QUEENS LIBRARY FINANCE AND INVESTMENT COMMITTEE THURSDAY, MAY 25, Central Library Merrick Boulevard, Jamaica, NY AGENDA

Transcription

1 QUEENS LIBRARY FINANCE AND INVESTMENT COMMITTEE THURSDAY, MAY 25, 2017 Central Library Merrick Boulevard, Jamaica, NY AGENDA 6:30 PM FINANCE AND INVESTMENT COMMITTEE REGULAR MEETING I. Call to Order II. Agenda Action Items 1. Property/Casualty Insurance Program Renewal (ID # 1452) 2. Acceptance of Financial Reports for the Period Ending April 2017 (ID # 1432) 3. Approval of Bills for the Month of April 2017 (ID # 1431) III. Agenda Report Items 1. Payroll for the Month of April 2017 (ID # 1430) 2. The Queens Borough Public Library Workers' Compensation Self-Insurance Program (ID # 1454) IV. Adjournment 1. Motion to Adjourn (ID # 1455) Generated 5/22/2017 3:46 PM

2 2.1 Queens Library Board/Committee Item BOARD/COMMITTEE: Finance and Investment Committee DATE OF MEETING: May 25, 2017 ITEM ID #: 1452 AGENDA: Property/Casualty Insurance Program Renewal Background: The Library continuously evolves, increasing programs and offering new and diverse services to the communities we serve. As such, Library risks and insurance exposures are also viewed as changing by insurance underwriters during this period of evolution. Current underwriting considerations for Queens Library include expanded hours and programs, new locations and mobile book service and child protection efforts in community libraries. Business risks also include funding and business requirements for coverage, expanded Pre-K locations and the hiring of in-house security staff. The Library s current broker, Gallagher, continues to meet expectations while understanding our evolving exposures. The Library s current Property and Casualty Insurance Program includes the following major lines of insurance coverage: Commercial General Liability (CGL) Library coverage includes General Liability (GL), Auto and Umbrella policies that are purchased as part of the CGL package being provided by the incumbent carrier, Hanover Insurance. The CGL policy includes coverage found in typical liability policies such as fire damage and medical costs. We also maintain coverage for sexual abuse and molestation (SAM) (required for grant funding), Pre-K programs and added coverage for our expanded in-house security guard program as required by New York State. The limits are depicted in the table below: General Liability SAM $1M/$2M aggregate / location $1M/$1M aggregate Auto $1M Umbrella $20M Packet Pg. 2

3 2.1 Umbrella SAM $5M sub-limit Directors and Officers/Employment Practices Directors and Officers insurance (D&O) is intended to provide coverage for the Library, Board of Trustees and employees from errors and omissions associated with the Library s governance and management. The most frequent types of claims filed under such policies include those attributable to poor governance by those defined as insureds, and their failure to provide three basic fiduciary responsibilities owed to the organization: the duty of obedience, loyalty and due care. Wrongful Acts may include actual or alleged acts, errors or omissions on the part of those covered. Defense costs erode the limits. Employment Practices Liability Insurance (EPLI) is intended to cover the organization for claims made involving wrongful acts arising from employment practices. The most frequent types of claims filed under such policies include claims for wrongful termination, discrimination, retaliation, defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, sexual harassment and negligent evaluation. EPLI claims can be brought by not only employees, but third parties as well. Defense costs erode the policy limits. D&O and EPLI are currently provided by Hiscox (primary $5M) and Great American ($5M excess of $5M). Limits are depicted in the table below: Primary $5M Limit Excess $5M Limit excess of $5M Deductible D&O $50,000 Deductible EPLI $100,000 Property The Library has strived to maintain certain levels of coverage on library materials, furniture and boiler equipment. The property program was remarketed twice, post Hurricane Sandy, based on non-renewals and premium increases by our former carriers. Coverage, through Arch Specialty, is depicted in the table below: Property Limit $20M Deductible $500K Sublimit Flood $10M Deductible $500K Sublimit Flood Zone $2M Deductible $500K Crime Crime coverage, depicted in the table below, is currently provided by Travelers: Packet Pg. 3

4 2.1 Faithful Performance $3M Deductible $50K Forgery/Alteration $100K Deductible $5K On Premises $50K Deductible $1K Accidental Death & Dismemberment (AD&D) The AD&D coverage, offered by Chubb, provides different layers of protection with $100,000 minimum coverage for employees and Trustees. The policy, which pays benefits to the beneficiary if the cause of death or dismemberment of an employee or Trustee is an accident, is in the first year of a 3-year policy effective through June Current Status: The following programs are being presented for the renewal. The negotiated broker fees, some below the industry standard fees of 15% - 20%, are also listed below: Coverage Carrier Broker Fee/ Commission General Liability Chubb 12.5% Auto Chubb 12.5% Umbrella - $10M Philadelphia 17.5% Umbrella XS $10M Chubb 15% SAM AIG 12.5% D&O/EPLI Hiscox/ Great American 11% Property Arch 15% Crime Travelers 20% AD&D Chubb 15% Commercial General Liability Hanover would not rewrite the Library s CGL policies for this coming year. We therefore instructed Gallagher to canvas the market and identify alternative carriers. The current coverage and expiring premiums are as follows: Packet Pg. 4

5 2.1 Coverage Expiring Premium General Liability $182,961 Auto 127,136 Umbrella $73,122 The results of the broker s outreach for alternative carriers to provide CGL coverage is as follows: General Liability and Auto Quotes Carrier AM PL 2017 Quote Chubb no yes $384,139 Zurich no no $463,922 Selective no no $450,000 Philadelphia $1M yes $600,000 AIG no no $803,000 Liberty Mutual Nationwide Travelers Hartford AmTrust Declined Declined Declined Declined Declined CNA Declined AM coverage for abuse and molestation PL professional liability for guards Umbrella Quotes Carrier 2017 Quote Philadelphia ($10M) $85,000 Chubb ($10M) $122,610 Packet Pg. 5

6 2.1 Philadelphia $200,000 *Chubb ($10M - XS $10M) $35,000 Zurich AIG No quote No quote Selective No quote * Chubb offered an excess program for $10M above the primary $10M program The Library must maintain coverage, or have no exclusions in a policy, for abuse and molestation in order to protect the organization as well as be eligible for multiple grants from agencies that require this coverage, including DYCD. The table below depicts our efforts in obtaining coverage and quotes for abuse and molestation. Please note above that not all carriers offer this coverage in a primary liability program: Abuse and Molestation Quotes Carrier Deductible 2017 Quote NAS $1M $25K $35,000 NAS $2M $50K $50,000 Gen Star $1M $0 $500,000 Beazley $2M $75K $55,000 Beazley $2M $50K $62,000 Beazley $5M $75K $97,500 Beazley $5M $50K $106,000 AIG $5M $25K $106,857 AIG $5M $50K $82,571 AIG $6M $25K $121,428 AIG $6M $50K $97,$142 Directors & Officers/Employment Practices: The current coverage and expiring premiums are as follows: Packet Pg. 6

7 2.1 Coverage Expiring Premium D&O/EPLI $5M $38,090 D&O/EPLI XS $5M $18,600 TOTAL $56,690 The renewal quotes being offered by the incumbent carriers of Hiscox (primary $5M) and Great American (excess $5M) for this coverage total $56,809 (see table below). Hiscox affords the Library the opportunity to request choice of counsel but there are absolute exclusions for prior activity and associated people and entities. Terms remain the same. D&O / EPLI Quotes Carrier 2017 Quote Hiscox $38,209 Great American $18,600 Crime Insurance: The current crime insurance premium is $8,247. The crime insurance renewal premium from the incumbent insurer, Travelers Casualty and Surety of America, is $8,320. Property Insurance The incumbent insurer, Arch, indicated that there will be a decrease in the premium on the Library s property program. The current expiring premium is $285,395. The property renewal quote from Arch is $272,000. Summary A summary of the Library s expiring coverage and premiums is found in the Table 1 (below). The recommendation for renewal coverage and quotes through Gallagher is found in Table 2 (below): Table 1 Expiring Coverage Carrier Expiring 2016 Premium Packet Pg. 7

8 2.1 Liability Hanover $182,961 Auto Hanover 127,136 Umbrella ($20M) Hanover $73,122 D&O/EPLI $5M Hiscox $38,090 D&O/EPLI XS $5M Great American $18,600 Crime Travelers $8,247 Property Arch $285,395 AD&D Chubb $10,640 TOTAL $744,191 Table 2 Quoted Coverage Carrier Renewal Quotes 2017 Liability Chubb $250,803 Auto Chubb $133,336 Umbrella - $10M Philadelphia $85,000 Umbrella - XS $10M Chubb $35,000 A&M - $6M AIG $97,142 D&O/EPLI $5M Hiscox $38,209 D&O/EPLI XS $5M Great American $18,600 Crime Travelers $8,320 Property Arch $272,000 AD&D Chubb $10,640 TOTAL $949,050 Packet Pg. 8

9 2.1 Recommended Motion for Consideration by the Finance & Investment Committee: I move that the Finance & Investment Committee recommend to the Board of Trustees that the Library award the Property and Casualty Insurance Programs provided above to Arthur J. Gallagher & Co. effective June 1, 2017 through May 31, Packet Pg. 9

10 2.2 Queens Library Board/Committee Item BOARD/COMMITTEE: Finance and Investment Committee DATE OF MEETING: May 25, 2017 ITEM ID #: 1432 AGENDA: Acceptance of Financial Reports for the Period Ending April 2017 Background: In accordance with Library By-Laws, the Library s financial statements shall be reviewed on a regular basis. Current Status: The Chief Financial Officer submits the Budget Reports attached for Board approved operating funds and Balance Sheets for all funds as of April 30, Recommended Motion for Consideration by the Finance & Investment Committee: I move that the Finance & Investment Committee recommend to the Board of Trustees that the Budget Reports for Board approved operating funds and Balance Sheets for all funds as of April 30, 2017 be accepted. Attachments: F & I - Financial Statements (DOC) Packet Pg. 10

11 2.2.a THE QUEENS BOROUGH PUBLIC LIBRARY FINANCIAL STATEMENTS AS OF APRIL 30, 2017 FINANCE & INVESTMENT COMMITTEE MEETING MAY 25, 2017 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 1 Packet Pg. 11

12 2.2.a City General Fund Budget Report as of April 30, 2017 In thousands Estimated Revenues Adopted Budget Current Budget Y-T-D Actual Open Orders Remaining Balance Percent Remaining City Appropriations $ 102,371 $ 102,474 $ 92,580 - $ 9,894 10% Interest Income (10) 0% Rental % Sundry Revenues (1) 0% Legal Settlement (1) 0% Reader Printer (4) 0% Total Revenues $ 102,425 $ 102,528 $ 92,642 $ - $ 9,886 10% Appropriations Personal Services $ 62,701 $ 63,080 $ 50,654 - $ 12,426 20% Health Insurance 14,120 14,084 9,682-4,402 31% Social Security 4,813 4,813 3,786-1,027 21% Unemployment Insurance % Employee Welfare Fund 2,667 2,667 1,515-1,152 43% Disability Insurance % Workers' Compensation % Training % General Supplies 1,346 1, % Maintenance & Custodial Supplies % Equipment % Furniture % Library Materials 2,076 1,947 1, % Contractual Services 2,178 2,077 1, % Postage % Telecommunications % Carfare, Travel & Mileage % Maintenance & Repairs - Vehicles % Maintenance & Repairs - Buildings 1,534 1, % Information Systems Services 1,518 1, % Rentals - Land/Buildings 1,314 1, % Heat, Light, and Power 2,927 2, ,921 99% P & C Insurance Premiums % Adult Literacy 1,660 1,810 1, % Various City Funded Programs % Total Appropriations $ 102,425 $ 102,534 $ 74,323 $ 1,849 $ 26,362 26% Net Income/(Loss) $ - $ (6) $ 18,319 $ - $ (16,476) Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 2 Packet Pg. 12

13 2.2.a Fines and Fees Fund Budget Report as of April 30, 2017 In thousands Estimated Revenues Adopted Budget Current Budget Y-T-D Actual Open Orders Remaining Balance Percent Remaining Fines on Overdue Items $ 1,226 $ 1,226 $ $ % Lost Library Cards % Lost & Damaged Items Fees % Interest Income- Fines/Fees % Total Revenues $ 1,568 $ 1,568 $ 1,213 - $ % Appropriations Personal Services $ - $ - $ 3 $ - $ (3) 0% Social Security % Training % General Supplies % Equipment % Library Materials % Contractual Services % Information System Services % Total Appropriations $ 1,685 $ 1,685 $ 924 $ 225 $ % Net Income/(Loss) $ (117) $ (117) $ 289 $ - $ (181) Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 3 Packet Pg. 13

14 2.2.a Federal General Fund Budget Report as of April 30, 2017 In thousands Estimated Revenues Adopted Budget Current Budget Y-T-D Actual Open Orders Remaining Balance Percent Remaining Federal USDF Program Refunds $ 1,657 $ 1, $ % Total Revenues $ 1,657 $ 1, $ % Appropriations Telecommunications $ 1,657 $ 1,657 $ 853 $ - $ % Information Systems Services (67) 0% Total Appropriations $ 1,657 $ 1,657 $ 919 $ 1 $ % Net Income/(Loss) $ - $ - $ (74) $ - $ 75 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 4 Packet Pg. 14

15 2.2.a State General Fund Budget Report as of April 30, 2017 In thousands Estimated Revenues Adopted Budget Current Budget Y-T-D Actual Open Orders Remaining Balance Percent Remaining Basic Grant Revenues $ 4,042 $ 4,042 $ $ 3,863 96% Consolidated Systems Aid 1,621 1, , % Legal Settlements % County Prison Aid % Total Revenues $ 5,663 $ 5, $ 5,484 97% Appropriations Personal Services $ 711 $ 749 $ 408 $ - $ % Health Insurance (6) 0% Social Security % Employee Welfare Fund (1) 0% Pension % Workers' Compensation % Training % General Supplies % Equipment % Furniture % Library Materials 2,008 2,173 1, % Contractual Services 1,185 1, ,195 97% Carfare, Travel & Mileage % Maintenance & Repairs - Buildings 347 1, % Information Systems Services 2,669 2,645 1,014 1, % Total Appropriations $ 7,299 $ 8,978 $ 3,485 $ 2,048 $ 3,445 38% Net Income/(Loss) $ (1,636) $ (3,315) $ (3,306) $ - $ 2,039 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 5 Packet Pg. 15

16 2.2.a Board-Designated Fund Budget Report as of April 30, 2017 In thousands Estimated Revenues Adopted Budget Current Budget Y-T-D Actual Open Orders Remaining Balance Percent Remaining Interest & Dividend Income $ 250 $ 250 $ $ % Library Merchandise Sales % Gains (Losses) on Investments (553) 0% Total Revenues $ 460 $ 460 $ $ (450) -98% Appropriations Training $ 10 $ 10 $ - $ - $ % General Supplies % Contractual Services 609 1,776 1, % Carfare, Travel & Mileage % Maintenance & Repairs - Vehicles % P & C Insurance Premiums % Information Systems Services (18) -225% Total Appropriations $ 675 $ 1,842 $ 1,112 $ 2 $ % Net Income/(Loss) $ (215) $ (1,382) $ (202) $ - $ (1,178) Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 6 Packet Pg. 16

17 2.2.a Workers' Comp Fund Budget Report as of April 30, 2017 In thousands Estimated Revenues Adopted Budget Current Budget Y-T-D Actual Open Orders Remaining Balance Percent Remaining Interest Income $ 1 $ 1 $ 2 $ - $ (1) 0% Interfund Transfers % Total Revenues % Appropriations Personal Services $ 75 $ 75 $ 63 - $ 12 16% Health Insurance % Social Security % Employee Welfare Fund % Pension % Workers' Compensation % Contractual Services % P & C Insurance Premiums % Total Appropriations $ 591 $ 591 $ $ % Net Income/(Loss) $ - $ - $ (462) $ - $ 462 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 7 Packet Pg. 17

18 2.2.a BALANCE SHEET FINES & FEES FUND GROUP At April 30, 2017 Assets Cash & Cash Equivalents Checking Accounts Interest Bearing $ 2,835,005 Money Market Accounts 187,282 Repurchase Agreements - On Hand 41,901 Accounts Receivable Accounts Receivable and Employee Advances 13,866 Grants and Contracts Receivable New York City - New York State - Federal Government - Contributions Receivable From New York State - From Individuals, Corporations and Foundations - Prepaid Expenses Prepaid Others - Other Assets Interfund Receivables 139,361 Certificates of Deposit - Investments - Property & Equipment (net of depreciation) 671,893 TOTAL ASSETS $ 3,889,308 Liabilities and Fund Balances Liabilities Accounts Payable $ 32,807 Accrued Payroll & Related Expense - Note Payable - Compensated Absences Payable - Deferred Revenue - Other Liabilities and Interfund Payables - Fund Balances Invested in Capital Assets, Net of Related Debt (Unrestricted Funds) 671,893 Unrestricted - Other 3,184,608 Current Restricted - Permanently Restricted (Endowments) - TOTAL LIABILITIES AND FUND BALANCES $ 3,889,308 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 8 Packet Pg. 18

19 2.2.a BALANCE SHEET CITY FUNDS GROUP At April 30, 2017 Assets Cash & Cash Equivalents Checking Accounts Interest Bearing $ 4,829,554 Money Market Accounts 1,008 Repurchase Agreements - On Hand 1,020 Accounts Receivable Accounts Receivable and Employee Advances 9 Grants and Contracts Receivable New York City 2,646,076 New York State - Federal Government - Contributions Receivable From New York State - From Individuals, Corporations and Foundations 29,482 Prepaid Expenses Prepaid Insurance 680,401 Prepaid Rent 91,460 Other Assets Interfund Receivables 557,655 Security Deposit - Investments - Property & Equipment (net of depreciation) 6,906,620 TOTAL ASSETS $ 15,743,285 Liabilities and Fund Balances Liabilities Accounts Payable $ 161,657 Accrued Payroll & Related Expense - Note Payable 723,946 Compensated Absences Payable - Deferred Revenue - Other Liabilities and Interfund Payables 9,701,957 Fund Balances Invested in Capital Assets, Net of Related Debt (Unrestricted Funds) 6,906,620 Unrestricted - Other 15,424,780 Restricted - Other (17,175,675) Permanently Restricted (Endowments) - TOTAL LIABILITIES AND FUND BALANCES $ 15,743,285 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 9 Packet Pg. 19

20 2.2.a BALANCE SHEET STATE & FEDERAL FUNDS GROUP At April 30, 2017 Assets Cash & Cash Equivalents Checking Accounts Interest Bearing $ 1,700,643 Money Market Accounts - Repurchase Agreements - On Hand 80 Accounts Receivable Accounts Receivable and Employee Advances 14,128 Grants and Contracts Receivable New York City 464,002 New York State 940,439 Federal Government 845,594 Contributions Receivable From New York State - From Individuals, Corporations and Foundations - Prepaid Expenses Prepaid Other - Other Assets Interfund Receivables 16,726 Certificates of Deposit - Investments 7,475,632 Security Deposits 25,667 Property & Equipment (net of depreciation) 27,385,129 TOTAL ASSETS $ 38,868,040 Liabilities and Fund Balances Liabilities Accounts Payable $ 106,327 Accrued Payroll & Related Expense - Line of Credit Payable - Compensated Absences Payable 6,101,658 Deferred Revenue - Other Liabilities and Interfund Payables - Fund Balances Invested in Capital Assets, Net of Related Debt (Unrestricted Funds) 27,385,129 Unrestricted - Other 8,559,824 Restricted - Other (3,284,898) TOTAL LIABILITIES AND FUND BALANCES $ 38,868,040 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 10 Packet Pg. 20

21 2.2.a BALANCE SHEET TRUST & AGENCY FUND At April 30, 2017 Assets Cash & Cash Equivalents Checking Accounts Interest Bearing $ 2,762,886 Money Market Accounts - Repurchase Agreements - On Hand - Accounts Receivable Accounts Receivable - Grants and Contracts Receivable New York City - New York State - Federal Government - Contributions Receivable From New York State - From Individuals, Corporations and Foundations - Prepaid Expenses Prepaid Health Insurance - Other Assets Interfund Receivables 353,589 Certificates of Deposit - Investments - Property & Equipment (net of depreciation) - TOTAL ASSETS $ 3,116,475 Liabilities and Fund Balances Liabilities Accounts Payable $ 2,354,983 Accrued Payroll & Related Expense - Note Payable - Incurred Compensation Losses - Deferred Revenue - Other Liabilities and Interfund Payables 761,492 Fund Balances Invested in Capital Assets, Net of Related Debt (Unrestricted Funds) - Unrestricted Other - Restricted Other - Permanently Restricted (Endowments) - TOTAL LIABILITIES AND FUND BALANCES $ 3,116,475 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 11 Packet Pg. 21

22 2.2.a BALANCE SHEET BOARD DESIGNATED & PRIVATE GRANTS FUND At April 30, 2017 Assets Cash & Cash Equivalents Checking Accounts Interest Bearing $ 2,161,867 Money Market Accounts - On Hand 521 Accounts Receivable Accounts Receivable 18,682 Grants and Contracts Receivable New York City - New York State - Federal Government - Contributions Receivable From New York State - From Individuals, Corporations and Foundations - Prepaid Expenses Prepaid Other 1,120 Other Assets Interfund Receivables 281,787 Certificates of Deposit - Investments 3,755,179 Property & Equipment (net of depreciation) 1,065,409 - TOTAL ASSETS $ 7,284,565 Liabilities and Fund Balances Liabilities Accounts Payable $ 9,735 Accrued Payroll & Related Expense - Note Payable - Compensated Absences Payable - Deferred Revenue - Other Liabilities and Interfund Payables - Fund Balances Invested in Capital Assets, Net of Related Debt (Unrestricted Funds) 1,065,409 Unrestricted - Other 6,038,108 Restricted - Other 171,313 Permanently Restricted (Endowments) - TOTAL LIABILITIES AND FUND BALANCES $ 7,284,565 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 12 Packet Pg. 22

23 2.2.a BALANCE SHEET WORKERS COMPENSATION FUND At April 30, 2017 Assets Cash & Cash Equivalents Checking Accounts Interest Bearing $ 1,834,743 Money Market Accounts - Repurchase Agreements - On Hand - Accounts Receivable Accounts Receivable - Grants and Contracts Receivable New York City - New York State - Federal Government - Contributions Receivable From New York State - From Individuals, Corporations and Foundations - Prepaid Expenses Prepaid Health Insurance - Other Assets Interfund Receivables - Certificates of Deposit - Investments - Property & Equipment (net of depreciation) - TOTAL ASSETS $ 1,834,743 Liabilities and Fund Balances Liabilities Accounts Payable - Accrued Payroll & Related Expense - Note Payable - Incurred Compensation Losses $ 445,238 Deferred Revenue - Other Liabilities and Interfund Payables 418 Fund Balances Invested in Capital Assets, Net of Related Debt (Unrestricted Funds) - Unrestricted - Other 1,389,087 Restricted - Other - Permanently Restricted (Endowments) - TOTAL LIABILITIES AND FUND BALANCES $ 1,834,743 Attachment: F & I - Financial Statements (1432 : Acceptance of Financial Reports for the Period Ending April 2017) 13 Packet Pg. 23

24 2.3 Queens Library Board/Committee Item BOARD/COMMITTEE: Finance and Investment Committee DATE OF MEETING: May 25, 2017 ITEM ID #: 1431 AGENDA: Approval of Bills for the Month of April 2017 Background: In accordance with New York State Law, the Board of Trustees has sole authority over the expenditure of funds appropriated for library purposes and must have a method in place for the review and approval of all expenditures. Current Status: The Chief Financial Officer submits for approval bills in the aggregate sum of $4,108,263 being the amount of April 2017 bills vouchered and paid consisting of $75,182 in Fines & Fees Funds, $673,722 in City Funds, $227,358 in Federal & State Funds, $3,029,364 in Trust & Agency Funds, $51,512 in Board-Designated & Private Grants Funds, and $51,125 from the Workers Compensation Reserve Fund. All expenditures were made in accordance with Budgets and Appropriations approved by the Board of Trustees. Recommended Motion for Consideration by the Finance & Investment Committee: I move that the Finance & Investment Committee recommend to the Board of Trustees the approval of the April 2017 bills in the aggregate sum of $4,108,263. Packet Pg. 24

25 3.1 Queens Library Board/Committee Item BOARD/COMMITTEE: Finance and Investment Committee DATE OF MEETING: May 25, 2017 ITEM ID #: 1430 AGENDA: Payroll for the Month of April 2017 Report Item: Payroll for the Month of April 2017 The Chief Financial Officer reports the payrolls paid during the month of April 2017 in the aggregate sum of $5,267,808 consisting of $319 in Fines & Fees Funds, $5,070,834 in City Funds, $182,164 in Federal & State Funds, $8,354 in Board-designated & Private Grants Funds, and $6,137 in the Workers Compensation Reserve Funds. All expenditures were made in accordance with Budgets and Appropriations approved by the Board of Trustees. Packet Pg. 25

26 3.2 Queens Library Board/Committee Item BOARD/COMMITTEE: Finance and Investment Committee DATE OF MEETING: May 25, 2017 ITEM ID #: 1454 AGENDA: The Queens Borough Public Library Workers' Compensation Self- Insurance Program Background: Self-Insured Workers Compensation Background In 1995, the Library implemented a self-insurance program to fulfill its legal obligation to provide workers compensation benefits to all employees. Prior to this, workers compensation insurance had always been purchased from the State Insurance Fund. The Library received a renewal quote for $533,000 by the State Insurance Fund in With a desire to improve claims management, the Library conducted a self-insurance feasibility study. The study demonstrated that it was in the best interest of the Library to self-insure a Workers Compensation Program. By improving safety and internal claims management, the Library believed it would improve service to employees while achieving substantial savings. Third Party Administration A Third Party Administrator (TPA) administers the program which includes reporting to and representation services at the Workers Compensation Board. The functions provided by the TPA include claims processing, completing and filing reports, conducting investigations, medical claims management, loss control services, consulting and training, providing legal representation, excess insurance analysis and placement and general program management. From 1995 through the end of 2016, the Library s TPA was Wright Risk Management. As the result of an RFP that was issued in 2016, FCS Administrators, Inc. replaced Wright Risk Management as the Library s TPA on January 1, Plan Performance Update As of December 31, 2016 New York State Cost of Claims - Weekly Maximum Benefits New York State Law provides a maximum benefit if a workers compensation claim is accepted. The maximum benefit amount has more than doubled since inception of the program in 1995, but Queens Library s average claim costs have remained stable despite such significant benefit increases due to proactive loss control and claims management by QBPL and TPA staff. Packet Pg. 26

27 3.2 New York State Schedule of Benefits Date of Accident Weekly Maximum Total Current Status: Claims July 1, June 30, 2007* $ July 1, June 30, 2017 $ * Program Inception - 7/1/1995 There have been a total of 767 claims filed since inception and 735 were closed claims through December 31, Financial In 1995, the Library made the initial contribution of $564,000 to the workers compensation selfinsurance fund. The total program funding level through December 31, 2016 was $9,892,329. The contribution in FY 16 was $611,638. These contributions are based on what the estimated cost of financing this risk with an insurer would be by using the New York State Workers Compensation and Ratings Board formulas and rates and applying them to the Library s payroll. The fund balance for the workers compensation program was $1,748,935 as of December 31, This included the estimated future costs of claims (Current Change in Claims Reserve Estimate) that occurred as of the end of this reporting period. A detailed review of the financial aspects of the program from July 1, 1995 through December 31, 2016 is as follows: Claims Paid and Reserved $ (3,285,532) Program Management $ (1,000,000) Reinsurance $ (982,646) Other Charges $ (806,814) Wages $ (1,327,745) Total Paid and Reserved Costs $ (7,402,737) Current Change in Claims Reserve Estimate $ 184,601 Total Incurred Costs $ (7,218,136) Packet Pg. 27

28 3.2 Less: Interest Earnings $ 732,693 Net Cost $ (6,485,443) Program Performance The estimated total cost of commercial insurance premiums that would have been paid to a carrier(s), in lieu of implementing the self-insurance program, is $10,113,754. As calculated above, the estimated net cost of self-insuring this risk during the same period is $6,485,443. Therefore, the estimated savings from implementing the self-insurance program is $3,628,311 since program inception on July 1, Packet Pg. 28

29 4.1 Queens Library Board/Committee Item BOARD/COMMITTEE: Finance and Investment Committee DATE OF MEETING: May 25, 2017 ITEM ID #: 1455 AGENDA: Motion to Adjourn Recommended Motion for Consideration: I move that the meeting be adjourned. Packet Pg. 29