Watkins was engaged by a government agency to evaluate the adequacy of reserves held against expected losses and/or recoveries for a series of asset portfolios. During this engagement, Watkins applied a specific methodology as outlined by the client in order to evaluation of the adequacy of loss reserves. The Watkins team calculated anticipated recoveries on assets in liquidation and expected losses required to resolve other assets. In addition, our team evaluated the current model relative to industry best practices and standard benchmarks. Finally, our team issued a report detailing our procedures, analysis and conclusions.