To: Martin L. Cousineau, Finance Committee Chairperson
From: Chrystal Simpson, Chief Financial Officer & Katie Schoening, Risk Manager
title
RE: Approval of Self-Insured Auto Trust Agreement and Memorandum of Understanding
recommendation
BOARD ACTION REQUESTED:
Committee approval and referral to the Board of Commissioners
BACKGROUND:
Genesee County has been approved for self-insured status for the October 1, 2023, to September 30, 2024 term by the Director of the Department of Insurance and Financial Services of the State of Michigan. However, the attached Self-Insurance Auto Trust Agreement and Memorandum of Understanding are required to affect placement. The Trust Agreement has been in place for the last seven years.
Genesee County previously met the requirements of Michigan Administrative Code R257.532, Rule 2, by having a net worth greater than $15M. However, changes to GASB 68 and GASB 75 now require recognition of certain liabilities, resulting in a 2022 net worth of negative $343M. The Trust Agreement is necessary because the County is non-compliant with Rule 2, net worth over $15M. Without the Trust Agreement, the County would not qualify for self-insurance status and would have to purchase additional Auto Liability insurance.
DISCUSSION:
N/A
IMPACT ON HUMAN RESOURCES:
N/A
IMPACT ON BUDGET:
N/A
IMPACT ON FACILITIES:
N/A
IMPACT ON TECHNOLOGY:
N/A
IMPACT ON INDIRECT COSTS:
N/A
IMPACT ON OTHER COUNTY DEPARTMENTS OR OUTSIDE AGENCIES:
N/A
resolution
TO THE HONORABLE CHAIRPERSON AND MEMBERS OF THE GENESEE COUNTY BOARD OF COMMISSIONERS, GENESEE COUNTY, MICHIGAN
LADIES AND GENTLEMEN:
BE IT RESOLVED, by this Board of County Commissioners of Genesee County, Michigan, that the request by both the Chief Financial Officer and the Risk Manager to authorize accepting the Self-Insured Auto Trust Agreement and Memorandum of Understanding between Genesee County and the State of Michigan Department of Insurance and Finan...
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