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I21S� �r7YBd(3i'IDL'dlt Internal Service Funds The Workers' Compensation Self-Insurance Fund was established to service workers' compensation insurance claims. All awards of compensation, legal fees, administrative costs and the premium for excess coverage are paid from this fund. The Workers' Compensation Reinsurance Association provided excess coverage ior all claims in 1988 in excess o£ $160,000, with no limits. The program has proven to be very successful since it was established in 1980. No property taxes have been levied for the worker's compensation program in 1986, 1987, and 1988. The City, in 198�, established a new internal service fund for General Risk Management. A transfer of $500,000 was made from the General Fund, which previously had been reserved for emergency and natural disasters, to the new Risk Management Fund. Through a process of outstanding claim experience, continuinq risk management reviews by management, and the increasing of the deductible on general liability and property damage, the City has been lowering its insurance cost. As part of a long range plan of cost-e£fective risk management, the City intends to move toward £urther self-insurance. The establishment of a risk man- agement fund will enable the program to develop in an actuarially sound manner. The City currently has a$50,000 deductible with an annual limit of $100,000. In addition, State Law does limit the City's general liability to $600,000. Other Independent Audit State law provides that the City may arrange for examination of its books by a certified public accountant or the State Auditor. It has been a long-standing practice o£ the City to provide for an annual audit of City records by a certified public accountant. The Auditor's opinion has been included in this report. Certificate of Achievement "The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Roseville, Minnesota, for its comprehensive annual financial report for the fiscal year ended December 31, 1987. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and e£ficiently organized comprehensive annual financial report, the contents of which must conform to program standards. Such reports must satisfy both generally accepted accounting principles and 16