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Indian River County, Florida
<br />Board of County Commissioners
<br />Notes To Financial Statements
<br />Year Ended September 30, 2011
<br />NOTE 20 - RISK MANAGEMENT - Continued
<br />General Liability, Property, Worker's Compensation and Medical — Continued
<br />The claims liability of $7,877,000 reported at September 30, 2011, is based on the requirements of
<br />generally accepted governmental accounting standards, which require that a liability for claims be
<br />reported if information prior to the issuance of the financial statements, and the amount of the loss, can
<br />be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and
<br />recorded. Based on the actuary's report, $2,395,278 will be liquidated over the next twelve months.
<br />Changes in the fund's claims liability amount during the current and prior three fiscal years are as
<br />follows:
<br />Claims
<br />and Changes
<br />in Estimates
<br />$14,209,397
<br />15,637,406
<br />13,940,099
<br />12,901,425
<br />Claims
<br />Payments
<br />$ (13,873,397)
<br />(14,657,406)
<br />(13,916,099)
<br />(12,923,425)
<br />Balance
<br />at Fiscal
<br />Year End
<br />$ 6,895,000
<br />7,875,000
<br />7,899,000
<br />7,877,000
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />determined; and at September 30, 2011, unrestricted net assets of $23,254,165 have been designated for
<br />this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
<br />liability. At September 30, 2011, the undiscounted liability was the greater of the two amounts. The
<br />discount rate used in the calculation was 2.5 percent.
<br />286
<br />Balance at
<br />Fiscal Year
<br />Be _ ig nning
<br />2007-2008
<br />$ 6,559,000
<br />2008-2009
<br />6,895,000
<br />2009-2010
<br />7,875,000
<br />2010-2011
<br />7,899,000
<br />Claims
<br />and Changes
<br />in Estimates
<br />$14,209,397
<br />15,637,406
<br />13,940,099
<br />12,901,425
<br />Claims
<br />Payments
<br />$ (13,873,397)
<br />(14,657,406)
<br />(13,916,099)
<br />(12,923,425)
<br />Balance
<br />at Fiscal
<br />Year End
<br />$ 6,895,000
<br />7,875,000
<br />7,899,000
<br />7,877,000
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />determined; and at September 30, 2011, unrestricted net assets of $23,254,165 have been designated for
<br />this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
<br />liability. At September 30, 2011, the undiscounted liability was the greater of the two amounts. The
<br />discount rate used in the calculation was 2.5 percent.
<br />286
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