Accounts and Reports

GAAP POLICY AND PROCEDURE MANUAL

• Current vs. long-term amounts.
• Summary of year's activity.

• 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

• 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.

• 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.

• 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.

• None.