License No. 0451271 Innovative Solutions. Enduring Principles.

 

FINANCIAL MANAGEMENT

INFORMATION REPORT

SETECH (Service Enhancement Technologies)

 

 

Presented by: Hesam

Fayaz December

2, 2011

License No. 0451271 Innovative Solutions. Enduring Principles.

Statement of Net Assets (Page 1)

10/11 Funding $ 751,703

Investment Income 12,636

Claims Paid 10/11 (368,311)06/30/2010 Difference 06/30/2011 %

Total Assets$ 2,300,057 $ 445,081 $ 2,745,138 19.35

Checking/LAIF

$2,482,522 90.43%

Member Deductible Receivable$175,110 6.38%

Interest Receivable

$3,032 0.11%

Accounts Receivable

$84,474 3.08%

License No. 0451271 Innovative Solutions. Enduring Principles.

06/30/2010 Difference 06/30/2011 %

Total Liabilities$ 1,647,847 $ 199,139 $ 1,846,986 12.08

IBNR$442,99623.98%

Reserves$639,56734.63%

ULAE $358,150 19.39%

Due to Members$274,238 14.85%

Accounts Payable$132,0357.15%

Statement of Net Assets (Page 1)

10/11 Claim Ultimates $ 619,996

Deferred Revenue 65,290

Decrease Ult PY 09/10/Prior (53,062)

Utilization in Due to Members (83,845)

Net Claims Paid 10/11 (368,311)

License No. 0451271 Innovative Solutions. Enduring Principles.

13

06/30/2010 Difference 06/30/2011 %

Total Net Assets $ 652,210 $ 245,942 $ 898,152 37.71

Net Assets $ 898,152

Capital Target - 90% Probability (193,396)

- Additional (200,000)

Net Assets in Excess 504,756

Statement of Net Assets (Page 1)

Decrease ULAE 09/10 Prior $ 257,269

Prior Year Adjustments 71,011

Decrease Ult PY 09/10/Prior 53,062

Interest Income 12,636

Net Deficit in PY 10/11 (129,405)

License No. 0451271 Innovative Solutions. Enduring Principles.

Adopted Budget Versus Actual (Page 2) Final 06/30/2011

Budget Actual Difference %

Revenues $ 4,305,164 $ 4,327,851 $ 22,687 0.53 %

Member Contributions

$903,673 20.88%

ReLiEF/ Other Insurance$3,221,95074.45%

Prior Year Deductible$190,9284.41%

Investment Income$12,6360.29%

Prior Year Member Contribution

($1,336) (0.03%)

Additional Endorsements $ 22,387Prior Year Member Contribution (1,336) Investment Income 1,636

License No. 0451271 Innovative Solutions. Enduring Principles.

Adopted Budget Versus Actual (Page 2) Final 06/30/2011

Budget Actual Difference %

Expenditures $ 4,245,383 $ 4,081,909 $ (163,474) (3.85) %

Administrative $ (221,442)ReLiEF/Other Ins 22,387Claims Pd/Chng Liab 35,581

ReLiEF/Other Insurance$3,221,95078.93%

Claims Paid$368,3119.02%

ULAE/Cliam Liab.

$219,7625.38%

Administrative Expense$271,8866.67%

License No. 0451271 Innovative Solutions. Enduring Principles.

Program Years

2003/ 2004 2004/ 2005 2005/ 2006 2006/ 2007 2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 Total

Net Cash Balance, Including Current Year Interest Income Allocation $ 346,984 $ 230,961 $ 331,973 $ 151,150 $ (99,292) $ 132,829 $ 621,041 $ 609,707 $ 2,325,353

Accounts Receivable - - - - - - - - - - - - - - 80,257 80,257

Accounts Payable - - - - - - - - - - - - - - (66,745) (66,745)

Discounted Claim Liabilities - - (47,428) (2,763) (44,693) (47,175) (23,498) (444,882) (472,124) (1,082,563)

Unallocated Loss Adjustment Expense - - (5,000) (2,500) (2,500) - - (13,650) (54,000) (280,500) (358,150)

Net Assets/ (Deficit) $ 346,984 $ 178,533 $ 326,710 $ 103,957 $ (146,467) $ 95,681 $ 122,159 $ (129,405) $ 898,152

Capital Target:Actuarially-determined contingency margin at a 90% confidence level (193,396)

Plus $200,000 as approved at the May 13, 2005 meeting (200,000) Total Capital Target (393,396)

Net Assets in Excess/ (Deficit) of Capital Target $ 504,756

Note:Net Assets/ (Deficit) As of 06/ 30/ 2010 $ 345,433 $ 178,439 $ 306,103 $ 95,004 $ (206,964) $ (48,721) $ (17,084) $ - - $ 652,210

Increase/ (Decrease)-program years prior to 07/ 01/ 2010$ 1,551 $ 94 $ 20,607 $ 8,953 $ 60,497 $ 144,402 $ 139,243 $ - - $ 375,347

Calculation of Net Assets/(Deficit) by Program Year – Pg 4

License No. 0451271 Innovative Solutions. Enduring Principles.

01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07 07/ 08 08/ 09 09/ 10 10/ 1106/ 30/ 2011118.73% 73.64% 54.09% 76.58% 63.64% 88.01% 117.23% 89.64% 87.93% 111.82%

0%

20%

40%

60%

80%

100%

120%

140%

Actual Costs as a % of Original Net Contributions – Pg 5

Overall – 76.98%

10 Year – 84.23%

License No. 0451271 Innovative Solutions. Enduring Principles.

01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 06/ 07 07/ 08 08/ 09 09/ 10 10/ 11IBNR -- -- -- 4,173 2,763 24,876 48,310 16,941 202,166 155,096 Unpaid Reserves -- -- -- 47,428 2,763 44,693 47,175 23,498 444,882 472,124 Paid Claims 476,295 418,439 276,863 381,941 265,750 468,303 683,123 479,154 198,511 134,521

- -

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000 Incurred but not

reported Actuarial estimate above

incurred

Difference between incurred and paid claims

Paid claims within EBSIG level

Estimated Ultimate Incurred by Program Year – Pg 12

Total Discounted Claim Liabilities - $1,082,563

IBNR – $442,996 - 40.92%

Unpaid Reserves – $639,567 - 59.08%

License No. 0451271 Innovative Solutions. Enduring Principles.

Program Years

2001/ 2002 2002/ 2003 2003/ 2004 2004/ 2005 2005/ 2006 2006/ 2007 2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 Total

Incurred Claims $ 476,295 $ 418,439 $ 276,863 $ 426,159 $ 265,750 $ 489,304 $ 683,123 $ 486,244 $ 451,747 $ 464,900 $ 4,438,824

Incurred But Not Reported(IBNR) - - - - - - 4,173 2,763 24,876 48,310 16,941 202,166 155,096 454,325

Non-Discounted EstimatedUltimate Incurred 476,295 418,439 276,863 430,332 268,513 514,180 731,433 503,185 653,913 619,996 4,893,149

Anticipated Interest Income Discounted - 2% - - - - - - (963) - - (1,184) (1,135) (533) (10,520) (13,351) (27,686)

Paid Claims (476,295) (418,439) (276,863) (381,941) (265,750) (468,303) (683,123) (479,154) (198,511) (134,521) (3,782,900)

Discounted Remaining EstimatedUnpaid Claim Liabilities $ - - $ - - $ - - $ 47,428 $ 2,763 $ 44,693 $ 47,175 $ 23,498 $ 444,882 $ 472,124 $ 1,082,563

(1) Per Bay Actuarial Consultants actuarial study dated February 2011. Estimated Current Portion of Claims Liabilities to be paid in 2010/ 2011 (550,000) Estimated Noncurrent portion of Discounted Claim Liabilities to be paid after 06/ 30/ 2011 $ 532,563

Non-Discounted Estimated Ultimate Incurred as of:

06/ 30/ 2002 $ 475,547 $ - - $ - - $ - - $ - - $ - - $ - - $ - - $ - - $ - - $ 475,547 06/ 30/ 2003 572,182 590,602 - - - - - - - - - - - - - - - - 1,162,784 06/ 30/ 2004 484,171 281,382 544,040 - - - - - - - - - - - - - - 1,309,593 06/ 30/ 2005 476,757 376,073 359,902 456,926 - - - - - - - - - - - - 1,669,658

476,296 447,491 271,783 414,449 437,580 - - - - - - - - - - 2,047,599 476,296 441,945 276,863 456,284 423,165 470,899 - - - - - - - - 2,545,452 476,295 418,439 276,863 449,171 277,301 716,635 951,289 - - - - - - 3,565,993 476,295 418,439 276,863 456,119 277,301 716,635 951,289 697,456 - - - - 4,270,397 476,295 418,439 276,863 430,332 (2) 285,802 518,066 758,394 600,787 561,237 - - 4,326,215 476,295 418,439 276,863 430,332 268,513 514,180 731,433 503,185 653,913 619,996 4,893,149

Current Year Increase/ (Decrease) for Program Years Priorto 07/ 01/ 2010(Decrease) $ - - $ - - $ - - $ - - $ (17,289) $ (3,886) $ (26,961) $ (97,602) $ 92,676 $ - - $ (53,062)

06/ 30/ 200606/ 30/ 200706/ 30/ 200806/ 30/ 200906/ 30/ 201006/ 30/ 2011

Schedule of Discounted Claim Liabilities – Pg 13

License No. 0451271 Innovative Solutions. Enduring Principles.

Thank you from the

Team

Questions ?