Financial- Standard and Poor's (1-2 Files)

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NOTE 21 - RISK MANAGEMENT:. _ ::-.~r~u,-.~.. :,~;~ .=~;~- The Cottnty is exposed to various uaiasured risks of loss related to workecs' oo~ation, tort, ge.neral Iiability, and employx medical aod deatal claims. The Iqsurance Fund, sn iatenoal service fund, is u'ed to accouot for and financ~e tbe County's uninsurod risks of loss. Tort aad geaeral liability ctaims are limited W 5100,000 per i~ividusl aad s500,000 per occunrace by state statute. In addition, the Counry canies excx.ss risk coveraga with c~mmetvial insurets for workers' compeas~tion losses in e~ccxss of S2S0,000 co an upper limit of SS.000.000, and for medical claims that eacceed 575,000 per individnal and 125 96 of estimated claims o~ 52,400,000 per year. S~tled clsims have not axoeeded this commercisd ooverage to date. All funds of the Connty partici~te ia du risk maoagemeat pm~ram aod maka payments to t6e lnsurancx Ftmd based ~ estimates aeeded to WY Prior- and curneat-yar claims aad to esbblish a reaerva for ~rophic loasee. The claims liability of s734,000 reported in the Insuranoe Fund at Juae 30, 1993 is basal on the requin~ents of Govanmeatal Accounting Standards Board Statement No. 10, wluch reqnirra that a liability for claims be repoited if information prior to tLe issuance of the financial atatemeats indicates thst it is probable t}iat a~liability bas been incurred at dre date of the financW statemeats and the amount of loss caa be reasoaably estimated. T'he claims liability is b~sed en ~m avaluation of outstandia~ claims, using past expexieace and c~urent as~sate~ts of pot~tial md probable e~tposure, as w~ell as an astimata for inc~rred but not reported cisims as of June 30. 1993. Cbaages in estimates of claims ooets resulting from du County's c~tinuous review pr+ocess and diffezmxs betwxa estimatea and paymeats of claims are racognined in tLa result~ of operati~s of the Iusu~ance Fund as determinable. Changes in the Insurance Funds' daims liabilty amount in fiscal years 1992 and 1993 w~ere: Beginning-of-fiscal year liability Ctirnent-year claims and change in estimates Claim paya~ats Balance at fiscal year-end NOTE 22 - SUBSEQUENT EVENTS: Fiscat Year Fiscal Year 1992-1993 1991-1992 S 1,124,000 S 1,100,000 3,787,650 4,102,175 (4.177.6501 (4.078.175 734 000 ~ 4 000 On August 10, 1993, the County negotiated a short-term tax anticipation note with the United States National Bank of Oreg~ in the amount of 54,900,000. The note maturts on June 30, 1994 aad bears interest at the rate of 2.7596 per annum. -29-