LOS ANGELES COUNTY CHILDREN AND FAMILIES FIRST – PROPOSITION 10 COMMISSION NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2009
NOTE 6 – PROGRAM EVALUATION
The Commission spent $5,313,881 on program evaluation during the year ended June 30, 2009.
NOTE 7 – DEFERRED COMPENSATION PLANS
As of March 31, 2007, employer contributions to the 457(b) Plan ceased, and all contributions were made to the 403(b) Plan. Commission contributions were made to the 403(b) Plan for all benefit eligible employees. For employees hired before March 15, 2007, the Commission’s contribution is equal to 100% of the employee’s contribution, not to exceed 6% of the employee’s annual compensation. For employees hired on or after March 15, 2007, the commission’s contribution is equal to 100% of the employee’s contribution up to 1% of the employee’s annual compensation after the employee’s one year employment anniversary increasing 1% each year to 6% after the employee’s 6th year employment anniversary.
The Commission’s 457(b) Plan was terminated effective October 22, 2007 and Plan assets were either rolled over to the 403(b) Plan or were distributed to Plan Participants as directed by Plan Participants.
The 457(b) Plan assets were in a Trust Account maintained by a Trust company. The 403(b) Plan assets were in a Custodial Account maintained by a Custodian. The Human Resources Director, the Director of Finance and the Director of Grants Management and Legal Compliance are the Plan Fiduciaries. These assets are not included in the Commission’s financial statements. At June 30, 2009, the balance in the 403(b) Plan Trust Fund was $2,357,485. The Commission contributed $217,906 to the 403(b) Plan in fiscal year ended June 30, 2009.
NOTE 8 – RISK MANAGEMENT
The Commission is exposed to various risks of loss related to general liability, property liability, health benefits, workers’ compensation and auto. These risks are addressed through commercial insurance policies.
The Commission’s property and liability insurance is provided by insurance companies that are “Non – Admitted” insurance companies in the State of California. If such a company becomes insolvent, The California Insurance Guarantee Association will not settle unpaid claims.
No claims or suits are pending against the Commission arising out of proposed claim settlements covered by insurance. No settlements exceeded insurance coverage during the last three years.