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Full Disclosure

Full Disclosure. Are you treading water, swimming upstream, or are you leading the pack?. Perspective. As a Risk Manager Consultant Re-insurer. Objective/Vision/Mission. Credibility Third-Party review of financial statements Integrity Accountability Challenges

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Full Disclosure

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  1. Full Disclosure Are you treading water, swimming upstream, or are you leading the pack?

  2. Perspective • As a Risk Manager • Consultant • Re-insurer

  3. Objective/Vision/Mission • Credibility • Third-Party review of financial statements • Integrity • Accountability • Challenges • Comfort level as an administrator

  4. How many Risk Management Organizations engage/contract a separate IndependentFinancial Audit of your risk management activities?

  5. How many internally create financial information, and as a component part of the state, your financials are blended into the State’s financials?

  6. Is there anyone who does not create financial statements, nor obtain an audit of their program of any type?

  7. How many produce an Annual Report, either as required by statute, or simply to inform the public of your financial condition?

  8. FULL DISCLOSURE • Governments have a special responsibility to provide the public with a fair representation of their financial affairs. • End users of the financial statements are: • Citizens • Members of your pool • Representatives of higher units of government • Bond rating organizations • Creditors/investors

  9. How do State Risk Management agencies of government promote full disclosure? • How do State Risk Management agencies of government provide the public with a fair representation of their financial affairs?

  10. Interim (monthly) financial statements • End of fiscal year financial statements • End of fiscal year financial statements audited by an independent auditing firm • Alternatively, third-party financial review with an opinion • Produce a Comprehensive Annual Financial Report (CAFR)

  11. Report of Independent Auditors • Our responsibility is to express an opinion on these financial statements based on our audit. • To make certain the audited financial statements are free from material misstatements. • In our opinion, the financial statements present fairly, in all material respects, the financial condition of the organization.

  12. Independent auditors agreed to do • Express and opinion on financial statements • Review required supplementary and other financial information for consistency • Review CAFR • Report on compliance on internal controls • Issue a management letter

  13. How many prepare a Comprehensive Annual Financial Report (CAFR) and submit it to the Government Finance Officers Association (GFOA) for review?

  14. CAFR publishers • Unit of government, i.e., • a state; • a risk management agency • County • Municipality • School district • Public college of university • Public employee retirement system • Governmental investment pool

  15. Government Finance Officers Association (GFOA) • GFOA encourages all government units to prepare an easily readable and understandable comprehensive annual financial report. • CAFR provides reviewers useful information in evaluating the financial condition of a government.

  16. LOSS RATIO

  17. EXPENSE RATIO

  18. Combined Ratio

  19. Liability Property Mine Subsidence House Bill 601 Total $170,850 $2,723 $2,497 $43,258 $219,328 2004 Unpaid claims and claims adjustment expense(in thousands)

  20. Nominal Ultimate Values

  21. 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 $36,802,486 $42,693,402 $42,711,737 $41,615,477 $41,020,612 $37,939,062 $35,948,256 $41,331,465 $46,708,337 $61,161,270 $65,484,645 $63,852,757 Ultimate Projections

  22. Unfunded Liabilitynet asset (deficiency)

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