| Subject |
Claims and Judgements |
| Authoritative Literature |
GASB 34 Paragraphs 81-82, 119 |
| General Description |
Claims payable were recorded and disclosed in the Annual Financial
Report. However, GASB 34 will now require a few new requirements:
- Current vs. long-term amounts.
- Summary of year's activity.
|
| Current Reporting by STARS |
No amounts for claims or contingencies are reported in STARS even though
general ledger account number 2042 exists for contingent liabilities. |
Conversion Issues
(Data Needed, Journal Entries Required) |
- Water Supply Storages Assurances.
- Identify any IBNR (Incurred But Not Reported claims) --for example,
Healthcare Stabilization and Workers' Compensation plus state employees
workers' compensation and health and dental care claims on active
and post-employment employees.
- Record IBNR for agencies 270 and 331.
Dr. GLA 5001 Expenditures
Cr. GLA 9208 Claims and Judgements
- Record escheat property from agy 670
Dr. GLA 4001 Revenue
Cr. GLA 2020 Accounts Pay - Escheat Property
|
| Footnote Disclosure Required |
- Beginning and end of year balances.
- Increases and decreases for the year.
- The portion that is due within one year of the statement date.
- Risk management disclosures (see page 199 of "Blue Book"
(GAAFR).
- Indicate which governmental funds typically have been used to liquidate
claims payable.
|
| Methodology of Gathering Data (including name of State agency and detail
description of data) |
- Water Supply Storage Assurances - The Kansas Water Office has agreements to reimburse
the Federal Government for the added costs incurred in providing water storage capacity
in federal flood control reservoirs. In addition, assurances have been made to the federal
government that the State would participate in additional federal flood control reservoirs
to provide water storage capacity to meet anticipated future needs of the State. The
State is not required to make payment on the future use portion of the storage space
until the State calls it into use. The 1999 AFR included 17 million in its long-term
debt for water supply storage assurances.
- Employment Security Fund (unemployment insurance) - Claims are paid daily. Due to timing
of claims and payments, IBNR is not significant. Agency 296.
- Health Care Stabilization Fund (HCSF) - The HCSF provides professional liability coverage
for claims in excess of $200,000 / $600,000 for active health care providers and primary
coverage for inactive health care providers. The HCSF levies an annual premium surcharge
on active health care providers. An annual actuarial evaluation is used to estimate the
liability amount. Agency 270.
- Workers' Compensation - The workers' compensation fund relieves an employer wholly
or partially of a workers' compensation liability resulting from compensable work related
accidents. The fund is liable for certain second injury claims incurred prior to July
1, 1994, and other claims specifically included in the law. The fund is financed by an
annual assessment to insurance companies, self-insurers and group-funded pools. The estimated
liability at year-end is based upon average amounts paid in recent years. Agency 331.
- Escheat Property - The state usually receives about $10 million annually, and pays
out about $5 million annually. Peggy Hanna provided estimated liability amounts as $5
million short-term and $15 million long-term for the mock-up. Agency 670.
- Landfill closure and post-closure costs are the liability of the
local operators and local governments. There are no state-operated
landfills. Agency 264.
|
| Material State Agencies Affected |
- Kansas Water Office.
- Department of Human Resources.
- Health Care Stabilization.
- Workers' Compensation at the Insurance Department.
- State Treasurer's Office.
- Kansas Department of Health and Environment.
|
| Policies |
|
| Contacts |
Bertha Jackson - Kansas Water Office
Gerald Snyder - Department of Human Resources
Marcy Watson - Health Care Stabilization
Kathy Bohnhoff - Insurance Department |
