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Cabarrus County, North Carolina
<br />Notes to the Financial Statements
<br />For the Fiscal Year Ended June 30, 2009
<br />O. Benefit payments Issued by the State
<br />The following amounts listed under the
<br />columns labeled "Federal" and "State"
<br />were paid by the State of North
<br />Carolina from federal and state moneys
<br />directly to individual recipients on
<br />behalf of Cabarrus County and
<br />Cabarrus Health Alliance and are not
<br />included in the County's or the
<br />Alliance's financial statements since
<br />the County and the Alliance have no
<br />primary responsibilities beyond making
<br />eligibility determinations.
<br />P. Internal Service Fund
<br />Medical assistance
<br />Temporary assistance to needy families
<br />Special assistance to adults
<br />Low income energy assistance payments
<br />Refugee Assistance
<br />Food stamp program
<br />Adoption assistance
<br />Total
<br />Federal
<br />$87,996,576
<br />741, 352
<br />591,148
<br />5,058
<br />22,752,698
<br />638,704
<br />$112,725,536
<br />State
<br />$34,539,560
<br />1,355,844
<br />116,551
<br />$36,011,955
<br />The County maintains two internal service funds for workers' compensation and self-insured hospitalization
<br />insurance. These funds accumulate premiums and pays all claims and related expenses for workers compensation
<br />and health insurance activities. At June 30, 2009, the workers compensation internal service fund had an
<br />unrestricted net asset balance of $1,086,698 and the self-insured hospitalization internal service fund had an
<br />unrestricted net asset balance of $2,068,603. In the basic financial statements, the net assets and activities have
<br />been allocated to all governmental fund types, and business types as applicable. This surplus is being retained for
<br />anticipated future catastrophic losses.
<br />Note 4. Other Information
<br />1. Risk Management
<br />The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
<br />and omissions; injuries to employees; and natural disasters. The County participates in a liability program which is
<br />financed using a combination of self-funding and participation in the Carolina Governmental Alliance, Inc., a
<br />governmental corporation. The County retains the first $350,000 in liability claims and claims expenses which are
<br />payable by the Carolina Governmental Alliance, Inc. Excess liability insurance above the $350,000 retention is
<br />purchased up to a total limit of $2,500,000 per occurrence.
<br />The property insurance program is financed using a combination of self-funding and participation in the Carolina
<br />Governmental Alliance, Inc., a governmental corporation. Excess property insurance above a $5,000 deductible is
<br />purchased based on the replacement values, submitted to the Excess Property Company each year.
<br />At July 1, 1994, the County chose to establish a Workers Compensation Fund (an internal service fund) for risk
<br />associated with the workers compensation plan. The Workers Compensation Fund is where assets are set aside
<br />for claim settlements. At this time the fund is no longer being funded annually. The uninsured risk retention per
<br />accident is $350,000 for workers compensation. The County has purchased commercial insurance for claims in
<br />excess of that amount.
<br />A liability for a claim is
<br />established if information
<br />indicates that it is probable that
<br />a liability has been incurred at
<br />the date of the financial
<br />statements and the amount of
<br />the loss is reasonably estimable.
<br />The claims liability for fiscal year
<br />ended June 30, 2009 is shown
<br />at right.
<br />Workers Compensation
<br />6/30/2009
<br />Unpaid claims, beginning of fiscal year $ 346,493
<br />Incurred claim 506,342
<br />Claim payments (545,203)
<br />Unpaid claims, end of fiscal year $ 307 632
<br />6/30/2008
<br />$ 110,051
<br />650,333
<br />(413,891)
<br />$ 346,493
<br />63 Attachment number 3
<br />G-8 Page 337
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