Risk Management
Annual Report
Fiscal Year Ended June 30, 2009

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 2008-09

TABLE OF CONTENTS

I.

EXECUTIVE SUMMARY

II.

CLAIMS DIVISION

III.

SAFETY DIVISION

IV.

ENVIRONMENTAL DIVISION

V.

ADMINISTRATIVE DIVISION

VI.

STATISTICS AND COVERAGE

EXECUTIVE
SUMMARY

EXECUTIVE SUMMARY

RISK MANAGEMENT ANNUAL REPORT
EXECUTIVE SUMMARY

Presented herein is the Maricopa County Risk Management Annual Report, for the fiscal year
July 1, 2008 through June 30, 2009.
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, 2009, the Risk Management Department completed its 28th year administering the
County’s self-insurance program. Risk Management’s mission is to provide claim management,
safety consultations and training, environmental consultations and insurance coverage services to
Maricopa County departments, districts, and Trust members so they can 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
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. In this fiscal year, the Department strived 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, initially the Office of County Attorney, and later outside legal counsel.
The Risk Manager initially reported to the Chief Financial Officer of Maricopa County, but now
reports to the Deputy County Manager.

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 FY08-09, the following individuals were
members of the Board of Trustees:
Trustee

Trustee District/Appointment
BOS District One
BOS District Two
BOS District Three
BOS District Four
BOS District Five
BOS Chairman
County Manager

Les Clark
Joel Sterrett, Chairman
Vacant
Steven Beeghley
Richard “Joe” Lugo
BOS Chairman
Vacant
FY08-09 Results

Maricopa County enjoyed excellent results this fiscal year in the risk/exposure area. Total dollars
paid plus open reserves were $8,200,701, down 46.52% for this fiscal year compared to the prior
fiscal year (see page VI-1). The Cost of Risk also decreased. Risk Management’s costs decreased
$4,315,777 or 15.04%, resulting in the Cost of Risk (Risk Management’s costs compared to total
County and MIHS expenditures) for this fiscal year coming in at an acceptable 0.93%. (Note that
the total number of claims filed this fiscal year decreased 11.38%, from 2,681 to 2,376. These
claims figures represent the number of claims filed or reopened in this fiscal year. These figures are
not based on event date, and do not include unemployment claims.) The County realized
$1,701,977 in net savings this fiscal year through the use of in-network medical providers and a
medical bill review service, and collected $804,543 through subrogation, restitution, and deductible
recovery efforts of the Claims and Safety divisions, and our Third Party Administrator for Workers’
Compensation.
Maricopa County has a population of over 3.9 million people. It is the 4th most populous County in
the United States. According to the U.S. Census Bureau, more than half of the state’s population
resides in Maricopa County. The County has seen some significant growth rate in population,

I-2

though this growth rate has receded somewhat due to the negative economical conditions
nationwide. Size and growth, while economically positive, can result in an 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 any increase to a minimum.
The number of Maricopa County and MIHS employees varies from month to month. For FY07-08
and FY08-09, the numbers of actual positions were 19,155 and 18,522, respectively. Workers’
compensation claims with an event date in FY07-08 were 1,423, while Workers’ Compensation
claims with an event date in FY08-09 were 1,209. (Note, here we use event dates for these claims as
these figures better reflect safety issues within the fiscal year.) This reflects a decrease in the
number of actual positions of 3.30% over the previous fiscal year, and a decrease in the number of
workers’ compensation claims of 15.04% over this period. This highlights improvement with safety
concerns in the County this fiscal year.

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
decreased from 1.24% to the present 0.93%. This hits Risk Management’s commitment to reduce
this measure to below 1%.
FY06-07

FY07-08

FY08-09

Claims and Premiums
Auto Liability

$1,275,627

$1,245,872

$398,229

General Liability

$4,072,737

$3,168,264

$2,576,246

Medical Malpractice

$4,242,501

$3,675,378

$966,588

Property/Auto Physical Damage

$1,169,794

$608,084

$483,644

Workers' Compensation

$3,756,153

$4,420,652

$4,402,818

$633,685

$769,150

$1,088,164

$4,308,288

$4,069,441

$3,737,971

$19,458,785

$17,956,841

$13,653,660

$8,407,981

$7,329,475

$7,201,470

Actuary Fees

$42,253

$44,366

$39,900

Broker Fees

$145,000

$54,575

$57,000

Consulting and Management Fees

$284,036

$212,109

$197,150

Claims Administration Service Fees

$556,856

$601,337

$555,248

Workers’ Compensation Taxes

$526,586

$404,940

$604,137

$1,821,241

$2,084,536

$2,063,837

$11,783,953

$10,731,338

$10,718,742

$31,242,738

$28,688,179

$24,372,402

$2,529,353,568

$2,557,866,240

$2,610,316,043

1.24%

1.12%

0.93%

Unemployment
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, 2009, as reported in the Advantage Financial System.
By the printing of this report, the Maricopa County Comprehensive Annual Financial Report (CAFR) and
the Risk Management and Employee Benefits Trust Report on Audit of Financial Statements for June 30,
2009 have been audited. The Special Health Care District (SHCD) audited financial statements as of June
30, 2009 had not been finalized.

I-4

CLAIMS
DIVISION

CLAIMS DIVISION

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 four 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 and Talx Employer Services.
Claims are investigated and evaluated, then either paid or denied on their merits. Litigated
claims are assigned to either in-house or outside counsel. This Division works with assigned
attorneys to obtain the most favorable result possible for the County. We are committed to
reducing the cost of risk to the County through proper claims management.
FY08-09 Summary
The Claims Division handled 2,383 new worker’s compensation, general liability, medical
malpractice, automobile and property claims in FY08-09, a very slight decrease over the
previous fiscal year. This is the third consecutive fiscal year decrease in new claims.
Due to the efforts of the Claims Division, the County continues to realize substantial savings
from its property and liability 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 recoveries also decreased slightly for FY08-09.
The Division collected $728,117 from parties at fault for damage to County personnel
and/or 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: For FY08-09, 1,252 worker’s
compensation claims were filed by County employees, which also represents a decrease
in new claims over the previous fiscal year. In addition to adjustment of these claims,
Pinnacle Risk Management Services and its affiliated vendors conduct bill reviews, and
employ discounts available to the County for participation in a PPO network. The
County realized a net savings of $1,701,977 over billed amounts as a result of network
discounts and bill review services for FY08-09.

•

Review of indemnity and insurance language in County contracts.

•

Oversight of 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

SAFETY
DIVISION

SAFETY DIVISION
The Occupational Safety Division of Risk Management continued to focus on a countywide
initiative ensuring safety compliance and loss prevention throughout the organization. With
continuing reductions in departmental budgets it was imperative that we minimized exposure to
injury and loss to personnel and property. The objective improved safety compliance and loss
prevention continues to be accomplished through:
1.
2.
3.
4.

Full management support of our safety policies.
Maintaining an effective, comprehensive safety program.
Identifying potential risks and hazard awareness.
Training employees in safe work practices.

The establishment of effective safety programs continues to be crucial in reducing accidents and
injuries in the workplace. As a clear example of its efforts to improve departmental safety
performance, workers compensation data this fiscal year evidences an overall decrease in claims
of 17.70% (1,423 claims in FY07-08, and 1,209 claims in FY08-09, 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 decreased from $3,279,867 in FY07-08 to $2,596,927
in FY08-09, a $682,940 or a 26.30% decrease in cost. This resulted in a reduction of the injury
incident rate from 5.05 injuries per 100 employees to 3.70 injuries per 100 employees, a 36.48%
reduction in recordable injuries.

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

Conducted 639 workplace inspection, 168 facility safety inspections, 280 safety classes,
125 safety consultations, and reviewed 4,560 MVD driving records.

•

Conducted a countywide four-day Employee Safety Fair, with over 400 employees
participating in 91 safety classes.

As Maricopa County continues to develop its future strategies in safety management systems, it
is necessary that each level of management must take a proactive role in safety development.
Management commitment and front line supervision accountability is the key to sustaining the
safety process and reducing unsafe work practices. Safety is a corporate effort!
III-1

ENVIRONMENTAL DIVISION

ENVIRONMENTAL
DIVISION

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 $6.9 million for
FY08-09.
This fiscal year the Division:
•
•

•
•
•

•
•
•
•
•
•

•

Continued to cooperate with ADEQ in conducting site characterization of groundwater
contamination at the Cave Creek Landfill.
Conducted a storm water liability audit of all County-owned facilities to determine site
issues, deficiencies and liabilities. Continued to work on Stormwater Pollution
Prevention Plans (SPPPs) for 15 County properties. Worked with departments to make
corrections to storm water issues identified during audit.
Prepared an orphan tank assessment and application to ADEQ for a citizen qualifying for
the Orphan Tank program.
Continued to participate with the Hassayampa Steering Committee in working towards
the remediation of the Hassayampa Superfund Site.
Completed Phase I and additional environmental assessments for 4 facilities. Completed
in-house assessments for industrial hygiene and indoor air quality (22), asbestos (15),
lead paint (40) and mold (7) at additional facilities.
Created and provided 2-hour OSHA Awareness Training of Asbestos and Lead for FMD
field personnel. Created and provided EPA NESHAPS and Lead-Based Paint training
seminars for FMD and MCDOT. Provided Respirator Fit Testing and Program for FMD.
Coordinating with FMD to organize and collaborate with report libraries for MCRM and
FMD.
Assisted MCSO with ADOSH Complaints, FMD with NESHAPS violations and OET
with hazardous waste abatement and Public Health with hazardous waste disposal.
Provided deposition regarding IAQ in County Jails for ACLU lawsuit versus MCSO.
Reviewed and awarded the 08044S Environmental Contract with delineation of 46
contractors in 13 sub-sections.
Assisted Parks and Recreation, Facilities Management, Superior Courts, Real Estate,
MCSO, MCDOT, Juvenile Probation, Flood Control, Legal Defender, Environmental
Services, Animal Control, MCAO, Assessor, Agricultural Exchange, WIC, Solid Waste,
Air Quality and the Library District in preparing Requests for Proposals for
environmental studies, and conducting indoor air quality review, asbestos and lead paint
surveys, and air permit reviews.
Continued to work with APS to allow continued access to County property to conduct
USEPA mandated sampling to characterize contamination from APS facility.

IV-1

•

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-2

ADMINISTRATIVE DIVISION

ADMINISTRATIVE
DIVISION

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, 2009.
Self-Insured Trust Fund
Combined Balance Sheet Comparison
FY06-07, FY07-08, and FY08-09

Assets
Liabilities
Net assets (deficit)

FY06-07
$33,194,501
$59,207,749
($26,013,248)

FY07-08
$44,847,793
$59,277,021
($14,429,228)

FY08-09
$56,920,496
$63,774,675
($6,854,179)

During the FY06-07 through FY08-09 period, the Trust’s assets increased $23,725,995, or 71.47%,
from $33,194,501 to $56,920,496. During the same period, the Trust’s liabilities increased
$4,566,926, or 7.71%, from $59,207,749 to $63,774,675. The deficit in Trust net assets is a result of
a spend down of the Trust fund in fiscal years 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.
The Trust began billing user departments for the full costs of claims and insurance, along with
administrative costs in FY99-00. On an annual basis, the trust funding plan is used to calculate the
total Risk Management’s expenses for the fiscal year and the next year’s claims and claims related
expenses. The County does not fund the Trust for reserves; however, the reserves are part of the
liability calculation. It is not the intent of the funding plan to decrease the deficit, but to continue to
fund for the next year’s claims and claims related expenses. FY08-09 balance sheet details are
provided in the financial section.

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.

V-1

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)

3/1/09 – 3/1/10

$5 million
$25 million

$5 million SIR

Medical Malpractice

12/4/08 – 12/4/09

$25 million

$5 million SIR

Workers’ Compensation

7/1/08 – 7/1/09

$25 million

$2 million SIR

Property Damage

7/1/08 – 7/1/09

$300 million

$100,000 per occ.

Budget Summary
The expenditure budget for the Risk Management Department for FY08-09 was $38,624,228. Of
this amount, $1,755,783 was for personnel costs, $1,496,166 was for supplies and services, and
$35,372,279 was for insurance, legal, and claims and claims related expenditures. On a percentage
basis, 91.58% of Risk Management’s budget is for insurance, legal, and claims and claim related
expenditures.
The revenue budget for the Risk Management Department for FY08-09 was $36,172,043. Of this
amount, $35,172,043 was from user charges and $1,000,000 was from interest earnings. On a
percentage basis, 97.23% 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 actual expenditures for the Risk Management Department for FY08-09 were $28,729,428. Of
this amount, $1,733,991 was for personnel costs, $1,179,144 was for supplies and services, and
$25,816,293 was for insurance, legal, and claims and claims related expenditures. On a percentage
basis, 89.86% 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 FY08-09 was $36,304,477. Of this
amount, $35,172,048 was from user charges and $1,132,429 was from interest earnings. On a
percentage basis, 96.88% of the revenue was from user charges.
Notes:

1.

The financial statements presented in this section have been audited 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 FY08-09. The auditors have not reviewed and
are not providing an opinion as to the information disclosed in the annual report with the exception of the
audited financial statements.

V-2

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Net Assets (Deficit)—Internal Service Funds
June 30, 2009

Assets
Cash and cash equivalents
Interest receivable
Accounts receivable
Prepaid insurance
Capital assets, net
Total assets
Liabilities
Accounts payable
Employee compensation payable
Reserve for losses and loss expenses
Total liabilities
Net Assets
Invested in capital assets
Unrestricted (deficit)
Total net assets (deficit)

Risk
Management

Employee
Benefits

$ 55,524,869
114,548
1,261,618
19,461
56,920,496

$ 59,849,493
122,011
1,240,120
108,154
6,283
61,326,061

1,213,024
132,531
62,429,120
63,774,675

4,747,476
138,949
11,497,701
16,384,126

19,461
(6,873,640)
$ (6,854,179)

6,283
44,935,652
$ 44,941,935

The accompanying notes are an integral part of the financial statements.
V-3

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Revenues, Expenses, and
Changes in Net Assets (Deficit)—Internal Service Funds
Year Ended June 30, 2009
Risk
Management
Operating revenues:
Charges for services
County and employee premiums
Other income
Total operating revenues
Operating expenses:
Personal services
Supplies and services
Legal expenses
Workers compensation self-insurance tax
Losses and loss expenses
Depreciation
Total operating expenses

$ 35,172,048
35,172,048

Employee
Benefits
$

5,072,815
124,534,983
54,131
129,661,929

1,733,991
1,175,588
7,201,470
604,137
18,010,686
3,556
28,729,428

113,956,701
3,379
125,283,773

6,442,620

4,378,156

Nonoperating revenues:
Investment income
Total nonoperating revenues

1,132,429
1,132,429

1,354,252
1,354,252

Increase in net assets

7,575,049

5,732,408

(14,429,228)

39,209,527

$ (6,854,179)

$ 44,941,935

Operating income

Total net assets (deficit), July 1, 2008
Total net assets (deficit), June 30, 2009

2,095,194
9,228,499

The accompanying notes are an integral part of the financial statements.
V-4

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Cash Flows—Internal Service Funds
Year Ended June 30, 2009

Cash flows from operating activities:
Receipts from employees and other funds
Other receipts
Payments for goods and services
Payments to employees
Net cash provided by operating activities

Risk
Management

Employee
Benefits

$ 35,172,048

$ 130,523,672
54,131
(122,284,501)
(2,138,424)
6,154,878

(22,280,121)
(1,727,023)
11,164,904

Cash flows from investing activities:
Interest received on investments

1,274,161

1,543,041

12,439,065

7,697,919

43,085,804

52,151,574

$ 55,524,869

$ 59,849,493

$

$

Net increase in cash and cash equivalents
Cash and cash equivalents, July 1, 2008
Cash and cash equivalents, June 30, 2009
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
Changes in assets and liabilities:
Increase in:
Accounts payable
Employee compensation payable
Reserve for losses and loss expenses
Decrease in:
Prepaid insurance
Accounts payable
Accounts receivable
Employee compensation payable
Net cash provided by operating activities

6,442,620
3,556

3,379

133,660
6,968
4,357,026

1,032,703

221,074

$ 11,164,904

$

The accompanying notes are an integral part of the financial statements.
V-5

4,378,156

7,116
(139,121)
915,874
(43,229)
6,154,878

MARICOPA COUNTY
RISK MANAGEMENT TRUST FUND
Statements of Revenues, Expenses, and
Changes in Fund Net Assets (Deficit)—Internal Service Fund
Budget and Actual
Year Ended June 30, 2009

Operating revenues:
Charges for services
Other income
Total operating revenues
Operating expenses:
Personal services
Supplies and services
Legal expenses
Workers' compensation self-insurance tax
Losses and loss expenses
Depreciation
Total operating expenses

Budget

Actual

$ 35,172,043

$ 35,172,048

35,172,043

35,172,048

1,755,783
1,496,166
8,579,702
650,000
26,142,577

1,733,991
1,175,588
7,201,470
604,137
18,010,686
3,556
28,729,428

38,624,228

Operating income
Nonoperating revenues:
Investment income
Total nonoperating revenues

Variance
$

5
5

(21,792)
(320,578)
(1,378,232)
(45,863)
(8,131,891)
3,556
(9,894,800)

6,442,620
1,000,000
1,000,000

Increase in net assets

1,132,429
1,132,429
7,575,049

Total net deficit, July 1, 2008

(14,429,228)

Total net deficit, June 30, 2009

$ (6,854,179)

The accompanying notes are an integral part of the financial statements.

V-6

132,429
132,429

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

NOTE 1 - Organization and Summary of Significant Accounting Policies
Maricopa County, Arizona (the County), in the exercise of the authority granted by Arizona
Revised Statutes (A.R.S.) §11-981, has established trust funds and declares itself selfinsured. 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 restricted for purposes of self-insurance. The Funds’
financial statements are prepared in conformity with accounting principles generally
accepted in the United States of America applicable to governmental units adopted by the
Governmental Accounting Standards Board (GASB). The accompanying financial statements
are those of the funds and do not represent the financials statements of the County. The
Maricopa County, Arizona Comprehensive Annual Financial Report as of and for the year
ended June 30, 2009, will report the Funds as governmental activities on the governmentwide financial statements since they predominantly service the County’s governmental funds.
A summary of the Funds’ 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 risks 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 (medical, dental, pharmacy, short-term disability, medical
incentives, behavioral health and vision) to eligible County 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-7

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

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 unclassified. 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 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 and related 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 applicable Financial Accounting Standards Board (FASB) 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-8

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

D.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make a number of
estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
E.

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 highly liquid investments with a
maturity of 3 months or less when purchased to be cash equivalents.
F.

Capital Assets

Equipment is initially recorded at cost. Depreciation of 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 equipment range from 3 to 10 years.
G. Reserve for Losses and Loss Expenses
The Funds establish claims liabilities based on estimates of the ultimate cost of claims
(including future claim adjustment expenses) that have been reported but not settled, and of
claims that have been incurred but not reported. The length of time for which such costs
must be estimated varies depending on the coverage involved. Estimated amounts of
subrogation and reinsurance recoverable on unpaid claims are deducted from the liability for
unpaid claims. Because actual claim costs depend on such complex factors as inflation,
changes in doctrines of legal liability, and damage awards, the process used in computing
claims liabilities does not necessarily result in an exact amount, particularly for coverages
such as general liability. Claims liabilities are recomputed periodically using a variety of
actuarial and statistical techniques to produce current estimates that reflect recent
settlements, claims frequency, and other socioeconomic factors. A provision for inflation in
the calculation of estimated future claims costs is implicit in the calculation because reliance
is placed both on actual historical data that reflect past inflation and on other factors that are
considered to be appropriate modifiers of past experience. Adjustments to claims liabilities
are charged or credited to expense in the periods in which they are made.

V-9

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

H. Employee Compensation Payable
Compensated absences consist of vacation leave and a calculated amount of sick leave
earned by employees based on services already rendered. Employees may accumulate up to
240 hours of vacation leave, but any vacation hours in excess of the maximum amount that
are unused at calendar year-end convert to sick leave. Upon termination of employment, all
unused vacation benefits are paid to employees. Accordingly, vacation benefits are accrued
as a liability in the financial statements.
Employees may accumulate an unlimited number of sick leave hours. Generally, sick leave
benefits provide for ordinary sick pay and are cumulative but are forfeited upon termination
of employment. Because sick leave benefits do not vest with employees, a liability for sick
leave benefits is not accrued in the financial statements. However, upon retirement, County
employees with accumulated sick leave in excess of 1,000 hours are entitled to a $10,000
nontaxable investment in a Post Employment Health Plan established pursuant to Internal
Revenue Code §501(c)(9). The obligations vested at June 30, 2009, under this policy are
accrued as a liability.
Compensated absences are substantially paid within one year from fiscal year-end and,
therefore, are reported as a current liability.
I.

Income Tax

The Trust Funds are a component unit of Maricopa County, Arizona, a governmental agency,
and are exempt from federal and state income taxes.

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.

V-10

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

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, 2009, the carrying amount of the Funds’ deposits was $649,920, and
the bank balance was $649,921. 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.
Investments—The Funds’ investments at June 30, 2009, 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, 2009, the Funds’ investments consisted of monies invested in the Maricopa County
Treasurer’s Investment Pool which is unrated.

V-11

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

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, 2009, the Funds had investments of $114,724,140 in the Maricopa
County Treasurer’s Investment Pool with a weighted average maturity of 547 days, of which
35% (in excess of $1 billion) of pooled investments have maturities of 90 days or less. The
County invests the pooled investments primarily in U.S. government agency securities.
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

$

300
649,920
114,724,142
$115,374,362

NOTE 3 - Reserve for Losses and Loss Expenses
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. Settled claims
have not exceeded the commercial insurance coverage limits over the past 3 years.
Risk Management Trust Fund
Reserve for losses and loss expenses 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-12

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

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 2.55 percent annual rate of return on investments.
The total liabilities reported at June 30, 2009, categorized by insurable area follow:

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

Total Liabilities
$ 3,104,671
33,495,471
11,756,578
13,515,891
314,319
242,190
$62,429,120

The total estimates of unpaid claim liabilities of $62,429,120 at June 30, 2009, increased by
$4,357,026 from last year’s balance of $58,072,094. The areas with the largest increases
were auto liability, general liability, workers’ compensation, 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
Current-Year Claims and
Changes in Estimates
Claim Payments
Balance June 30

FY 2008-09

FY 2007-08

FY 2006-07

$58,072,094

$57,730,019

$55,916,393

13,180,821

13,460,325

16,330,438

(8,823,795) (13,118,250) (14,516,812)
$62,429,120

$58,072,094

$57,730,019

Of these liabilities, $22,251,844 were actuarially estimated to be payable within the next 12
months.

V-13

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

Employee Benefits Trust Fund
The liability for medical, dental, pharmacy (Coinsurance), short-term disability, behavioral
health and vision claims as shown below is based on the fiscal year 2008-09 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.
Accrued claims liabilities at June 30, 2009, for each insurable area follow:
Medical
Dental
Pharmacy
Short-term disability
Behavioral Health
Vision
Total

$8,449,000
286,000
2,174,701
296,000
216,000
76,000
$11,497,701

Changes in the liabilities for unpaid pharmacy, medical, dental, short-term disability, vision
and behavioral health claims follow:
FY 2008-09

FY 2007-08

FY 2006-07

Balance July 1
Current-Year Claims and
Changes in Estimates

$10,546,651

$2,206,068

$2,771,985

99,512,245

95,933,611

16,022,997

Claim Payments

(98,479,540) (87,449,314) (16,588,914)

Other Payments

(81,653)

(143,714)

Balance June 30

$11,497,701

$10,546,651

$2,206,068

It is estimated that the June 30, 2009, liabilities balance of $11,497,701 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 1996 through 1999. Consequently, the Risk Management Trust
Fund only billed user departments for operating costs and administrative expenses for those

V-14

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2009

years. This resulted in a total net assets (deficit) of $23,321,519 at June 30, 1999. Starting
July 1, 1999, the Risk Management Trust Fund implemented a funding plan that calls for the
fiscal year ending cash balance to equal the next year’s estimated claims and claims related
expenses. As of June 30, 2009, the total net assets (deficit) was $6,854,179. This is
primarily due to the Risk Management Trust Fund not being funded for noncurrent accrued
claim liabilities which are not considered when determining funding for each fiscal year.
NOTE 5 - Letter of Credit
On July 1, 2008, the County renewed its workers’ compensation insurance with a selfinsured retention of $2,000,000 for the policy period July 1, 2008 through June 30, 2009. As
a result, the Industrial Commission of Arizona required the County to secure an irrevocable
letter of credit in the amount of $4.2 million with a financial institution to cover unfunded
workers’ compensation claims for that policy period. During fiscal year 2008-09, the letter
of credit had not been drawn upon. The letter of credit was renewed on July 1, 2009 to June
30, 2010 for $5.3 million.
NOTE 6 - Retirement Plan
Plan Description—The Funds contribute to a cost-sharing multiple-employer 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 Fund’s contribution rates. For the year ended June 30, 2009, active plan
members and the Funds were each required by statute to contribute at the actuarially
determined rate of 9.45 percent (8.95 percent retirement and 0.5 percent long-term disability)
of the members’ annual covered payroll. The Fund’s contributions to the System for the
years ended June 30, 2009 and 2008 were $260,993 and $268,973, respectively. Only the
Risk Management Trust Fund recorded personnel costs in fiscal year 2007 with contributions
to the System for $107,105. Each year’s contribution was equal to the required contributions
for the year.
V-15

STATISTICS AND COVERAGE

STATISTICS
AND COVERAGE

TOTAL COST SUMMARY
FY06-07 TO FY08-09
$9,000,000
Paid

Reserves

$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000

Workers’
Compensation

$536,131

$618,010

$1,872,227

$1,628,208

$378,170

$3,696,921

$8,729,666

FY 06-07 Open Reserves

$480,252

$2,844

$4,576,080

$854,588

$0

$451,596

$6,365,360

4

$1,016,383

$620,854

$6,448,306

$2,482,796

$378,170

$4,148,517 $15,095,026

$355,996

$549,487

$1,532,934

$161,779

$170,553

$2,936,174

$5,706,924

FY 07-08 Open Reserves

$324,727

$16,421

$6,269,637

$2,673,131

$0

$343,693

$9,627,608

4

$680,723

$565,907

$7,802,572

$2,834,910

$170,553

$3,279,867 $15,334,532

$ Paid
FY 08-09 Open Reserves

$183,113

$337,625

$308,684

$3,804

$151,934

$1,723,148

$2,708,308

$2,095,668

$196,937

$1,984,390

$302,010

$39,608

$873,779

$5,492,392

$2,278,782

$534,562

$2,293,074

$305,814

$191,542

$2,596,927

$8,200,701

$ Paid
Total Incurred

Total Incurred

4

Workers’
Compensation

Property
Damage

Medical
Malpractice

General
Liability

Auto Physical
Damage

Auto Physical
Damage

Total Incurred

Medical
Malpractice

Auto Liability

Workers’
Compensation

Property
Damage

Auto Liability
$ Paid

General
Liability

Medical
Malpractice

General
Liability

Auto Physical
Damage

Auto Liability

Workers’
Compensation

Property
Damage

Medical
Malpractice

General
Liability

Auto Physical
Damage

Auto Liability

$0

Property

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 FY06-07 give a truer
picture as these claims have had time to mature.
2. Amounts as valued on June 30, 2009, as reported by the RiskMaster system except for Workers’ Compensation
amounts as valued on June 30, 2009, as reported by the Pinnacle system.
3. Unemployment not included.
4. Total Incurred = $ Paid plus Open Reserves, minus Total Recoveries.
5. Small dollar amounts may not be visible on the chart, but they are included in the data.
6. The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-1

TOTAL CLAIMS SUMMARY TABLE
FY06-07 TO FY08-09
FY06-07
Department

# Claims

FY07-08

$ Paid

# Claims

FY08-09

$ Paid

# Claims

$ Paid

ADULT PROBATION

121

$231,013

92

$117,631

64

$75,195

AIR QUALITY

25

$122,610

35

$32,665

48

$16,646

ANIMAL CONTROL

124

$118,183

122

$57,223

102

$65,855

CLERK OF SUPERIOR COURT

29

$17,044

21

$17,482

15

$7,154

CORRECTIONAL HEALTH

62

$813,843

79

$149,977

69

$25,065

COUNTY ATTORNEY

52

$171,157

45

$242,294

24

$18,997

ELECTIONS DEPARTMENT

20

$154,408

7

$7,892

15

$14,428

ENVIRONMENTAL SERVICES

53

$105,170

45

$50,553

37

$55,617

FACILITIES MANAGEMENT

40

$54,779

44

$77,239

26

$16,243

FLOOD CONTROL

45

$48,735

44

$94,883

9

$9,271

HUMAN SERVICES

56

$55,367

67

$73,493

34

$21,112

JUSTICE COURTS

29

$23,029

12

$32,506

14

$17,367

JUVENILE PROBATION

107

$395,994

90

$244,180

67

$71,302

MARICOPA MEDICAL CENTER

421

$2,082,462

532

$959,301

386

$499,845

MEDICAL EXAMINER

21

$38,506

16

$17,310

16

$13,955

PARKS & RECREATION

24

$120,978

28

$118,056

14

$6,481

PLANNING & DEVELOPMENT

20

$37,560

17

$36,619

11

$13,604

PUBLIC DEFENDER

13

$44,734

27

$59,761

11

$15,427

PUBLIC HEALTH

83

$272,194

56

$57,948

40

$76,881

PUBLIC WORKS

195

$216,070

176

$189,136

146

$96,972

RISK MANAGEMENT

24

$16,702

14

$4,152

23

$21,874

$3,252,348

927

$2,612,719

875

$1,310,582

SHERIFF

1043

TRANSPORTATION

22

$89,493

25

$71,547

2

$1,262

TRIAL COURTS

49

$125,367

58

$145,327

48

$72,563

ALL OTHERS

64

$121,919

73

$237,031

71

$164,611

TOTALS

2742

$8,729,666

2652

$5,706,924

2167

$2,708,308

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 FY06-07 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. Unemployment not included.
4. Amounts as valued on June 30, 2009, as reported by the RiskMaster system and the Pinnacle system.
5. The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-2

TOTAL NUMBER OF CLAIMS SUMMARY
FY06-07 TO FY08-09
1600
1400
1200
1000
800
600
400
200
0
FY06-07
Automobile Liability
Medical Malpractice

FY07-08

FY08-09

Auto Physical Damage
Property

General Liability
Workers' Compensation

FY06-07

FY07-08

FY08-09

Automobile Liability

118

121

70

Auto Physical Damage

583

492

421

General Liability

508

473

358

Medical Malpractice

40

56

41

Property

72

87

68

Workers' Compensation

1421

1423

1209

TOTAL

2742

2652

2167

Notes:
1. Number of claims represents the number of claims for the year in which the event occurred.
2. Unemployment not included.

VI-3

AUTO LIABILITY LOSS SUMMARY
FY06-07 TO FY08-09
FY06-07
Department

# Claims

FY07-08

$ Paid

# Claims

FY08-09

$ Paid

# Claims

$ Paid

ADULT PROBATION

3

$0

2

$0

2

$0

AIR QUALITY

3

$98,330

7

$15,465

3

$1,232

ANIMAL CONTROL

7

$46,334

7

$8,656

6

$19,027

CLERK OF SUPERIOR COURT

3

$0

0

$0

0

$0

COUNTY ATTORNEY

0

$0

4

$5,606

0

$0

ELECTIONS DEPARTMENT

2

$0

0

$0

1

$0

ENVIRONMENTAL SERVICES

4

$4,377

4

$2,737

0

$0

EQUIPMENT SERVICES

0

$0

2

$12,386

2

$2,790

FACILITIES MANAGEMENT

2

$26,766

2

$22,906

2

$6,880

FLOOD CONTROL

0

$0

3

$6,837

0

$0

HUMAN SERVICES

3

$20,951

7

$6,235

2

$0

JUVENILE PROBATION

3

$0

0

$0

0

$0

MARICOPA MEDICAL CENTER

0

$0

1

$0

1

$0

PARKS & RECREATION

1

$10,570

1

$1,137

1

$1,055

PLANNING & DEVELOPMENT

3

$12,102

2

$8,701

1

$3,975

PUBLIC HEALTH

0

$0

2

$2,233

2

$2,105

PUBLIC WORKS

23

$18,705

15

$62,167

3

$1,181

RISK MANAGEMENT

4

$494

2

$0

4

$0

SHERIFF

57

$297,502

60

$200,930

40

$144,868

TOTALS

118

$536,131

121

$355,996

70

$183,113

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 FY06-07 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, 2009, as reported by the RiskMaster system.
4. The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-4

AUTO PHYSICAL DAMAGE LOSS SUMMARY
FY06-07 TO FY08-09
FY06-07
Department

# Claims

FY07-08

$ Paid

# Claims

FY08-09

$ Paid

# Claims

$ Paid

ADULT PROBATION

24

$47,093

22

$12,457

15

$7,212

AIR QUALITY

16

$20,738

14

$5,865

29

$7,444

ANIMAL CONTROL

37

$18,699

31

$7,498

31

$1,902

CLERK OF SUPERIOR COURT

4

$0

1

$2,328

2

$475

COUNTY ASSESSOR

2

$250

1

$250

1

$0

COUNTY ATTORNEY

6

$4,980

8

$4,543

7

$2,499

ELECTIONS DEPARTMENT

8

$1,261

0

$0

2

$1,264

ENVIRONMENTAL SERVICES

23

$2,000

24

$12,004

18

$17,853

EQUIPMENT SERVICES

1

$0

7

$58,029

5

$10,452

FACILITIES MANAGEMENT

10

$3,559

10

$1,103

8

$0

FLOOD CONTROL

26

$8,152

28

$20,926

6

$4,627

HUMAN SERVICES

21

$3,075

22

$5,136

11

$2,935

JUVENILE PROBATION

9

$3,911

10

$7,750

4

$9,874

MARICOPA MEDICAL CENTER

1

$0

2

$0

1

$0

MEDICAL EXAMINER

1

$982

3

$2,336

4

$0

OFFICE OF ENTERPRISE TECH

1

$144

1

$551

0

$0

OFFICE OF LEGAL ADVOCATE

1

$0

1

$2,660

0

$0

PARKS & RECREATION

4

$1,205

6

$2,882

3

$0

PLANNING & DEVELOPMENT

12

$21,639

9

$7,611

5

$0

PUBLIC DEFENDER

2

$11,023

0

$0

0

$0

PUBLIC HEALTH

10

$4,877

10

$750

6

$4,583

PUBLIC WORKS

62

$61,758

41

$90,348

48

$55,334

RISK MANAGEMENT

3

$0

0

$0

2

$0

SHERIFF
ALL OTHERS
TOTALS

296
3
583

$400,893
$1,771
$618,010

237
4
492

$303,958
$500
$549,487

210
3
421

$206,853
$4,319
$337,625

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 FY06-07 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, 2009, as reported by the RiskMaster System.
4. The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-5

GENERAL LIABILITY LOSS SUMMARY
FY06-07 TO FY08-09
FY06-07
Department

# Claims

FY07-08

$ Paid

# Claims

FY08-09

$ Paid

# Claims

$ Paid

ADULT PROBATION

4

$0

7

$0

1

$0

ANIMAL CONTROL

20

$462

24

$11,693

21

$1,574

CORRECTIONAL HEALTH

3

$9,519

4

$0

2

$960

COUNTY ASSESSOR

3

$0

5

$0

2

$375

COUNTY ATTORNEY

22

$121,254

18

$212,066

8

$10,181

ELECTIONS DEPARTMENT

1

$0

1

$0

1

$0

ENVIRONMENTAL SERVICES

5

$21,114

0

$0

0

$0

FACILITIES MANAGEMENT

5

$1,668

12

$0

7

$2,667

FLOOD CONTROL

3

$0

4

$7,331

0

$0

JUSTICE COURTS

8

$843

4

$0

7

$7,803

LEGAL DEFENDER

1

$12,173

2

$29,466

1

$0

MARICOPA MEDICAL CENTER

26

$73,237

29

$62,600

16

$0

MEDICAL EXAMINER

3

$24,459

0

$0

0

$0

OFFICE OF LEGAL ADVOCATE

2

$0

0

$0

1

$2,688

PARKS & RECREATION

5

$0

5

$4,342

0

$0

PUBLIC DEFENDER

3

$7,990

10

$26,693

5

$0

PUBLIC FIDUCIARY

1

$344

1

$0

1

$0

PUBLIC HEALTH

17

$67,236

2

$0

2

$0

PUBLIC WORKS

96

$84,917

101

$8,550

67

$2,406

RISK MANAGEMENT

16

$16,208

12

$4,152

17

$21,874

SHERIFF

239

$1,360,269

209

$1,142,734

161

$253,483

SUPERINTENDENT OF SCHOOLS

2

$34,284

3

$6,904

2

$0

TREASURER

5

$0

2

$0

1

$0

TRIAL COURTS

11

$21,250

7

$40

15

$0

ALL OTHERS

6

$15,000

11

$16,365

20

$4,672

$1,872,227

473

$1,532,934

358

$308,684

TOTALS

507

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 FY06-07 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, 2009, as reported by the RiskMaster System.
4. The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-6

MEDICAL MALPRACTICE LOSS SUMMARY
FY06-07 TO FY08-09
FY06-07
Department

# Claims

FY07-08

$ Paid

# Claims

FY08-09

$ Paid

# Claims

$ Paid

CORRECTIONAL HEALTH

25

$702,098

39

$112,099

35

$3,304

MARICOPA MEDICAL CENTER

15

$926,110

15

$41,087

5

$0

PUBLIC HEALTH

0

$0

2

$8,593

1

$500

TOTALS

40

$1,628,208

56

$161,779

41

$3,804

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 FY06-07 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, 2009, as reported by the RiskMaster system.
4. The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-7

PROPERTY DAMAGE LOSS SUMMARY
FY06-07 TO FY08-09
FY06-07
Department

# Claims

FY07-08

$ Paid

# Claims

FY08-09

$ Paid

# Claims

$ Paid

ADULT PROBATION

0

$0

4

$1,062

2

$0

AIR QUALITY

1

$0

5

$9,368

6

$0

ANIMAL CONTROL

7

$4,167

16

$0

8

$5,689

COUNTY ASSESSOR

0

$0

0

$0

4

$0

ELECTIONS DEPARTMENT

3

$15,134

0

$0

0

$0

ENVIRONMENTAL SERVICES

4

$0

3

$6,254

2

$0

EQUIPMENT SERVICES

1

$3,297

0

$0

0

$0

FACILITIES MANAGEMENT

4

$711

6

$27,439

6

$2,854

FLOOD CONTROL

5

$8,163

2

$1,865

3

$4,644

HUMAN SERVICES

2

$0

1

$2,010

0

$0

JUSTICE COURTS

0

$0

1

$0

0

$0

JUVENILE PROBATION

0

$0

1

$0

0

$0

MARICOPA MEDICAL CENTER

6

$163,934

0

$0

3

$15,489

OFFICE OF ENTERPRISE TECH

0

$0

0

$0

2

$104,310

PARKS & RECREATION

6

$92,894

8

$9,983

2

$2,625

PLANNING & DEVELOPMENT

1

$0

1

$0

0

$0

PUBLIC DEFENDER

0

$0

1

$0

0

$0

PUBLIC HEALTH

5

$5,190

2

$0

1

$1,602

PUBLIC WORKS

13

$50,691

19

$28,071

7

$5,483

SHERIFF

13

$33,988

16

$84,500

21

$9,239

TRIAL COURTS

1

$0

1

$0

1

$0

TOTALS

72

$378,170

87

$170,553

68

$151,934

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 FY06-07 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, 2009, as reported by the RiskMaster System.
4. The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-8

WORKERS’ COMPENSATION LOSS SUMMARY
FY06-07 TO FY08-09
FY06-07
Department

# Claims

FY07-08

$ Paid

# Claims

FY08-09

$ Paid

# Claims

$ Paid

ADULT PROBATION

90

$183,920

57

$104,112

44

$67,983

AIR QUALITY

5

$3,543

8

$1,967

9

$6,868

ANIMAL CONTROL

53

$48,521

44

$29,376

36

$37,663

CLERK OF SUPERIOR COURT

22

$17,044

20

$15,153

13

$6,679

CORRECTIONAL HEALTH

34

$102,225

35

$37,377

28

$20,802

COUNTY ASSESSOR

4

$1,054

8

$21,152

9

$5,794

COUNTY ATTORNEY

24

$44,923

15

$20,079

9

$6,317

ELECTIONS DEPARTMENT

6

$138,013

6

$7,892

11

$13,164

ENVIRONMENTAL SERVICES

17

$77,678

14

$29,558

17

$37,764

EQUIPMENT SERVICES

9

$43,548

7

$66,685

7

$4,688

FACILITIES MANAGEMENT

19

$22,074

14

$25,790

3

$3,843

FLOOD CONTROL

11

$32,420

7

$57,924

0

$0

HEALTH CARE DISTRICT

373

$919,181

485

$855,614

360

$484,357

HUMAN SERVICES

30

$31,341

35

$60,111

17

$18,177

JUSTICE COURTS

21

$22,186

7

$32,506

7

$9,564

JUVENILE PROBATION

95

$392,083

77

$236,430

63

$61,428

LIBRARY DISTRICT

8

$1,473

10

$6,102

4

$3,039

MEDICAL EXAMINER

17

$13,065

13

$14,973

16

$13,955

PARKS & RECREATION

8

$16,310

8

$99,713

8

$2,800

PUBLIC DEFENDER

7

$25,721

15

$33,069

6

$15,427

PUBLIC HEALTH

51

$194,892

38

$46,372

28

$68,091

SHERIFF

438

$1,159,695

405

$880,597

443

$696,139

TRANSPORTATION

22

$89,493

25

$71,547

2

$1,262

TRIAL COURTS

37

$104,117

50

$145,287

32

$72,563

ALL OTHERS

20

$12,401

20

$36,788

37

$64,781

TOTALS

1421

$3,696,921

1423

$2,936,174

1209

$1,723,148

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 FY06-07 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, 2009, as reported by the Pinnacle system.
4.
The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-9

UNEMPLOYMENT LOSS SUMMARY
FY06-07 TO FY08-09

Department
ADULT PROBATION

FY07-08

FY07-08

FY08-09

$ Paid

$ Paid

$ Paid

$14,774

$24,087

$17,083

$3,893

$0

$22,458

CLERK OF SUPERIOR COURT

$26,147

$39,768

$21,905

CORRECTIONAL HEALTH

$12,154

$20,183

$22,180

COUNTY ASSESSOR

$20,016

$8,361

$26,326

COUNTY ATTORNEY

$6,733

$19,103

$12,746

$19,900

$2,926

$32,138

$3,327

$3,883

$11,378

$21,157

$14,712

$30,053

EQUIPMENT SERVICES

$3,112

$0

$0

FACILITIES MANAGEMENT

$2,516

$931

$3,294

FINANCE

$6,515

$0

$7,143

$16,040

$0

$0

$7,175

$0

$0

HUMAN SERVICES

$94,446

$137,358

$198,958

JUVENILE PROBATION

$32,330

$39,087

$41,097

$191,937

$149,810

$225,845

PARKS

$5,520

$6,240

$137

PLANNING & DEVELOPEMENT

$5,524

$25,410

$77,716

PUBLIC DEFENDER

$2,847

$18,617

$7,314

PUBLIC HEALTH

$13,186

$35,721

$29,628

SHERIFF

$54,829

$49,963

$39,957

$8,983

$1,234

$6,675

$23,066

$44,145

$36,532

$5,864

$23,968

$89,453

$601,990

$665,507

$960,017

AIR QUALITY

ELECTIONS
ENTERPRISE TECHNOLOGY
ENVIRONMENTAL SERVICES

HEALTH CARE MANDATES
HOUSING

MARICOPA MEDICAL CENTER

TRANSPORTATION
TRIAL COURTS
ALL OTHERS
TOTALS
Notes:
1.
2.
3.

Dollars paid represents the amount paid for the fiscal year. There are no reserves for unemployment.
Amounts as valued on June 30, 2009, as reported by the Advantage Financial System.
The totals are derived using both dollars and cents. The cents are removed for presentation purposes and all dollar
amounts are rounded to the nearest dollar.

VI-10