FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Cavanaugh Macdonald Consulting, LLC’s Audit of the June 30, 2023 Actuarial Valuation and Review, Survivor Benefit, and GASB 67 Valuation
RECOMMENDATION:
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Approve the Actuarial Audit prepared by Cavanaugh Macdonald Consulting, LLCs of the June 30, 2023 Actuarial Valuation and Review, Survivor Benefit, and GASB 67 Valuation.
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BACKGROUND:
SBCERA Actuary and Audit Policy No. 001 requires that the actuarial valuation be audited every five years. SBCERA engaged Cavanaugh Macdonald Consulting, LLC to audit the June 30, 2023 Actuarial Valuation and Review, Survivor Benefit, and GASB 67 Valuation reports. The June 30, 2023 Actuarial Valuation and Review and the related reports were prepared by Segal.
In an actuarial audit, the independent firm creates its own model to validate the assumptions and results of the primary actuary’s reports.
The audit performed by Cavanaugh Macdonald Consulting, LLC confirmed Segal’s work and found it to be “generally reasonable and accurate based on the assumptions used.” The audit also confirmed that “actuarial work was performed by qualified actuaries and was performed in accordance with the principles and practices prescribed by the Actuarial Standards Board.” A copy of their report is attached as Exhibit A.
Cavanaugh Macdonald will present their audit and recommendations for future reports. A copy of their presentation is attached as Exhibit B.
BUDGET IMPACT:
Costs for this item are included in the current year administrative budget.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
Exhibit A: Cavanaugh Macdonald Consulting, LLC Actuarial Review Report
Exhibit B: Cavanaugh Macdonald Consulting, LLC Presentation