees City of Canton 2 N. Main Street Canton, IL 61520 We are pleased to confirm our acceptance and understanding of the services we will provide for the City of Canton for the fiscal years ending April 30, 2023 through April 30, 2026. It is our understanding that Lauterbach & Amen, LLP will prepare the GASB 74/75 Actuarial Valuation for the City. You agree to assume all management responsibilities for the actuarial services we provide; you will oversee the services by designating an individual,preferably from senior management,with suitable skill, knowledge, or experience; you will evaluate the adequacy and results of the services and will accept responsibility for them. Lauterbach&Amen,LLP does not assume any management responsibilities for the City. These services cannot be relied upon to detect errors, irregularities, or illegal acts that may exist. However, we will inform you of any such matters that may come to our attention. Costs for our services are as follows: Fiscal Year Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended Ended Annual Actuarial Reports 04/30/2023 04/30/2024 04/30/2025 04/30/2026 •Preparation of GASB 74/75 Actuarial Valuation* $4,300 $1,000 7 $4,560 $1,060 •Preparation of Audit Friendly Exhibits Included Included Included Included Total Annual Actuarial Reports $4,300 $1,000 $4,560 $1,060 *All GASB 74/75 reporting will follow a biennial reporting cycle and for all fiscal year ends where a full- valuation is not required, we will prepare financial statement entries based on a limited actuarial report. The limited actuarial report will not require updating of participant or medical information but will be run at the most recently available discount rate required by the GASB 74/75 standards. If, for any reason,the City or auditors require a full-valuation vs. the limited actuarial report, updating of all participant and medical information will be required and the fee for a full valuation will be charged. Out of Scope Services: Out of scope services will be billed on a time and charges basis. The hourly rate for out of scope services is $275 per hour. We will provide an estimate of costs for any out of scope services when the service is requested and the scope is defined. You will not be charged any additional costs under this section unless written approval, including email confirmation, is provided ahead of time. City of Canton May 18,2023 Page I of 2 Either party may terminate all or a portion of the services contemplated by this engagement at any time for any reason upon 30 days written notice to the other. Subcontracting is prohibited without the express written approval of the City's Board of Trustees. This agreement shall be governed by and construed in accordance with the laws of the State of Illinois. We appreciate the opportunity to be of service to the City of Canton and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter,please indicate your acceptance by signing below and returning it to us. Cordially, Lauterbach&Amen,LLP RESPONSE: This letter correctly sets forth the understan ing of the City of Canton: rj Accepted by: Title: City of Canton May 18,2023 Page 2 of 2