FY 23 Approved Budget Book

COUNTY BUDGET POLICIES AND PROCESS

2010 are enrolled in the Retirement Health Savings (RHS) in lieu of the traditional defined-benefit retiree healthcare program. The County will negotiate with Union representatives each year to determine the amount of money to be placed in RHS..

Self Insurance and Risk Management

The Risk Management Office, a division of the Law Department pursuant to Executive Order 14-08, is responsible for the oversight of all risk management and countywide safety programs, in addition to managing property damage, vehicle damage, general liability, and workers' compensation claims. Harford County has been self insured for property damage, vehicle damage, general liability, auto liability, and workers' compensation claims since July 1, 1982. The Self Insurance Program, which is administered by the Risk Management Office and actuarially determined annually, is the monetary source by which all claims are paid. The financial welfare of the County is further protected by the purchase of excess property, vehicle, general liability, auto liability, and workers' compensation insurance policies, that can be triggered and the financial obligation is then transferred and paid by that entity. Harford County’s Accounting Policies Basic Financial Statements Government-Wide Financial Statements - The government-wide financial statements are designed to provide readers a broad overview of Harford County Government’s finances, in a manner similar to a private sector business. As a general rule, the effect of interfund activity is eliminated from these statements. Exceptions would include payments in lieu of taxes and other charges between the water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. The Statement of Net Assets presents information on all of Harford County Government’s assets and liabilities, with the difference between the two reported as Net Assets. The Statement of activities presents information showing how the government’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Both of these statements distinguish functions of Harford County Government that are principally supported by taxes and intergovernmental revenues (governmental activities including general government, public safety, highways & streets, solid waste, economic development, agricultural land preservation and parks & recreation) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business type activities including water and sewer operations).

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