AG 2007 05 21 - Laserfiche WebLink

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PIEDMONT AREA MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE AUTHORITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 NOTE 3 SUMMARY DISCLOSURES OF SIGNIFICANT COMMITMENTS AND CONTINGENCIES Noncancellable Oaerating Leases The Authority leases certain operating facilities under noncancellable operating leases. Seven of the leases for facilities are renewable at the option of the Authority. One of these leases contains an option to purchase at any time during the lease term. Future lease payments due under these leases subsequent to June 30, 2006 are as follows: Year Ending June 30, Amount 2007 $ 588,567 2008 169,919 $ 758,486 Total rent expense for all operating leases amounted to $486,395 for the year ended June 30, 2006. Federal and State-Assisted Programs The Authority has received proceeds from several federal and state grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of grant monies. Self-Funded Health Insurance The Authority had aself-funded group health care plan which was discontinued in January, 2006. Provisions for expected future payments had been accrued based on the Authority's experience and included amounts for claims filed and claims incurred but not reported. The Authority is insured for excessive and unexpected health claims and is liable for claims not to exceed $60,000 for each employee per plan year and an aggregate amount of $1,500,000 per plan year, whichever is reached first. The Authority has accrued a liability of $59,191 as of June 30, 2006, for estimated health plan claims that have not been settled at the end of the fiscal year. /~tzsi 4T ' ~~