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Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2020
<br />NOTE 18 - RISK MANAGEMENT - Continued
<br />General Liability, Property, Worker's Compensation and Medical - Continued
<br />The County has purchased a reinsurance policy to cover claims in excess of these limits.
<br />There were medical claim reimbursements totaling $1,022,187 for fiscal year 2020,
<br />$670,688 for fiscal year 2019, and $471,549 for fiscal year 2018.
<br />The claims liability of $7,944,000 reported at September 30, 2020, is based on the
<br />requirements of generally accepted governmental accounting standards, which require that
<br />a liability for claims be reported if information prior to the issuance of the financial
<br />statements indicates that it is probable that a liability has been incurred at the date of the
<br />financial statements, and the amount of the loss can be reasonably estimated. Estimates
<br />for claims incurred but not reported are actuarially determined and recorded. Based on
<br />the actuary's report, $2,649,000 will be liquidated over the next twelve months.
<br />Changes in the fund's claim liability amount during the current and prior three fiscal years
<br />are as follows:
<br />2016-2017
<br />2017-2018
<br />2018-2019
<br />2019-2020
<br />Balance at
<br />Fiscal Year
<br />Beginning
<br />$ 8,512,520
<br />8,255,000
<br />8,439,000
<br />8,254,000
<br />Claims
<br />and Changes
<br />in Estimates
<br />$ 16,364,331
<br />21,400,694
<br />25,995,950
<br />23,627,530
<br />Claims
<br />Payments
<br />$ (16,621,851)
<br />(21,216,694)
<br />(26,180,950)
<br />(23,937,530)
<br />Balance
<br />at Fiscal
<br />Year End
<br />$ 8,255,000
<br />8,439,000
<br />8,254,000
<br />7,944,000
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not
<br />actuarially determined and at September 30, 2020, unrestricted net position of $22,070,750
<br />has been designated for this purpose.
<br />NOTE 19 - COMMITMENTS AND CONTINGENCIES
<br />A. Litigation
<br />The County is involved in litigation regarding a zoning dispute and other matters, and may
<br />be required to pay damages at a future date. While the ultimate amount of damages is
<br />currently unknown, management has estimated that the amount is likely to equal or exceed
<br />$3,917,250. Accordingly, management has recorded an estimated liability in that amount
<br />in the financial statements.
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