SWCASR FINANCIAL REPORT 12-31-2001

Home Browse Search

SHERBURNE/WRIGHT COUNTIES CABLE COMMUNICATION COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-CONTINUED Receivables and Payables Receivables consist of amounts the Commission was entitled to but did not receive in 2001. The Commission utilizes the direct write off method of accounting for receivables. All accounts are considered fully collectable at year end. Payables consist of expenses incurred in 2001 but not paid until 2002. Note 2: DETAILED NOTES ON ACCOUNTS ' A. Deposits In accordance with Minnesota statutes,the Commission maintains deposits at those depository banks,all of which are members of the Federal Reserve System. Minnesota statutes require that all Commission deposits be protected by insurance,surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds(140 percent in the case of mortgage notes pledged). ' Authorized collateral includes the legal investments described below,as well as certain first mortgage notes,and certain other State or local government obligations. Minnesota statutes require that securities pledged as collateral be held in safekeeping by the Commission or in a financial institution other than that furnishing the ' collateral. For year ended December 31,2001,the Commission's carrying amount and bank balance of deposits were $266,652 and$268,005,respectively. The bank balance was covered by federal depository insurance totaling ' $100,000 and the remaining balance was covered by collateral. Note 3: OTHER INFORMATION Risk Management The Commission 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 for which the Commission carries insurance. The Commission obtains insurance through participation in the League of Minnesota Cities Insurance Trust(LMCIT), which is a risk sharing pool with approximately 800 other governmental units. The Commission pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self-sustaining ' through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the Commission's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably ' estimated. Liabilities,if any,include an amount for claims that have been incurred but not reported(IBNRs). The Commission's management is not aware of any incurred but not reported claims. I 1