|
providing claims servicing and claims payment by charging a "premium" to each fund, agency or public authority,
based on a percentage of each organization's estimated current-year payroll or based on an average loss
experienced by each organization. This charge considers recent trends in actual claims experience of the State as a
whole and makes provision for catastrophic losses.
The Program's liabilities are reported when it is probable that a loss has occurred and the amount of that loss
can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported.
Because actual claims liabilities depend on such complex factors as inflation, changes in legal doctrines, and
damage awards, the process used in computing claims liability does not necessarily result in an exact amount.
Claims liabilities are reevaluated periodically to take into consideration recently settled claims, the frequency of
claims, and other economic and social factors. Liabilities for incurred workers' compensation losses to be settled
by fixed or reasonably determinable payments over a long period of time are reported at their present value using a
4% discount rate. The workers' compensation and property and casualty costs are based upon separately
determined actuarial valuations for the fiscal year ending June 30, 1996. The employee health benefits liability is
calculated on claims subsequently reported and claims trends.
Changes in the self-insurance liabilities during fiscal year 1995 were as follows (amounts expressed in
thousands).
|
|
Beginning-of
|
Claims and
|
|
|
|
|
Fiscal-Year
|
Changes in
|
Claim
|
|
|
|
Liability
|
Estimates
|
Payments
|
Total
|
|
Property, Casualty and General Liability ......................................................
|
$ 7,280
|
$ 7,670
|
$ 6,323
|
$ 8,627
|
|
Workers' Compensation ...................................................................................
|
122,551
|
28,030
|
24,016
|
126,565
|
|
Employee Health Benefits. ..............................................................................
|
41,413
|
236,178
|
251,921
|
25,670
|
|
Total Self-Insurance Costs. ..........................................................................
|
$171,244
|
$271,878
|
$282,260
|
$160,862
|
Changes in the self-insurance liabilities during fiscal year 1996 were as follows (amounts expressed in
thousands).
|
|
Beginning-of
|
Claims and
|
|
|
|
|
Fiscal-Year
|
Changes in
|
Claim
|
|
|
|
Liability
|
Estimates
|
Payments
|
Total
|
|
Property, Casualty and General Liability ......................................................
|
$ 8,627
|
$ 8,000
|
$ 6,127
|
$ 10,500
|
|
Workers' Compensation...................................................................................
|
126,565
|
48,224
|
28,374
|
146,415
|
|
Employee Health Benefits ...............................................................................
|
25,670
|
238,911
|
236,260
|
28,321
|
|
Total Self-Insurance Costs. ..........................................................................
|
$160,862
|
$295,135
|
$270,761
|
$185,236
|
As of June 30, 1996, the Program held $72,971,389 in cash and investments designated for payments of these
claims.
12. Equity:
Fund Balances/Retained Earnings ?
Fund Balances and retained earnings are reserved as follows (amounts expressed in thousands).
|
|
|
|
|
|
Fiduciary
Fund
|
Component
|
|
|
|
|
Governmental
|
Fund Types
|
|
Types
|
Units
|
|
|
|
|
Special
|
Debt
|
Capital
|
Trust and
|
Higher
|
Proprietary
|
|
|
General
|
Revenue
|
Service
|
Projects
|
Agency
|
Education
|
Fund Types
|
|
Loans and Notes Receivable.......................................
|
$ 1,234
|
$ 3,613
|
$26,139
|
|
|
|
|
|
Loans to Other Funds ..................................................
|
|
25,000
|
|
|
|
|
|
|
Loans to Component Units..........................................
|
|
|
6,372
|
|
|
|
|
|
State Reserve Fund.... ............................................. ......
|
519,673
|
|
|
|
|
|
|
|
Encumbrances ......... ......................................................
|
203,773
|
188,145
|
|
$362,586
|
|
|
|
|
Agency Activities...........................................................
|
85,386
|
42,760
|
|
|
|
|
$5,297
|
|
Shore Erosion Loan Program.................. ....................
|
|
|
|
16,147
|
|
|
|
|
Pension Benefits.............................................. ............ ..
|
|
|
|
|
$20,790,270
|
|
|
|
Unemployment Compensation Benefits ....................
|
|
|
|
|
739,120
|
|
|
|
Higher Education Programs........................................
|
|
|
|
|
|
$102,598
|
|
|
Endowment Funds... .....................................................
|
|
|
|
|
|
72,692
|
|
|
Debt and Plant Additions ............................................
|
|
|
|
|
|
276,709
|
|
|
Total reserved fund balance/retained earnings....
|
$810,066
|
$259,518
|
$32,511
|
$378,733
|
$21,529,390
|
$451,999
|
$5,297
|
61
|
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