VLAWMO Annual Financial Report 2002

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VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION NOTES TO FINANCIAL STATEMENTS December 31, 2002 PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF. That report may be obtained by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651)296-7460 or 1-800-652-9026. B. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The Organisation makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 5.10%, respectively, of their annual covered salary. The Organization is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members and 5.53% for Coordinated Plan PERF members. The Organi7ation's contributions for the years ending December 30, 2002, 2001 and 2000 were $2,056, $1,814, and $1,682, respectively. Note 6 EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS For the year ended December 31, 2002, there were excess expenditures over appropriations in the General Fund as follows: Over Budget Actual Budget General fund: $64,880 $66,409 $1,529 Note 7 RISK MANAGEMENT The organisation 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. Property and casualty and worker's compensation liabilities are insured. The Organization retains risk for the deductible portions of the insurance. The amounts of these deductibles are considered immaterial to the general purposed financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. 19