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INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1991 15. Risk Management - Continued: All departments of the County participate in the program. Payments are made by various funds to the Self Insurance Fund based on past experience and actuarial estimates of the amounts needed to pay current year claims. The claims liability of $2,070,449 reported in the Fund at September 30, 1991 is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the finan- cial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially deter- mined and recorded. Changes in the Fund's claims liability amount during the current and prior fiscal years are as follows: Beginning -of - Fiscal -Year -Liability 1988-1989 $ -0- 1989-1990 415,250 1990-1991 1,113,947 Current Year Claims Balance and Changes Claim at Fiscal in Estimates Payments Year End $504,167 $ 88,917 $ 415,250 866,250 167,553 1,113,947 1,144,583 188,081 2,070,449 Included in the charges to other funds is an amount to fund future catastrophic losses and at September 30, 1991, the retained earnings balance of $1,355,210 has been designated for this purpose. 16. Commitments and Contingencies: A. Litigation - The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of management, based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the County. B-55