The $36,753 reported as deferred outflows of resources related to the HIC OPEB resulting from the Authority’s contributions subsequent to the measurement date will be recognized in the HIC OPEB expense in the fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIC OPEB will be recognized in the HIC OPEB expense in future reporting periods as follows: future reporting periods as follows: Years Ending June 30, 2020 2021 2022 2023 2024 Thereafter Total $ $ Amount 5,604 5,603 8,274 8,498 10,717 5,354 44,050 Additional financial information supporting the preparation of the VRS Political Subdivision Plan Schedules (including the financial statements and the unmodified audit opinion thereon, and required supplementary information) is presented in the separately issued VRS 2019 Comprehensive Annual Financial Report (CAFR). A copy of the 2019 VRS CAFR is publicly available through the About VRS link on the VRS website at www.varetire.org, or a copy may be obtained by submitting a request to the VRS Chief Financial Officer, P.O. Box 2500, Richmond, VA 23218-2500. 10 risk management The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by insurance purchased from Virginia Risk Sharing Association (VRSA), a group insurance pool in the Commonwealth of Virginia. There have been no significant reductions in insurance coverage from the prior year, and settled claims have not exceeded insurance coverage for each of the fiscal years ended June 30, 2020, 2019, and 2018. The Authority provides health benefits to employees under a self-insurance plan. Under an excess claims insurance policy, the Authority’s liability is limited, on a calendar year basis, to aggregate claims per participant of $110,000. A year end accrual of potential outstanding claims as of the last day of the fiscal year was estimated at three times the average monthly claim. As reflected in the table below, the liability for claims incurred but not reported as of June 30, 2020, 2019, and 2018 was estimated to be $1,320,038, $1,292,165, and $1,107,394, respectively, and is included in accounts payable and accrued expenses on the accompanying Statements of Net Position. Amounts reported as deferred inflows of resources related to self-insurance will be recognized in OPEB expense as follows: 2020 2019 Estimated outstanding claims liability at beginning of fiscal year Employee and Employer portion of premiums withheld Payments to Third Party Administrator Estimated outstanding claims liability at end of fiscal year $ 1,292,165 5,035,450 (5,064,577) $ 1,263,038 $ 1,107,394 5,402,527 (5,217,756) $ 1,292,165 2018 $ 1,004,642 4,754,116 (4,651,364) $ 1,107,394 For fiscal year 2021, the Authority estimates its share of claims to be approximately $5.1 million. This estimate represents the Authority’s best estimate; however, actual claims and judgments may vary from year to year. Additionally, the Authority maintains its longstanding commitment of staffing and budget resources to both a regulatory affairs program and a safety loss and control program. The goal of these programs is to proactively manage and maintain its operations and work sites in the safest possible manner for the Authority’s employees and its customers. NOTES TO FINANCIAL STATEMENTS FINANCIAL SECTION 73
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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