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CITY OF SOUTH BEND
<br />NOTES TO FINANCIAL STATEMENTS
<br />(Continued)
<br />Balance Balance
<br />as Reported Prior as Restated
<br />December 31 Period January 1,
<br />Fund Type 2001 Adjustments 2002
<br />Non-Major Governmental
<br />Capital Projects
<br />Major Enterprise Funds:
<br />Water Utility
<br />Wastewater Utility
<br />Non-Major Enterprise Funds:
<br />Consolidated Building
<br />Solid Waste
<br />Blackthorn Golf Course
<br />Internal Service
<br />$ 30,537,168 $ (150,000) $ 30,387,168
<br />33,126,779 (58,857) 33,067,922
<br />68, 780, 096 187, 351 68, 967,447
<br />346,485 14,862 361,347
<br />902,197 19,754 921,951
<br />(32,285) (686,030) (718,315)
<br />991,385 1,410,655 2,402,040
<br />The general fixed assets as previously reported at December 31, 2001, have been reduced from
<br />$114,037,367 to $113,952,625, which is the beginning balance of the governmental activities' capital
<br />assets. This $84,742 reduction is a result of adjustments to correct previously reported balances.
<br />V. Other Information
<br />A. Risk Management
<br />The government is exposed to various risks of loss related to torts; theft of, damage to, and
<br />destruction of assets; errors and omissions; job related illnesses or injuries to employees; medical
<br />benefits to employees, retirees, and dependents; and natural disasters.
<br />The risks of torts; theft of, damage to, and destruction of assets, and natural disasters are
<br />covered by commercial insurance from independent third parties. Settled claims from these risks
<br />have not exceeded commercial insurance coverage for the past three years. There were no sig-
<br />nificant reductions in insurance by major category of risk.
<br />Liability Insurance
<br />The government has chosen to establish a risk financing fund for risks associated with job related
<br />illnesses or injuries to employees, automobile liability, and comprehensive liability. The risk
<br />financing fund is accounted for in the Liability Insurance Premium Reserve Fund, an internal serv-
<br />icefund,) where assets are set aside for claim settlements. An excess policy through commercial
<br />insurance covers individual claims in excess of $250,000 per year for job related illnesses or
<br />injuries to employees, of $50,000 per year for police autos and $100,000 for other autos' auto-
<br />mobileliability, and $50,000 for comprehensive liability. Settled claims resulting from this risk did
<br />not exceed commercial insurance coverage in the past three years. A premium is charged to
<br />each fund based on a study of paid claims and based on the number of employees and percent of
<br />the total budget. Provisions are also made for unexpected and unusual claims.
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