Risk Management
Annual Report
Fiscal Year Ended June 30, 2016

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 2015-2016

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, 2015 through June 30, 2016.
This report contains summaries of the fiscal year’s losses and costs for Maricopa County’s (County)
auto liability, auto physical damage, general liability, medical malpractice, property damage,
workers’ compensation, professional liability, environmental liability, environmental property
damage 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 to implement and improve their loss control and prevention programs.
Structure and Mission
As of June 30, 2016, the Risk Management Department (Department) completed its 35th year
administering the County’s self-insurance program. Risk Management’s mission is to provide
claims management, safety and loss control consultations and training, environmental consultations
and insurance coverage services to Maricopa County departments, districts, and Trust members so
each can reduce or eliminate loss. The vision is to be recognized as a leader in Risk Management,
and relied upon for a County-wide risk management philosophy and culture. Risk Management’s
primary activities are:
•
•
•
•
•
•
•
•
•

Risk consulting
Insurance procurement above self-insured retention levels
Maricopa County Self-Insured Risk Trust Fund management and financing
Administration and 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 standards and review.

The Department is divided into four operating divisions: Claims, Safety, Environmental, and
Administration. Highlights for each division are included herein. The Department strives to
accomplish its mission with assistance and direction from the Maricopa County Board of
Supervisors, the Maricopa County Self-Insured Risk Trust Fund Board of Trustees, and the County
Manager and County Chief Financial Officer. The Director of Risk Management reports to the
County Chief Financial Officer.

I-1

Self-Insured Trust Fund
Arizona Revised Statute (ARS) § 11-981 authorizes the County to self-insure, or procure insurance
from any insurer authorized by the State of Arizona Department of Insurance, or both. Insurance
(defined in ARS Title 20) includes, but is not limited to: auto liability, auto physical damage,
general liability, medical malpractice, property, workers’ compensation, professional liability,
environmental liability, environmental property damage and unemployment insurance.
Upon establishment of the self-insurance program, the County is required to designate a Risk Trust
Administrator (Director, Risk Management), and establish a trust. The Risk Trust is funded by an
allocation of funds from General Fund and Non-General Fund departments and Special Districts, or
such other funding sources permitted by State statute and authorized by the Risk Trust’s Board of
Trustees.
A Board of Trustees assists Risk Management to coordinate the Risk Trust’s activities and affairs.
Trustees, United States citizens and residents of Maricopa County, are appointed by the Maricopa
County Board of Supervisors (BOS) and the County Manager. During Fiscal Year FY15-16, 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
County Manager

Lisa Wahlin
Scott LeMarr
Thomas Katsenes
Steven Beeghley, Chair
Laura Guerrero
Shelby Scharbach

FY15-16 Results
During the three year period of FY13-14 through FY15-16, the Risk Trust’s assets decreased over
six million dollars, approximately 16.74% from $36,524,053 to $30,409,891. During the same
period, the Trust’s liabilities increased over eighteen million dollars, approximately 27.10%, from
$66,719,932 to $84,803,250. The deficit in the Risk Trust net position is a combination of a spend
down of the Trust in fiscal years when user departments were only charged for administrative costs
and a funding plan that uses both user charges and contingency funds. The Risk Trust is not funded
for accrued claim liabilities when determining the funding for each fiscal year.
Claim activity that occurred in FY15-16 includes a decrease in outstanding losses for General
Liability by approximately $8.2 million, primarily from one claim with $3.2 million in case reserves
that were paid in full, one large open claim that had a reduction in case reserves by about $600,000,
and the latest three years from prior analysis developed favorably. Workers’ Compensation, Auto
Liability, and Medical Malpractice case reserves decreased by $1.3 million, $1.9 million, and $0.8
million respectively. Environmental Liability claim reserves increased by $1.6 million, primarily
from one claim.

I-2

Cost of Risk
Cost of Risk is a comparison of the Risk Management program and costs of claims and claims
related expenses to the County’s overall expenditures or budget 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 the total County's expenditures. For FY13-14, the Cost of Risk
was 1.63%, and decreased to 1.25% at the end of FY15-16. Risk Management’s commitment is to
maintain this measure at or below 2%.
Claims and Premiums
Auto Liability
General Liability
Medical Malpractice
Environmental Liability
Property/Auto/Enviro Prop Damage
Workers' Compensation
Unemployment
Premiums
Subtotal
Other Expenses
Legal Expenses
Actuary Fees
Broker Fees
Consulting and Management Fees
Claims Administration Service Fees
Workers’ Compensation Taxes
Administrative
Subtotal
Total Risk Management Costs
Total County Expenditures
TOTAL COST AS A PERCENTAGE OF
COUNTY EXPENDITURES
Notes:

1.
2.
3.
4.

ACTUAL
FY13-14
$473,663
$8,996,288
$1,186,500
$237,405
$1,013,723
$3,527,011
$554,122
$5,183,725
$21,172,437

ACTUAL
FY14-15
$549,658
$1,602,542
$10,700
$1,676,521
$1,332,234
$4,030,529
$457,390
$5,519,792
$15,179,366

ACTUAL
FY15-16
$779,927
$4,471,333
$1,085,750
$621,774
$1,067,901
$3,540,961
$397,374
$5,413,059
$17,378,079

$6,112,202
$44,400
$57,875
$38,975
$14,047
$250,061
$2,775,050
$9,292,610
$30,465,047

$4,917,009
$35,000
$58,794
$42,542
$14,047
$191,131
$2,851,698
$8,110,221
$23,289,587

$3,997,666
$35,000
$60,556
$180,679
$10,888
$164,111
$2,979,035
$7,427,935
$24,806,014

$1,865,944,000

$1,914,790,775

$1,983,477,179

1.63%

1.22%

1.25%

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 for the period through June 30, 2016, as reported in the Advantage Financial System.
County expenditures do not include internal service funds per Internal Audit recommendation.
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-3

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

Thomas P. Liddy
Director, Risk Management
And the entire Risk Management Staff

I-4

CLAIMS
DIVISION

CLAIMS DIVISION

CLAIMS DIVISION
The Risk Management Claims Division is staffed with one manager, four senior adjusters, one
adjuster, and three administrative employees. The Division is committed to reducing Maricopa
County’s cost of risk through prudent claim and litigation management arising from the County’s
employee, auto, property and liability exposures. The Division also manages the County’s
unemployment claims through a third-party claim administrator.
Claims and lawsuits are investigated, evaluated and then either denied or resolved via litigation
or settlement. Litigated matters are assigned to either in-house counsel within the County
Attorney’s Office or outside counsel pursuant to contract. Thereafter, the Division manages the
assigned attorneys to minimize expense and obtain expeditious and fair resolutions.
The Division also manages the Subsequent Remedial Measures Program, the purpose and intent
of which is to assist departments in (1) identifying the root cause(s) of events which have
precipitated a Notice of Claim and/or lawsuit against Maricopa County and its employees, agents
and volunteers, and (2) formulating a subsequent remedial measures plan designed to mitigate
future claims and/or lawsuits arising out of the same or substantially similar root cause(s).
The Division also manages the Roundtable Program for high exposure and other sensitive
claims. This program provides the Division, the defendant departments and employees, agents,
volunteers, and defense counsel with the formulation and critical review of litigation tactics,
strategies, and related evidentiary issues.
Fiscal Year 15-16 Summary
In Fiscal Year (FY) 15-16, the Division managed 1,581 new workers’ compensation, auto
liability, auto physical damage, general liability, environmental liability, environmental property
damage, professional liability, medical malpractice, and property claims, an increase of 90
claims from FY 14-15.
CLAIM COUNTS BY FISCAL YEAR

II-1

For all such claims and lawsuits, the Division paid $1,846,697 a decrease of $63,927from FY 1415.
PAYMENTS MADE BY FISCAL YEAR

The Division also provided the following services to County departments and districts:


Risk Management’s Workers Compensation vendor conducts bill/invoice reviews and
applies available discounts when injured County employees utilize a Preferred Provider
Organization (PPO) (a medical services network). In FY15-16, the County realized a net
savings of $3,765,373, which equates to a 65% savings from billed charges. In FY 12-13 we
began calculating our savings on net of duplicate billings. By excluding duplicate bills from
the calculations it provides a truer picture.
WORKERS’ COMPENSATION BILL REVIEW

II-2

WORKERS COMPENSATION COSTS

WORKERS’ COMPENSATION SAVINGS



Recovery of subrogation for liability and workers’ compensation claims against third parties.



Consultation services to departments concerning coverage, exposures, perils, risk
management issues, and pending claims and litigation.



Review of indemnity and insurance requirements for County contracts.



Oversight of vendors and contractors providing Risk Management services, auto and
property appraisals, auto repair and structured settlement services.



Coordination of claim adjusting and recovery from the County’s property, aviation and crime
insurance policies, as well as from the County’s excess liability and medical malpractice
insurers.



Maintenance of the database to track and monitor County volunteers for purpose of workers’
compensation and Risk Trust liability coverage. Currently the Division manages 166
volunteer programs with 3,372 volunteers.
II-3

SAFETY DIVISION

SAFETY
DIVISION

SAFETY DIVISION
The focus of the Risk Management Safety Division is collaborating with other departments
County-wide to innovatively develop safety programs to assist in meeting strategic goals. Risk
mitigation, loss reduction and compliance are achieved by interaction with departments utilizing
a variety of proven safety strategies reducing negative outcomes and increasing productivity. Our
goal is to mitigate exposures thus minimizing preventable injuries/accidents. Our road map to
success is a four-step process:
1. Obtain management’s support of County safety policies.
2. Train employees in safe work practices and safety/hazard awareness and identification.
3. Identify potential risks and develop safer, less risky alternatives to accomplish the task or
process.
4. Maintain an effective, comprehensive and compliant accident/incident control program.
This four-step process and the cooperation of the various departments have been instrumental in
reducing injuries and vehicle collisions. An example of continually improving departmental
safety performance is the Injury Incident Rate detailed below.
In FY2016, workers’ compensation data realized a decrease of 30 recordable injuries. There
were 426 recordable injuries in FY2015 versus 396 recordable injuries in FY2016. The injury
incident rate is based on a ratio of the recordable injuries and the number of exposure hours
(employee hours worked).
The County’s overall injury incident rate decreased from 3.65 in FY2015 to 3.39 in FY2016.

III-1

***Disclaimer*** the provided Injury Incident Rate is not 100% accurate. Non-classified
(salary) employees do not report all of their exposure hours via the ADP portal which autopopulates 40 hours. The actual rate would be lower than what is presented.
The Risk Management Safety Division offers a total solution for safety awareness and safety
compliance training. We utilize strategic partnering with all County departments to provide a
safe and hazard free workplace for all county employees.
Risk Management Safety Training & Programs
SafeStart: After completing SafeStart training for all Flood Control, MCDOT and Waste
Resources and Recovery Department employees in 2015, the Risk Management Safety Division
qualified SafeStart Instructors began the maintenance phase of the SafeStart training. A total of
179 new County employees were trained in various levels of SafeStart. The Flood Control and
MCDOT SafeStart Steering Committees continued in operation, developing SafeStart reminder
signs, videos, calendars and note pads.
Maricopa County Vehicle and Equipment Use Program (VUP): The job of keeping hundreds
of County employees trained, qualified and authorized on over 40 types of equipment is a
difficult task. Maricopa County departments such as Maricopa County Department of
Transportation (MCDOT), Flood Control District (FCD), Waste Resources and Recycling
Management (WRR) and Maricopa County Sheriff’s Office (MCSO) have joined together with
the Safety Division to develop and implement a Vehicle Use Permit (VUP) program to manage
this training.
On-Site Safety Training Programs: Due to staffing issues, not all departments can send
employees to off-site training, thus the Risk Management Safety Division provides training at
employee worksites focused on the needs and current injury/collision trends of the department.
This training can be task or program specific or targeted to re-educate employees in safe
procedures.
Examples of targeted training include:
•
•
•

Personal Protective Equipment-unique to more hazardous activities, such as fall
protection.
Heat Stress Awareness-for employees working outside during summer months.
Safe Lifting and Back Injury Prevention.

Examples of routine training offered at multiple locations to accommodate the scheduling needs
of departments include:
•
•
•
•

Defensive Driving
Hazard Communication
Bloodborne Pathogen Awareness
Fire Extinguisher Awareness and Emergency Evacuation
III-2

•
•
•
•
•
•
•

CPR and First Aid
Ladder Safety
Confined Spaces
Asbestos/Mold Awareness
Heat Stress
Fall Protection
Personal Protective Equipment

Train the Trainer: The Maricopa County Risk Management Safety Division has also created a
robust Train the Trainer program as a provision for departments who need to provide their own
training due to 24-hour operations or geographically challenging locations.
On-Line Safety Training Programs: In an effort to expand the opportunity for employees to
have access to safety training and minimize the time away from their job duties, the Safety
Division developed specific on-line training programs to comply with OSHA requirements for
Annual Refresher training. These training programs provided by the Risk Management Safety
Division can be found on the County On-Line Learning Center home page:
Blood Borne Pathogens – OSM102OA
Fall Protection – OSM113OA
Heat Illness Prevention – OSM116-O
Lock Out/Tag Out – OSM114OA
Respiratory Protection – OSM115OA
Slips, Trips and Falls – SAF124-O

Confined Space – OSM112OA
Fire Extinguisher Safety – OSM108-OB
Hearing Conservation – OSM106OA
Personal Protective Equipment – OSM104OA
Safety in the Office – OSA136-O

Commercial Driver’s License (CDL): Several County employees are required to drive
commercial vehicles to perform their duties at the County. These employees require specialized
training and a CDL from Motor Vehicles to drive these vehicles. In order to minimize
department down time the Safety Division’s fleet safety consultant provides on-site programs.
These include:
•
•

•

Providing a three (3) day training program to prepare employees to take the written
examination required to obtain a CDL from the MVD.
Serving as a third party tester for ADOT and MVD. The Fleet CDL Safety Training
and Development Specialist provides approved and recognized testing services as
required by the State for county employees, eliminating the need of expended man
hours having to go to MVD for the hands on testing.
Providing all CDL annual training to department’s requiring CDL drivers.

Off-Site Safety Training: Requires an off-site location due to the type of training.
•

Welding Safety Training and Certification -- All County departments that have
cutting and welding activities require training to comply with OSHA and ANSI safety
requirements. Training and certification is administered by an outside contractor.

III-3

•

Collision Awareness Driving Safety - This course is two hours of classroom driver
safety and a one-hour field exercise. Employees operate vehicles through a course
designed to help them become more efficient at backing, parking lot maneuvering,
lane changes, and evasive maneuvers. The Safety Division also instructs various
other driver safety classes such as Utility Truck, Trailer Towing Safety and Defensive
Driving. In FY2015 we conducted 14 Collision Avoidance classes for 159 County
employees.

•

Defensive Driving Training (DDC) – This course is required training in order to
obtain a Vehicle Use Permit (VUP).
DDC is often a corrective action
recommendation for drivers who have been involved in a “Preventable” vehicle
collision. County employees log more than 25 million miles annually with a high
potential for complacency while driving. To combat complacency and keep focus on
safe driving, DDC is required bi-annually.

•

Vehicle and Equipment Use Permit (VUP) – This program is an authorization for
county employees to drive county owned, leased and/or personal vehicles on while
conducting county business per Maricopa County policy A2310 and the Risk
Management Trust Fund. The Risk Management Safety Division acts as the County
Manager’s Designee, processing all employee requests to operate vehicles and
equipment for the County.

•

CPR and First Aid - CPR and First Aid are a requirement for many positions in the
County. CPR is a skill that one never knows when they will need it, and will never
know what a difference it can make until it is used. First Aid is the immediate care
given to an injured or suddenly ill person, consisting only of furnishing temporary
assistance until competent medical care, if needed, is obtained or until the chance for
recovery without medical care is assured.

Citizens Serving Citizens Safety Day: The 2016 Citizens Serving Citizens Safety day was a
great success. There were 16 County departments/divisions from all over the county, interacting
with employees to expand understanding of what each department does and how safety plays a
role within their services.
Additional Safety Strategies: The Safety Division uses a wide variety of recognized safety
program techniques in addition to training to keep County employees safe. These include:
•
•
•
•
•
•

Facility and Field Operation Inspections
Departmental Safety Program Audits
Departmental Policy and Procedure Development and Audits
Departmental Safety Committees
Job Safety Analysis
Vehicle Collision investigations with corrective action recommendations designed
to minimize reoccurrence of accidents.

III-4

As Maricopa County continues developing safety management systems, it is necessary that each
level of management take a proactive role in safety improvement. Management commitment,
front-line supervision and accountability are the keys to sustain successful safety processes and
reduce unsafe work practices.

III-5

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 $6,500,483 for
FY15-16.
This fiscal year the Division:
•

•

•
•

•

•
•

The Risk Recycling program during its first full fiscal year of operation collected and
recycled approximately 160,000 pounds of materials from County operations. Prior to
Risk Recycling, most of this material would have gone to landfill. The total amount paid
to vendors for transportation and recycling was less than $3,000. The Risk Recycling
Program also was awarded an Award of Merit for Environmental Achievement by
Arizona Forward.
Continued to cooperate with Arizona Department of Environmental Quality (ADEQ) in
conducting site characterization of groundwater contamination at the Cave Creek
Landfill. In FY 2015-2016 public comments were received, addressed and submitted to
ADEQ for approval of the Draft Revised Remedial Action Plan. Construction of the
vapor extraction system (SVE) was completed. Operation of the SVE system was
commenced. The groundwater extraction well was designed and the location pad
prepared for construction. An intergovernmental agreement (IGA) was reached with the
City of Phoenix for the installation of the treated groundwater recharge well on City
property.
Continued to participate with the Hassayampa Steering Committee in working towards
the remediation of the Hassayampa Superfund Site.
Prepared updated Spill Prevention Control and Countermeasure (SPCCs) plans for 5
County facilities and Stormwater Pollution Prevention Plans (SWPPPs) for 4 County
facilities. Continued to review County facilities to ensure that required permits are in
place.
Completed in-house assessments and remedial oversight for industrial hygiene, indoor air
quality, microbial contamination, asbestos and lead paint projects. Over 259 projects
were opened, completed and closed in FY15-16. Since the in-house service began in
2006, it continues to represent a direct savings to the County by avoiding 3rd party
consultant fees in the conservative range of $150,000 - $200,000 annually.
Continued Hazard Communication Training to comply with OSHA’s Globally
Harmonized System (GHS) amendments. Training has included over 50 classes including
classroom sessions and live webinars.
Conducted inspections of 110 County owned and maintained drywells. Recommendations
were turned over to Facilities Maintenance for required repairs and for best practices
repairs. These repairs help reduce regulatory liability and general liability for the County.
Several drywells were discovered that were not previously inventoried or inspected.

IV-1

•

•

Assisted Facilities Management, Superior Courts, Real Estate, Maricopa County Sheriff’s
Office (MCSO), Maricopa County Department of Transportation (MCDOT), Juvenile
and Adult Probation, Flood Control District, Legal Defender, Environmental Services,
Equipment Services, Emergency Management, Office of Enterprise Technology ( OET),
Maricopa County Attorney’s Office, Assessor, , Waste Resources and Recycling, Public
Health, Medical Examiner, Parks, Equipment Services and the Library District in
environmental studies, hazardous waste reviews and clean-ups, and conducting indoor air
quality review, asbestos and lead paint surveys.
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 Risk
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 Risk 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, 2016.
Self-Insured Trust Fund
Combined Balance Sheet Comparison
FY13-14, FY14-15, FY15-16

Assets
Liabilities
Net Position

Audited
FY13-14
$ 36,524,053
$ 66,719,932
($ 30,195,879)

Audited
FY14-15
$34,460,520
$74,182,225
($39,814,882)

Audited
FY15-16
$30,409,891
$84,803,250
($54,269,224)

During the FY13-14 through FY15-16 period, the Risk Trust’s assets decreased over six million
dollars, approximately 16.74%, from $36,524,053 to $30,409,891. During the same period, the
Trust’s liabilities increased over eighteen million dollars, approximately 27.10%, from $66,719,932
to $84,803,250. The deficit in Risk Trust net position is a result of a spend down of the Risk Trust
fund in fiscal years when user departments were only charged for administrative costs even though
claims and insurance continued to be paid by Risk Management on behalf of user departments.
The Risk Trust began billing user departments for the full costs of claims and insurance and
administrative costs in FY99-00. On an annual basis, the Risk Trust funding plan calculates the
total Risk Management’s expenses for the fiscal year, the next year’s claims and claims related
expenses and other factors. Beginning in fiscal year 2012, the Risk Trust began using a
combination of user charges and contingency funds. The County does not fund the Risk Trust for
accrued claim liabilities when determining the funding for each fiscal year.

Insurance Policies
Risk Management continually analyzes insurance market trends. During 2016, the market held
steady except for Medical Malpractice. Medical Malpractice saw a major carrier make the business
decision to drop their limits. This caused the County to see a second carrier to have the same
coverage. This caused a slight increase as well this year. Risk Management works closely with our
insurance broker to aggressively pursue reasonable insurance coverage’s to protect the County.

V-1

Budget Summary
The expenditure budget for the Risk Management Department for FY15-16 was $33,338,997, of
which $2,771,796 was for personnel costs, $549,469 supplies and services, and $30,017,732 was for
insurance, legal, and claims and claims related expenditures. On a percentage basis, 90.04% of Risk
Management’s budget is committed to insurance, legal, claims and claim related expenditures.
The revenue budget for the Risk Management Department for FY15-16 was $24,088,690, of
which $20,170,789 was from user charges, $400,000 from interest earnings and $3,517,901 was
budgeted for contingency transfers in. On a percentage basis, 83.74% of the revenue is from user
charges. These user charges are based on actuarially estimated claims payments and insurance
projections Risk Management will pay on behalf of County departments.

Note:

The auditors have not reviewed and are not providing an opinion as to the information disclosed in the annual
report.

V-2

STATISTICS AND COVERAGE

STATISTICS
AND COVERAGE

TOTAL COST SUMMARY CHART
FY13-14 TO FY15-16
Workers’ Compensation
Property Damage

Paid

Reserves

FY 15-16

Professional Liability
Medical Malpractice
General Liability
Environmental Property
Environmental Liability
Auto Physical Damage
Auto Liability
Workers’ Compensation
Property Damage
FY 14-15

Professional Liability
Medical Malpractice
General Liability
Environmental Property
Environmental Liability
Auto Physical Damage
Auto Liability
Workers’ Compensation
Property Damage
FY 13-14

Professional Liability
Medical Malpractice
General Liability
Environmental Property
Environmental Liability
Auto Physical Damage
Auto Liability
0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

Notes:
1. Dollars paid listed above represents payments on claims by event date, not actual payment date. Due to lag time in resolution and payment of claims, the figures
from FY13-14 give a truer picture as these claims have had time to mature.
2. Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
3. Unemployment not included.
4. Small dollar amounts may not be visible on the chart, but they are included in the data.

VI-1

TOTAL COST SUMMARY TABLE
FY13-14 TO FY15-16

Auto Physical Environmental
Auto Liability
Damage
Liability

FY 13-14

FY 14-15

FY 15-16

Environmental
Property
Damage

General
Liability

Medical
Malpractice

Professional
Liability

Property
Damage

Worker’s
Compensation

$ Paid

$682,192

$552,121

$0

$0

$1,535,993

$934,268

$109,489

$497,267

$2,621,807

Open Reserves

$1,110,063

$2,151

$0

$0

$4,248,935

$334,974

$55,106

$855,153

$457,538

Total Incurred

$1,792,256

$554,272

$0

$0

$5,784,928

$1,269,242

$164,596

$1,352,419

$3,079,345

$ Paid

$503,339

$582,530

$8,009

$0

$354,172

$49,728

$13,478

$216,974

$2,131,202

Open Reserves

$10,002

$3,007

$0

$0

$1,894,340

$775,846

$0

$11,503

$231,792

Total Incurred

$513,341

$585,537

$8,009

$0

$2,248,512

$825,574

$13,478

$228,477

$2,362,994

$ Paid

$152,969

$366,962

$0

$0

$27,136

$0

$27,123

$267,548

$1,004,960

Open Reserves

$53,681

$75,739

$0

$0

$348,830

$16

$138,205

$95,646

$686,841

Total Incurred

$206,650

$442,700

$0

$0

$375,965

$16

$165,327

$363,194

$1,691,801

Notes:
1. Dollars paid listed above represents payments on claims by event date, not actual payment date. Due to lag time in resolution and payment of claims, the
figures from FY13-14 give a truer picture as these claims have had time to mature.
2. Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
3. Unemployment not included.
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-2

TOTAL CLAIMS SUMMARY TABLE
FY13-14 TO FY15-16
FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Adult Probation

66

$397,640

81

$189,174

105

$63,300

Animal Control

71

$61,493

54

$91,752

68

$72,971

Clerk of the Superior Court

16

$9,203

12

$23,068

16

$6,975

Constables

8

$9,678

10

$127,457

6

$15,257

Correctional health

83

$1,083,476

55

$107,295

27

$26,280

County Assessor

10

$54,346

7

$43,163

6

$2,581

County Attorney

59

$278,104

42

$47,334

34

$40,373

Environmental Services

35

$88,985

51

$67,481

36

$23,291

Facilities Management

53

$671,397

35

$98,405

47

$196,830

Flood Control District

31

$73,549

37

$78,101

25

$33,081

Human Services

27

$97,819

19

$19,834

24

$19,233

Justice Courts

10

$10,479

7

$1,373

2

$0

Juvenile Probation

66

$237,472

62

$215,581

54

$60,154

Library District

10

$3,930

10

$22,597

8

$5,251

Medical Examiner

18

$55,930

27

$17,307

22

$41,850

Parks and Recreation

18

$124,348

12

$24,950

21

$91,485

Planning and Development

6

$7,890

7

$16,905

2

$36,951

Protective Services

7

$60,613

1

$5,012

12

$6,202

Public Defender

16

$61,248

9

$32,988

14

$35,397

Public Health

27

$46,293

30

$106,882

25

$42,957

Sheriff

867

$2,852,759

905

$2,145,831

776

$887,662

6

$13,326

0

$0

5

$1,998

Transportation

139

$437,165

115

$146,966

110

$61,247

Trial Courts

32

$103,104

28

$74,793

22

$14,413

ALL OTHERS

76

$92,887

102

$155,181

114

$60,956

1757

$6,933,134

1718

$3,859,430

1581

$1,846,695

Superintendent of Schools

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 FY13-14 give a
truer picture of the cost of these claims as they have had time to mature.
2. Number of claims represents the number of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
4. Unemployment not included.
5. All dollar amounts are rounded to the nearest dollar.

VI-3

TOTAL NUMBER OF CLAIMS SUMMARY CHART
FY13-14 TO FY15-16

Notes: Unemployment not included.

VI-4

TOTAL NUMBER OF CLAIMS SUMMARY TABLE
FY13-14 TO FY15-16

FY 13-14

FY 14-15

FY 15-16

Automobile Liability

64

67

44

Auto Physical Damage

335

430

434

Environmental Liability

0

1

0

Environmental Property Damage

0

0

0

General Liability

366

337

243

Medical Malpractice

54

27

12

Professional Liability

7

2

4

Property Damage

117

107

115

Workers' Compensation

814

747

729

TOTALS

1757

1718

1581

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

VI-5

AUTO LIABILITY LOSS SUMMARY
FY13-14 TO FY15-16
FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Adult Probation

1

$0

3

$9,830

2

$2,754

Air Quality

0

$0

0

$0

2

$0

Animal Control

3

$4,856

0

$0

1

$0

Constables

1

$0

1

$1,200

2

$15,158

County Attorney

1

$1,625

2

$11,264

1

$0

Environmental Services

6

$38,332

3

$2,479

1

$0

Facilities Management

1

$3,709

1

$1,033

0

$0

Flood Control District

1

$15,000

4

$6,427

1

$10,032

Juvenile Probation

0

$0

0

$0

1

$0

Library District

1

$0

0

$0

0

$0

Parks and Recreation

1

$3,553

0

$0

0

$0

Planning and Development

1

$3,150

0

$0

0

$0

Public Defender

0

$0

1

$0

1

$543

Public Defense Services

1

$1,025

0

$0

0

$0

Risk Management

0

$0

1

$3,108

0

$0

Sheriff

34

$496,437

38

$448,206

29

$123,440

Transportation

6

$114,505

7

$19,790

1

$1,041

Trial Courts

1

$0

0

$0

0

$0

All Others

5

$0

6

$0

2

$0

TOTALS

64

$682,192

67

$503,337

44

$152,968

Notes: 1.
2.
3.
4.

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 FY13-14 give a
truer picture of the cost of these claims as they have had time to mature.
Number of claims represents the number of claims for the year in which the event occurred.
Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
All dollar amounts are rounded to the nearest dollar.

VI-6

AUTO PHYSICAL DAMAGE SUMMARY
FY13-14 TO FY15-16
FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Adult Probation

29

$33,737

49

$33,838

73

$45,746

Air Quality

1

$1,517

1

$0

8

$17,751

Animal Control

21

$7,380

7

$24,165

9

$9,369

Clerk of Superior Court

1

$0

3

$1,029

1

$3,600

Constables

6

$6,679

5

$35,229

3

$99

County Attorney

11

$6,531

17

$14,721

9

$4,944

Environmental Services

14

$12,262

29

$32,159

21

$11,684

Equipment Services

1

$0

3

$16,348

4

$2,979

Facilities Management

6

$6,723

3

$1,333

5

$3,742

Flood Control District

15

$26,106

21

$40,789

15

$17,278

Human Services

1

$0

1

$0

0

$0

Justice Courts

1

$0

0

$0

0

$0.00

Juvenile Probation

6

$16,422

9

$12,638

8

$2,688

Library District

0

$0

3

$4,373

3

$4,288

Medical Examiner

1

$0

1

$0

2

$0

Parks and Recreation

5

$10,617

1

$0

3

$0

Planning and Development

2

$1,243

6

$9,328

1

$0

Public Advocate

3

$0

0

$0

1

$0

Public Defender

1

$0

2

$5,264

1

$0

Public Defense Services

1

$0

1

$0

0

$0

Public Health

2

$3,307

3

$3,452

2

$0

Sheriff

178

$310,735

227

$291,328

214

$194,573

Transportation

28

$108,863

31

$44,374

34

$33,668

Waste Resources and Recycling

1

$0

0

$0

3

$3,110

All Others

0

$0

7

$12,164

14

$11,443

335

$552,122

430

$582,532

434

$366,962

TOTALS
Notes:

1.
2.
3.
4.

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 FY13-14 give
a truer picture of the cost of these claims as they have had time to mature.
Number of claims represents the number of claims for the year in which the event occurred.
Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
All dollar amounts are rounded to the nearest dollar.

VI-7

ENVIRONMENTAL LIABILIY
FY13-14 TO FY15-16

FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Flood Control District

0

$0

1

$8,009

0

$0

TOTALS

0

$0

1

$8,009

0

$0

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 FY13-14 give a
truer picture of the cost of these claims as they have had time to mature.
2. Number of claims represents the number of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
4. All dollar amounts are rounded to the nearest dollar.

VI-8

ENVIRONMENTAL PROPERTY DAMAGE
FY13-14 TO FY15-16

FY13-14
Department

TOTALS

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

0

$0

0

$0

0

$0

0

$0

0

$0

0

$0

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 FY13-14 give a
truer picture of the cost of these claims as they have had time to mature.
2. Number of claims represents the number of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
4. All dollar amounts are rounded to the nearest dollar.

VI-9

GENERAL LIABILITY LOSS SUMMARY
FY13-14 TO FY15-16
FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Adult Probation

2

$0

0

$0

2

$0

Animal Control

12

$2,777

7

$3,414

21

$17,998

Correctional Health

1

$0

5

$0

4

$0

County Assessor

2

$0

5

$500

1

$0

County Attorney

30

$154,759

14

$6,205

7

$0

County Manager’s Office

1

$5,592

1

$0

0

$0

Environmental Services

2

$500

2

$0

3

$0

Facilities Management

8

$252,451

8

$6,700

4

$2,318

Flood Control District

2

$0

7

$16,058

1

$296

Justice Courts

1

$0

4

$372

1

$0

Library District

1

$0

0

$0

2

$0

Medical Examiner

2

$3,640

2

$0

0

$0

Parks and Recreation

1

$5,843

2

$4,000

1

$0

Planning and Development

1

$740

0

$0

0

$0

Protective Services

3

$1,000

0

$0

0

$0

Public Advocate

1

$500

0

$0

0

$0

Public Defender

9

$32,884

5

$27,724

4

$1,257

Public Fiduciary

2

$22,865

1

$0

0

$0.00

Public Health

4

$7,500

2

$2,126

3

$0

Risk Management

1

$0

0

$0.00

0

$0

210

$1,031,717

186

$222,270

105

$1,506

Stadium District

1

$0

2

$0

1

$0

Transportation

34

$13,227

25

$6,741

22

$2,511

Trial Courts

9

$0

4

$0

2

$0

All Others

26

$0

55

$58,061

59

$1,250

TOTALS

366

$1,535,995

337

$354,171

243

$27,136

Sheriff

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 FY13-14 give a truer
picture of the cost of these claims as they have had time to mature.
2. Number of claims represents the number of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
4. All dollar amounts are rounded to the nearest dollar.

VI-10

MEDICAL MALPRACTICE LOSS SUMMARY
FY13-14 TO FY15-16

FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Correctional Health

50

$934,268

27

$49,728

10

$0

All Others

4

$0

0

$0

2

$0

TOTALS

54

$934,268

27

$49,728

12

$0

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 FY13-14 give a
truer picture of the cost of these claims as they have had time to mature.
2. Number of claims represents the number of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
4. All dollar amounts are rounded to the nearest dollar.

VI-11

PROFESSIONAL LIABILITY LOSS SUMMARY
FY13-14 TO FY15-16
FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

County Attorney

5

$99,899

2

$13,478

3

$23,759

Public Defender

2

$9,591

0

$0

1

$3,364

TOTALS

7

$109,490

2

$13,478

4

$27,123

Notes: 1.
2.
3.
4.

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 FY13-14 give
a truer picture of the cost of these claims as they have had time to mature.
Number of claims represents the number of claims for the year in which the event occurred.
Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
All dollar amounts are rounded to the nearest dollar.

VI-12

PROPERTY DAMAGE LOSS SUMMARY
FY13-14 TO FY15-16
FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Adult Probation

1

$0

3

$6,286

1

$0

Air Quality

1

$0

3

$2,515

3

$0

Animal Control

3

$0

5

$0

4

$0

Clerk of Superior Court

0

$0

1

$12,160

0

$0

Emergency Management

1

$0

0

$0

1

$0

Employee Benefits and Health

0

$0

1

$0

0

$0

Environmental Services

1

$392

4

$0

2

$0

Equipment Services

0

$0

0

$0

1

$0

Facilities Management

29

$325,173

18

$86,829

32

$158,382

Flood Control District

7

$12,062

0

$0

1

$0

Human Services

1

$81,535

3

$0

0

$0

Juvenile Probation

0

$0

1

$26,182

0

$0

Medical Examiner

0

$0

0

$0

1

$7,268

Office of Enterprise Technology

1

$790

0

$0

1

$0

Parks and Recreation

6

$28,362

4

$4,677

11

$83,535

Public Health

1

$0

2

$0

3

$0

Risk Management

0

$0

0

$0

1

$0

Sheriff

13

$33,973

19

$7,452

15

$7,387

Superintendent of Schools

1

$0

0

$0

1

$0

Transportation

50

$14,979

41

$51,274

35

$10,975

Trial Courts

0

$0

0

$0

1

$0

Waste Resources and Recycling

1

$0

2

$19,597

1

$0

117

$497,266

107

$216,972

115

$267,547

TOTALS
Notes: 1.
2.
3.
4.

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 FY13-14 give
a truer picture of the cost of these claims as they have had time to mature.
Number of claims represents the number of claims for the year in which the event occurred.
Amounts as valued on June 30, 2016, as reported by the RiskMaster system.
All dollar amounts are rounded to the nearest dollar.

VI-13

UNEMPLOYMENT LOSS SUMMARY – PAID IN YEAR
FY13-14 TO FY15-16
FY13-14

FY14-15

FY15-16

$ Paid

$ Paid

$ Paid

Adult Probation

$35,817

$16,384

$12,650

Air Quality

$3,617

$10,379

$1,646

Animal Control

$11,610

$16,366

$5,516

Clerk of Superior Court

$9,385

$10,223

$21,830

Correctional Health

$25,112

$41,552

$18,099

County Assessor

$28,487

$4,570

$6,975

County Attorney

$29,463

$20,864

$25,846

Elections

$12,149

$14,339

$3,871

Equipment Services

$2,640

$0

$0

Facilities Management

$7,426

$11,575

$9,060

Flood Control District

$7,052

$9,537

$1,680

Human Services

$132,416

$49,288

$55,514

Justice Courts

$22,239

$15,366

$24,361

Office of Enterprise Technology

$10,295

$14,986

$4,320

Parks and Recreation

$3,205

$7,088

$1,481

Public Defender

$13,202

$5,916

$7,680

Public Fiduciary

$5,004

$5,193

$5,660

Public Health

$23,794

$27,455

$53,409

Recorder

$9,134

$0

$0

Sheriff

$60,314

$62,824

$54,158

Star Call Center

$2,640

$1,299

$0

Transportation

$56,759

$37,897

$30,972

Trial Courts

$13,388

$8,867

$17,930

Waste Resources and Recycling

$16,800

$5,280

$3,106

All Others

$7,995

$56,452

$32,569

$549,943

$453,700

$398,333

Department

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, 2016, as reported by the Advantage Financial System.

VI-14

WORKERS’ COMPENSATION LOSS SUMMARY
FY13-14 TO FY15-16
FY13-14
Department

FY14-15

FY15-16

# Claims

$ Paid

# Claims

$ Paid

# Claims

$ Paid

Adult Probation

33

$363,903

26

$139,219

27

$14,800

Air Quality

3

$757

5

$1,315

4

$1,009

Animal Control

32

$46,481

35

$64,173

33

$45,605

Clerk of Superior Court

15

$9,203

8

$9,879

13

$2,875

Correctional Health

32

$149,207

22

$57,567

13

$26,280

County Assessor

8

$54,346

2

$42,663

5

$2,581

County Attorney

12

$15,291

7

$1,665

14

$11,670

Elections Department

4

$36,226

4

$29,005

2

$368

Environmental Services

12

$37,499

13

$32,843

9

$11,607

Facilities Management

9

$83,340

5

$2,510

6

$32,389

Flood Control District

6

$20,381

4

$6,818

7

$5,474

Human Services

25

$16,284

15

$19,834

21

$18,983

Justice Courts

8

$10,479

3

$1,001

1

$0.00

Juvenile Probation

60

$221,051

52

$176,760

45

$57,466

Library District

8

$3,930

7

$18,224

3

$964

Medical Examiner

15

$52,290

24

$17,307

19

$34,583

Parks and Recreation

5

$75,973

5

$16,273

6

$7,949

Protective Services

4

$59,613

0

$0

9

$3,667

Public Defender

4

$18,774

1

$0

7

$30,233

Public Health

20

$35,487

23

$101,304

17

$42,957

Sheriff

432

$979,897

435

$1,176,574

413

$560,755

Superintendent of Schools

5

$13,326

0

$0

4

$1,998

Transportation

21

$185,592

11

$24,787

18

$13,051

Trial Courts

22

$103,104

22

$67,641

15

$12,218

All Others

19

$29,372

18

$123,839

18

$65,478

TOTALS

814

$2,621,806

747

$2,131,201

729

$1,004,960

Notes: 1.
2.
3.
4.

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 FY13-14 give
a truer picture of the cost of these claims as they have had time to mature.
Number of claims represents the number of claims for the year in which the event occurred.
Amounts are as valued on June 30, 2016, as reported by RiskMaster.
All dollar amounts are rounded to the nearest dollar.

VI-15