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INDIAN RIVER COUNTY, FLORIDA
<br />NOTES TO FINANCIAL STATEMENTS - CONTINUED
<br />Year Ended September 30, 1992
<br />16. Risk Management - Continued:
<br />All departments of the County participate in the program. Payments are made by
<br />various funds to the Self Insurance Fund based on past experience and actuarial
<br />estimates of the amounts needed to pay current year claims. The claims liability of
<br />$1,216,257 reported in the Fund at September 30, 1992 is based on the requirements
<br />of Governmental Accounting Standards Board Statement No. 10, which requires that a
<br />liability for claims be reported if information prior to the issuance of the finan-
<br />cial statements indicates that it is probable that a liability has been incurred at
<br />the date of the financial statements and the amount of the loss can be reasonably
<br />estimated. Estimates for claims incurred but not reported are actuarially deter-
<br />mined and recorded. Changes in the Fund's claims liability amount during the
<br />current and prior fiscal years are as follows:
<br />Balance at Fiscal
<br />Year Beginning
<br />1988-1989 $ -0-
<br />1989-1990 415,250
<br />1990-1991 1,113,947
<br />1991-1992 2,070,449
<br />Current Year
<br />Claims
<br />Balance
<br />and Changes
<br />Claim
<br />at Fiscal
<br />in Estimates
<br />Payments
<br />Year End
<br />$504,167
<br />$ (88,917)
<br />$ 415,250
<br />866,250
<br />(167,553)
<br />1,113,947
<br />1,144,583
<br />(188,081)
<br />2,070,449
<br />(426,841)
<br />(425,351)
<br />1,218,257
<br />Included in the charges to other funds is an amount to fund future catastrophic
<br />losses and at September 30, 1992, the retained earnings balance of $2,500,972 has
<br />been designated for this purpose.
<br />17. Commitments and Contingencies:
<br />A. Litigation - The County is contingently liable with respect to lawsuits and
<br />other claims incidental to the ordinary course of its operations. In the
<br />opinion of management, based on the advice of legal counsel, the ultimate
<br />disposition of lawsuits will not have a material adverse effect on the financial
<br />position of the County.
<br />B. Construction Commitments - The County has various construction contracts out-
<br />standing at September 30, 1992. In the Capital Projects Funds, projects are for
<br />Indian River Boulevard North and the New Judicial Complex. in the Enterprise
<br />Funds, the landfill expansion, Golf Course expansion, Gifford Sludge Facility,
<br />and various water and sewer projects are under construction. A summary of these
<br />projects at September 30, 1992 is as follows:
<br />Capital
<br />Proiects Enterprise Total
<br />Total contract price $ 6,132,186 $17,820,440 $23,952,626
<br />Total paid as of
<br />September 30, 1992 5,329,771 9,798,833 15,128,604
<br />Remaining commitment at
<br />September 30, 1992 S 802,415 S 8,021,607 S 8,824,022
<br />B-58
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