The scope of the audit will be limited to the Rhode Island State Employees’ and Electing Teachers OPEB System (the “System”). The purpose of this audit is to audit the work of OPEB’s current actuary, Gabriel, Roeder, Smith, and Company (GRS). The audit will review the most recent annual valuation for OPEB to express an opinion and assure that the results presented are sound and reasonable. The OPEB Board requests that the bid be on a fixed fee basis. The audit should include auditing and commenting on the reasonableness and appropriateness of the valuation methods, assumptions, certifications, and conclusions of the consulting actuary GRS. The audit must include a determination of whether the actuarial methods, considerations and analyses used by the consulting actuary (GRS) in preparing the most recent actuarial valuation are technically sound and conform to the appropriate Standards of Practice as promulgated by the Actuarial Standards Board. This determination will include: 1) An in-depth review and analysis of the valuation results, including an evaluation of the data used for reasonableness and consistency as well as a review of mathematical calculations for completeness and accuracy. 2) Verification that all appropriate benefits have been valued and valued accurately. Verification that the data provided by the system is consistent with data used by GRS. 3) Evaluation of the actuarial cost method and actuarial asset valuation method in use and whether other methods would be more appropriate for OPEB as a whole or for particular funds. 4) Verification of the reasonableness of the calculation of the unfunded actuarial accrued liability and the amortization period. 5) A full replication of the most recent actuarial valuation for the Rhode Island State Employees’ and Electing Teachers OPEB System.
