MARICOPA COUNTY
RISK MANAGEMENT ANNUAL REPORT
FISCAL YEAR 2003-04

TABLE OF CONTENTS

I.

EXECUTIVE SUMMARY

II.

CLAIMS DIVISION

III.

SAFETY DIVISION

IV.

ENVIRONMENTAL DIVISION

V.

ADMINISTRATIVE DIVISION

VI.

STATISTICS AND COVERAGE

RISK MANAGEMENT ANNUAL REPORT
EXECUTIVE SUMMARY

Presented herein is the Maricopa County Risk Management Annual Report, for the fiscal year July 1,
2003 to June 30, 2004.
This report contains summaries of the fiscal year’s losses and costs for Maricopa County’s auto
liability, auto physical damage, general liability, medical malpractice, property, workers’
compensation, and unemployment exposures. This report, along with ongoing quarterly reports to
County departments during the year, are intended to assist departments in recognizing the nature and
extent of their losses, and to lead departments to consider implementation of effective loss control
and prevention programs.
Structure and Mission
On June 30, 2004, the Risk Management Department completed its 23rd year administering the
County’s self-insurance program. Risk Management’s mission statement is, “Provide loss
prevention and control and insurance and claims management services for Maricopa County
Government, so they can reduce or eliminate their losses.” Its vision is to be recognized as a leader,
and to be relied upon for a Countywide risk management philosophy, culture and direction. Risk
Management’s primary activities are:
•
•
•
•
•
•
•
•
•

Risk consulting
Insurance procurement above self-insured retention levels
Maricopa County Self-Insured Trust Fund management and financing
Administration of and monitoring third party administrators’ adjusting
of workers’ compensation and unemployment claims
Investigation and disposition of casualty claims and lawsuits
Safety training, reporting and compliance
Loss control programs
Environmental investigation, remediation and reporting
Contractual indemnification and insurance requirement language drafting and review

The Risk Management Department is divided into three operating divisions, Claims, Safety and
Environmental, and one Administration division. Highlights for each division are contained in this
report. The staff strives to accomplish its mission with assistance and direction from the Maricopa
County Board of Supervisors, Maricopa County Self-Insured Trust Fund Board of Trustees, and
Office of the County Attorney. The Risk Manager reports to the Chief Financial Officer of
Maricopa County.

I-1

Self-Insured Trust Fund
Arizona law (ARS § 11-981) authorizes Maricopa County to self-insure, procure insurance from any
insurer authorized by the State of Arizona Department of Insurance, or both. Insurance (defined in
Title 20 Arizona Revised Statutes) includes, but is not limited to, auto liability, auto physical
damage, general liability, medical malpractice, property, workers’ compensation, and
unemployment insurance.
Upon establishment of a self-insurance program, Maricopa County is required to designate a Trust
Administrator (Risk Manager), and establish a Trust. The Trust is funded by an allocation of funds
from General Fund and Non-General Fund departments and Special Districts, or such other funding
techniques permitted by state statute and authorized by the Trust’s Board of Trustees.
A Board of Trustees manages and directs the Trust’s activities and affairs. Trustees must be United
States citizens and residents of Maricopa County, and are appointed by the Maricopa County Board
of Supervisors (BOS) and County Administrative Officer. During FY03-04, the following
individuals were members of the Board of Trustees:
Trustee District/Appointment

Trustee

BOS District One
BOS District Two
BOS District Three
BOS District Four
BOS District Five
BOS Chairman
County Administrator

Michael Liburdi
Joel Sterrett
Donald (Dutch) Baker
David Tierney, Chairman
Peter Moraga
BOS Chairman
Tom Manos

FY03-04 Results
Maricopa County enjoyed very good results this fiscal year in the risk/exposure area. Total claim
costs were down for this fiscal year, though a percentage reduction would be misleading since the
figures do not include Incurred But Not Reported (IBNR) claims, which will affect the ultimate total.
A truer picture of fiscal year results is the Cost of Risk. Although Risk Management’s costs
increased $2,421,446 (12.7%), due primarily to the increased costs of insurance premiums, the Cost
of Risk (Risk Management’s costs compared to projected* total County expenditures) was a very
good 0.9%. In addition, the County realized $1,002,597 in net savings during the year through the
use of in-network medical providers, and recovered $306,777 through subrogation efforts (the
Claims and Safety divisions, and our Third Party Administrator for Workers’ Compensation) and
collections from our excess insurance coverage. These positive results need to be viewed in light of
the County’s growth in the number of people served within the County and in services rendered.
Maricopa County continues to be one of the fastest growing counties in the nation with a population
over 3.4 million. It is the 4th most populous County in the United States and is larger in population
than 21 states, and larger geographically than 7 states. The County enjoyed a robust growth rate of
2.9% or 101,619 more people last year. Such size and growth, while economically positive, could
I-2

result in an increase in the number of claims. However, Maricopa County experienced a decrease in
claims occurring in this fiscal year compared to last fiscal year. Risk Management’s emphasis on a
strong proactive loss prevention and safety program is certainly a material factor in this reduction in
claims.
The number of Maricopa County employees varies from month to month. For FY02-03 and FY0304, the numbers of actual budgeted positions were 15,789 and 16,637, respectively. Workers’
compensation claims for FY02-03 and FY03-04 were 856 and 813, respectively. This reflects an
increase in the number of budgeted positions of 5.4% over the previous fiscal year, and a decrease in
the number of workers’ compensation claims of 5.0% over this period.

*A projection of the FY03-04 expenditures was used since the County has not published its FY03-04 CAFR at the time
this report went to the printer.

I-3

Cost of Risk
Cost of Risk is a comparison of the County's expenditures of the risk management program to the
County’s overall expenditures in the fiscal year. The effectiveness of a risk management program
can be reflected in this comparison since the cost of a risk management program, includes paid
claims (amounts paid in the fiscal year without regard to the year the claim arose), insurance
premiums, safety and loss control programs, and operational and administrative expenses, against
total County's expenditures. During the past three year period, Cost of Risk for the County has
remained under 1%, varying from 0.86% to a projected 0.9%. This reflects positive, stable result.
FY01-02

FY02-03

FY03-04

Claims and Premiums
Auto Liability

$252,503

$162,686

$305,267

General Liability

$1,606,340

$2,019,985

$1,420,281

Medical Malpractice

$1,756,845

$366,501

$482,400

$208,631

$506,413

$729,133

$3,478,198

$3,481,554

$4,570,705

$649,152

$833,459

$801,973

$20,295

$625

$0

$3,445,481

$4,577,114

$3,931,045

$11,417,445

$11,948,337

$12,240,804

$4,564,323

$4,708,769

$6,702,686

$42,000

$115,000

$130,000

Consulting and Mngt Fees

$317,606

$289,117

$198,048

Claims Admin Fees

$426,583

$320,532

$398,395

$1,591,785

$1,656,270

$1,789,538

$6,942,297

$7,089,688

$9,218,667

$18,359,742

$19,038,025

$21,459,471

$2,116,470,340

$2,220,941,795

$2,384,384,777*

0.87%

0.86%

0.9%*

Property/Auto Physical Damage
Workers' Compensation
Unemployment
Environmental Contingency
Premiums
Subtotal
Other Costs
Legal Expenses
Broker Fees

Administrative
Subtotal
Total Risk Management Costs
Total County Expenditures
TOTAL COST AS A PERCENTAGE
OF COUNTY EXPENDITURES
Notes:

1.

Paid claims represents the amount paid in the fiscal year regardless of occurrence
date and does not include Reported but not Paid (RBNP) or IBNR reserves.
2. Amounts as valued on June 30, 2004, as reported in the Advantage Financial System.
* A projection of the FY03-04 expenditures was used since the County has not published its FY03-04 CAFR
at the time this report went to the printer.

I-4

Acknowledgment
The Risk Management Department would like to thank the Maricopa County Board of Supervisors;
Elected Officials; County Manager; Chief Financial Officer; Self-Insured Trust Fund Board of
Trustees; County Attorney’s Office; County departmental management, employees, and volunteers
for their demonstrated interest in reducing claims and lawsuits, and their commitment to safety.
Respectfully submitted,

Peter Crowley
Risk Manager
Bill Warren, Assistant Risk Manager, Safety Division
Pat Spencer, Claims Manager
Samantha Wright-Sprague, Administration Manager
Rita Neill, Environmental Programs Manager
Sara Latin, Administrative/Insurance Coordinator
Emilee Eckroad, Claims Adjuster
Jenny Durda, Claims Coordinator
and the entire Risk Management Staff
Notes:

For presentation purposes only, the dollar amounts and associated percentages in all of the charts and tables
presented herein, have been rounded to the nearest whole dollar or percent.

I-5

CLAIMS DIVISION

The Claims Division of Risk Management handles all property and liability claims filed against
Maricopa County and its employees. The Division oversees the adjustment of workers’
compensation and unemployment claims by third party administrators. These claims are handled
by Pinnacle Risk Services and Talx Employer Services (formerly Sheakley UniService). Claims
are reviewed and either paid or denied on their merits. Litigated claims are assigned to either the
County Attorney’s Office or outside counsel. The Division works with assigned attorneys to
obtain the most favorable result possible for the County. We are committed to settling claims
owed at a fair and reasonable amount while defending claims with no merit.
New claims arising from events in FY03-04 continue to reflect an overall decrease in total
number over the past three fiscal years (see page VI-3). Also, the total cost of all claims (amount
paid plus open reserves) has been reduced in this same period (see page VI-1).
In addition to handling claims, the Division provides the following services to the County:
•

Subrogation, restitution, and deductible recovery. In FY03-04 the Division collected
$189,519.31 from at fault parties that caused damage to County property.

•

Consultation services. We report to, and consult with County departments on coverage
issues, pending claims and litigation. This is done as both an informational tool and as a
means to find ways to reduce claims or exposures.

•

Review and management of the third party administrator providing adjustment of
workers’ compensation claims for County employees. In addition to adjustment of these
losses, Pinnacle Risk Services and its affiliated vendors also conduct bill reviews and
monitor discounts available to the County for use of a PPO network. The net savings in
FY 03-04 with the use of in network medical practitioners was $1,002,597.

•

Review of indemnity and insurance language in County contracts.

•

Oversee outside contractors providing automobile and property appraisal services,
vehicle repair services and structured settlement services to the County.

•

Coordinate recovery for County agencies from our excess property and liability insurance
policies.

Due to the efforts of the Claims Division, the County continues to realize substantial savings
from its property, liability and compensation exposures. The Division is committed to work to
further improve in these areas and help reduce the cost of risk to the taxpayers of Maricopa
County.

II-1

SAFETY DIVISION
The Safety Division of Risk Management continued to focus on a countywide initiative to
organizationally ensure safety standard compliance and loss prevention. The process uses a
safety management system of supervisor and worker accountability within the performance
management plan. The Division consulted with agencies and departments to establish the safety
management system as a core business function. As a clear example of its efforts to improve
departmental safety performance, workers’ compensation data this fiscal year evidences a 5.0%
reduction in the number of claims over last fiscal year (856 claims in FY02-03, and 813 claims in
FY003-04, see page VI-9 of the statistics and coverage section).
Working to improve workplace safety and ensure compliance with safety standards, the
Division:
•

Re-Negotiated with GateWay Community College the “Certificate in Equipment
Operation.”

•

Conducted a countywide four-day Safety Fair and Equipment ROADEO, with 800
employees participating in Safety Classes along with events testing operator skills and
knowledge of equipment operations.

•

Trained 200 County management and supervisors in the START Safety Management
System in Environmental Services, Equipment Services, MCDOT, Flood Control, Public
Health, and Planning and Development Departments.

•

Completed an OSHA Claims Review by the Arizona Division of Occupational Safety and
Health and successfully negotiated 50 percent reduction in inspection items and citation
cost.

•

Successfully subrogated recovery for MCDOT damaged property. FY03-04, the Division
billed $48,330.61 from “at fault” parties that caused damage to MCDOT property and
collected $15, 925.76.

Additionally, the Safety Division provides technical assistance and training to various
departments in the areas of occupational safety, fleet safety, drug & alcohol testing, commercial
drivers programs, heavy equipment training, hazardous materials management, OSHA
compliance, and hazard communication – employees “right-to-know” training. Teaching more
than 318 safety classes, these efforts continue to have a positive influence on the County’s safety
awareness and loss prevention efforts.
Management commitment and front line supervision accountability is the key to sustaining the
safety process and reducing unsafe work practices. As Maricopa County continues to evolve its
strategies in its safety management system, it is necessary that each level of management must
take a greater role in safety development. Including specific safety activities and initiative within
the County’s overall work process and evaluation creates a safe working environment. Safety is
a total team effort!

III-1

ENVIRONMENTAL DIVISION
The Environmental Division of Risk Management conducts remedial investigations and takes
action to minimize County environmental liability as determined by law, regulation, statute,
and/or court order. The Division provides leadership in the area of pollution prevention and
environmental management, and has developed a proactive assessment and action process that
mitigates environmental liabilities, saving the County in the cost of remedial action and
regulatory penalties. Possible environmental liability costs of known sites have been reduced
from previous estimates of over $500 million for FY95-96, to approximately $51 million for
FY03-04.
This fiscal year the Division:
•

Recovered $101,332 from the State of Arizona’s Department of Environmental Quality
for remedial actions for soil and groundwater contamination related to former leaking
underground storage tanks at 4701 East Washington Street, site of the former Sheriff’s
Office, MCDOT yard and Vector Control

•

Prepared Storm Water Pollution Prevention Plans for the remaining two County facilities
that required plans under the National Pollution Discharge Elimination System (NPDES)
industrial discharge permitting program.

•

Completed Phase I environmental assessments for 5 facilities, several which required
sampling and testing for soil contamination. Completed assessments for asbestos and
lead paint at 3 additional facilities.

•

Assisted MCDOT, Flood Control, Real Estate and FMD in preparing Requests For
Proposals for environmental studies and asbestos abatements.

•

Completed a phased environmental assessment of a former County landfill.

•

Conducted sampling of drinking water at several County facilities supplied by water from
on site wells.

•

Conducted a review of former and current County landfills.

•

Prepared a five-year contract covering 11 areas of environmental service for the County.
Evaluated submittals and approved and selected 44 separate contractors.

•

Continued to provide sound environmental compliance information to requesting
departments.

The Division recognizes that environmental risks are capable of being managed through risk
control and prevention measures. These measures include separation of hazardous materials,
effective pollution prevention and loss control techniques, redundant controls and safety
mechanisms, double and triple containment of tanks and flow tubes, emergency response plans,
and effective training of employees. The Division will continue to seek to implement these
measures.

IV-1

ADMINISTRATIVE DIVISION
The Administrative Division is responsible for procuring the insurance polices above the County’s
self-insured retention, providing certificates of insurance to County departments, preparing the
annual user charges for services, preparing the annual budget and financial statements for the Trust
and providing administrative support to the other divisions within the department. Included in this
report is a comparison of the assets and liabilities of the Trust over a three-year period, the trend of
the current insurance market, a budget summary and the financial statements through fiscal year
ended June 30, 2004.
Self-Insured Trust Fund
Combined Balance Sheet Comparison
FY01-02, FY02-03, and FY03-04

Assets
Liabilities
Net assets (deficit)

FY01-02
$24,275,480
$42,295,510
($18,020,030)

FY02-03
$29,287,214
$41,851,737
($12,564,523)

FY03-04
$34,064,513
$43,488,963
($ 9,424,450)

During the FY01-02 through FY03-04 period, the Trust’s assets increased $9,789,033 or 40.3%,
from $24,275,480 to $34,064,513. During the same period, the Trust’s liabilities increased
$1,193,453 or 2.8%, from $42,295,510 to $43,488,963. Net assets (deficits) are a result of a spend
down of the self-insured trust fund in a prior four year period, where user departments were only
charged for administrative costs while claims and insurance were still being paid by Risk
Management on behalf of these user departments. FY03-04 balance sheet details are provided in the
financial section. The Trust began billing user departments for the full costs of claims and insurance
in FY99-00.
Insurance Policies
Risk Management continues to analyze current insurance market trends. It is expected that
insurance premiums in all lines of coverage will increase somewhat, but the “hard” market of the last
few years may be abating. It is projected that potential increases in annual premium costs will not be
as great as in the past years. Risk Management will continue working closely with our insurance
broker to aggressively pursue reasonable insurance coverages to protect Maricopa County.
At the close of this fiscal year, the County’s major insurance policies are as follows:
Coverage

Policy Period

Limits

Deductible/SIR

General Liability
(Excess liability)

3-1-04/3-1-05

$5 million
$25 million

$5 million SIR

Medical Malpractice
(Excess liability)

12-4-03/12-4-04

$15 million
$10 million

$5 million SIR

V-1

Workers’ Compensation

7-1-03/7-1-04

$25 million

$1 million SIR

Property Damage

7-1-03/7-1-04

$258 million

$100,000 per occ.

Budget Summary
The expenditure budget for the Risk Management Department for FY03-04 was $25,609,802. Of
this amount, $1,254,501 was for personnel costs, $269,548 was for supplies and services, $20,000
was for capital equipment and $24,065,753 was for insurance, legal, and claims and claims related
expenditures. On a percentage basis, 94.0% of Risk Management’s budget is for insurance, legal,
and claims and claim related expenditures.
The revenue budget for the Risk Management Department for FY03-04 was $26,686,121. Of this
amount, $25,676,986 was from user charges and $1,009,135 was from interest earnings. On a
percentage basis, 96.2% of the revenue is from user charges. These user charges are based on
actuarially estimated claims payments and insurance projections for what the Risk Management
Department will pay out on behalf of County departments.
Financial Statements
The financial statements presented in this section have been audited by the State of Arizona, Office
of the Auditor General, and are included in the Maricopa County Comprehensive Annual Financial
Report (CAFR) and the Risk Management and Employee Benefits Trust Report on Audit of
Financial Statements for FY03-04.
The actual expenditures for the Risk Management Department for FY03-04 were $22,944,313. Of
this amount, $1,209,017 was for personnel costs, $544,021 was for supplies and services and
$21,191,275 was for insurance, legal, and claims and claims related expenditures. On a percentage
basis, 92.4% of Risk Management’s actual expenditures are for insurance, legal, and claims and
claims related expenditures.
The actual revenue for the Risk Management Department for FY03-04 was $26,084,386. Of this
amount, $25,676,986 was from user charges, $131,731 was from insurance recoveries and $275,669
was from interest earnings. On a percentage basis, 98.4% of the revenue was from user charges.

V-2

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Net Assets—Internal Service Funds
June 30, 2004
Risk
Management
Assets
urrent assets:
Cash and cash equivalentsRisk management
Environmental insurance claims recovery
Employee benefits
Interest receivable
Accounts receivable
Prepaid insurance
Total current assets
oncurrent assets:
Machinery and equipment
Less: accumulated depreciation
Total noncurrent assets
Total assets

Employee
Benefits

$ 30,766,039
1,456,569
133,509
219
1,705,787
34,062,123
51,676
(49,286)
2,390
34,064,513

Liabilities
urrent liabilities:
Accounts payable
Employee compensation payable
RBUC and IBNR claims
Total current liabilities
oncurrent liabilities:
RBUC and IBNR claims
Total noncurrent liabilities
Total liabilities

850,963
105,387
15,813,549
16,769,899
26,719,064
26,719,064
43,488,963

Net Assets
nvested in capital assets
nrestricted (deficit)
Total net assets (deficit)

2,390
(9,426,840)
$ (9,424,450)

See accompanying notes to financial statements.
V-3

$ 11,040,473
42,879
1,782,172
1,138,598
14,004,122

14,004,122

1,868,796
5,139,150
7,007,946

7,007,946

6,996,176
$ 6,996,176

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Revenues, Expenses, and
Changes in Fund Net Assets—Internal Service Funds
Year Ended June 30, 2004
Risk
Management
Operating revenues:
Charges for services
County and employee premiums
Other income
Total operating revenues
Operating expenses:
Personal services
Supplies and services
Accounting and auditing fees
Actuary fees
Consulting and management fees
Brokers' fees
Claims administration service fees
Legal expenses
Claims and insurance:
Auto liability claims paid
Auto liability RBUC and IBNR claims decrease in estimate
Total auto liability
General liability claims paid
General liability RBUC and IBNR claims increase in estimate
Total general liability
Workers' compensation claims paid
Workers' compensation RBUC and IBNR claims decrease in estimate
Total workers' compensation
Medical malpractice claims paid
Medical malpractice RBUC and IBNR claims increase in estimate
Total medical malpractice
Auto physical damage claims paid
Auto physical damage RBUC claims increase in estimate
Total auto physical damage
Property claims paid
Property RBUC claims increase in estimate
Total property
Pharmacy claims paid
Pharmacy IBNR claims decrease in estimate
Total pharmacy
Medical claims paid
Medical RBUC and IBNR claims increase in estimate
Total medical
Dental claims paid
Dental IBNR claims increase in estimate
Total dental
See accompanying notes to financial statements.
V-4

Employee
Benefits

$ 25,676,986
131,731
25,808,717
1,209,017
522,338
12,173
36,500
198,048
130,000
398,395
6,702,686

$ 27,616,161
199,068
27,815,229

1,409,157

305,267
(21,084)
284,183
1,420,281
1,820,117
3,240,398
4,570,705
(575,884)
3,994,821
482,400
184,362
666,762
357,352
21,004
378,356
371,781
56,327
428,108
11,025,730
(512,777)
10,512,953
3,724,882
3,568,000
7,292,882
4,801,989
55,572
4,857,561
(Continued)

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Revenues, Expenses, and
Changes in Fund Net Assets—Internal Service Funds
Year Ended June 30, 2004
(Continued)
Risk
Management
Short-term disability claims paid
Short-term disability IBNR claims decrease in estimate
Total short-term disability
Hospital co-pay reimbursements claims paid
Medical incentives paid
Wellness incentives paid
Insurance claims paid
General medical IBNR claims decrease in estimate
Total general medical
Unemployment claims
General liability insurance premiums
Workers' compensation insurance premiums
Crime insurance premiums
Property insurance premiums
Malpractice insurance premiums
Stop loss insurance premiums
Depreciation
Total operating expenses

Employee
Benefits
$

$

801,973
1,673,262
487,710
35,419
594,760
1,139,894

1,826,457
(253,518)
1,572,939
18,285
751,218
5,843
2,337
(165,031)
612,652
392

75,739

Operating income
Nonoperating revenues:
Investment income
Total nonoperating revenues
Income before transfers

9,510
22,944,313

26,334,275

2,864,404

1,480,954

275,669
275,669

186,986
186,986

3,140,073

1,667,940

Transfers from other County funds

2,374,000

Increase in net assets
Total net assets (deficit), July 1, 2003
Total net assets (deficit), June 30, 2004

3,140,073

4,041,940

(12,564,523)

2,954,236

$ (9,424,450)

See accompanying notes to financial statements.
V-5

$

6,996,176

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Cash Flows—Internal Service Funds
Year Ended June 30, 2004

Cash flows from operating activities:
Receipts from other funds
Other receipts
Payments for fees, supplies, and services
Payments for insurance claims
Payments for insurance premiums
Payments to employees
Net cash provided by operating activities
Cash flows from noncapital financing activities:
Cash transfers from other funds
Cash flows from investing activities:
Interest received on investments

Risk
Management

Employee
Benefits

$ 25,808,717

$26,271,156
199,068
(1,409,157)
(21,637,155)
(1,100,248)

(7,863,133)
(8,309,759)
(3,998,768)
(1,193,859)
4,443,198

2,323,664
2,374,000

216,656

167,744

4,659,854

4,865,408

27,562,754

6,175,065

$32,222,608

$11,040,473

$ 2,864,404

$ 1,480,954

Net increase in cash and cash equivalents
Cash and cash equivalents, July 1, 2003
Cash and cash equivalents, June 30, 2004
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Net change in RBUC and IBNR claims, noncurrent portion
Changes in assets and liabilities:
Increase in:
Accounts receivable
Prepaid insurance
Accounts payable
Employee compensation payable
RBUC and IBNR claims, current portion
Decrease in:
Deposits held for others
Net cash provided by operating activities
Noncash investing, capital, and noncapital financing activities:
Disposal of machinery and equipment
Accumulated depreciation from disposal of machinery and equipment

9,510
44,024

(219)
(67,723)
137,226
15,158
1,440,818

$ 4,443,198

$

See accompanying notes to financial statements.
V-6

(22,878)
22,878

(1,013,321)
(1,024,117)
519,586
2,692,246
(331,684)
$ 2,323,664

MARICOPA COUNTY
RISK MANAGEMENT TRUST FUND
Statements of Revenues, Expenses, and
Changes in Fund Net Assets—Internal Service Fund
Budget and Actual
Year Ended June 30, 2004

Operating revenues:
Charges for services
Other income
Total operating revenues

Budget

Actual

$ 25,676,986

$ 25,676,986
131,731
25,808,717

25,676,986

Operating expenses:
Personal services
Supplies and services
Accounting and auditing fees
Actuary fees
Consulting and management fees
Brokers' fees
Claims administration service fees
Legal expenses
Total auto liability
Total general liability
Total workers' compensation
Total medical malpractice
Total auto physical damage
Total property
Unemployment claims
General liability insurance premiums
Workers' compensation insurance premiums
Crime insurance premiums
Property insurance premiums
Malpractice insurance premiums
Depreciation
Total operating expenses

1,254,501
448,049
16,500
41,500
298,000
130,000
285,800
4,274,982
372,509
3,128,919
4,855,323
3,414,733
422,806
298,775
750,000
2,782,000
533,655
50,000
772,750
1,479,000
25,609,802

1,209,017
522,338
12,173
36,500
198,048
130,000
398,395
6,702,686
284,183
3,240,398
3,994,821
666,762
378,356
428,108
801,973
1,673,262
487,710
35,419
594,760
1,139,894
9,510
22,944,313

Operating income

Variance
$

-

(45,484)
74,289
(4,327)
(5,000)
(99,952)
0
112,595
2,427,704
(88,326)
111,479
(860,502)
(2,747,971)
(44,450)
129,333
51,973
(1,108,738)
(45,945)
(14,581)
(177,990)
(339,106)
(2,674,999)

2,864,404

Nonoperating revenues:
Investment income
Total nonoperating revenues

1,009,135
1,009,135

275,669
275,669

Income before transfers

3,140,073

Transfers from other County funds
Increase in net assets

3,140,073

Total net deficit, July 1, 2003

(12,564,523)

Total net deficit, June 30, 2004

$ (9,424,450)

See accompanying notes to financial statements.
V-7

(733,466)
(733,466)

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2004

NOTE 1 - Summary of Significant Accounting Policies
The County, in the exercise of the authority granted by Arizona Revised Statutes (A.R.S.)
§11-981, has established a trust fund and declares itself self-insured. For financial statement
presentation purposes, the Self-insured Trust Fund is reported as Risk Management and
Employee Benefits Trust Funds (Funds) and all monies held in these Funds are considered
unrestricted. The Funds’ financial statements are prepared in conformity with U.S. generally
accepted accounting principles applicable to governmental units adopted by the
Governmental Accounting Standards Board (GASB). The Maricopa County Comprehensive
Annual Financial Report for the year ended June 30, 2004, reports the Funds as
governmental activities on the government-wide financial statements since they
predominantly service the County’s governmental funds. A summary of the Funds’ more
significant accounting policies follows.
A.

Reporting Entity

The Trust Funds are accounted for as internal service funds of Maricopa County, Arizona,
under the direction of an administrator appointed by the County Board of Supervisors. In
addition, the Trust Funds are administered by no less than six joint trustees, all of whom shall
be citizens of the United States of America and residents of Maricopa County. The County
Board of Supervisors also appoints the trustees. However, the ultimate financial
accountability for the Funds remains with the County. The County is responsible for the
management and operations of the financing of the uninsured risk of loss related to torts;
theft of, damage to, and destruction of assets; errors and omissions; injuries to employees;
natural disasters; and for certain health benefits (pharmacy, medical, dental, short-term
disability, hospital co-pay reimbursements, medical incentives, and wellness incentives) to
eligible employees and their dependents.
B.

Fund Accounting

The Funds’ accounts are maintained in accordance with the principles of fund accounting to
ensure that limitations and restrictions on the Funds’ available resources are observed. The
principles of fund accounting require that resources be classified for accounting and
reporting purposes into funds in accordance with the activities or objectives specified for
those resources. Each fund is considered a separate accounting entity, and its operations are
accounted for in a separate set of self-balancing accounts that comprises its assets, liabilities,
net assets, revenues, and expenses.
The Funds’ financial transactions are recorded and reported as internal service funds since
their operations are financed and operated in a manner similar to private business enterprises.

V-8

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2004

The intent of the County Board of Supervisors is that the costs (expenses, including
depreciation) of providing goods or services to other departments within the County on a
continuing basis be financed or recovered primarily through user charges.
C.

Basis of Presentation and Accounting

The financial statements include statements of net assets; statements of revenues, expenses,
and changes in fund net assets; and statements of cash flows.
The statements of net assets provide information about the assets, liabilities, and net assets of
the Funds at the end of the year. Assets and liabilities are classified as either current or
noncurrent. Net assets are classified according to the availability of assets to satisfy the
Funds’ obligations. Invested in capital assets represents the value of capital assets, net of
accumulated depreciation. Unrestricted net assets represent the balance of monies held in the
Funds.
The statements of revenues, expenses, and changes in fund net assets provide information
about the Funds’ financial activities during the year. Revenues and expenses are classified as
either operating or nonoperating, and all changes in net assets are reported. Generally,
charges for services and insurance premiums are considered to be operating revenues. Other
revenues such as investment income are not generated from operations and are considered to
be nonoperating revenues. The cost of services, administrative expenses, and depreciation
on capital assets are considered to be operating expenses.
The statements of cash flows provide information about the Funds’ sources and uses of cash
and cash equivalents during the year. Increases and decreases in cash and cash equivalents
are classified as either operating, noncapital financing, capital financing, or investing.
Basis of accounting relates to the timing of the measurements made, regardless of the
measurement focus applied and determines when revenues and expenses are recognized in
the accounts and reported in the financial statements. The financial statements of the Funds
are presented on the accrual basis of accounting using the economic resources measurement
focus. Revenues are recorded when earned and expenses are recorded at the time liabilities
are incurred, regardless of when the related cash flows take place.
The Funds apply only those applicable Financial Accounting Standards Board Statements
and Interpretations issued on or before November 30, 1989; Accounting Principles Board
Opinions; and Accounting Research Bulletins, unless those pronouncements conflict with
GASB pronouncements. The Funds have chosen the option not to follow FASB statements
and interpretations issued after November 30, 1989.

V-9

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2004

D.

Cash and Cash Equivalents

The Funds’ cash and cash equivalents are held by the County Treasurer in its investment
pool, and they are reported at fair value. The Funds’ investments in the County Treasurer’s
investment pool represents proportionate interests in that pool’s portfolio; however, the
Funds’ portions are not identified with specific investments and are not subject to custodial
credit risk. Interest earned from investments purchased with such pooled monies is allocated
to each of the funds based on their average daily cash balance on a quarterly basis. Interest
earned and not received prior to June 30, is recorded as interest receivable.
For purposes of the statements of cash flows, cash and cash equivalents consist of the Funds’
share of the pooled portfolio of specific investments purchased by the Maricopa County
Treasurer’s Office. The County considers only those highly liquid investments with a
maturity of 3 months or less when purchased to be cash equivalents.
E.

Machinery and Equipment

Machinery and equipment are capitalized at cost. Depreciation of machinery and equipment
is charged as an expense against operations. These assets are depreciated over their
estimated useful lives using the straight-line method. The estimated useful lives of
machinery and equipment range from 3 to 10 years.
F.

Employee Compensation Payable

Employee compensation payable consists of payroll and payroll-related costs incurred but
not paid at June 30, and personal time off (PTO) earned by employees based on services
already rendered. Employees may accumulate up to 240 hours of PTO, but any PTO hours in
excess of the maximum amount that are unused at calendar year-end will be transferred to
family medical leave (FML). FML benefits are used by employees for FML-qualifying
events and are cumulative but do not vest with employees and, therefore, are not accrued.
However, upon retirement, employees of the Funds with accumulated FML in excess of
1,000 hours are entitled to a $3,000 bonus. The amount of such bonuses is accrued in the
liability for employee compensation payable.
NOTE 2 - Liabilities for Unpaid Claims
The Funds provide for claims liabilities based on estimates of the ultimate cost of claims,
including future claims adjustment expenses, that have been reported but not settled (RBUC),
and of claims that have been incurred but not reported (IBNR).
The County is liable for any single claim up to the insurance deductible or self-insurance
retention (SIR), whichever is applicable, and the excess over insurance limits. The following
V-10

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2004

insurance deductibles, self-insurance retentions, and insurance limits were in effect during
fiscal year 2003-04:
Policy Type
General and auto liability
Excess general and auto liability
Property/inland marine
Boiler and machinery
Earthquake
Flood zones except A and V
Flood zone A and V
Difference in conditions
Employee theft
Faithful performance of duty
Theft and robbery
Computer and wire transfer
fraud
Forgery alteration/property
Excess workers’ compensation
Employer’s liability
Medical malpractice
Excess medical malpractice

Deductible

SIR
$

$

5,000,000
primary

100,000
100,000
100,000
500,000
500,000
primary
100,000
100,000
10,000
100,000
10,000
1,000,000
5,000,000
primary

Limit
$

5,000,000
25,000,000
657,255,579
50,000,000
100,000,000
25,000,000
10,000,000
50,000,000
10,000,000
1,000,000
1,000,000
10,000,000
1,000,000
25,000,000
1,000,000
15,000,000
10,000,000

Settled claims have not exceeded the above commercial insurance coverage limits over the
past 3 years.
Risk Management Trust Fund
Liabilities for unpaid claims are estimates of the ultimate cost of claims that include the
insurance deductible, the SIR, and the excess over insurance limits. The estimates are
determined by an independent actuary using the following actuarial methods: reported loss
development, paid loss development, Bornhuetter-Ferguson reported loss and paid loss,
frequency times severity, case outstanding loss development, expected loss, incremental
paid-workers’ compensation, paid allocated loss adjustment expense (ALAE) to paid loss
development, and tail liability for medical malpractice. Total liabilities are equal to the sum
of:
1. Reported but unpaid claims (RBUC), which represent the estimated liability on reported
claims established by the Risk Management department and
2. Incurred but not reported (IBNR) reserves, which include known loss events that are
expected to become claims and expected future development on claims already reported.
V-11

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2004

IBNR, therefore, is largely an estimate of loss and claim adjustment expenses associated
with future likely claims activity based on historical actual results that establish a reliable
pattern.
Accrued actuarial liabilities are based on a discounted 55 percent confidence level assuming
a 3.0 percent annual rate of return on investments.
The total liabilities reported at June 30, 2004, categorized by RBUC and IBNR by insurable
area follow:

Auto liability
General liability
Workers’ compensation
Medical malpractice
Auto physical damage
Property

$

RBUC
210,946
15,377,855
7,081,299
7,553,959
131,943
365,508

$

IBNR
241,012
6,136,903
2,332,196
3,100,992

Total Liabilities
$
451,958
21,514,758
9,413,495
10,654,951
131,943
365,508
$ 42,532,613

The total estimates of unpaid claim liabilities of $42,532,613 at June 30, 2004, increased by
$1,484,842 from last year’s balance of $41,047,771. The area that significantly increased
was general liability.
Changes in the liabilities for unpaid auto, general, workers’ compensation, medical
malpractice, auto physical damage, and property claims follow:

Balance
July 1
2001-02
2002-03
2003-04

$ 40,569,044
41,677,379
41,047,771

Current-Year
Claims and
Changes in
Estimates
$

8,410,852
5,907,531
8,992,628

Claims
Payments
$ (7,302,517)
(6,537,139)
(7,507,786)

Balance
June 30
$ 41,677,379
41,047,771
42,532,613

It is estimated that $15,813,549 of these liabilities will be paid within the next 12 months.

V-12

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2004

Employee Benefits Trust Fund
The liability for pharmacy, medical, dental, and short-term disability claims as shown below
is based on the fiscal year 2003-04 actuarial reports. The hospital co-pay reimbursements
program was discontinued effective December 31, 2003. The liability for hospital co-pay
reimbursements as shown below is based on historical reimbursements. The liability for
medical incentives as shown below is based on the contract with CIGNA HealthCare
(CIGNA). Effective January 1, 2004, the HealthSelect medical and related pharmacy
program was transferred from the Maricopa Integrated Health System to the Employee
Benefits Trust Fund.
Accrued liabilities at June 30, 2004, for each insurable area follow:
Pharmacy
Medical
Dental
Short-term disability
Hospital co-pay reimbursements
Medical incentives
Total

$

295,000
3,568,000
500,000
175,000
1,150
600,000
$ 5,139,150

Changes in the liabilities for unpaid pharmacy, medical, dental, short-term disability, hospital
co-pay reimbursements, and medical incentives claims follow:
Current-Year
Claims and
Changes in
Estimates

Balance
July 1
2001-02
2002-03
2003-04

$ 139,887
794,084
2,446,904

$

5,842,675
13,182,511
24,840,807

Claims
Payments
$

(5,188,478)
(11,529,691)
(22,148,561)

Balance
June 30
$

794,084
2,446,904
5,139,150

It is estimated that the June 30, 2004, liabilities balance of $5,139,150 will be paid within the
next 12 months.
NOTE 3 - Net Assets Deficit
The County Board of Supervisors elected not to fund the Risk Management Trust Fund’s
unpaid claims in fiscal years 1995-96 through 1998-99. Consequently, the Risk Management
Trust Fund only billed user departments for operating costs and administrative expenses for

V-13

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2004

those years. This resulted in a total net assets deficit of $23,321,519 at June 30, 1999.
Starting July 1, 1999, Risk Management began billing user departments for actuarially
determined claim estimates that are projected to be paid each fiscal year. As of June 30,
2004, the total net assets deficit has been reduced to $9,424,450.
NOTE 4 - Letter of Credit
On July 1, 2003, the County renewed its workers’ compensation insurance with a selfinsured retention of $1,000,000. As a result, the Industrial Commission of Arizona required
the County to secure an irrevocable letter of credit in the amount of $9.1 million with a
financial institution to cover unfunded workers’ compensation claims. During fiscal year
2003-04, the letter of credit had not been drawn upon. The letter of credit was renewed to
July 1, 2005, for $8.5 million.
NOTE 5 - Retirement Plan
Plan Description—The Risk Management Fund contributes to a cost-sharing multipleemployer defined benefit pension plan administered by the Arizona State Retirement System
(ASRS). Benefits are established by state statute and generally provide retirement, death,
long-term disability, survivor, and health insurance premium benefits. The System is
governed by the Arizona State Retirement System Board according to the provisions of
A.R.S. Title 38, Chapter 5, Article 2.
The System issues a comprehensive annual financial report that includes financial statements
and required supplementary information. The most recent report may be obtained by writing
the ASRS, 3300 North Central Avenue, P.O. Box 33910, Phoenix, AZ 85067-3910 or by
calling (602) 240-2000 or (800) 621-3778.
Funding Policy—The Arizona State Legislature establishes and may amend active plan
members’ and the Risk Management Fund’s contribution rates. For the year ended June 30,
2004, active plan members and the Risk Management Fund were each required by statute to
contribute at the actuarially determined rate of 5.7 percent (5.2 percent retirement and 0.5
percent long-term disability) of the members’ annual covered payroll. The Risk
Management Fund’s contributions to the System for the years ended June 30, 2004, 2003,
and 2002 were $54,687, $22,894, and $22,865, respectively, which were equal to the
required contributions for the year.

V-14

Statistics and Coverage

TOTAL
TOTALCOST-ALL
COST-ALLCLAIMS
CLAIMS
(PAID
OR
RESERVED)
(PAID OR RESERVED)
FY01-02
FY01-02TO
TOFY02-03
FY03-04

Auto Liability Paid
Auto Liability Reserved
Auto Physical Damage Paid
Auto Physical Damage Reserved
General Liability Paid
General Liability Reserved

$6,000,000

Medical Malpractice Paid
Medical Malpractice Reserved
Property Damage Paid
Property Damage Reserved
Workers’ Compensation Paid
Workers’ Compensation Reserved

$5,000,000

$4,000,000

$3,000,000

$2,000,000

FY02-03

FY01-02

FY03-04

$1,000,000

$0

Auto Liability

Auto Physical
Damage

General
Liability

Medical
Malpractice

$ Paid
FY01-02 Open Reserves

$84,919

$285,916

$2,015,975

$945,897

$93,754

$2,495,786 $5,922,247

$0

$6,936

$2,742,047

$2,287,858

$19,663

$320,831 $5,377,335

Total Incurred

$84,919

$292,852

$4,758,022

$3,233,755

$113,417

$2,816,617 $11,299,581

$ Paid

$168,183

$388,347

$256,186

$64,287

$202,108

$3,461,224 $4,540,334

FY02-03 Open Reserves

$77,823

$5,720

$3,598,999

$3,140,167

$58,843

$1,339,946 $8,221,497

Total Incurred

$246,006

$394,066

$3,855,185

$3,204,454

$260,951

$4,801,170 $12,761,832

$ Paid

$74,684

$297,312

$24,386

$329,416

$219,390

$1,604,382 $2,549,570

FY03-04 Open Reserves

$79,211

$56,400

$1,733,511

$161,552

$190,187

$1,186,074 $3,406,935

Total Incurred

$153,895

$353,712

$1,757,897

$490,968

$409,577

$2,790,456 $5,956,505

Property

Workers'
Compensation

TOTAL

Notes: 1. Dollars paid represents the amount paid for the year in which the event occurred and does not include RBNP nor
IBNR reserves.
2. Amounts as valued on June 30, 2004, as reported by the RiskMaster system except for Workers’ Compensation
amounts as valued on June 30, 2004, as reported by the Pinnacle system.
3. Unemployment not included.

VI-1

TOTAL CLAIMS SUMMARY TABLE
FY01-02 TO FY03-04

Department
ADULT PROBATION
ALTCS
ANIMAL CONTROL
CLERK OF SUPERIOR COURT
CONSTABLES
CORRECTIONAL HEALTH
COUNTY ASSESSOR
COUNTY ATTORNEY
ELECTIONS
ENVIRONMENTAL SERVICES
EQUIPMENT SERVICES
FACILITIES MANAGEMENT
FLOOD CONTROL
HOUSING
HUMAN RESOURCES
HUMAN SERVICES
JUSTICE COURTS
JUVENILE COURT
LIBRARY
MARICOPA HEALTH SYSTEM
MCDOT
MEDICAL ASSISTANCE PROGRAMS
MEDICAL EXAMINER
PARKS & RECREATION
PLANNING & DEVELOPMENT
PUBLIC DEFENDER
PUBLIC HEALTH
RECORDER
RISK MANAGEMENT
SHERIFF
SUPER. OF SCHOOLS
SUPERIOR COURTS
TELECOM
ALL OTHERS
TOTALS

FY01-02
FY02-03
FY03-04
# Claims
$ Paid
# Claims
$ Paid
# Claims
$ Paid
39
$65,033
46
$133,897
46
$32,161
19
$38,986
6
$352
1
$0
55
$124,767
48
$24,306
42
$16,202
23
$30,474
17
$17,377
18
$14,062
10
$28,522
6
$9,269
7
$12,012
43
$793,518
45
$106,180
26
$9,344
12
$19,114
6
$10,789
7
$2,962
35
$566,022
28
$9,977
33
$17,315
2
$13,687
12
$50,357
24
$28,377
26
$59,344
33
$137,509
29
$35,907
18
$31,646
14
$41,610
6
$4,101
23
$27,871
37
$115,364
26
$31,408
34
$99,437
28
$111,050
27
$56,096
10
$64,037
11
$9,689
6
$17,854
4
$25,507
4
$17,839
3
$1,679
34
$48,269
48
$81,731
43
$52,450
13
$36,809
16
$14,637
3
$0
39
$39,177
39
$145,886
43
$41,136
2
$5,324
13
$72,439
7
$7,637
272
$968,109
293
$686,353
274
$821,647
159
$333,288
178
$209,327
119
$118,869
4
$32,968
1
$0
0
$0
7
$8,170
14
$10,300
13
$6,699
33
$68,935
21
$23,083
18
$26,420
7
$6,619
8
$24,644
5
$4,590
13
$11,747
14
$26,542
15
$17,537
35
$31,229
28
$39,919
34
$24,573
0
$0
2
$52,575
4
$0
3
$49,447
0
$0
0
$0
577
$2,223,662
601
$2,309,251
491
$1,134,866
3
$21,468
4
$228
2
$0
26
$44,781
24
$18,149
26
$9,870
4
$1,443
4
$20,567
2
$727
16
$2,836
16
$9,137
12
$3,069
1600

$5,922,247

1665

$4,540,335

1412

$2,549,570

Notes: 1. Dollars paid represents the amount paid for the year in which the event occurred and does not include RBNP nor IBNR
reserves. Due to lag time in resolution and payment of claims, the figures from FY01-02 give a truer picture as these
claims have had time to mature.
2. Amounts as valued on June 30, 2004, as reported by the RiskMaster system except for Workers’ Compensation
amounts as valued on June 30, 2004, as reported by the Pinnacle system.
3. Unemployment not included.

VI-2

TOTAL NUMBER OF CLAIMS
FY01-02 TO FY03-04
900
800
700
600
500
400
300
200
100
0
FY01-02
Automobile Liability

FY02-03
Auto Physical Damage

General Liability

FY03-04
Medical Malpractice

Property

Workers' Compensation

FY01-02

FY02-03

FY03-04

Automobile Liability

73

69

56

Auto Physical Damage

115

159

182

General Liability

484

486

277

Medical Malpractice

43

47

24

Property

39

48

60

Workers' Compensation

846

856

813

TOTAL

1600

1665

1412

Notes: 1. Number of claims paid represents the amount of claims for the year in which the event occurred.
2. Amounts as valued on June 30, 2004, as reported by the RiskMaster system except for Workers’
Compensation amounts as valued on June 30, 2004, as reported by the Pinnacle System.
3. Unemployment not included.

VI-3

AUTO LIABILITY LOSS SUMMARY
FY01-02 TO FY03-04
FY01-02
Department
ADULT PROBATION

# Claims

FY02-03

$ Paid

# Claims

FY03-04

$ Paid

# Claims

$ Paid

1

$0

2

$0

1

$0

ALTCS

0

$0

0

$0

0

$0

ANIMAL CONTROL

2

$4,992

0

$0

1

$972

CONSTABLES

0

$0

0

$0

1

$0

CORRECTIONAL HEALTH

0

$0

0

$0

0

$0

COUNTY ATTORNEY

1

$674

0

$0

0

$0

ELECTIONS

0

$0

1

$3,231

0

$0

ENVIRONMENTAL SERVICES

1

$2,453

4

$14,898

1

$556

EQUIPMENT SERVICES

1

$0

0

$0

1

$0

FACILITIES MANAGEMENT

2

$3,111

3

$3,086

1

$1,226

FLOOD CONTROL

4

$19,021

4

$5,741

2

$3,579

HOUSING

0

$0

2

$3,752

0

$0

HUMAN SERVICES

3

$2,010

5

$2,005

3

$3,476

JUVENILE COURT

2

$0

0

$0

1

$0

LEGAL DEFENDER

0

$0

0

$0

0

$0

LIBRARY
MARICOPA HEALTH SYSTEM

0

$0

0

$0

0

$0

1

$477

3

$4,388

1

$0

MCDOT

5

$2,772

5

$14,650

6

$4,564

MEDICAL ASSISTANCE

1

$1,406

0

$0

0

$0

MEDICAL EXAMINER
PARKS & RECREATION

0

$0

0

$0

1

$394

1

$733

1

$0

0

$0

PLANNING & DEVELOPMENT

1

$698

0

$0

0

$0

PUBLIC DEFENDER
PUBLIC HEALTH

0

$0

0

$0

1

$0

0

$0

1

$0

0

$0

SHERIFF

47

$46,571

37

$116,432

35

$59,917

SOLID WASTE MANAGEMENT

0

$0

0

$0

0

$0

SUPERINTENDENT OF SCHOOLS
TELECOM

0

$0

1

$0

0

$0

0

$0

0

$0

0

$0

TOTAL COMPENSATION

0

$0

0

$0

0

$0

TRIAL COURTS

0

$0

0

$0

0

$0

TOTALS

73

$84,919

69

$168,183

56

$74,684

Notes: 1. Dollars paid represents the amount paid for the year in which the event occurred and does not include RBNP nor IBNR
nor IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY01-02 give a truer picture
as these claims have had time to mature.
2. Amounts as valued on June 30, 2004, as reported by the RiskMaster system.

VI-4

AUTO PHYSICAL DAMAGE LOSS SUMMARY
FY01-02 TO FY02-03
FY01-02
Department
ADULT PROBATION

# Claims

FY02-03

$ Paid

# Claims

FY03-04

$ Paid

# Claims

$ Paid

4

$8,509

2

$100

3

$460

ALTCS

0

$0

0

$0

0

$0

ANIMAL CONTROL

1

$1,262

5

$660

4

$2,120

CLERK OF SUPERIOR COURT

2

$411

0

$0

2

$60

CONSTABLES

3

$411

1

$1,990

3

$5,410

CORRECTIONAL HEALTH

1

$856

0

$0

0

$0

COUNTY ASSESSOR

1

$2,564

1

$500

1

$180

COUNTY ATTORNEY

3

$2,420

1

$50

3

$3,936

ELECTIONS

0

$0

1

$500

0

$0

EMERGENCY MANAGEMENT

0

$0

0

$0

1

$687

ENVIRONMENTAL SERVICES

1

$1,422

3

$4,150

8

$6,824

EQUIPMENT SERVICES

2

$8,776

1

$344

1

$1,060

FACILITIES MANAGEMENT

3

$8,664

2

$5,643

3

$3,977

FLOOD CONTROL

5

$2,373

12

$66,315

5

$1,179

HOUSING

1

$729

1

$1,474

0

$0

HUMAN SERVICES

0

$0

6

$4,643

10

$13,268

JUVENILE COURT

4

$2,090

5

$291

4

$2,927

LEGAL DEFENDER

0

$0

1

$50

1

$85

LIBRARY
MARICOPA HEALTH SYSTEM

0

$0

0

$0

2

$1,274

3

$566

7

$3,681

5

$400

MCDOT

12

$113,586

15

$69,972

12

$45,978

MEDICAL EXAMINER
PARKS & RECREATION

0

$0

0

$0

1

$121

2

$496

3

$9,328

3

$2,704

PLANNING & DEVELOPMENT

1

$458

2

$1,119

2

$456

PUBLIC DEFENDER
PUBLIC FIDUCIARY

1

$1,655

2

$1,124

0

$0

1

$283

0

$0

0

$0

PUBLIC HEALTH

2

$2,516

3

$580

7

$8,752

SHERIFF

61

$123,212

84

$215,639

97

$194,833

SOLID WASTE MANAGEMENT
TELECOM

0

$0

0

$0

1

$60

0

$0

1

$194

0

$0

TOTAL COMPENSATION

0

$0

0

$0

1

$60

TRIAL COURTS

1

$2,658

0

$0

2

$500

TOTALS

115

$285,916

159

$388,347

182

$297,312

Notes: 1. Dollars paid represents the amount paid for the year in which the event occurred and does not include RBNP nor IBNR
reserves. Due to lag time in resolution and payment of claims, the figures from FY01-02 give a truer picture as these
claims have had time to mature.
2. Amounts as valued on June 30, 2004, as reported by the RiskMaster system.

VI-5

GENERAL LIABILITY LOSS SUMMARY
FY01-02 TO FY03-04
FY01-02
Department

# Claims

FY02-03

$ Paid

# Claims

FY03-04

$ Paid

# Claims

$ Paid

ANIMAL CONTROL

14

$1,509

11

$1,887

9

$3,200

CONSTABLES

4

$27,323

4

$7,279

1

$0

CORRECTIONAL HEALTH

12

$0

5

$0

4

$1,429

COUNTY ASSESSOR

0

$0

2

$457

1

$0

COUNTY ATTORNEY

12

$494,560

9

$0

12

$0

ENVIRONMENTAL SERVICES

4

$0

6

$0

3

$0

EQUIPMENT SERVICES

1

$0

1

$0

0

$0

FACILITIES MANAGEMENT

9

$0

8

$852

3

$143

FLOOD CONTROL

5

$9,431

2

$15

4

$243

HUMAN RESOURCES

0

$0

1

$0

2

$1,679

HUMAN SERVICES

2

$999

0

$0

3

$1,600

JUVENILE COURT

2

$60

3

$280

0

$0

MARICOPA HEALTH SYSTEM

24

$90,760

19

$16,637

16

$2,000

MCDOT

119

$186,051

133

$11,482

69

$2,133

MEDICAL ASSISTANCE

1

$31,563

0

$0

0

$0

MEDICAL EXAMINER

3

$250

4

$3,105

2

$625

PARKS & RECREATION

18

$56,685

5

$1,125

2

$195

PUBLIC DEFENDER

4

$19

6

$19,350

6

$143

PUBLIC HEALTH

8

$324

3

$0

8

$272

RECORDER

0

$0

1

$52,487

4

$0

RISK MANAGEMENT

1

$6,847

0

$0

0

$0

SHERIFF

214

$1,098,378

226

$137,040

111

$10,725

SOLID WASTE MANAGEMENT

1

$326

0

$0

0

$0

TOTAL COMPENSATION

0

$0

1

$688

1

$0

TREASURER

1

$0

1

$1,500

0

$0

TRIAL COURTS

11

$10,891

12

$2,000

8

$0

ALL OTHERS

14

$0

23

$0

8

$0

TOTALS

484

$2,015,975

486

$256,186

277

$24,386

Notes: 1. Dollars paid represents the amount paid for the year in which the event occurred and does not include RBNP nor IBNR
reserves. Due to lag time in resolution and payment of claims, the figures from FY01-02 give a truer picture as these
claims have had time to mature.
2. Amounts as valued on June 30, 2004, as reported by the RiskMaster system.

VI-6

MEDICAL MALPRACTICE LOSS SUMMARY
FY01-02 TO FY03-04
FY01-02
Department

# Claims

FY02-03

$ Paid

# Claims

FY03-04

$ Paid

# Claims

$ Paid

ALTCS

1

$0

0

$0

0

$0

CORRECTIONAL HEALTH

13

$690,351

22

$35,914

10

$1,468

MARICOPA HEALTH SYSTEM

29

$255,546

24

$28,373

13

$327,948

PUBLIC HEALTH

0

$0

1

$0

1

$0

TOTALS

43

$945,897

47

$64,287

24

$329,416

Notes: 1. Dollars paid represent the amount paid for the year in which the event occurred and does not include RBNP nor IBNR
reserves. Due to lag time in resolution and payment of claims, the figures from FY01-02 give a truer picture as these
claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2004, as reported by the RiskMaster system.

VI-7

PROPERTY LOSS SUMMARY
FY01-02 TO FY03-04
FY01-02
Department

# Claims

FY02-03

$ Paid

# Claims

FY03-04

$ Paid

# Claims

$ Paid

ADULT PROBATION

2

$1,924

5

$7,610

0

$0

BOARD OF SUPERVISORS

0

$0

1

$0

0

$0

COUNTY ASSESSOR

0

$0

0

$0

1

$0

EMERGENCY MANAGEMENT

1

$0

0

$0

1

$0

ENVIRONMENTAL SERVICES

0

$0

0

$0

3

$0

FACILITIES MANAGEMENT

2

$0

7

$66,128

6

$3,320

FLOOD CONTROL

7

$0

3

$13,811

3

$0

HOUSING

4

$24,788

4

$4,123

4

$15,962

HUMAN RESOURCES

0

$0

1

$0

0

$0

HUMAN SERVICES

0

$0

0

$0

1

$670

JUVENILE COURT

0

$0

3

$4,852

1

$1,636

LEGAL ADVOCATE

0

$0

1

$3,016

0

$0

LIBRARY
MARICOPA HEALTH SYSTEM

0

$0

1

$0

1

$5,114

3

$10,839

1

$30,293

1

$51,636

MCDOT

5

$238

2

$1,388

6

$3,546

MEDICAL EXAMINER
PARKS & RECREATION

0

$0

1

$0

0

$0

1

$1,425

2

$3,910

7

$4,770

PLANNING & DEVELOPMENT

0

$0

1

$0

0

$0

PUBLIC HEALTH

1

$0

2

$14,220

2

$0

SHERIFF

12

$54,539

8

$29,700

22

$132,420

TELECOM

0

$0

3

$20,373

1

$316

TRIAL COURTS

1

$0

2

$2,683

0

$0

TOTALS

39

$93,754

48

$202,108

60

$219,390

Notes: 1. Dollars paid represents the amount paid for the year in which the event occurred and does not include RBNP nor
IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY01-02 give a truer picture
as these claims have had time to mature.
2. Amounts as valued on June 30, 2004, as reported by the RiskMaster system.

VI-8

WORKERS’ COMPENSATION LOSS SUMMARY
FY01-02 TO FY03-04
FY01-02
Department

# Claims

FY02-03

$ Paid

# Claims

FY03-04

$ Paid

# Claims

$ Paid

ADULT PROBATION

30

$54,600

36

$126,187

39

$31,700

ALTCS

18

$38,986

3

$352

0

$0

ANIMAL CONTROL

38

$117,004

32

$21,759

28

$9,910

CLERK OF SUPERIOR COURT

20

$30,064

16

$17,377

16

$14,002

CORRECTIONAL HEALTH

17

$102,312

18

$70,266

12

$6,448

COUNTY ASSESSOR

11

$16,550

3

$9,832

4

$2,781

COUNTY ATTORNEY

19

$68,368

18

$9,927

18

$13,379

ELECTIONS

2

$13,687

5

$46,626

24

$28,377

ENVIRONMENTAL SERVICES

20

$55,470

20

$118,460

14

$28,527

EQUIPMENT SERVICES

14

$22,870

12

$41,266

4

$3,041

FACILITIES MANAGEMENT

7

$16,096

17

$39,654

13

$22,742

FLOOD CONTROL

13

$68,612

7

$25,169

13

$51,095

HOUSING

4

$38,520

2

$340

1

$1,892

HUMAN RESOURCES

4

$25,507

2

$17,839

1

$0

HUMAN SERVICES

29

$45,260

37

$75,083

26

$33,436

JUVENILE COURT

31

$37,027

28

$140,463

37

$36,573

LIBRARY

2

$5,324

9

$72,439

3

$1,249

MARICOPA HEALTH SYSTEM

212

$609,921

239

$602,981

238

$439,663

MCDOT

18

$30,641

23

$111,834

26

$62,648

PARKS & RECREATION

11

$9,595

10

$8,721

6

$18,752

PLANNING & DEVELOPMENT

2

$5,462

5

$23,525

3

$4,133

PUBLIC DEFENDER

8

$10,072

6

$6,068

8

$17,395

PUBLIC HEALTH

24

$28,390

18

$25,119

16

$15,549

SHERIFF

243

$900,962

246

$1,810,440

226

$736,970

TRIAL COURTS

26

$68,040

26

$28,103

19

$9,370

ALL OTHERS

23

$76,446

18

$11,394

18

$14,750

TOTALS

846

$2,495,786

856

$3,461,224

813

$1,604,382

Notes: 1. Dollars paid represents the amount paid for the year in which the event occurred and does not include RBNP nor
IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY01-02 give a truer picture
as these claims have had time to mature.
2. Amounts as valued on June 30, 2004, as reported by the Pinnacle system.

VI-9

UNEMPLOYMENT LOSS SUMMARY
FY01-02 TO FY03-04

Department
ADULT PROBATION

FY01-02

FY02-03

FY03-04

$ Paid

$ Paid

$ Paid

$14,657

$60,072

$51,796

$8,239

$25,111

$13,228

$11,090

$39,197

$16,153

$4,699

$2,978

$6,520

CHIEF INFORMATION OFFICER

$20,988

$3,234

$8,200

CLERK OF SUPERIOR COURT

$29,829

$44,176

$36,874

$8,926

$33,879

$33,238

COUNTY ATTORNEY

$34,066

$28,485

$6,134

ELECTIONS

$12,634

$11,894

$12,774

ENVIRNMTL SERVICES

$14,186

$10,982

$18,035

$7,136

$24,601

$16,149

$13,066

$6,140

$5,330

$5,338

$5,283

$1,134

HUMAN SERVICES

$45,070

$37,640

$66,386

JUVENILE PROBATION

$27,525

$33,456

$34,075

$151,867

$235,033

$232,444

MCDOT

$24,769

$10,498

$31,829

MEDICAL ELIGIBILITY

$17,019

$7,438

$562

$5,712

$7,348

$5,148

$33,253

$18,875

$15,704

$5,387

$10,764

$4,892

SHERIFF

$72,299

$68,027

$57,288

TRIAL COURTS

$45,091

$69,284

$17,219

ALL OTHERS

$36,304

$39,063

$110,862

$649,152

$833,460

$801,973

ALTCS
ANIMAL CONTROL SERVICES
ASSESSOR

CORRECTIONAL HEALTH

FACILITIES MANAGEMENT
HOUSING AUTHORITY
HUMAN RESOURCES

MARICOPA HEALTH SYSTEM

PUBLIC DEFENDER
PUBLIC HEALTH
RECORDER

TOTALS

Notes: 1. Dollars paid represents the amount paid for the fiscal year. There are no reserves for unemployment.
2. Amounts as valued on June 30, 2004, as reported by the Advantage Financial System.

VI-10