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  #11  
Old 07-12-2018, 06:04 PM
Enchilada Enchilada is offline
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Originally Posted by ao fan View Post
I don't think you could say a precise increase. I think it can only be estimated. You can say what the tax rate should have been 5 years ago, but with the passage of time and results not meeting expectations it's going to be even higher to make up for that difference. Therefore, you can just estimate it.

by reports, I basically said monitoring every possible assumption in a report and how often to monitor it. i'm not sure if that means several reports. it means reports on several assumptions.
I saw this in a different way. For the first report, I said an enrollment report, and I touched on a few of the assumptions that would be included in that. But for the other two reports, I said specific financial reports that can be used to gauge asset performance and overall financial performance.

Maybe I can add a few more to ensure that every single assumption would be monitored.
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  #12  
Old 07-12-2018, 06:06 PM
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yeah, that's what I did, direction and approximate percentage increase and talked about the main drivers of it. I just said it was approximate because we didn't have enough information to give an exact amount.

my FA was over 10,500 words, but in looking at people who passed, the word counts vary a lot. i'm not sure word count is that important as long as you put everything in it that they are looking for.
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Old 07-12-2018, 06:10 PM
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Originally Posted by Enchilada View Post
I saw this in a different way. For the first report, I said an enrollment report, and I touched on a few of the assumptions that would be included in that. But for the other two reports, I said specific financial reports that can be used to gauge asset performance and overall financial performance.

Maybe I can add a few more to ensure that every single assumption would be monitored.
yeah, i'd go with every assumption being monitored, which is what I did go with. it's like with a pension valuation, we monitor every assumption every year, not every 5 years. I didn't really like the word "report" though and more took it as monitoring assumptions, but I used their word "report" because they insisted. what they meant by "report" was pretty vague though.
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Old 07-12-2018, 06:12 PM
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make sure you actually showed every assumption with the analysis of actual vs expected results and in the case of asset return, the actual results compared to the investment policy. that seems like maybe something you might have missed an assumption or two.
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  #15  
Old 07-12-2018, 06:54 PM
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Thanks. I identified all of the metrics in a table in the beginning which showed actual vs expected count/spend and the % difference. This table had student population, tuition cost per student, average fund balance at end of year...

And then for assumption changes, I discussed assumptions based on the most significant metric and assumption changes from the table and my own excel workup. In total I recommended 6 assumption changes. I guess I could add more in case there is a checklist that the graders use, but I feel like this is not an area that may need improvement for this task.

I wish the graders would at least provide a sentence or two so I wouldn't have to guess on what I need to improve on. Lol I guess my expectations are too high though for SOA grading.

Thanks for brainstorming with me, I really appreciate your and everyone else's help!
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Old 07-12-2018, 07:04 PM
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my memory of this is fading since I submitted it in January and memory not so good, but I didn't think that fund balance at the end of the year was something you could identify for actual vs expected because the fund balance shown in the model is just the last one of 999 scenarios ran.
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  #17  
Old 07-12-2018, 07:34 PM
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Oh, hmm I think you are right. I guess I thought the model was randomly generating numbers, but now I realize that the numbers have already been generated- prob to make grading easier.
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Old 07-12-2018, 07:38 PM
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i just meant you would just be comparing the last of 999 iterations, thus it doesn't make sense to use results in that tab for any analysis at all. i'd take those parts out.
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  #19  
Old 07-12-2018, 07:52 PM
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I just reviewed all of the formulas in the model again.

Only the fund balance is being modeled, so I will remove that from my memo.

Everything else is based solely on assumptions since asset allocation is not involved.
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