Travis County Commssioners Court
September 16, 2003
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Item 39
39 is declare a surplus in the risk management fund and take appropriate action.
>> [inaudible] executive manager for assistive operations. This matter concerns the risk management fund and a declaration of a surplus of 1.250 million from the -- from the risk management fund that would go into the general fund. What you have before you is a declaration. All of this material that you have has been reviewed by the county attorney's office, by the county auditor, by risk management, and assistive operations. The summary of the declaration is that it declares a surplus, a fund surplus in the risk management fund of 1.250 million. That will be available to transfer into the general fund and then into the health care fund via health care premiums. This is something that we have discussed in the budget deliberations. On number 2, any withdrawal must be made within 90 days after the end of the county's fiscal year, the auditor has been in touch with deloitte touche and I think that they have a different perspective of how that should be done. And they will discuss that with you. Number 3, this is based on the information from the county actuary who is an independent actuary, and also the county auditor. Their analysis, and it considers claims related -- expenses and direct assistive in the county auditor's opinion that in compliance with the generally accepted accounting principles, the projected liability of the fund is $13 million, and you have approximately 20. In there. And it also provides them on the second sheet of your memo what will be the updated projected balance. At the end of this fiscal year. And then you take the transfer from the general fund for the flurry daniels settlement and adjusted balance before the f.y. '04 he expenses will be approximately 5.628 million in the risk management fund. That's what we keep in catastrophic reserve. From there you will have then expenses for the [indiscernible].
>> so deloitte touche thinks we should do what?
>> they are saying we should make this entry for this year. It's an operating transfer out of the risk fund and a transfer into the general fund. It's what the attorney's office is saying they can't move the funds, then what we'll do is move the cash in f.y. '04 and do the transfers this year. Like for budget.
>> so it will just be an accounting entry that recognizes this transaction this year. If it were not for the 90-day rule, we could do the whole thing. But the county attorney thinks cash needs to move in '04. So that's no problem. What we'll do is make the budget transfer, make the entry on their books. The cash will transfer next year. This will have the impact of increasing fund balance in the general fund by 1.2 million this year and the beginning balance next year, and then you will budget --
>> the health.
>> yeah, the health.
>> so the declaration and order before us is consistent with what we need to do?
>> right. Plus the budget.
>> i've prepared a budget transfer. And does that have to be taken with the budget? Leroy, you looked at that. Are you okay with that? We're sorry you didn't get this. We just heard from deloitte.
>> I think under this agenda item you can move in the [inaudible].
>> okay. Yeah, the budget adjustment form would take -- this is in the risk management fund. It would take $1,250,000 from the reserves in 525 and move it into risk management transfer out. So that's a movement in the risk management fund. That would be the budget transfer that we would need. The movement within that fund.
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>> [one moment, please, for change in captioners]
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>> Captions are not available for the remainder of this item discussion. The motioned carried by unanimous vote.
Last Modified: Wednesday, September 16, 2003 7:52 AM