FY 26 Approved Operating Budget

selective self-insurance programs, and the implementation of a risk management program that includes a countywide safety program. Workers’ Compensation – Harford County carries excess commercial coverage with a $2,500,000 retention level for claims. The County also maintains reserve funds of $750,000 for workers’ compensation claims. General and Automobile Liability – Since September 5, 1991, the County has carried excess commercial coverage with a $350,000 or $500,000 retention for claims. Property Damage – The County carries commercial property insurance coverage with varying deductibles on real and personal property, and a $25,000 deductible for physical damage to County owned vehicles. 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). The government-wide financial statements include not only Harford County Government itself (known as the primary government), but also legally separate component units including Harford County Board of Education, Harford Community College, Harford County Public Libraries, and the Harford Center, Inc. Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Harford County Government, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of Harford County Government can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

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