Laserfiche WebLink
CITY OF SAN LEANDRO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />For The Year Ended June 30, 2016 <br /> <br /> <br />NOTE 11 – INSURANCE (Continued) <br /> <br />The City’s deposits in the CJPRMA equal the ratio of the City’s payroll to the total payrolls of all entities <br />participating in the same layer of each program in each program year. Actual surpluses or losses are <br />shared according to a formula developed from overall loss costs and spread to member entities on a <br />percentage basis after a retrospective rating. Estimated claims liabilities, as shown below, are presented <br />on a basis of actuarial value as determined by the City’s actuary, who determines the expected value of <br />the overall claim based upon certain criteria of the claim. <br /> <br />The following provides a reconciliation of claims and judgments: <br /> <br />Current Year Claims for <br />Liability Claims and Payments in Liability <br />Balance Changes in Current and Prior Balance <br />July 1 Estimates Fiscal Years June 30 <br />2013-2014 6,698,124$ 3,376,112$ (3,401,337)$ 6,672,899$ <br />2014-2015 6,672,899 3,117,261 (3,743,614) 6,046,546 <br />2015-2016 6,046,546 5,292,142 (5,241,904) 6,096,784 <br /> <br />NOTE 12 - COMMITMENTS AND CONTINGENCIES <br /> <br />The City participates in several Federal and State grant programs. These programs have been audited by <br />the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act as <br />amended and applicable State requirements. No cost disallowances were proposed as a result of these <br />audits. However, these programs are still subject to further examination by the grantors and the amount, if <br />any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. <br />The City expects such amounts, if any, to be immaterial. <br /> <br />The City is a defendant in a number of lawsuits which have arisen in the normal course of business. <br />While substantial damages are alleged in some of these actions, their outcome cannot be predicted with <br />certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a <br />material adverse effect on the financial position of the City. As discussed in Note 11 to the Financial <br />Statements, the City maintains a Self Insurance Fund which has reserves of $6,096,784 at the end of June <br />30, 2016. These reserves are available to satisfy any future liability. <br /> <br />72