Comprehensive Annual - Laserfiche WebLink

Browse Search

ORANGE COUNTY, NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012 County employees. The pools are audited annually by certified public accountants, and the audited financial statements are available to the County upon request. Two of the pools are reinsured through a multi-State public entity captive for single occurrence losses in excess of $500,000 up to a $2 million limit for liability coverage, $600,000 of aggregate annual losses in excess of $50,000 per occurrence for property, auto physical damage, crime coverage, and single occurrence losses of $350,000 for workers' compensation. For health and dental insurance, the County is reinsured through the pool for individual losses in excess of $50,000 and aggregate annual losses in excess of 115% of expected claims. The pool is reinsured through commercial carrier for individual losses in excess of $100,000. A limited risk management program is also maintained for employees' dental benefits administered by a third-party administrator. Premiums are paid into the Dental Internal Service Fund by all other funds and are available to pay claims and administrative costs of the program. During fiscal year 2012, a total of $466,862 was incurred for benefits and administrative costs. A summary of the reserve for incurred, but unreported, claims is as follows: In accordance with G.S. 159-29, the County's employees who have access to $100 or more at any given time of the County's funds are performance bonded through a commercial surety bond. The Director of Finance and Tax Collector are each individually bonded for $250,000 and $30,000, respectively. The remaining employees that have access to funds are bonded under a blanket bond for $250,000. The County carries commercial coverage for all other risks of loss. There have been no significant reductions in insurance coverage from the previous year, and settled claims have not exceeded coverage in any of the past three fiscal years. The County carries flood insurance through the North Carolina Association of County Commissioners Liability and Property Insurance Pool ("NCACC"). The County only has one building located in an area that has been mapped and designated an "A" area (an area close to a river, lake, or stream) by the Federal Emergency Management Agency. The County has purchased coverage of $1,000,000 for the building located in the area designated as "A" above, and an additional amount of flood insurance coverage of $5,000,000 for all other structures. 69