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COUNTY OF HAWAII
<br /> Notes to the Basic Financial Statements
<br /> June 30,2007
<br /> of a court Monitor and an ADA Specialist,to obtain extensions on the initial deadlines for
<br /> completion that were set in the Original Transition Plan and to establish a Revised Transition
<br /> Plan to satisfy the requirements of the ADA. In addition,the County's ADA coordinator
<br /> (Equal Opportunity Officer)has access to an identifiable account of$50,000 to handle
<br /> requests for reasonable accommodations for County departments;the procedures for these
<br /> requests have been drafted,but not finalized.
<br /> 12. RISK MANAGEMENT
<br /> The County is exposed to various risks of losses related to torts;theft of,damage to,and
<br /> destruction of assets;errors and omissions;injuries to employees;and natural disasters. The
<br /> County maintains fire and commercial multiple peril insurance on County facilities,flood
<br /> insurance on selected structures,medical malpractice insurance for emergency medical
<br /> technicians, general liability insurance for water safety officers,aviation liability for
<br /> helicopter operations,automobile coverage on transit buses,and no-fault insurance coverage
<br /> for privately owned police vehicles. There was no reduction in insurance coverage during the
<br /> year from coverage in the prior year. During the past three fiscal years,the amount of
<br /> settlements in cases covered by insurance have not exceeded the insurance coverage. The
<br /> County is substantially self-insured for its vehicles as well as for all other perils including
<br /> workers'compensation and general liability.
<br /> Liabilities are reported when it is probable that a loss has occurred and the amount of that loss
<br /> can be reasonably estimated. These losses include an estimate of claims that have been
<br /> incurred but not reported(IBNR). Claim liabilities, including IBNR,are based on the
<br /> estimated ultimate cost of settling the claims,and include incremental costs for the hiring of
<br /> special counsel and expert witnesses. Claims liabilities are estimated by a case-by-case
<br /> review of all claims and the application of historical experience to outstanding claims.
<br /> Estimates of IBNR are based on historical experience. The liability for claims and judgments
<br /> is reported on the government wide statement of net assets. At June 30,2007,the amount of
<br /> this liability was$18,308,292. This is the County's best estimate based on available
<br /> information. Changes in the reported liability since June 30,2005 are given below.
<br /> General Workers' Total
<br /> Liability ComRensation Liabili
<br /> Balance at June 30,2005 $9,963,152 $16,639,137 $26,602,289
<br /> Incurred claims(including IBNR)* (412,874) 52,510 (360,364)
<br /> Claim payments (1.856,902) (3,044,630) X4,901,532)
<br /> Balance at June 30,2006 $7,693,376 $13,647,017 $21,340,393
<br /> Incurred claims(including IBNR)* 403,514 1,092,369 1,495,883
<br /> Claim payments (2,093,882) _(2,434,102) (4,527,984)
<br /> Balance at June 30,2007 6.003.008 $12.305284 $18.308.292
<br /> *Net of new claims liability and old claims resolved at less than previous estimate.
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