Specifications include, but are not limited to: The full scope actuarial audit should include: 1) Replication and evaluation of the 2021 actuarial valuation results, including a review of the data used, the degree to which data is sufficient to support the conclusions of the investigation, and a review of the accuracy of the actuarial calculations. Reconciliation and explanation of significant discrepancies between the auditing actuary and current actuary is required for valuation results (including a determination of actuarial accrued liability, normal cost, actuarial required contribution rate, funded ratio, etc.) 2) Evaluation of the appropriateness and accuracy of actuarial assumptions and methods recommended in the 2019 experience study and used in the 2021 valuation report. 3) Assessment of the actuarial information for required reporting under Governmental Accounting Standards Board (GASB). 4) Assessment of the reasonableness of funding projections under alternative investment return scenarios. 5) Determination of whether the actuary’s reports are accurate and comprehensive. The actuarial audit should culminate in a report that: 1) Provides an evaluation and expresses an opinion regarding the reasonableness and accuracy of the valuation results, actuarial assumptions, actuarial methods, funding projections, and GASB information in accordance with generally recognized and accepted actuarial principles and practices. 2) Includes any recommendations regarding reasonable alternatives to the actuarial assumptions or methods. 3) Provides any recommendations to improve the quality and understanding of the actuarial valuation reports. 4) Is provided in draft form to NDRIO for review and comment by NDRIO staff and Segal Consultants, prior to the issuance of the final report. 5) Is provided in final form to NDRIO in advance of January 2023 board meeting.
