Title
a. Approve the request to separate the accounting and actuarial General Liability (GL) Claims into Recoverable vs Non- Recoverable and
b. Approve authorizing the Auditor Controller to implement the addition of the Sub-Fund "RISK" for Non-Recoverable claims for FY 2017-18.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve the request to separate the accounting and actuarial General Liability (GL) Claims into Recoverable vs Non- Recoverable and
b. Approve authorizing the Auditor Controller to implement the addition of the Sub-Fund "RISK for Non-Recoverable claims for FY 2017-18.
SUMMARY
Risk Management is requesting the separation of the GL Claims into two separate sub-funds within the GL Internal Service Fund (ISF) to designate the Claims as Recoverable (Sub-Fund - CLM) or Non-Recoverable (Sub-Fund - RISK).
DISCUSSION:
The General Liability (GL) program is a self-insured program for the purpose of defending and settling liability claims against County and is maintained in a separate Internal Service Fund (ISF) separate from the County's General Fund. An outside actuarial firm is utilized to evaluate the County's claim history for current and future liability exposure of the program for the purpose of allocating the costs to departments on an annual basis.
As reported in October/November 2016, concerning the FY 2015-16 year-end report, the GL claims should be split out separately to perform actuarial reports for allocation purposes between Recoverable and Non-Recoverable. Expenditures for Non-Recoverable claims cannot be passed through to State or Federal level for funding purposes. Damages and settlements resulting from violations or alleged violations of Federal or State laws and regulations are unallowable (Non-Recoverable).
In Summary, GL Self-Insured program cannot pass on claim costs to County departments that were violating or allegedly violating any Federal or State statute, as noted in the following State and...
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