Note X – Risk Management
A template for this note is not available. See “Instructions to preparer:” for various disclosures that may be required.
Instructions to preparer:
Disclose a description of the types of risk the city/county/district faces and how it is handling those risks; indicate whether you individually self-insure, individually purchase commercial insurance policies, participate as a member of a joint insurance pool, or use a combination of the above.
Provide a sufficient amount of information (e.g., the type of coverages, type of funds to account for risk management activities, the expected annual claims, name of insurer, amount deductible, etc.) to inform the user of the financial statements about the risk management activities of the government.
If the city/county/district participates in a risk pool, it should describe that arrangement. The description should specifically address the rights and responsibilities of the government and the pool. The city/county/district does not need to list detailed information for every coverage type provided by the risk pool, a general description of the arrangement and coverage provided is adequate.
Self-insurance – If the city/county/district retained any risk, it should specifically describe the retained risk.