Risk Management
Annual Report
Fiscal Year Ended June 30, 2006

COCONINO
MOHAVE

APACHE
NAVAJO

YAVAPAI

LA PAZ

MARICOPA
COUNTY

GILA

GREENLEE

PINAL

GRAHAM

YUMA

PIMA
COCHISE

SANTA CRUZ

MARICOPA COUNTY
RISK MANAGEMENT ANNUAL REPORT
FISCAL YEAR 2005-06

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,
2005 through June 30, 2006.
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 damage, 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
As of June 30, 2006, the Risk Management Department completed its 25th year administering the
County’s self-insurance program. Risk Management’s mission is to provide loss prevention and
control programs and direction, insurance, environmental and claims management services to
Maricopa County departments, districts, and Trust members to reduce or eliminate losses. Its vision
is to be recognized as a leader, and to be relied upon for a Countywide risk management philosophy
and culture. 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 and monitoring of third party administrators’ adjusting
of workers’ compensation and unemployment claims
Investigation and disposition of casualty and property 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 Department strives to accomplish its mission with assistance and direction from the
Maricopa County Board of Supervisors, the Maricopa County Self-Insured Trust Fund Board of
Trustees, and the 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 Manager. During FY05-06, 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 Manager

Michael Liburdi
Joel Sterrett
Vacant
David Tierney, Chairman
Richard “Joe” Lugo
BOS Chairman
Tom Manos
FY05-06 Results

Maricopa County enjoyed mixed results this fiscal year in the risk/exposure area. Total dollars paid
plus open reserves were down 54.7% for this fiscal year compared to the prior fiscal year. However,
the Cost of Risk increased. Risk Management’s costs increased $6,379,633 (28.9%), due primarily
to significant increases in claim payments and legal expenses, resulting in the Cost of Risk (Risk
Management’s costs compared to total County and MIHS expenditures) coming in at an
unacceptable 1.22%. (Note that the number of claims filed this fiscal year increased nearly 60%,
from 941 to 1505. Part of the reason for this increase is a large number of almost identical inmate
claims seeking money damages due to their conditions of confinement. Handling these claims
together with the more normal increase in claims due to the population and County services
increases will account for some of the significant increases in Risk Management’s costs.) The
County realized $1,279,212 in net savings in FY05-06 through the use of in-network medical
providers and a medical bill review service, and collected $2,043,727 through subrogation,
restitution, and deductible recovery efforts (the Claims and Environmental divisions, and our Third
Party Administrator for Workers’ Compensation). These mixed results need to be viewed in light of
the County’s growth in the number of people served within the County and the noted increase in
number of claims filed.
I-2

Maricopa County continues to be one of the fastest growing counties in the nation with a population
over 3.8 million. It is the 4th most populous County in the United States, larger in population than
21 states, and larger geographically than 7 states. The County continued to enjoy a significant
growth rate in population. Such size and growth, while economically positive, has resulted in the
noted increase in the number of claims. Risk Management’s emphasis on responsible claim
handling and a strong proactive loss prevention and safety program is designed to keep this increase
to a minimum.
The number of Maricopa County and MIHS employees varies from month to month. For FY04-05
and FY05-06, the numbers of actual positions were 16,502 and 16,607, respectively. (Note that we
are using “actual positions” not “actual budgeted positions” as we have used in the past.) Workers’
compensation claims for FY04-05 and FY05-06 were 1075 and 1074, respectively. This reflects an
increase in the number of positions of 0.6% over the previous fiscal year, and a decrease in the
number of workers’ compensation claims of 0.09% over this period.

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 fiscal years, Cost of Risk for the County has
increased from 0.91% to the present 1.22%. This reflects an unacceptable increase in this measure.
Risk Management is committed to reducing this measure to below 1%.
FY03-04

FY04-05

FY05-06

Claims and Premiums
Auto Liability

$305,267

$333,947

$565,241

$1,420,281

$2,398,938

$3,808,717

Medical Malpractice

$482,400

$1,318,214

$3,439,084

Property/Auto Physical Damage

$729,133

$292,481

$508,957

$4,570,705

$4,064,099

$3,857,860

$801,973

$776,861

$776,128

$0

$0

$0

$3,931,045

$4,191,010

$4,370,784

$12,240,804

$13,375,550

$17,326,771

$6,702,686

$6,403,302

$8,039,308

Broker Fees

$130,000

$145,000

$93,488

Consulting and Mngt Fees

$198,048

$150,825

$179,516

Claims Admin Fees

$398,395

$394,527

$470,081

$1,789,538

$1,586,192

$2,325,865

$9,218,667

$8,679,846

$11,108,258

$21,459,471

$22,055,396

$28,435,029

$2,351,591,257

$2,353,876,507

$2,322,075,397

0.91%

0.94%

1.22%

General Liability

Workers' Compensation
Unemployment
Environmental Contingency
Premiums
Subtotal
Other Costs
Legal Expenses

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

1.
2.
3.

Paid claims represents the amount paid in the fiscal year regardless of occurrence
date and does not include Reported But Not Paid (RBNP) or Incurred But Not Reported (IBNR) reserves.
Amounts as valued on June 30, 2006, as reported in the Advantage Financial System.
Total County Expenditures includes Maricopa County Special Health Care District (d/b/a MIHS) as
reported in the MIHS Audited Financial Statements on June 30, 2006.

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 J. Crowley
Risk Manager
Bill Warren, Assistant Risk Manager, Safety Division
Ted Howard, Claims Manager
Samantha Wright-Sprague, Administration Manager
Rita Neill, Environmental Programs Manager
Michelle Black, Administrative/Insurance Coordinator
Jenny Durda, Information Specialist
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 is staffed with five full time adjusters, a
manager, and support staff. In addition to handling the claims described above, 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 Service.
Claims are investigated and evaluated, then 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
without merit.
FY 05-06 Summary
New claims arising from events in FY05-06 continue to reflect an overall increase in the total
number of new claims. Since FY02-03, the total number of new claims handled by the Claims
Division has increased from 941 to 1505, or nearly 60%. Due to the efforts of the Claims
Division, the County continues to realize substantial savings from its property, liability, and
worker's 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.
In addition to handling claims, the Division provides the following services to the County:
•

Subrogation, restitution, and deductible recovery. In FY05-06, the Division collected
$2,043,726.96.

•

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. Between
January 1, 2005 and December 31, 2005, the County realized a savings of $1,279,212.20
from bill review and discounts.

•

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.

II-1

SAFETY DIVISION
The establishment of a proactive safety management program continues to be crucial in reducing
accidents and losses. The Safety Division of Risk Management continued to focus on our
countywide initiative to ensure safety standard compliance and loss prevention organizationally.
In comparing with our benchmark counties, Maricopa County continues to lead in accident
prevention programs and practices (See chart below, Maricopa County paid $124 per employee).
Consulting with Agencies and Departments in establishing safety management systems as a core
business function is fundamental in our approach to our loss prevention program.
In reviewing departmental safety performance, workers’ compensation data this fiscal year,
claims showed no significant increase or decrease over last year. (1075 claims in FY04-05, and
1074 claims in FY05-06, see page VI-3 of the statistics and coverage section). Workers’
Compensation payments and reserves (see page VI-1 of the statistics and coverage section) were
increased from $2,981,614 in FY04-05 to $3,636,363 in FY05-06, a $654,749, or 21.9 percent,
increase.
County

Employees

Claims

Paid

Paid per Employee

Maricopa

16,607

1,074

$2,060,142

$124

Multnomah

5,700

247

$1,114,102

$195

Pima

6,391

582

$2,054,521

$321

Clark

14,156

669

$6,072,859

$429

Fairfax

15,112

1,478

$7,566,092

$501

San Diego

19,412

1,509

$18,260,186

$941

San Bernardino

20,774

1,578

$19,550,389

$941

Orange

19,705
1,530
$25,651,448
As of June 30, 2006, not including reserves.

$1,302

Working to improve workplace safety and ensure OSHA compliance, the Division:
•

Received the 2006 Showcase in Excellence Award from the Arizona State Quality
Alliance for the accredited Roadbuilder Equipment Training Program.

•

Conducted a countywide, four-day Employee Safety Fair and Equipment ROADEO, with
600 employees participating in 61 Safety Classes, along with events testing operator
skills and knowledge of equipment operations.

•

Conducted one OSHA 30-hour Construction Industry and 260 Safety training courses to
enhance employee safety knowledge.

Safety is a total team effort! As Maricopa County continues to develop its future strategies in
safety management systems, it is necessary that each level of management must take a greater
role in safety development. Management commitment and front line supervision accountability
is the key to sustaining the safety process and reducing unsafe work practices.
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 $38 million for
FY05-06.
This fiscal year the Division:
•

Recovered $25,722 from the State of Arizona’s Department of Environmental Quality for
actions related to a former leaking underground storage tank (UST) at Towers Jail and for
assessment of an orphan UST. Also recovered $6,060 from responsible party for damage
to vapor monitoring wells at a former County landfill.

•

Completed Phase I and II environmental characterizations for 2 former landfills –
Rainbow Valley and Morristown.

•

Completed a study of the vapor collection system at the New Cave Creek Landfill.
Continued groundwater monitoring at the site.

•

Completed remediation of burn pits and burn bin area at the MCSO Surprise Shooting
Range.

•

Completed Phase II environmental assessment of Buckeye Hills shooting range.

•

Completed Phase I environmental assessments for 8 facilities. Completed assessments for
indoor air quality, asbestos, and mold at 7 additional facilities.

•

Assisted Real Estate, MCSO, MCDOT, and Air Quality in preparing Requests for
Proposals for environmental studies, indoor air quality, asbestos surveys, and air permit
reviews.

•

Continued environmental monitoring of a former County landfill.
landfill gas vents at the site.

•

Continued to provide sound environmental compliance information to requesting
departments.

Installed passive

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 policies 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, 2006.
Self-Insured Trust Fund
Combined Balance Sheet Comparison
FY03-04, FY04-05, and FY05-06

Assets
Liabilities
Net assets (deficit)

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

FY04-05
$39,013,788
$51,716,639
($12,702,851)

FY05-06
$36,624,674
$57,458,078
($20,833,404)

During the FY03-04 through FY05-06 period, the Trust’s assets increased $2,560,161, or 7.51%,
from $34,064,513 to $36,624,674. During the same period, the Trust’s liabilities increased
$13,969,115, or 32.12%, from $43,488,963 to $57,458,078. Net assets (deficits) are a result of a
spend down of the self-insured trust fund in a prior 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. FY05-06 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)

3-1-06/3-1-07

$5 million
$25 million

$5 million SIR

Medical Malpractice
(Excess liability)

12-4-05/12-4-06

$15 million
$10 million

$5 million SIR

V-1

Workers’ Compensation

7-1-05/7-1-06

$25 million

$1 million SIR

Property Damage

7-1-05/7-1-06

$250 million

$100,000 per occ.

Budget Summary
The expenditure budget for the Risk Management Department for FY05-06 was $28,262,920. Of
this amount, $1,547,021 was for personnel costs, $270,217 was for supplies and services, $26,443
was for capital equipment and $26,419,239 was for insurance, legal, and claims and claims related
expenditures. On a percentage basis, 93.47% of Risk Management’s budget is for insurance, legal,
and claims and claim related expenditures.
The revenue budget for the Risk Management Department for FY05-06 was $23,116,120. Of this
amount, $22,591,120 was from user charges and $525,000 was from interest earnings. On a
percentage basis, 97.72% 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 FY05-06.
The actual expenditures for the Risk Management Department for FY05-06 were $33,860,871. Of
this amount, $1,416,533 was for personnel costs, $254,180 was for supplies and services, $10,360
was for capital equipment and $32,179,798 was for insurance, legal, and claims and claims related
expenditures. On a percentage basis, 95.00% 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 FY05-06 was $25,730,318. Of this
amount, $22,460,153 was from user charges, $2,196,671 was from other income, and $1,073,671
was from interest earnings. On a percentage basis, 87.29% 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, 2006
Risk
Management
Assets
Current assets:
Cash and cash equivalentsRisk management
Environmental insurance claims recovery
Employee benefits
Interest receivable
Accounts receivable
Prepaid insurance
Total current assets
Noncurrent assets:
Machinery and equipment
Less: accumulated depreciation
Total noncurrent assets
Total assets

Employee
Benefits

$ 33,830,392
825,891

1,750,717
36,601,967

$ 28,960,489
144,586
2,110,638
254,304
31,470,017

86,951
64,244
22,707
36,624,674

31,470,017

194,967

Liabilities
Current liabilities:
Accounts payable
Employee compensation payable
RBUC and IBNR claims
Total current liabilities
Noncurrent liabilities:
RBUC and IBNR claims
Total noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets
Unrestricted (deficit)
Total net assets (deficit)

1,413,609
128,076
23,068,119
24,609,804

3,371,985
3,910,032

32,848,274
32,848,274
57,458,078

3,910,032

22,707
(20,856,111)
$ (20,833,404)

See accompanying notes to financial statements.
V-3

538,047

27,559,985
$ 27,559,985

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, 2006
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
Workers' compensation taxes
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 increase in estimate
Total auto physical damage
Property claims paid
Property claims RBUC increase in estimate
Total property
Pharmacy claims paid
Pharmacy IBNR claims increase in estimate
Total pharmacy
Medical claims paid
Medical RBUC and IBNR claims decrease in estimate
Total medical

$

Employee
Benefits

22,460,153
2,196,494
24,656,647
1,416,533
254,180
10,998
40,241
179,516
93,488
470,081
8,039,308
593,553

$ 33,387,921
29,372
33,417,293

1,521,461

565,241
(66,792)
498,449
3,808,717
4,706,025
8,514,742
3,857,860
(342,501)
3,515,359
3,439,084
795,052
4,234,136
316,355
59,407
375,762
192,602
274,651
467,253
12,737,188
990,265
13,727,453
8,506,138
(1,522,000)
6,984,138

See accompanying notes to financial statements.
(Continued)

V-4

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, 2006
(Continued)
Risk
Management
Dental claims paid
Dental IBNR claims decrease in estimate
Total dental
Short-term disability claims paid
Short-term disability IBNR claims increase in estimate
Total short-term disability
Wellness incentives paid
Total wellness
External prosthetics appliances claims paid
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

$

776,128
1,566,255
547,869
31,656
745,847
1,479,157
60,767

Operating income (loss)
Nonoperating revenues:
Investment income
Total nonoperating revenues

10,360
33,860,871

28,029,101

(9,204,224)

5,388,192

1,073,671
1,073,671

Increase (decrease ) in net assets

6,073,401

(12,702,851)

21,486,584

$ (20,833,404)

$ 27,559,985

See accompanying notes to financial statements.
V-5

685,209
685,209

(8,130,553)

Total net assets (deficit), July 1, 2005
Total net assets (deficit), June 30, 2006

Employee
Benefits
$ 3,924,648
(188,000)
3,736,648
1,926,039
10,785
1,936,824
56,326
56,326
5,484
5,484

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Cash Flows—Internal Service Funds
Year Ended June 30, 2006

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 (used for) operating activities
Cash flows from capital and related financing activities:
Purchase of capital assets
Cash flows from investing activities:
Interest received on investments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, July 1, 2005
Cash and cash equivalents, June 30, 2006
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation
Net change in RBUC and IBNR claims, noncurrent portion
Changes in assets and liabilities:
Increase in:
Accounts payable
Employee compensation payable
RBUC and IBNR claims, current portion
Decrease in:
Accounts receivable
Prepaid insurance
Accounts payable
Unearned revenue
RBUC and IBNR claims, current portion
Net cash provided by (used for) operating activities

Risk
Management

Employee
Benefits

$ 22,460,153
2,196,494
(9,385,617)
(12,955,987)
(4,316,744)
(1,396,684)
(3,398,385)

$ 33,998,087
948,935
(1,521,461)
(27,528,850)
(60,767)

(15,521)
1,050,798

602,696

(2,363,108)

6,438,640

37,019,391

22,521,849

$34,656,283

$ 28,960,489

$ (9,204,224)

$ 5,388,192

10,360
2,507,670

295,748
19,849
2,918,172

54,040

$ (3,398,385)

See accompanying notes to financial statements.

V-6

5,835,944

610,166
919,563
(63,080)
(309,947)
(708,950)
$ 5,835,944

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, 2006

Operating revenues:
Charges for services
Intergovernmental charges
Insurance recoveries
Total operating revenues

Budget

Actual

$ 16,551,461
6,039,659
0
22,591,120

$ 16,420,494
6,039,659
2,196,494
24,656,647

1,547,021
296,660
14,000
46,000
400,000
145,000
286,000
7,010,581
593,553
339,570
3,896,122
4,410,175
3,488,358
446,617
220,181
800,000
1,524,758
444,146
38,000
786,175
1,530,000
0
28,262,920

1,416,533
254,180
10,998
40,241
179,516
93,488
470,081
8,039,308
593,553
498,449
8,514,742
3,515,359
4,234,136
375,762
467,253
776,128
1,566,255
547,869
31,656
745,847
1,479,157
10,360
33,860,871

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
Workers' compensation taxes
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
Operating loss

Variance
$

(130,967)
(0)
2,196,494
2,065,527
(130,488)
(42,480)
(3,002)
(5,759)
(220,484)
(51,512)
184,081
1,028,727
(0)
158,879
4,618,620
(894,816)
745,778
(70,855)
247,072
(23,872)
41,497
103,723
(6,344)
(40,328)
(50,843)
10,360
5,597,954

(9,204,224)

Nonoperating revenues:
Investment income
Total nonoperating revenues

525,000
525,000

1,073,671
1,073,671

Decrease in net assets

(8,130,553)

Total net deficit, July 1, 2005

(12,702,851)

Total net deficit, June 30, 2006

$ (20,833,404)

See accompanying notes to financial statements.
V-7

548,671
548,671

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

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, 2006, will report 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 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 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, 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.

V-8

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

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.
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.

V-9

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

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.
D.

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Funds consider cash on hand, demand
deposits, cash on deposit with the County Treasurer, and 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.

V-10

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

NOTE 2 - Deposits and Investments
Arizona Revised Statutes (A.R.S.) authorize the Funds to invest public monies in the State
Treasurer’s investment pool; obligations issued or guaranteed by the United States or any of
the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations, or
instrumentalities; specified state and local government bonds; interest earning investments
such as savings accounts, certificates of deposit, and repurchase agreements in eligible
depositories; and specified commercial paper, bonds, debentures, and notes issued by
corporations organized and doing business in the United States. In addition, the County
Treasurer may invest trust funds in fixed income securities of corporations doing business in
the United States or District of Columbia.
Credit risk
Statutes have the following requirements for credit risk:
1. Commercial paper must be rated P1 by Moody’s investors service or A1 or better by
Standard and Poor’s rating service.
2. Corporate bonds, debentures, and notes must be rated A or better by Moody’s investors
service or Standard and Poor’s rating service.
3. Fixed income securities must carry one of the two highest ratings by Moody’s investors
service and Standard and Poor’s rating service. If only one of the above-mentioned
services rates the security, it must carry the highest rating of that service.
Custodial credit risk
Statutes require collateral for demand deposits, certificates of deposit, and repurchase
agreements at 101 percent of all deposits not covered by federal depository insurance.
Interest rate risk
Statutes require that public monies invested in securities and deposits have a maximum
maturity of 5 years and that public operating fund monies invested in securities and deposits
have a maximum maturity of 3 years. Investments in repurchase agreements must have a
maximum maturity of 180 days.
Deposits—At June 30, 2006, the carrying amount of the Funds’ deposits was $12,396,972,
and the bank balance was $12,126,793. The Funds follow the County’s policies requiring
collateralization of all deposits by at least 101% of the deposits not covered by depository
insurance. At a minimum, the collateral is to be held by the pledging financial institution or
its agent, but does not have to be held in the County’s name.
At June 30, 2006, $11,066,384 of the Funds’ bank balance was uninsured and uncollaterized.
The deposits pertain totally to the Employee Benefits Trust Fund.
V-11

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

Investments—The Funds’ investments at June 30, 2006, consisted of monies invested in the
Maricopa County Treasurer’s Investment Pool. The Funds’ investments in the pool represent
a portion of the County Treasurer’s pool portfolio. There is no oversight provided for the
County Treasurer’s investment pool, and the pool’s structure does not provide for shares.
The Funds’ portion in the pool is not identified with specific investments.
Credit Risk—The Funds follow the County’s policy to preserve the principal value and the
interest income of an investment. The County can invest in obligations issued or guaranteed
by the United States or any of the senior debt of its agencies, sponsored agencies,
corporations, or instrumentalities. The County can also invest in commercial paper and
corporate bonds with ratings that meet the statutory requirements specified above. At
June 30, 2006, the Funds’ investments consisted of monies invested in the Maricopa County
Treasurer’s Investment Pool which is unrated.
Interest rate risk—It is the County’s policy to hold investments to maturity, where practical,
and avoid any loss on investments resulting from an early sale or retirement of an
investment. Additionally, securities should be invested for a shorter duration, where
applicable. At June 30, 2006, the Funds had investments of $51,219,700 in the Maricopa
County Treasurer’s Investment Pool with a weighted average maturity of 287 days.
A reconciliation of cash, deposits, and investments to amounts shown on the Statements of
Net Assets follows:
Cash, deposits, and investments:
Cash on hand
Amount of deposits
County Treasurer’s Investment Pool
Total

$
100
12,396,972
51,219,700
$63,616,772

NOTE 3 - 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 unpaid (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.

V-12

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

The following insurance deductibles, self-insurance retentions, and insurance limits were in
effect during fiscal year 2005-06:
Policy Type
General and auto liability
Excess general and auto liability
Property/inland marine
Excess property
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
Workers’ compensation
Employer’s liability
Medical malpractice
Excess medical malpractice

Deductible

SIR
$

$

5,000,000
primary

100,000
primary
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
250,000,000
50,000,000
50,000,000
100,000,000
25,000,000
10,000,000
80,000,000
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, expected loss, incremental paid-workers’ compensation, paid
allocated loss adjustment expense to paid loss development-automobile liability, 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

V-13

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

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.
Therefore, IBNR 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 4.25 percent annual rate of return on investments.
The total liabilities reported at June 30, 2006, categorized by insurable area follow:

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

Total Liabilities
$
799,735
30,479,529
9,701,819
14,153,666
225,691
555,953
$ 55,916,393

The total estimates of unpaid claim liabilities of $55,916,393 at June 30, 2006, increased by
$5,425,842 from last year’s balance of $50,490,551. The areas that significantly increased
were general liability and medical malpractice.
Changes in the liabilities for unpaid auto, general, workers’ compensation, medical
malpractice, auto physical damage, and property claims follow:

Balance
July 1
2003-04
2004-05
2005-06

$ 41,047,771
42,532,613
50,490,551

Current-Year
Claims and
Changes in
Estimates
$ 8,992,628
15,923,337
17,605,701

Claims
Payments

Balance
June 30

$ (7,507,786)
(7,965,399)
(12,179,859)

$ 42,532,613
50,490,551
55,916,393

Of these liabilities, $23,068,119 were actuarially estimated to be paid within the next 12
months.

V-14

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

Employee Benefits Trust Fund
The liability for pharmacy (Coinsurance Plan), medical, dental, and short-term disability
claims as shown below is based on the fiscal year 2005-06 actuarial reports. The Consumer
Choice Plan portion of the liability for pharmacy is based on the unused portion of the
members’ pharmacy accounts administered by Walgreens Health Initiatives. The liability
for medical incentives as shown below is based on the contract with CIGNA HealthCare.
Accrued liabilities at June 30, 2006, for each insurable area follow:
Pharmacy
Medical
Dental
Short-term disability
Medical incentives
Total

$ 1,682,985
595,000
267,000
227,000
600,000
$ 3,371,985

Changes in the liabilities for unpaid pharmacy, medical, dental, short-term disability, and
medical incentives claims follow:

Balance
July 1
2003-04
2004-05
2005-06

$ 2,446,904
5,139,150
4,080,935

Current-Year
Claims and
Changes in
Estimates
$ 24,840,807
33,271,440
26,446,873

Claims
Payments
$ (22,148,561)
(34,329,655)
(27,155,823)

Balance
June 30
$ 5,139,150
4,080,935
3,371,985

It is estimated that the June 30, 2006, liabilities balance of $3,371,985 will be paid within the
next 12 months.
NOTE 4 - 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
those years. This resulted in a total net assets deficit of $23,321,519 at June 30, 1999.
Starting July 1, 1999, Risk Management implemented a funding plan that calls for the fiscal
V-15

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2006

year ending cash balance to equal the next year’s estimated claims and claims related
expenses. As of June 30, 2006, the total net assets deficit has been reduced to $20,833,404.
NOTE 5 - Letter of Credit
On July 1, 2005, 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 $8.0 million with a
financial institution to cover unfunded workers’ compensation claims. During fiscal year
2005-06, the letter of credit had not been drawn upon. The letter of credit was renewed to
July 1, 2007 for $9.7 million.
NOTE 6 - 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,
2006, active plan members and the Risk Management Fund were each required by statute to
contribute at the actuarially determined rate of 7.4 percent (6.9 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, 2006, 2005,
and 2004 were $80,395, $56,705, and $54,687, respectively, which were equal to the
required contributions for the year.

V-16

TOTAL COST SUMMARY
FY03-04 TO FY05-06

$12,000,000

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

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

$11,000,000
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0

FY03-04

FY04-05

Auto Liability

Auto Physical
Damage

$269,723

$450,494

$3,365,503

$787,310

$371,387

$3,055,354

$8,299,771

FY 03-04 Open Reserves

$24,978

$3,627

$7,158,977

$7,096,480

$11,750

$635,782

$14,931,594

5

Total Incurred

$294,701

$277,161

$10,524,117

$7,883,790

$380,276

$3,691,136

$23,051,181

$ Paid

$248,232

$461,183

$424,546

$159,109

$91,126

$2,628,194

$4,012,390

FY 04-05 Open Reserves

$85,243

$5,244

$4,332,723

$5,409,045

$129,200

$353,420

$10,314,875

5

Total Incurred

$332,789

$309,664

$4,757,269

$5,568,154

$211,047

$2,981,614

$14,160,537

$ Paid

$93,356

$407,069

$223,417

$23,782

$64,624

$2,060,142

$2,872,390

FY 05-06 Open Reserves

$168,521

$425,359

$1,342,080

$1,174,101

$249,301

$1,576,221

$4,935,583

5

$261,877

$781,175

$1,564,498

$1,197,883

$313,925

$3,636,363

$7,755,721

$ Paid

Total Incurred

General
Liability

FY05-06

Medical
Malpractice

Property

Workers’
Compensation

Total

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 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, 2006, as reported by the RiskMaster system except for Workers’ Compensation
amounts as valued on June 30, 2006, as reported by the Pinnacle system.
4. Unemployment not included.
5. Total Incurred = $ Paid plus Open Reserves, minus Total Recoveries.

VI-1

TOTAL CLAIMS SUMMARY TABLE
FY03-04 TO FY05-06
FY03-04
Department

# Claims

FY04-05

$ Paid

# Claims

FY05-06

$ Paid

# Claims

$ Paid

ADULT PROBATION

58

$91,482

72

$150,419

58

$641,401

AIR QUALITY

10

$30,296

12

$3,805

3

$100

ANIMAL CONTROL

50

$29,913

81

$69,372

94

$139,058

ASSESSOR

10

$19,389

11

$33,361

12

$8,301

CLERK OF THE SUPERIOR COURT

21

$27,704

23

$31,839

19

$12,250

CONSTABLES

11

$45,296

9

$1,399

5

$2,100

CORRECTIONAL HEALTH

40

$72,574

51

$184,224

29

$9,725

COUNTY ATTORNEY

48

$265,738

45

$76,219

39

$19,337

ELECTIONS

24

$39,787

19

$8,541

1

$0

ENVIRONMENTAL SERVICES

22

$34,724

46

$63,467

61

$51,171

EQUIPMENT SERVICES

10

$6,341

10

$13,314

10

$24,670

FACILITIES MANAGEMENT

29

$119,531

43

$93,503

32

$29,856

FLOOD CONTROL

51

$119,464

33

$154,658

43

$14,772

HEALTH CARE DISTRICT

310

$1,605,856

308

$651,131

261

$416,871

HUMAN SERVICES

55

$103,552

75

$107,332

39

$71,573

JUVENILE PROBATION

41

$109,238

47

$74,831

53

$26,846

LIBRARY

8

$7,719

2

$326

3

$210

MEDICAL EXAMINER

18

$12,447

19

$21,732

13

$15,367

PARKS & RECREATION

21

$34,918

30

$51,091

25

$24,876

PUBLIC DEFENDER

23

$147,233

12

$6,261

16

$23,051

PUBLIC HEALTH

44

$38,613

47

$91,253

51

$31,548

SHERIFF

689

$3,100,948

1160

$1,541,811

1073

$969,684

TRANSPORTATION

165

$462,532

290

$363,033

171

$238,867

TRIAL COURTS

49

$54,794

43

$80,131

43

$42,403

ALL OTHERS

56

$1,719,682

109

$139,337

102

$58,353

1863

$8,299,771

2597

$4,012,390

2256

$2,872,390

TOTALS

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 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, 2006, as reported by the RiskMaster system, the Advantage Financial System, or the
Pinnacle system.

VI-2

TOTAL NUMBER OF CLAIMS SUMMARY
FY03-04 TO FY05-06

1200

1000

800

600

400

200

0
FY03-04

Automobile Liability
Medical Malpractice

FY04-05

FY05-06

Auto Physical Damage
Property

General Liability
Workers' Compensation

FY03-04

FY04-05

FY05-06

Automobile Liability

64

114

82

Auto Physical Damage

357

522

470

General Liability

454

761

535

Medical Malpractice

46

47

29

Property

72

78

66

Workers’ Compensation

870

1075

1074

TOTAL

1863

2597

2256

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, 2006, as reported by the RiskMaster system except for Workers’ Compensation
amounts as valued on June 30, 2006, as reported by the Pinnacle System.
3. Unemployment not included.

VI-3

AUTO LIABILITY LOSS SUMMARY
FY03-04 TO FY05-06
FY03-04
Department

# Claims

FY04-05

$ Paid

# Claims

FY05-06

$ Paid

# Claims

$ Paid

ADULT PROBATION

1

$0

3

$0

1

$2,230

AIR QUALITY

1

$556

2

$1,279

0

$0

ANIMAL CONTROL

2

$9,744

3

$14,173

5

$14,171

BUSINESS COMMUNICATION TECH

0

$0

1

$1,438

1

$8,162

CONSTABLES

2

$33,203

1

$0

1

$2,100

COUNTY ATTORNEY

0

$0

1

$2,439

2

$0

ELECTIONS

0

$0

6

$3,732

0

$0

ENVIRONMENTAL SERVICES

0

$0

5

$32,239

6

$2,000

EQUIPMENT SERVICES

1

$1,750

0

$0

0

$0

FACILITIES MANAGEMENT

1

$1,226

2

$3,857

2

$5,531

FLOOD CONTROL

2

$3,579

4

$10,470

2

$854

HEALTH CARE DISTRICT

2

$5,209

7

$41,769

4

$6,756

HUMAN SERVICES

3

$17,546

6

$8,957

6

$0

MEDICAL EXAMINER

1

$394

3

$14,741

0

$0

PARKS & RECREATION

0

$0

2

$4,970

1

$0

PLANNING & DEVELOPMENT

0

$0

1

$2,521

2

$2,003

PUBLIC DEFENDER

1

$1,517

0

$0

0

$0

PUBLIC HEALTH

0

$0

1

$1,839

0

$0

RISK MANAGEMENT

0

$0

0

$0

2

$0

SHERIFF

40

$190,435

43

$69,120

40

$45,139

SOLID WASTE MANAGEMENT

0

$0

2

$74

0

$0

TRANSPORTATION

6

$4,564

21

$34,614

7

$4,410

TRIAL COURTS

1

$0

0

$0

0

$0

TOTALS

64

$269,723

$248,232

82

$93,356

114

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 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, 2006, as reported by the RiskMaster system.

VI-4

AUTO PHYSICAL DAMAGE LOSS SUMMARY
FY03-04 TO FY05-06
FY03-04
Department

# Claims

FY04-05

$ Paid

# Claims

FY05-06

$ Paid

# Claims

$ Paid

ADULT PROBATION

6

$15,320

18

$38,827

18

$10,490

AIR QUALITY

5

$481

7

$2,526

2

$0

ANIMAL CONTROL

8

$2,741

15

$4,396

23

$3,057

BUSINESS COMMUNICATION TECH

1

$8,966

2

$427

2

$0

CLERK OF THE SUPERIOR COURT

2

$1,285

1

$1,644

1

$0

CONSTABLES

5

$5,410

7

$85

4

$0

COUNTY ATTORNEY

5

$13,790

13

$8,484

10

$5,786

EMERGENCY MANAGEMENT

1

$687

0

$0

0

$0

ENVIRONMENTAL SERVICES

6

$6,593

28

$12,552

23

$26,644

EQUIPMENT SERVICES

3

$1,060

0

$0

0

$0

FACILITIES MANAGEMENT

4

$6,899

11

$7,680

11

$4,780

FLOOD CONTROL

22

$14,497

11

$6,946

26

$8,653

HEALTH CARE DISTRICT

15

$4,066

18

$8,726

9

$8,991

HUMAN SERVICES

18

$23,638

27

$22,593

13

$36,410

LEGAL DEFENDER

1

$2,476

1

$1,021

0

$0

LIBRARY

3

$1,274

2

$326

1

$0

MEDICAL EXAMINER

4

$3,625

5

$1,938

0

$0

PARKS & RECREATION

4

$4,069

12

$2,693

13

$5,133

PLANNING & DEVELOPMENT

3

$2,083

7

$15,026

9

$1,494

PUBLIC FIDUCIARY

0

$0

1

$2,665

0

$0

PUBLIC HEALTH

13

$8,752

11

$500

7

$494

SHERIFF

184

$242,908

257

$237,405

237

$227,328

SOLID WASTE MANAGEMENT

1

$1,493

4

$0

1

$8,656

TRANSPORTATION

29

$71,281

50

$81,355

47

$47,674

TRIAL COURTS

9

$6,269

4

$3,188

4

$11,309

ALL OTHERS

5

$831

10

$180

9

$170

$450,494

522

$461,183

TOTALS

357

470

$407,069

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 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, 2006, as reported by the RiskMaster system.

VI-5

GENERAL LIABILTY LOSS SUMMARY
FY03-04 TO FY05-06
FY03-04
Department

# Claims

FY04-05

$ Paid

# Claims

FY05-06

$ Paid

# Claims

$ Paid

ADULT PROBATION

6

$0

5

$0

4

$0

ALTCS

2

$0

0

$0

0

$0

ANIMAL CONTROL

11

$3,200

16

$6,503

14

$138

ASSESSOR

2

$0

1

$0

1

$0

BOARD OF SUPERVISORS

2

$1,533,383

1

$0

0

$0

CORRECTIONAL HEALTH

7

$31,946

5

$0

4

$0

COUNTY ATTORNEY

23

$232,231

5

$0

8

$0

ENVIRONMENTAL SERVICES

2

$0

2

$0

0

$0

FACILITIES MANAGEMENT

5

$643

12

$39,553

7

$5,455

FLOOD CONTROL

9

$1,826

3

$0

3

$0

HEALTH CARE DISTRICT

21

$2,000

30

$60,482

10

$2,856

HUMAN RESOURCES

2

$1,679

0

$0

1

$0

HUMAN SERVICES

4

$2,250

2

$0

2

$128

MATERIALS MANAGEMENT

2

$0

4

$0

0

$0

MEDICAL EXAMINER

2

$625

3

$140

1

$2,764

PARKS & RECREATION

3

$782

3

$0

3

$696

PLANNING & DEVELOPMENT

2

$32,264

2

$20,656

1

$0

PUBLIC DEFENDER

12

$106,295

5

$0

3

$0

PUBLIC HEALTH

9

$272

6

$1,397

6

$0

RECORDER

4

$0

0

$0

3

$0

SHERIFF

202

$1,228,527

467

$227,185

364

$98,766

SUPERINTENDENT OF SCHOOLS

3

$130

3

$0

2

$0

TRIAL COURTS

17

$0

6

$0

6

$0

TRANSPORTATION

97

$187,450

169

$68,630

84

$112,614

ALL OTHERS

5

$0

11

$0

8

$0

$3,365,503

761

$424,546

TOTALS

454

535

$223,417

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 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, 2006, as reported by the RiskMaster system.

VI-6

MEDICAL MALPRACTICE LOSS SUMMARY
FY03-04 TO FY05-06
FY03-04
Department

# Claims

FY04-05

$ Paid

# Claims

FY05-06

$ Paid

# Claims

$ Paid

ALTCS

0

$0

0

$0

2

$0

CORRECTIONAL HEALTH

20

$29,047

23

$85,469

13

$0

HEALTH CARE DISTRICT

25

$758,263

22

$73,640

14

$23,782

PUBLIC HEALTH

1

$0.00

2

$0

0

$0

TOTALS

46

$787,310

47

$159,109

29

$23,782

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 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, 2006, as reported by the RiskMaster system.

VI-7

PROPERTY DAMAGE LOSS SUMMARY
FY03-04 TO FY05-06
FY03-04
Department

# Claims

FY04-05

$ Paid

# Claims

FY05-06

$ Paid

# Claims

$ Paid

ADULT PROBATION

0

$0

1

$625

0

$0

ANIMAL CONTROL

1

$0

5

$10,881

9

$0

ASSESSOR

1

$0

0

$0

0

$0

BUSINESS COMMUNICATION TECH

1

$316

1

$13,104

0

$0

EMERGENCY MANAGEMENT

1

$0

0

$0

0

$0

ENVIROMENTAL SERVICES

3

$0

5

$8,556

10

$10,637

EQUIPMENT SERVICES

0

$0

0

$0

3

$1,744

FACILITIES MANAGEMENT

6

$3,320

3

$1,975

1

$0

FINANCE

0

$0

0

$0

1

$0

FLOOD CONTROL

4

$0

4

$0

3

$0

HEALTH CARE DISTRICT

1

$99,000

2

$8,072

2

$0

HOUSING

5

$93,022

0

$0

0

$0

HUMAN SERVICES

3

$670

5

$0

2

$0

INTERGRATED CRIMINAL JUSTICE

0

$0

0

$0

1

$0

LIBRARY

1

$5,114

0

$0

0

$0

MEDICAL EXAMINER

2

$1,084

0

$0

0

$0

PARKS & RECREATION

8

$8,282

5

$24,297

2

$0

PLANNING & DEVELOPMENT

0

$0

3

$0

0

$0

PUBLIC HEALTH

4

$3,245

8

$0

8

$1,717

SHERIFF

23

$150,436

28

$17,905

13

$20,618

SUPERINTENDENT OF SCHOOLS

0

$0

0

$0

1

$0

TRIAL COURTS

1

$1,636

3

$0

1

$519

TRANSPORTATION

7

$5,262

5

$5,711

9

$29,389

TOTALS

72

$371,387

78

$91,126

66

$64,624

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 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, 2006, as reported by the RiskMaster system.

VI-8

WORKERS’ COMPENSATION LOSS SUMMARY
FY03-04 TO FY05-06
FY03-04
Department

# Claims

FY04-05

$ Paid

# Claims

FY05-06

$ Paid

# Claims

$ Paid

ADULT PROBATION

45

$76,162

45

$110,967

35

$628,681

AIR QUALITY

3

$29,259

0

$0

1

$100

ANIMAL CONTROL

28

$14,228

42

$33,419

43

$121,692

ASSESSOR

5

$19,209

8

$33,361

8

$8,301

CLERK OF SUPERIOR COURT

19

$26,419

21

$30,195

17

$12,250

CORRECTIONAL HEALTH

12

$11,581

23

$98,755

12

$9,725

COUNTY ATTORNEY

20

$19,717

26

$65,296

19

$13,551

ELECTIONS

24

$39,787

5

$4,809

1

$0

ENVIRONMENTAL SERVICES

11

$28,131

6

$10,120

22

$11,890

EQUIPMENT SERVICES

6

$3,531

9

$13,314

7

$22,926

FACILITIES MANAGEMENT

13

$107,443

15

$40,438

11

$14,090

FLOOD CONTROL

14

$99,562

11

$137,242

9

$5,265

GENERAL GOVERNMENT

0

$0

2

$11,846

0

$0

HEALTH CARE DISTRICT

246

$737,318

229

$458,442

222

$374,486

HUMAN SERVICES

27

$59,448

35

$75,782

16

$35,035

JUVENILE PROBATION

41

$109,238

47

$74,831

53

$26,846

MEDICAL EXAMINER

9

$6,719

8

$4,913

12

$12,603

PARKS & RECREATION

6

$21,785

8

$19,131

6

$19,047

PLANNING & DEVELOPMENT

3

$4,443

3

$18,879

1

$426

PUBLIC DEFENDER

9

$39,421

7

$6,261

12

$23,051

PUBLIC HEALTH

17

$26,344

19

$87,517

30

$29,337

SHERIFF

240

$1,288,642

365

$990,196

419

$577,833

SUPERINTENDENT OF SCHOOLS

2

$29,085

3

$6,363

0

$0

TRANSPORTATION

26

$193,975

45

$172,723

24

$44,780

TRIALS COURTS

21

$46,889

30

$76,943

32

$30,575

ALL OTHERS

23

$17,018

63

$46,451

62

$37,652

TOTALS

870

$3,055,354

1075

$2,628,194

1074

$2,060,142

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY03-04 give a truer
picture as these claims have had time to mature.
2. Amounts as valued on June 30, 2006, as reported by the Pinnacle system.

VI-9

UNEMPLOYMENT LOSS SUMMARY
FY03-04 TO FY05-06

Department

FY03-04

FY04-05

FY05-06

$ Paid

$ Paid

$ Paid

ADULT PROBATION

$51,796

$31,262

$11,044

ALTCS

$13,228

$7,326

$235,050

ANIMAL CONTROL

$16,153

$6,722

$16,446

ASSESSOR

$6,520

$10,051

$10,230

CHIEF INFORMATION OFFICE

$8,200

$7,420

$19

CLERK OF THE SUPERIOR COURT

$36,874

$32,444

$22,997

CORRECTIONAL HEALTH

$51,335

$25,812

$5,906

COUNTY ATTORNEY

$6,134

$10,393

$12,474

COUNTY CALL CENTER

$2,787

$2,235

$6,203

ELECTIONS

$12,774

$22,854

$8,495

ENVIRONMENTAL SERVICES

$18,035

$23,114

$19,404

FACILITIES MANAGEMENT

$18,583

$27,411

$15,262

$234,076

$216,764

$97,311

$6,270

$6,940

$2,507

HUMAN SERVICES

$66,386

$124,257

$120,580

JUVENILE PROBATION

$34,075

$35,903

$29,213

LEGAL DEFENDER

$1,320

$6,197

$7,907

LIBRARY

$6,855

$367

$3,120

PUBLIC DEFENDER

$9,519

$8,129

$15,469

$16,160

$25,879

$12,421

$0

$4,560

$7,044

$64,525

$53,402

$40,311

$462

$8,880

$8,299

TRANSPORTATION

$31,829

$17,132

$8,411

TRIAL COURTS

$51,299

$35,460

$33,348

ALL OTHERS

$36,780

$25,170

$26,856

$801,975

$776,084

$776,327

HEALTH CARE DISTRICT
HOUSING

PUBLIC HEALTH
PUBLIC FIDUCIARY
SHERIFF
SOLID WASTE MANAGEMENT

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, 2006, as reported by the Advantage Financial System.

VI-10