WAUKESHA COUNTY Waukesha, Wisconsin

NOTE 15– RISK MANAGEMENT/SELF INSURANCE (CONT’D)WAUKESHA COUNTY, WISCONSINNOTES TO FINANCIAL STATEMENTSDecember 31, 2010Liability and Workers Compensation Claims 2009 2010Unpaid claims, including incurred but not reported -Beginning of Year $ 2,641,972 $ 2,986,312Estimated future claims expense 928,372 963,699Current year claim payments and changes in estimates (584,032) (876,894)Unpaid claims - End of Year $ 2,986,312 $ 3,073,117Amount not due within one year $ 2,381,700In addition, net assets can be analyzed as follows:Invested in capital assets $ 1,320WMMIC deposit 2,459,264Reserves for losses not captured within actuary analysis (e.g., pollutionliability, employment litigation back wages, etc.) and for catrastrophic losses (86,486)Total Net Assets $ 2,374,098Self-Insurance - Health CoverageThe County has established a self-insurance program for health claims. Claims are accounted for in aninternal service fund, the health and dental insurance fund. Claims are processed by a third party claimsadministrator. The uninsured risk of loss is $275,000 per individual claimant per year. The County haspurchased commercial stop-loss insurance for claims in excess of the $275,000 retention. In 2010, therewere no claims that exceeded the $275,000 specific stop loss retention.The County also has a self-funded dental plan. The insurance claim payments shown below include bothself-funded health and dental.All funds of the County participate in the health and dental insurance programs. Amounts payable to thehealth and dental insurance fund are based on actuarial estimates of the amounts necessary to pay priorand current year claims.A liability for a claim is established if information indicates that it is probable that a liability has beenincurred at the date of the financial statements and the amount of the loss is reasonably estimable.Liabilities include an amount for claims that have been incurred but not reported. The County does notallocate overhead costs or other non-incremental costs to the claims liability.Claims Liability 2009 2010Unpaid claims – Beginning of Year $1,951,480 $1,723,683Current year claims and changes in estimates 16,086,766 17,976,560Claim payments (16,314,563) (17,685,549)Unpaid claims - End of Year $1,723,683 $2,014,694Amount not due within one year $100,73580