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Table 11-12 Diary for Disposition Activities Exceptions Diary update for plan of action to obtain a reement is outstandin . L. Claims Finalization Management George Hills Percentile: 100% In-House Percentile: 100% Best practices require obtaining settlement authority necessary to negotiate a favorable claims disposition and obtaining executed claim release documents to maintain in the claims file. The City Council's Resolution No. 2004-141 of September 20, 2004 delegates $25,000 claim settlement authority to the City Attorney. The June 18, 1999 City's Memorandum grants $10,000 for expense payment to the Risk Management Analyst. The Risk Management Analyst is required to submit a monthly Claims Settlement Report to the Finance Director. All claim settlements and expense requests between $10,000 and $50,000 are to be approved by the Assistant Finance Director or the Finance Director. Requests above $50,000 must be approved by the City Council. We recommend the authority delegation limits be applied separately to settlement authority and claims expense, including legal fees. Contemplating settlement authority simultaneously, but separately from expense authority encourages a cost/benefit analysis. These levels should be re-examined by the Finance Director at least annually. We note no exceptions. Claim finalization management is assessed as superior. Table II-13 shows the closing ratio achieved over the past five years, further demonstrating the case finalization management results. The industry considers a closing ratio of performance of 100% as superior. Maintaining a superior closing ratio every year is very difficult. Over time, exceeding any shortfall in one year by a greater than 100% closing ratio in a subsequent year keeps pending caseloads from growing. Over the course of the prior five years, In-House and George Hills claims handling has combined to reduce the caseload by 21 %. 28 ARM Tech