Page 119 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

has to be made, the payment will be made by RAMCO from these funds. Traditional insurance contracts cover property damage,
loss of money, and situational risks.
The City carries ood insurance through the National Flood Insurance Plan (NFIP). This insurance provides $1,000,000 per incident
and annual aggregate coverage for Flood Zones pre xed as “B”; $25,000,000 annual aggregate coverage for all other Flood Zones,
except that we do not have coverage for Flood Zones designated as “A” and “V”.
In accordance with G.S. 159-29, the City’s employees that have access to $100 or more at any given time of the City’s funds are
performance bonded through a commercial surety bond. The nance o cer, two assistant nance o cers, investment analyst,
and City revenue collector are individually bonded for $500,000. The remaining employees that have access to funds are bonded
under a blanket bond for $500,000.
Claims payable recorded in the general purpose nancial statements are composed of the self-insurance claims for health bene ts,
workers’ compensation, and retired health insurance, and RAMCO claims for damages.

Changes in Claims Payable

2018 2017
Claims payable July 1 $ 10,051,455 $ 10,020,809
Claims paid (12,940,685) (11,945,148)
New claims and changes in claim estimates 13,019,171 11,975,794
Claims payable June 30 $ 10,129,941 $ 10,051,455
Employment bene ts funds $ 6,984,322 $ 7,066,694
Post-employment bene ts trust fund 1,069,536 1,183,675
Risk Acceptance Management Corporation 2,076,083 1,801,086
$ 10,129,941 $ 10,051,455
Due within year $ 4,852,016 $ 4,250,242

Contingent Liabilities and Commitments

1. Claims and Legal Action
Various claims and legal actions are pending against the City, and it is not possible at this time to predict their outcome. However,
in the opinion of management and the City attorney, ultimate resolutions will not have a material, adverse impact on nancial
position.
The City has federal and state grants for speci c purposes that are subject to annual audit and other periodic review by grantor
agencies. Such reviews could result in request for reimbursements to the grantor agencies for costs which may be disallowed as
appropriate expenditures under grant terms. City management believes disallowances, if any, will be insigni cant.

5. Subsequent Event

The City has evaluated subsequent events through October 31, 2018, in connection with the preparation of these nancial
statements, which is the date the nancial statements were available to be issued.

6. Change in Accounting Principle
The City implemented Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting
for Postemployment Bene ts Other than Pensions, in the scal year ending June 30, 2018. The implementation of the statement
required the City to record a beginning net OPEB liability and the e ects on net position of bene t payments and administrative
expenses paid by the City towards the plan during the measurement period. The information necessary for full retrospective
application is not available, so the accounting change was implemented in scal year 2018 with a cumulative e ect adjustment to
net position as of the beginning of the year. As a result, government-wide net position at July 1, 2017 decreased $22,421,151
($18,938,582 for governmental activities, and $3,482,569 for business-type activities).

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