C.A.F.R., FY 2006-07 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements September 30, 2007 IV. Detailed Notes on All Funds and Component Unit (Continued) H. Restricted Net Assets and Restricted Asset Accounts (Continued) The balances of the City's restricted asset accounts are as follows: Customer Deposits Revenue Bond Contingency Revenue Bond Construction Account Revenue Bond Current Debt Service Account Revenue Bond Future Debt Service Account Funding Future Water Storage Rights Notes Receivable Total Restricted Assets V. Other Information A. .Risk Management Cash and Cash Equivalents $ 198,691 147,257 1,596,074 2,446,460 37,743 2,513,290 Certificates of Deposits and Other Investments $ 553,741 354,935 1,900,694 $ 6,939,515 $ 2,809,370 Accrued Interest and Other Receivables $ - 1,500 2,369 2,299 43,951 $ 50,119 The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City purchases insurance coverage from commercial insurers and participates in risk pools to limit risk of loss in these areas. The risk pools maintain adequate protection from catastrophic losses to protect their financial integrity. Aggregate protection is also maintained to ensure that the City shall at no time be assessed. The City's contributions are limited to the rates calculated under the agreement. There has been no significant reduction in insurance coverage during the year ended September 30, 2007. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. In past years, the City operated aself-funded benefits pool for employees which was replaced May 1, 2006, by coverage provided through an inter-local agreement with TML Intergovernmental Employees Benefits Pool. The claims liability is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. For the fiscal years ended September 30, 2006 and 2007, changes on unpaid claims liability are as follows: 2006 Balance at Beginning of Year $ 439,949 Claims Incurred During the Year 1,840,755 Payments on Claims Elimination of Liability Balance at End of Year (2,244,704) $ 36,000 46 2007 $ 36,000 (9,891) (26,109)