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Indian River County, Florida
<br />NOTES TO FINANCIAL STATFMFNTS Continued
<br />Year Ended September 30, 1995
<br />NOTE 15 - FUND EQUITY DEFICIT - Continued
<br />The retained earnings deficit in the Fleet Management Internal Service Fund will be eliminated by
<br />anticipated operating income in future periods. The deficit at September 30, 1994 was $439,096
<br />representing a decrease in the deficit of $53,514 at September 30, 1995.
<br />NOTE 16 - RISK MANAGEMENT
<br />The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of
<br />assets, errors or omissions, injuries to employees, and natural disasters. During a previous fiscal year,
<br />the County established a fund to account for risk management called the Self Insurance Fund (an internal
<br />service fund). The risk management program began on November 1, 1998, and has provided coverage
<br />for the County as follows:
<br />The County purchases commercial insurance for claims in excess of coverage provided by the Fund and
<br />for all other risks of loss.
<br />All departments of the County participate in the program. Payments are made by various funds to the
<br />Self Insurance Fund based on past experience and actuarial estimates of the amounts needed to pay
<br />current year claims. The claims liability of $1,406,000 reported in the Fund at September 30, 1995, is
<br />based on the requirements of generally accepted governmental accounting standards, which require that
<br />a liability for claims be reported if information prior to the issuance of the financial statements indicates
<br />that it is probable that a liability has been incurred at the date of the financial statements, and the amount
<br />of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially
<br />determined and recorded. Changes in the fund's claims liability amount during the current and prior
<br />fiscal years are as follows:
<br />58
<br />As of
<br />11/1198
<br />10/1/89-
<br />10/1/92-
<br />10/1/94
<br />10/1/94-
<br />Workers Compensation
<br />$ 100,000
<br />_1111/82
<br />$200,000
<br />$ 150,000
<br />Present
<br />$ 150,000
<br />General Liability
<br />100,000
<br />500,000
<br />200,000
<br />200,000
<br />Auto Liability
<br />100,000
<br />500,000
<br />100,000
<br />100,000
<br />Property Damage
<br />100,000
<br />10,000
<br />500-25,000
<br />500.25,000
<br />Errors or Omissions
<br />25,000
<br />25,000
<br />200,000
<br />200,000
<br />Annual Aggregate
<br />600,000
<br />1,000,000
<br />11000,000
<br />1,000,000
<br />The County purchases commercial insurance for claims in excess of coverage provided by the Fund and
<br />for all other risks of loss.
<br />All departments of the County participate in the program. Payments are made by various funds to the
<br />Self Insurance Fund based on past experience and actuarial estimates of the amounts needed to pay
<br />current year claims. The claims liability of $1,406,000 reported in the Fund at September 30, 1995, is
<br />based on the 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 statements indicates
<br />that it is probable that a liability has been incurred at the date of the financial statements, and the amount
<br />of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially
<br />determined and recorded. Changes in the fund's claims liability amount during the current and prior
<br />fiscal years are as follows:
<br />58
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