|
Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2016
<br />NOTE 18 - RISK MANAGEMENT - Continued
<br />General Liability, Property, Worker's Compensation and Medical - Continued
<br />Changes in the fund's claim liability amount during the current and prior three fiscal years are as
<br />follows:
<br />Balance at Claims Balance
<br />Fiscal Year and Changes Claims at Fiscal
<br />Beginning in Estimates Payments Year End
<br />2012-2013 $ 8,074,000 $ 14,396,726 $ (14,396,726) $ 8,074,000
<br />2013-2014 8,074,000 16,860,869 (16,708,324) 8,226,545
<br />2014-2015 8,226,545 17,188,927 (17,237,952) 8,177,520
<br />2015-2016 8,177,520 17,953,550 (17,618,550) 8,512,520
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />determined and at September 30, 2016, unrestricted net position of $27,197,018 has been designated for
<br />this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
<br />liability. At September 30, 2016, the undiscounted liability was the greater of the two amounts. The
<br />discount rate used in the calculation was 2.5 percent.
<br />NOTE 19 - COMMITMENTS AND CONTINGENCIES
<br />A. Litigation
<br />Various suits and claims are currently pending against the County. It is impossible for the County to
<br />accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
<br />punitive damages, and the court's latitude in awarding attorney's fees. The County intends to
<br />vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits.
<br />The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
<br />course of its operations. In the opinion of management and based on the advice of legal counsel, the
<br />ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
<br />County.
<br />B. Contracts and Other Commitments
<br />The County has various contracts and commitments outstanding at September 30, 2016. In the General
<br />Fund, contracts are for janitorial services, beach park landscape and custodial maintenance, legislative
<br />consulting services and external auditing services. In the Special Revenue Funds, contracts are for Old
<br />Dixie Highway resurfacing project, the 45th Street Beautification project, GO Line Bus hub, Fire
<br />Station# 14 construction, as well as a variety of other road paving and drainage projects.
<br />105
<br />
|