Financial Statements Audit Report

Washington Counties Risk

Pool

For the period October 1, 2023 through September 30, 2024

Published May 22, 2025

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Report No. 1037315

Office of the Washington State Auditor

Pat McCarthy

May 22, 2025

Board of Directors

Washington Counties Risk Pool

Tumwater, Washington

Report on Financial Statements

Please find attached our report on the Washington Counties Risk Pool’s financial statements.

We are issuing this report in order to provide information on the Pool’s financial activities and

condition.

Sincerely,

Pat McCarthy, State Auditor

Olympia, WA

Americans with Disabilities

In accordance with the Americans with Disabilities Act, we will make this document available in

alternative formats. For more information, please contact our Office at (564) 999-0950, TDD

Relay at (800) 833-6388, or email our webmaster at webmaster@sao.wa.gov .

Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (564) 999-0950  Pat.McCarthy@sao.wa.gov

TABLE OF CONTENTS

Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance

and Other Matters Based on an Audit of Financial Statements Performed in Accordance with

Government Auditing Standards ..................................................................................................... 4

Independent Auditor's Report on the Financial Statements............................................................ 6

Financial Section........................................................................................................................... 10

About the State Auditor's Office................................................................................................... 45

Page 3

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INDEPENDENT AUDITOR’S REPORT

Report on Internal Control over Financial Reporting and on Compliance and Other

Matters Based on an Audit of Financial Statements Performed in Accordance with

Government Auditing Standards

Washington Counties Risk Pool

October 1, 2023 through September 30, 2024

Board of Directors

Washington Counties Risk Pool

Tumwater, Washington

We have audited, in accordance with auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States, the financial statements of the

Washington Counties Risk Pool, as of and for the year ended September 30, 2024, and the related

notes to the financial statements, which collectively comprise the Pool’s basic financial statements,

and have issued our report thereon dated May 14, 2025.

REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING

In planning and performing our audit of the financial statements, we considered the Pool’s internal

control over financial reporting (internal control) as a basis for designing audit procedures that are

appropriate in the circumstances for the purpose of expressing our opinion on the financial

statements, but not for the purpose of expressing an opinion on the effectiveness of the Pool’s

internal control. Accordingly, we do not express an opinion on the effectiveness of the Pool’s

internal control.

A deficiency in internal control exists when the design or operation of a control does not allow

management or employees, in the normal course of performing their assigned functions, to prevent,

or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a

combination of deficiencies, in internal control such that there is a reasonable possibility that a

material misstatement of the Pool’s financial statements will not be prevented, or detected and

corrected on a timely basis. A significant deficiency is a deficiency, or a combination of

deficiencies, in internal control that is less severe than a material weakness, yet important enough

to merit attention by those charged with governance.

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Office of the Washington State Auditor

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Our consideration of internal control was for the limited purpose described above and was not

designed to identify all deficiencies in internal control that might be material weaknesses or

significant deficiencies and therefore, material weaknesses or significant deficiencies may exist

that were not identified.

Given these limitations, during our audit we did not identify any deficiencies in internal control

that we consider to be material weaknesses.

REPORT ON COMPLIANCE AND OTHER MATTERS

As part of obtaining reasonable assurance about whether the Pool’s financial statements are free

from material misstatement, we performed tests of its compliance with certain provisions of laws,

regulations, contracts and grant agreements, noncompliance with which could have a direct and

material effect on the financial statements. However, providing an opinion on compliance with

those provisions was not an objective of our audit, and accordingly, we do not express such an

opinion.

The results of our tests disclosed no instances of noncompliance or other matters that are required

to be reported under Government Auditing Standards.

PURPOSE OF THIS REPORT

The purpose of this report is solely to describe the scope of our testing of internal control and

compliance and the results of that testing, and not to provide an opinion on the effectiveness of the

Pool’s internal control or on compliance. This report is an integral part of an audit performed in

accordance with Government Auditing Standards in considering the Pool’s internal control and

compliance. Accordingly, this communication is not suitable for any other purpose. However, this

report is a matter of public record and its distribution is not limited. It also serves to disseminate

information to the public as a reporting tool to help citizens assess government operations.

Pat McCarthy, State Auditor

Olympia, WA

May 14, 2025

Page 5

Office of the Washington State Auditor

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INDEPENDENT AUDITOR’S REPORT

Report on the Audit of the Financial Statements

Washington Counties Risk Pool

October 1, 2023 through September 30, 2024

Board of Directors

Washington Counties Risk Pool

Tumwater, Washington

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying financial statements of the Washington Counties Risk Pool,

as of and for the year ended September 30, 2024, and the related notes to the financial statements,

which collectively comprise the Pool’s basic financial statements as listed in the financial section

of our report.

In our opinion, the accompanying financial statements referred to above present fairly, in all

material respects, the financial position of the Washington Counties Risk Pool, as of September 30,

2024, and the changes in financial position and cash flows thereof for the year then ended in

accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United

States of America (GAAS) and the standards applicable to financial audits contained in

Government Auditing Standards, issued by the Comptroller General of the United States. Our

responsibilities under those standards are further described in the Auditor’s Responsibilities for

the Audit of the Financial Statements section of our report. We are required to be independent of

the Pool and to meet our other ethical responsibilities, in accordance with the relevant ethical

requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

Matters of Emphasis

As discussed in Note 2 to the financial statements, in 2024, the Pool adopted new accounting

guidance, Governmental Accounting Standards Board (GASB) 101. Our opinion is not modified

with respect to this matter.

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Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements

in accordance with accounting principles generally accepted in the United States of America, and

for the design, implementation, and maintenance of internal control relevant to the preparation and

fair presentation of financial statements that are free from material misstatement, whether due to

fraud or error.

In preparing the financial statements, management is required to evaluate whether there are

conditions or events, considered in the aggregate, that raise substantial doubt about the Pool’s

ability to continue as a going concern for twelve months beyond the financial statement date,

including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute

assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and

Government Auditing Standards will always detect a material misstatement when it exists. The

risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or

the override of internal control. Misstatements are considered material if there is a substantial

likelihood that, individually or in the aggregate, they would influence the judgment made by a

reasonable user based on the financial statements.

Performing an audit in accordance with GAAS and Government Auditing Standards includes the

following responsibilities:

•

Exercise professional judgment and maintain professional skepticism throughout the audit;

Identify and assess the risks of material misstatement of the financial statements, whether

due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and

disclosures in the financial statements;

•

Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing

an opinion on the effectiveness of the Pool’s internal control. Accordingly, no such opinion

is expressed;

Evaluate the appropriateness of accounting policies used and the reasonableness of

significant accounting estimates made by management, as well as evaluate the overall

presentation of the financial statements;

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Office of the Washington State Auditor

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•

Conclude whether, in our judgment, there are conditions or events, considered in the

aggregate, that raise substantial doubt about the Pool’s ability to continue as a going

concern for a reasonable period of time; and

Communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit, significant audit findings, and certain internal

control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

management’s discussion and analysis and required supplementary information listed in the

financial section of our report be presented to supplement the basic financial statements. Such

information is the responsibility of management and, although not a part of the basic financial

statements, is required by the Governmental Accounting Standards Board who considers it to be

an essential part of financial reporting for placing the basic financial statements in an appropriate

operational, economic or historical context. We have applied certain limited procedures to the

required supplementary information in accordance with auditing standards generally accepted in

the United States of America, which consisted of inquiries of management about the methods of

preparing the information and comparing the information for consistency with management’s

responses to our inquiries, the basic financial statements, and other knowledge we obtained during

our audit of the basic financial statements. We do not express an opinion or provide any assurance

on the information because the limited procedures do not provide us with sufficient evidence to

express an opinion or provide any assurance.

Other Information

The other information comprises of DES Schedule of Expenses and List of Participating Members

but does not include the basic financial statements and our auditor’s report thereon. Management

is responsible for the other information included with the financial statements. Our opinion on the

basic financial statements does not cover this other information, and, we do not express an opinion

or provide any assurance thereon.

In connection with the audit of the basic financial statements, our responsibility is to read the other

information and consider whether a material inconsistency exists between the other information

and the basic financial statements, or the other information otherwise appears to be materially

misstated. If, based on the work performed, we include that an uncorrected material misstatement

of the other information exists, we are required to describe it in our report.

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Office of the Washington State Auditor

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OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING

STANDARDS

In accordance with Government Auditing Standards, we have also issued our report dated May 14,

2025 on our consideration of the Pool’s internal control over financial reporting and on our tests

of its compliance with certain provisions of laws, regulations, contracts and grant agreements and

other matters. The purpose of that report is to describe the scope of our testing of internal control

over financial reporting and compliance and the results of that testing, and not to provide an

opinion on the effectiveness of the Pool’s internal control over financial reporting or on

compliance. That report is an integral part of an audit performed in accordance with Government

Auditing Standards in considering the Pool’s internal control over financial reporting and

compliance.

Pat McCarthy, State Auditor

Olympia, WA

May 14, 2025

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FINANCIAL SECTION

Washington Counties Risk Pool

October 1, 2023 through September 30, 2024

REQUIRED SUPPLEMENTARY INFORMATION

Management’s Discussion and Analysis – 2024

BASIC FINANCIAL STATEMENTS

Statement of Net Position – 2024

Statement of Revenues, Expenses and Changes in Net Position – 2024

Statement of Cash Flows – 2024

Notes to Financial Statements – 2024

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Proportionate Share of Net Pension Liability – PERS 1, PERS 2/3 – 2024

Schedule of Employer Contributions – PERS 1, PERS 2/3 – 2024

MLC Claims Development – 2024

Notes to the Required Supplementary Information – 2024

SUPPLEMENTARY AND OTHER INFORMATION

DES Schedule of Expenses – 2024

List of Participating Members – 2024

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WASHINGTON COUNTIES RISK POOL

2558 R.W. Johnson Road SW, Suite 106

Tumwater, WA 98512-6103

Created by Counties for Counties

Management’s Discussion &Analysis

The Washington Counties Risk Pool (WCRP) management provides this discussion and analysis for the Pool’s

financial activities following the conclusion of its 34^thFiscal Year (FY), ending September 30, 2024. The information

in this discussion and analysis should be considered in conjunction with that in the financial statements and

accompanying notes to understand WCRP’s financial position.

WCRP has no other component units for which it is financially accountable. It operates as an enterprise fund and uses

the accrual accounting basis in accordance with the U.S. generally accepted accounting principles. This fund type is

used for ‘business type activities’ that are intended to recover all or a significant portion of their costs through user

fees and charges. Revenues are recognized when earned and expenses are recognized when incurred.

WCRP’s operating revenues consist mostly of assessments paid by its member counties. Its operating expenses consist

primarily of payments made to resolve claims, including allocated loss adjustment expenses, and for premiums for

reinsurances and excess liability, property and cyber risk/security, and crime insurance policies acquired from

superior-rated commercial carriers.

Discussion of the Financial Statements: The basic financial statements are comprised of two components:

the financial statements and the notes to those financial statements. WCRP’s two financial statements in a condensed

format are presented hereafter with two-year comparative data.

The Statement of Net Position presents information on an entity’s assets, liabilities, deferred outflows, and deferred

inflows at fiscal year-end with the difference between them reported as Net Position.

COMPARATIVE STATEMENT OF

Fiscal Years Ending

NET POSITION

09/30/2023

$69,171,241

09/30/2024

$82,249,435

Current Assets

Total Current Assets

$69,171,241

$82,249,435

Capital Assets (Net)

SBITA’s (Net)

$666,252

128,717

$590,853

66,023

Net Pension Asset (Non-current)

Total Non-Current Assets

315,189

$1,110,158

231,222

$888,098

Deferred Outflows of Resources

$223,364

$315,302

Total Deferred Outflows

$223,364

$315,302

Current Liabilities

Non-Current Liabilities

Total Liabilities

$9,413,195

35,378,249

$44,791,444

$15,669,687

51,681,024

$67,350,711

Deferred Inflows of Resources

$206,091

$114,872

Total Deferred Inflows of

Resources

$206,091

$114,872

Investment in Capital Assets

Unrestricted Net Position

Restricted Net Position

Total Net Position

$666,251

24,525,789

315,189

$590,853

15,165,176

231,222

$25,507 229

$15,987,251

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Analysis:

While the WCRP’s total assets increased between year-end 2023 and year-end 2024, the WCRP’s liabilities were

also increased by an even greater amount. This resulted in WCRP’s ending Net Position seeing a year-over-year

decrease of $9.5M. The changes in the WCRP’s liabilities were the result of actuarial adjustments to current and

prior year loss projections, meaning the projections have been increased by approximately $20.7M. Adjustments

have been made in both the prior and current years, based on unfavorable loss trends, claim settlements, and trial

outcomes. The combination of interest earnings and our continuous effort to budget additional funding in excess of

our costs reduced the impact of the increase in liabilities. The Board of Directors will continue to focus on

increasing assets to protect against potential future liability increases.

The Statement of Revenues, Expenses and Changes in Net Position presents details of an entity’s revenues and

expenses during a fiscal year that resulted in the reported Change in Net Position — an increase in net position is the

result of revenues exceeding expenses, while a decrease in net position results when revenues are less than expenses.

COMPARATIVE STATEMENT OF REVENUES,

EXPENSES AND CHANGES IN NET POSITION

Operating Revenues

FY-2023

FY-2024

Member Liability Assessments

Member Cyber/Terrorism/Crime Assessments

Member Property Assessments

Operating Revenues – Miscellaneous

Total Operating Revenues

$29,503,199

745,831

6,829,517

577,270

$37,181,687

729,733

8,732,967

460,753

$37,655,817

$47,105,140

Non-Operating Revenues

Interest Income

Rental Income

$1,548,129

16,919

$2,999,187

13,750

Gain on Capital Asset Disposition

Fair Value Adjustment of Investments

Total Non-Operating Revenues

Total Revenues

6,300

416,142

1,987,490

$39,643,307

64

1,961,598

4,974,599

$52,079,739

Operating Expenses

Liability, Property, ULAE Reserve & Prior Year Adj

Premiums for Liability Insurance Policies

Premium for Cyber Insurance Policy

Premiums for Property Insurance Policies

Premium for Terrorism Insurance Policy

Premium for Crime Insurance Policy

$18,699,414

8,494,863

238,461

5,722,214

42,596

$35,404,069

14,061,549

225,881

7,538,431

45,970

43,643

Depreciation, Bad Debt & Administrative Expenses

3,825,678

4,161,768

Total Operating Expenses

Non-Operating Expenses

Rental Expense

Jail Health Monitoring Reimbursements

Total Non-Operating Expenses

Total Expenses

$37,066,869

$61,481,312

$1,926

0

$1,926

$1,284

117,121

$118,405

$37,068,795

$61,599,717

Changes in Net Position

$2,574,511

$22,927,029

$5,689

($9,519,978)

$25,507,229

0

Beginning Net Position (October 1^st)

Prior Period Adjustment

Ending Net Position (September 30^th)

$25,507,229

$15,987,251

Analysis: Between year-end 2023 and year-end 2024, Member Liability Assessments increased by $7,678,488,

Member Property Assessments increased by $1,903,450, and Member Cyber/Terrorism/Crime Assessments decreased

by $16,098. The increases are largely the result of increases in premiums paid to insurers. The Liability increase

includes the Board’s decision to budget an additional $7,000,000 to further improve the Pool’s Net Position. The

Page 12

increases in revenue were offset by operating expenses, which include actuarial adjustments, and resulted in a year-

over-year increase of $24,414,443, with the end result being a decrease in the Pool’s Net Position.

Overall Analysis of Financial Position and Result of Operations:

The WCRP’s Self-Insured Retention (SIR) has increased over recent years to its current $3M in the 2023-24 year.

This increased SIR has increased the Pool’s exposure and uncertainty, requiring a continued aggressive funding

approach to build our Net Position. While FY2024 saw a decrease in the Net Position, it is anticipated that the direct

capital funding in 2025, along with doing so in future years, will be necessary to see our Net Position return to an

upward trajectory.

The Pool continues to remain confident in its financial position, financial practices, claim handling, and in its

investment strategy and performance. The WCRP has made very deliberate efforts to increase its funding toward Net

Position growth, budgeting an additional $1,200,000 in 2022, $5,000,000 in 2023, $7,000,000 in 2024 and increasing

to $8,750,000 in 2025. While the liability costs have outpaced the additional funding, the Board of Directors is

prepared to increase future funding to match and exceed the growth seen in those loss projections. Our confidence in

our financial position looking forward is based on our reliance on the accuracy of reserves on open claims and the

efforts being made to obtain favorable outcomes of cases currently pending.

The WCRP continues to focus on its ongoing goal of stable rates and maintaining an unrestricted Net Position that

continues to meet the solvency requirements established by the State under Washington Administrative Code (WAC)

200-100.

Budget Variance Analysis:

There were no amendments “to” or significant variations “from” the budget adopted then supplemented by the Pool’s

Board of Directors during the fiscal year ending September 30, 2024.

Request for Information:

This MD&A is provided for those interested in a general overview of the financial operations of the Washington

Counties Risk Pool. Questions concerning the information provided and WCRP’s financial report, or requests for

additional information, should be addressed to: WASHINGTON COUNTIES RISK POOL, Attn: Executive Director,

2558 R W Johnson Rd SW, Suite 106, Tumwater, WA, 98512-6103; or by telephone at (360) 292-4500.

Page 13

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ϲϲ͕ϬϮϯ

^ꢅ/dꢁꢂ>ŝĂďŝůŝƚŝĞƐ

ꢀŽŵƉĞŶƐĂƚĞĚꢂꢁďƐĞŶĐĞƐ

EĞƚꢂWĞŶƐŝŽŶꢂ>ŝĂďŝůŝƚǇꢂͲͲꢂ'ꢁ^ꢅꢂϲϴ

Ϯϳϭ͕ϳϳϵ

ϵϰ͕ϵϳϯ

dKdꢂ>ꢀEKEꢀꢁhZZꢃEdꢀ>/ꢂꢅ/>/d/ꢃ^

dKdꢂ>ꢀ>/ꢂꢅ/>/d/ꢃ^

Ψϱϭ͕ϲϴϭ͕ϬϮϰ

ꢀꢀϲϳ͕ϯϱϬ͕ϳϭϭ

ꢀꢀꢀꢀꢀϭϭϰ͕ϴϳϮ

Ψꢀꢀꢀ

dKdꢁ>ꢂꢄꢃ&ꢃZZꢃꢄꢂ/E&>Kt^ꢂZꢃ>ꢁdꢃꢄꢂdKꢂWꢃE^/KE^

EꢁdꢂWK^/d/KE͗

hŶƌĞƐƚƌŝĐƚĞĚꢂEĞƚꢂWŽƐŝƚŝŽŶ

ZĞƐƚƌŝĐƚĞĚꢂEĞƚꢂWŽƐŝƚŝŽŶ

Ψꢂꢂꢂ

ꢂꢂꢂꢂϭꢂ ϱ͕ϭϲϱ͕ϭϳϲ

Ϯϯϭ͕ϮϮϮ

EĞƚꢂ/ŶǀĞƐƚŵĞŶƚꢂŝŶꢂꢀĂƉŝƚĂůꢂꢁƐƐĞƚƐ

ϱϵϬ͕ϴϱϯ

dKdꢂ>ꢀEꢃdꢀWK^/d/KE

Ψꢀꢀꢀ

ꢀꢀꢀꢀꢀϭϱ͕ϵϴϳ͕Ϯϱϭ

dŚĞꢂĂĐĐŽŵƉĂŶǇŝŶŐꢂŶŽƚĞƐꢂĂƌĞꢂĂŶꢂŝŶƚĞŐƌĂůꢂƉĂƌƚꢂŽĨꢂƚŚĞƐĞꢂĨŝŶĂŶĐŝĂůꢂƐƚĂƚĞŵĞŶƚƐ

Page 14

tĂƐŚŝŶŐƚŽŶꢀꢁŽƵŶƚŝĞƐꢀZŝƐŬꢀWŽŽů

&zϮϬϮϯͲϮϰ

Dꢀꢁ'ꢂEK͘ꢂϬϳϳϰ

^ƚĂƚĞŵĞŶƚꢀŽĨꢀZĞǀĞŶƵĞƐ͕ꢀꢃǆƉĞŶƐĞƐ͕ꢀĂŶĚꢀꢁŚĂŶŐĞƐꢀŝŶꢀ&ƵŶĚꢀEĞƚꢀWŽƐŝƚŝŽŶ

&ŽƌꢀzĞĂƌꢀꢃŶĚŝŶŐꢀ^ĞƉƚĞŵďĞƌꢀϯϬ͕ꢀϮϬϮϰ

ꢂƐꢀŽĨ

KWꢃZꢂd/E'ꢀZꢃsꢃEhꢃ^͗

ϵͬϯϬͬϮϬϮϰ

DĞŵďĞƌƐΖꢂꢁƐƐĞƐƐŵĞŶƚƐꢂͲͲꢂD>ꢀ

DĞŵďĞƌƐΖꢂꢁƐƐĞƐƐŵĞŶƚƐꢂͲͲꢂtꢀWW

ꢀǇďĞƌͬdĞƌƌŽƌŝƐŵͬꢀƌŝŵĞꢂꢀŽǀĞƌĂŐĞ

ꢂKƚŚĞƌꢂKƉĞƌĂƚŝŶŐꢂ/ŶĐŽŵĞ

Ψꢂꢂ ꢂꢂꢂϯꢂ ϳ͕ϭϴϭ͕ϲϴϳ

Ψꢂꢂ

ꢂϴꢂ ͕ϳϯϮ͕ϵϲϳ

ꢂϳϮϵ͕ϳϯϯ

ꢂϰϲϬ͕ϳϱϯ

dŽƚĂůꢂKƉĞƌĂƚŝŶŐꢂZĞǀĞŶƵĞƐ

Ψꢂꢂ ꢂꢂꢂϰꢂ ϳ͕ϭϬϱ͕ϭϰϬ

KWꢃZꢂd/E'ꢀꢃyWꢃE^ꢃ^͗

ꢀƵƌƌĞŶƚꢂzĞĂƌꢂ>ŝĂďŝůŝƚǇꢂ^/Z

ꢀƵƌƌĞŶƚꢂzĞĂƌΖƐꢂΗϭƐƚͬϮŶĚꢂ>ĂǇĞƌƐꢂꢀŽƌƌŝĚŽƌΗꢂꢃǆƉĞŶƐĞ

ꢀƵƌƌĞŶƚꢂzĞĂƌꢂWƌŽƉĞƌƚǇꢂ^/Z

Ψϭϯ͕ϲϲϰ͕ϬϬϬ

ꢂͲ

ϭ͕ϭϭϭ͕ϬϬϬ

Ϭ

ꢂꢀƵƌƌĞŶƚꢂzĞĂƌꢂꢀǇďĞƌꢂ^/Zꢂ

ꢁĚũƵƐƚŵĞŶƚꢂŝŶꢂWƌŝŽƌꢂzĞĂƌƐΖꢂ>ŝĂďŝůŝƚǇꢂ^/Z

ꢁĚũƵƐƚŵĞŶƚꢂŝŶꢂWƌŝŽƌꢂzĞĂƌƐΖꢂ>ŝĂďŝůŝƚǇꢂꢀŽƌƌŝĚŽƌ

ꢁĚũƵƐƚŵĞŶƚꢂŝŶꢂWƌŝŽƌꢂzĞĂƌƐΖꢂWƌŽƉĞƌƚǇꢂ^/Z

ꢁĚũƵƐƚŵĞŶƚꢂŝŶꢂWƌŝŽƌꢂzĞĂƌƐΖꢂꢀǇďĞƌꢂ^/Z

ꢁĚũƵƐƚŵĞŶƚꢂŝŶꢂWƌŝŽƌꢂzĞĂƌƐΖꢂtꢀZWꢂꢀŽƌƌĞĐƚŝŽŶ

ꢁĚũƵƐƚŵĞŶƚꢂŝŶꢂZĞƐĞƌǀĞꢂĨŽƌꢂh>ꢁꢃꢂ

D>ꢀꢂZĞŝŶƐƵƌĂŶĐĞꢂWƌĞŵŝƵŵƐͬꢃǆĐĞƐƐ

tꢀWWꢂ/ŶƐƵƌĂŶĐĞꢂWƌĞŵŝƵŵƐ

ϮϬ͕ϳϰϰ͕ϲϬϰ

;Ϯ͕ϱϯϱͿ

ϰ͕ϬϬϬ

;ϱ͕ϬϬϬͿ

Ϭ

;ϭϭϮ͕ϬϬϬͿ

ϭϰ͕Ϭϲϭ͕ϱϰϵ

ϳ͕ϱϯϴ͕ϰϯϭ

ϮϮϱ͕ϴϴϭ

ϰϯ͕ϲϰϯ

ꢀǇďĞƌꢂ>ŝĂďŝůŝƚǇꢂͲꢂWƌĞŵŝƵŵ

ꢀƌŝŵĞꢂ>ŝĂďŝůŝƚǇ

dĞƌƌŽƌŝƐŵꢂ>ŝĂďŝůŝƚǇꢂWƌĞŵŝƵŵƐ

ϰϱ͕ϵϳϬ

ꢄĞƉƌĞĐŝĂƚŝŽŶꢂͬꢂꢁŵŽƌƚŝǌĂƚŝŽŶꢂꢃǆƉĞŶƐĞ

KƉĞƌĂƚŝŶŐꢂꢃǆƉĞŶĚŝƚƵƌĞƐ

ϭϯϱ͕Ϯϯϴ

ϰ͕ϬϮϲ͕ϱϯϬ

ϲϭ͕ϰϴϭ͕ϯϭϮ

dŽƚĂůꢂKƉĞƌĂƚŝŶŐꢂꢃǆƉĞŶƐĞƐ

KWꢃZꢂd/E'ꢀ/EꢁKDꢃ

;ϭϰ͕ϯϳϲ͕ϭϳϮͿ

EKEꢀKWꢃZꢂd/E'ꢀZꢃsꢃEhꢃ^ꢀ;ꢃyWꢃE^ꢃ^Ϳ

/ŶƚĞƌĞƐƚꢂ/ŶĐŽŵĞꢂ

ZĞŶƚĂůꢂ/ŶĐŽŵĞ

Ϯ͕ϵϵϵ͕ϭϴϳ

ϭϯ͕ϳϱϬ

ZĞŶƚĂůꢂꢃǆƉĞŶƐĞ

;ϭ͕ϮϴϰͿ

:Ăŝůꢂ,ĞĂůƚŚꢂDŽŶŝƚŽƌŝŶŐꢂZĞŝŵďƵƌƐĞŵĞŶƚƐ

'ĂŝŶꢂ;>ŽƐƐĞƐͿꢂŽŶꢂꢀĂƉŝƚĂůꢂꢁƐƐĞƚƐꢂꢄŝƐƉŽƐŝƚŝŽŶ

ꢁĚũƵƐƚŵĞŶƚꢂƚŽꢂ/ŶǀĞƐƚŵĞŶƚƐ

dŽƚĂůꢂEŽŶŽƉĞƌĂƚŝŶŐꢂZĞǀĞŶƵĞƐꢂ;ꢃǆƉĞŶƐĞƐͿ

;ϭϭϳ͕ϭϮϭͿ

ϲϰ

ϭ͕ϵϲϭ͕ϱϵϴ

ϰ͕ϴϱϲ͕ϭϵϰ

ꢁ,ꢂE'ꢃ^ꢀ/EꢀEꢃdꢀWK^/d/KE

dKdꢂ>ꢀEꢃdꢀWK^/d/KE͕ꢀꢅĞŐŝŶŶŝŶŐꢀŽĨꢀꢀzĞĂƌ

;ϵ͕ϱϭϵ͕ϵϳϴͿ

Ϯϱ͕ϱϬϳ͕ϮϮϵ

ϭϱ͕ϵϴϳ͕Ϯϱϭ

dKdꢂ>ꢀEꢃdꢀWK^d/KE͕ꢀĂƐꢀŽĨꢀꢀ^ĞƉƚĞŵďĞƌꢀϯϬƚŚ

dŚĞꢂĂĐĐŽŵƉĂŶǇŝŶŐꢂŶŽƚĞƐꢂĂƌĞꢂĂŶꢂŝŶƚĞŐƌĂůꢂƉĂƌƚꢂŽĨꢂƚŚĞƐĞꢂĨŝŶĂŶĐŝĂůꢂƐƚĂƚĞŵĞŶƚƐ

Page 15

tĂƐŚŝŶŐƚŽŶꢀꢁŽƵŶƚŝĞƐꢀZŝƐŬꢀWŽŽů

^ƚĂƚĞŵĞŶƚꢀŽĨꢀꢁĂƐŚꢀ&ůŽǁƐꢀ

&ŽƌꢀzĞĂƌꢀꢃŶĚŝŶŐꢀ

Dꢀꢁ'ꢂEK͘ꢂϬϳϳϰ

^ĞƉƚĞŵďĞƌꢀϯϬ͕ꢀϮϬϮϰ

zĞĂƌꢀꢃŶĚĞĚ

ϵͬϯϬͬϮϬϮϰ

ꢁꢂ^,ꢀ&>Kt^ꢀ&ZKDꢀKWꢃZꢂd/E'ꢀꢂꢁd/s/d/ꢃ^͗

ꢀĂƐŚꢂƌĞĐĞŝǀĞĚꢂĨƌŽŵꢂDĞŵďĞƌƐꢂΘꢂ/ŶƐƵƌĞƌƐ

Ψꢂꢂꢂ

ꢂꢂϱϰ͕ϯϳϬ͕Ϯϰϭ

ꢀĂƐŚꢂƉĂǇŵĞŶƚƐꢂĨŽƌꢂŐŽŽĚƐꢂĂŶĚꢂƐĞƌǀŝĐĞƐ

ꢀĂƐŚꢂƉĂǇŵĞŶƚƐꢂƚŽꢂĞŵƉůŽǇĞĞƐꢂĨŽƌꢂƐĞƌǀŝĐĞƐ

;ϯϳ͕ϳϴϳ͕ϳϱϲͿ

;ϭ͕Ϯϰϴ͕ϮϲϭͿ

EĞƚꢂꢀĂƐŚꢂWƌŽǀŝĚĞĚ ꢂ;hƐĞĚͿ ꢂďǇꢂKƉĞƌĂƚŝŶŐꢂꢃĐƚŝǀŝƚŝĞƐ

ϭϱ͕ϯϯϰ͕ϮϮϱ

ꢁꢂ^,ꢀ&>Ktꢀ&ZKDꢀꢁꢂW/dꢂ>ꢀꢂEꢄꢀZꢃ>ꢂdꢃꢄꢀ&/EꢂEꢁ/E'ꢀꢂꢁd/s/d/ꢃ^͗

ϴϯϬϬϬϬϱꢂͲꢂ^ꢅ/dꢁΖƐ͗ꢂZŝŐŚƚͲƚŽͲhƐĞꢂꢁƐƐĞƚƐꢂ

ϴϯϬϬϬϬϰꢂͼꢂEĞƚꢂWĞŶƐŝŽŶꢂꢁƐƐĞƚͺEŽŶͲꢀƵƌꢂꢁƐƐĞƚ

ϴϰϬϬϬϬϬꢂͼꢂꢄꢃ&ꢃZZꢃꢄꢂKhd&>Ktꢂ'ꢁ^ꢅꢂϲϴ

Ϯ͕ϴϱϱ

ϴϯ͕ϵϲϳ

;ϵϭ͕ϵϯϴͿ

EĞƚꢂĐĂƐŚꢂƉƌŽǀŝĚĞĚꢂďǇꢂ/ŶǀĞƐƚŝŶŐꢂꢃĐƚŝǀŝƚŝĞƐ

;ϱ͕ϭϭϲͿ

ꢁꢂ^,ꢀ&>Ktꢀ&ZKDꢀ/Esꢃ^d/E'ꢀꢂꢁd/s/d/ꢃ^͗

ϴϲϬϬϬϬϭꢂ^ꢅ/dꢁꢂ>ŝĂďŝůŝƚŝĞƐ

ϴϲϬϬϲϬϬꢂͼꢂh>ꢁꢃ

;ϱϵ͕ϴϰϬͿ

;ϭϭϮ͕ϬϬϬͿ

ϴ͕ϯϵϱ

ϴϲϬϬϳϬϬꢂͼꢂꢀŽŵƉĞŶƐĂƚĞĚꢂꢁďƐĞŶƐĞƐ͗ϴϲϬϬϳϬϭꢂͼꢂꢁŶŶƵĂůꢂ>ĞĂǀĞꢂꢁĐĐƌƵĂůƐ

ϴϲϬϬϳϬϬꢂͼꢂꢀŽŵƉĞŶƐĂƚĞĚꢂꢁďƐĞŶƐĞƐ͗ϴϲϬϬϳϬϮꢂͼꢂ^ŝĐŬꢂ>ĞĂǀĞꢂꢁĐĐƌƵĂůƐ

ϴϲϬϬϴϬϬꢂͼꢂEĞƚꢂWĞŶƐŝŽŶꢂ>ŝĂďŝůŝƚǇꢂͲ'ꢁ^ꢅꢂϲϴ

ϴϳϬϬϬϬϬꢂͼꢂꢄĞĨĞƌƌĞĚꢂ/ŶĨůŽǁꢂͲꢂ'ꢁ^ꢅꢂϲϴ

ϯϬϴϴϵϬϬꢂͼꢂhŶƌĞƐƚƌŝĐƚĞĚꢂEĞƚꢂWŽƐŝƚŝŽŶ

ϯϬϴϴϵϬϮꢂͼꢂZĞƐƚƌŝĐƚĞĚꢂEĞƚꢂWŽƐŝƚŝŽŶ

ϯϬϴϴϵϬϭꢂͼꢂEĞƚꢂ/ŶǀĞƐƚŵĞŶƚꢂŝŶꢂꢀĂƉŝƚĂůꢂꢁƐƐĞƚ

ϯϴϴϭϬϬϬꢂͼꢂWƌŝŽƌꢂzĞĂƌꢂꢁĚũ

ϲϭ͕Ϯϴϴ

;ϰϭ͕ϯϱϯͿ

;ϵϭ͕ϮϭϵͿ

ϭϲϳ͕ϲϯϮ

;ϴϯ͕ϵϲϳͿ

;ϳϳ͕ϵϳϲͿ

;ϱ͕ϲϴϵͿ

/ŶƚĞƌĞƐƚꢂ/ŶĐŽŵĞꢂ

ZĞŶƚĂůꢂ/ŶĐŽŵĞ

Ϯ͕ϵϵϵ͕ϭϴϳ

ϭϮ͕ϰϲϲ

&DsꢂꢁĚũƵƐƚŵĞŶƚꢂƚŽꢂ/ŶǀĞƐƚŵĞŶƚƐ

:Ăŝůꢂ,ĞĂůƚŚꢂDŽŶŝƚŽƌŝŶŐꢂZĞŝŵďƵƌƐĞŵĞŶƚƐ

'ĂŝŶͬ;>ŽƐƐͿꢂŽŶꢂꢀĂƉŝƚĂůꢂꢁƐƐĞƚ

ϭ͕ϵϲϭ͕ϱϵϴ

;ϭϭϳ͕ϭϮϭͿ

ϲϰ

EĞƚꢂĐĂƐŚꢂƉƌŽǀŝĚĞĚꢂďǇꢂ&ŝŶĂŶĐŝŶŐꢂꢃĐƚŝǀŝƚŝĞƐ

ϰ͕ϲϮϭ͕ϰϲϲ

/ŶĐƌĞĂƐĞꢀ;ꢄĞĐƌĞĂƐĞͿꢀŝŶꢀꢁĂƐŚꢀĂŶĚꢀꢁĂƐŚꢀꢃƋƵŝǀĂůĞŶƚƐ

ϭϵ͕ϵϱϬ͕ϱϳϰ

ꢁĂƐŚꢀĂŶĚꢀꢁĂƐŚꢀꢃƋƵŝǀĂůĞŶƚƐꢀͲꢀꢅĞŐŝŶŶŝŶŐꢀŽĨꢀƚŚĞꢀzĞĂƌ

ꢁĂƐŚꢀĂŶĚꢀꢁĂƐŚꢀꢃƋƵŝǀĂůĞŶƚƐꢀ;ŝŶĐůƵĚŝŶŐꢀƌĞƐƚƌŝĐƚĞĚͿꢀͲꢀꢃŶĚꢀŽĨꢀƚŚĞꢀzĞĂƌ

ϱϵ͕ϱϯϱ͕Ϭϭϭ

ϳϵ͕ϰϴϱ͕ϱϴϱ

Page 16

tĂƐŚŝŶŐƚŽŶꢀꢁŽƵŶƚŝĞƐꢀZŝƐŬꢀWŽŽů

^ƚĂƚĞŵĞŶƚꢀŽĨꢀꢁĂƐŚꢀ&ůŽǁƐꢀ

&ŽƌꢀzĞĂƌꢀꢂŶĚŝŶŐꢀ

MCAG NO. 0774

^ĞƉƚĞŵďĞƌꢀϯϬ͕ꢀϮϬϮϰ

Year Ended

9/30/2024

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED ;h^ꢂꢃͿꢀꢄzꢀKWꢂZꢅd/E'ꢀꢅꢁd/s/d/ꢂ^

OPERATING INCOME

(14,376,172)

Cash provided (used) by Operating Activities:

Depreciation Expense

75,398

Changes in Assets and Liabilities

(Increase) Decrease in Accounts Receivable

(Increase) Decrease in Accrued Interest

(Increase) Decrease in Prepaid Expenses

Increase (Decrease) in SBITA Amortization

Increase (Decrease) in "SIR" Reserves

Increase (Decrease) in "SIR" Reserves Cyber/Property

Increase (Decrease) in Accounts Payable

Increase (Decrease) in Payroll Liabilities

7,265,101

(338,679)

(54,041)

59,840

22,367,101

256,631

79,087

(41)

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

15,334,225

0

The accompanying notes are an integral part of these financial statements

Page 17

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

These notes are an integral part of the accompanying financial statements.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Washington Counties Risk Pool (WCRP) have been prepared in conformity with

Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is

the accepted standard setting body for establishing governmental accounting and financial principles. The

significant accounting policies are described below.

A.

Reporting Entity

The WCRP was formed by Interlocal Agreement in August 1988 pursuant to Chapters 48.62 and 39.94

Revised Code of Washington (“RCW”).

The WCRP is governed by its 24-member Board of Directors with a President, Vice-President, and

Secretary/Treasurer serving as its annually elected officers. The WCRP Board meets two times each year

at its Summer Conference & Board Meeting and its Fall Annual Conference & Board Meeting, while also

holding WCRP Symposium in the Spring. The Symposium is open to member county staff to enhance risk

management skills, interact with peers for exchange of information, and learn best practices for mitigating

risks. The WCRP’s Executive Committee, consisting of 11 members of the Board of Directors, meets four

to six times each year for general Pool administration and oversight.

Through the Executive Director, the Pool’s 12-member staff work to carry out the mission and directives of

the Board of Directors. The Finance & Operations Department handles day-to-day operations and

administration of the Pool, the Risk & Claims Department provides risk management support to the Pool

and to its member counties, and manages all liability claims brought against member counties, while the

Member Services Department provide the various training, scholarships, conference and event planning,

and other educational resources to participating members.

Annual deposit assessments are adjusted to incorporate actuarial projections and operational needs and then

approved by the (WCRP) Board of Directors at their Annual Meeting. If the Pool’s assets were depleted,

members would be responsible for outstanding liabilities of the WCRP.

B.

Basis of Accounting and Presentation

The accounting records of the WCRP are maintained in accordance with methods prescribed by the State

Auditor’s Office under the authority of Chapter 43.09, RCW. The WCRP also follows the accounting

standards established by the Governmental Accounting Standards Board (GASB) Statement 10, Accounting

and Financial Reporting for Risk Financing and Related Insurance Issues, as amended by GASB

Statement 30, Risk Financing Omnibus, and GASB Statement 31, Accounting and Financial Reporting for

Certain Investments and for External Investment Funds.

The WCRP uses the full-accrual basis of accounting where revenues are recognized when earned and

expenses are recognized when incurred. Capital asset purchases are capitalized, and long-term liabilities

are accounted for within the financial statements.

The principal operating revenues of the WCRP are member assessments, while its operating expenses

include both claims paid from current year’s allowances and adjustments to prior year’s reserves, premiums

for reinsurances and excess, property, terrorism, crime and cyber risk insurances, and the Pool’s

administrative expenses.

Page 18

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

C.

Assets, Liabilities and Net Position

1.

Cash and Cash Equivalents

For the purposes of the Statement of Cash Flows, the WCRP considers all highly liquid

investments with maturities of three months or less when purchased to be cash equivalent.

2.

3.

Capital Assets and Depreciation

See Note 7, Capital Assets

Receivables

Amount owing from members and reinsurers for deductibles are identified on the Statement of Net

Position.

Accrued Interest Receivable is the amount earned on investment at the end of the fiscal year.

The WCRP Board of Directors, acting through its Executive Committee, decides if any accounts

are deemed uncollectible. Uncollectible accounts are charged to expense in the period they are

deemed uncollectible.

4.

5.

Investments

See Note 3, Deposits and Investments.

Compensated Absences

Compensated absences are leave for which employees may receive one or more (a) cash payments

when the leave is used for time off; or (b) other cash payments, such as payment of unused leave

upon termination of employment. Examples of compensated absences include vacation (or annual)

leave, sick leave, holidays, and bereavement leave.

Annual Leave may be accumulated up to 30 days and is payable upon resignation, retirement, or

death. An employee with more than sixty days sick leave accrued may convert the days earned in

the previous year (less any sick leave days used in that year) to annual leave days at the rate of

four days of sick leave for one day of annual leave. Sick leave may accumulate up to 130 days.

Sick leave does not vest until death or retirement, and the accrued liability is booked at one-half of

the amount earned.

Compensated absence liabilities are calculated using employee wages as of September 30, 2024,

and include certain defined contribution pensions and other salary-related payments as required by

GASB Statement 101, effective December 15, 2023.

6.

Unpaid Claim Liabilities

The WCRP establishes claims liabilities based upon independent actuarial estimates of the

ultimate losses (costs of claims), including future claims adjustment expenses for claims/lawsuits

that have been reported but are not settled, and for claims that have been incurred but are not yet

reported. The length of time for which such costs must be estimated varies depending on the

coverage type involved. Estimated amounts of salvage and subrogation and reinsurance

recoverable on unpaid claims are deducted from the liability for unpaid claims. Because actual

Page 19

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

claims costs depend on such complex factors as inflation and changes in doctrines of legal liability

and in damage awards, the process used in computing claims liabilities does not necessarily result

in an exact amount, particularly general liability coverage.

Claims liabilities are actuarially recomputed and incorporate the current case reserves on files,

which incorporates the Jury Verdict Value processes. The actuary uses a variety of techniques and

formulas that reflect recent settlements, claims frequencies, and other economic and social factors

to produce current estimates. A provision for inflation in the calculation of estimated future

claims costs is implicit in the calculation because reliance is placed both on actual historical data

that reflects past inflation and on other factors that are appropriate modifiers of experience.

Adjustments to claims liabilities are charged or credited to expense in the periods in which they

are made.

7.

Reinsurance

The WCRP acquires reinsurance (agreements) to directly reduce its exposure to large third-party

liability losses and to indirectly reduce its (present and past) member counties’ exposures to

contingent liabilities. Reinsurance permits recovery of substantial portions of the losses from

commercial reinsurers, although it does not discharge the primary liability of the WCRP (and its

member counties by contingent liabilities) as the direct insurer of the risks reinsured. The WCRP

does not report reinsured risks as liabilities unless it is probable that those risks will not be covered

by reinsurers.

The cumulative to-date incurred loss amount deducted from claims liabilities as of September 30,

2024, and 2023 as being reinsured were $211,959,919 and $196,794,241 respectively. Premiums

paid to reinsurers for liability coverage during 2024 and 2023 were $14,061,549 and $8,494,863

respectively. The independent actuary’s estimate for the ceded reinsured amount of gross loss

reserves as of September 30, 2024, was $64,545,123.

8.

Member Assessments and Unearned Member Assessments

Member assessments are collected in the first month of the new fiscal year and recognized as

revenue in the period for which the coverage is to be provided. On the balance sheet, member

assessments receivables were billed on or about October 1^stwith up to the amount equivalent to

100% of the prior year’s assessment being due by October 31^st, and any remaining assessments

balance(s) due by the following May 1st. The assessments calculated for liability coverage were

based in substantial part upon the members’ prior year’s worker hours.

The assessments for FY 2023-24 property coverage were calculated based upon the values of the

real and personal properties scheduled by the participating counties. Member counties are billed

on or about October 1^stwith up to 50% of the assessment due by October 31^st, and the remaining

balance due before May 1^st.

The cyber costs, which include the premium paid to the insurer and the projected losses to be paid

within the Pool’s Self-Insured Retention of $500,000 per claim, are assessed using members’

annual operating budgets. The terrorism coverage assessment is divided evenly among the

members. The crime coverage is allocated based on total employee count.

Investment income is not presently considered for the determination of member assessments.

Page 20

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

9.

Unpaid Claims

Liability claims/lawsuits are charged to expenses as incurred. Claims reserves represent the

accumulation of estimates for reported, unpaid liability claims plus a provision for liability claims

incurred but not reported (IBNR). These estimates are continually reviewed using the Jury

Verdict Value process and updated by WCRP’s consulting actuary. Any resulting adjustments are

reflected in current earnings.

10.

Reserve for Unallocated Loss Adjustment Expense

The reserve for unallocated loss adjustment expenses (ULAE) represents the estimated cost to be

incurred with respect to the settlement of both liability claims in process and those liability claims

recognized as incurred but not reported (IBNR). WCRP’s independent actuary estimates these

liabilities at the end of each fiscal year. The changes in these liabilities each year are reflected in

current earnings.

11.

12.

Exemption from Federal and State Taxes

Pursuant to revenue ruling number 90-74, income of Municipal Risk Pools is excluded from gross

income under IRC Section 115(1). RCW 48.62.151 exempts the WCRP from state insurance

premium taxes and from business and occupation taxes imposed pursuant to Chapter 82.04 RCW.

Pensions

For purposes of measuring the net pension liability or asset, deferred outflows of resources and

deferred inflows of resources related to pensions, and pension expense, information about the

fiduciary net position of all state sponsored pension plans and additions to/deductions from those

plans’ fiduciary net position have been determined on the same basis as they are reported by the

Washington State Department of Retirement Systems. For this purpose, benefit payments

(including refunds of employee contributions) are recognized when due and payable in accordance

with the benefit terms. Investments are reported at fair value. Restricted net position, related to net

pension asset, was calculated using the GASB preferred method.

13.

Lease Commitments Operating Leases

The Pool is committed under operating leases for office machines. These leases are considered

operating leases for accounting purposes. Total costs for operating leases were $4,746 for the year

ended September 30, 2024. The future minimum lease payments through the end of the lease terms

are as follows:

Fiscal Year Ending September 30th:

2025

$1,805

Total

$1,805

14.

Subscription-Based Information Technology Arrangements (SBITA)

The Pool is committed under subscription agreements for software needed to conduct business. As

per new GASB 96 requirements effective FY2023, the Pool is reporting on subscription-based

agreements that have a contractual period of not less than 12 months and meet the $10,000 SBITA

threshold per WCRP’s implementation document and policy.

Page 21

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

NOTE 2 – ACCOUNTING CHANGES AND ERROR CORRECTIONS

In accordance with GASB Statement 101, effective December 15, 2023, compensated absence liabilities are calculated

using employee wages as of the date of current financial statements and include certain defined contribution pensions

and other salary-related payments.

NOTE 3 – DEPOSITS AND INVESTMENTS

A.

Deposits

In accordance with RCW 39.58, WCRP deposits its funds into a public depository with collateral held in a

multiple financial institution collateral pool administered by the Washington Public Deposit Protection

Commission (PDPC). Funds are transferred between the WCRP’s public depository (depositories) and

either the State Treasurer’s Local Government Investment Pool (LGIP); a US Bank custodial account; or

the Spokane County Treasurer’s Spokane County Investment Pool (SCIP). There are no credit ratings for

positions in external investment pools.

WCRP funds deposited as of September 30, 2024, and September 30, 2023 were as follows:

9/30/2024

9/30/2023

Wells Fargo (checking)

$875,552

$3,825,100

$695,989

$1,291,033

$11,598,609

$674,357

Washington State Investment Pool (LGIP)

Spokane County Investment Pool (SCIP)

US Bank Custodial Account

$74,088,944

$79,485,585

$45,971,012

$59,535,011

Total deposits and investments

B.

Investments:

2024 Concentration of Credit:

Average

Duration

Average

Maturity

Rating

Moody/Sp

Percent of

Portfolio

Issuer:

Cost

Market Value

$57,406,451

$6,772,321

$6,081,153

$1,515,901

$1,205,652

Government of the

United States

Federal Home Loan

Bank

Federal Farm

Credit Bank

Federal Home Loan

Mortgage Corp

First American

Govt Oblig Fund

Federal National

Mortgage Assoc

Cash (Receivable)

$56,976,239

$6,741,234

$6,003,916

$1,576,476

$1,205,652

1.96

2.10

2.09

0.72

0

Aaa AA+

77.48%

9.14%

8.21%

2.05%

1.63%

1.49%

1.95

1.96

0.70

0

Aaa AA+

Aaa AAAm AAA

Aaa AA+

$1,151,439

$4,876

$1,102,590

$4,876

0.56

0.57

2023 Concentration of Credit:

Average

Duration

Average

Maturity

Rating

Moody/Sp

Percent of

Portfolio

Issuer:

Cost

Market Value

$33,575,425

$4,872,345

Government of the

United States

Federal Home Loan

Bank

Federal Home Loan

Mortgage Corp

$ 34,932,359

$4,970,782

$3,605,951

1.75

2.07

1.96

1.87

2.26

2.13

Aaa AA+

73.04%

10.60%

7.70%

$3,541,090

Page 22

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

Federal National

Mortgage Assoc

Federal Farm

Credit Bank

First American

Govt Oblig Fund

$2,650,357

$1,151,439

$419,463

$2,510,986

$1,051,703

$419,463

1.00

1.52

0

1.04

1.57

0

Aaa AA+

Aaa AAA

5.46%

2.29%

0.91%

Investments Measured at Fair Value

WCRP’s measures and reports investments at fair value using the valuation input hierarchy established by generally

accepted accounting principles, as follows:

x

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: These are quoted market prices for similar assets or liabilities, quoted prices for identical or

similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not

active, or other than quoted prices that are not observable.

x

Level 3: Unobservable inputs for an asset or liability.

At September 30, 2024 and 2023 WCRP had the following investments measured at fair value:

Investments by Fair Value Level

Spokane County Investment Pool

U.S. Agencies

09/30/2024

$695,989

$15,471,965

$57,406,451

Level 1

Level 2

$695,989

$15,471,965

$57,406,451

Level 3

U.S. Treasuries

Total Investments measured at

Fair Value

$73,574,405

Investments at Amortized Cost

LGIP

Cash (Receivable)

Money Market Fund

$3,825,100

$4,876

$1,205,652

$5,035,628

Total Investments at Amortized Cost

$78,610,033

Total Investments in Statement of Net Position

Investments by Fair Value Level

Spokane County Investment Pool

U.S. Agencies

09/30/2023

$674,357

$11,976,124

$33,575,425

Level 1

Level 2

$674,357

$11,976,124

$33,575,425

Level 3

U.S. Treasuries

Total Investments measured at

Fair Value

$46,225,906

Investments at Amortized Cost

LGIP

Money Market Fund

$11,598,609

$419,462

Total Investments at Amortized Cost

$12,018,072

$58,243,977

Total Investments in Statement of Net Position

Disclosure of Custodial Credit Risk

WCRP’s investment policy states that all security transactions shall be conducted on a delivery-versus-payment

(DVP) basis. Securities purchased by the Pool will be delivered against payment and held in a custodial safekeeping

account with the trust department of a bank. A third-party custodian will be designated by the Executive Director

and all transactions will be evidenced by safekeeping receipts.

Page 23

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

Concentration of Credit Risk

Concentration Risk disclosure is required for all investments in any one issuer that represents 5% or more of the

Pool’s total investments, excluding investment pools and investments issued by the U.S. government. No disclosure

of concentration risk currently meets this requirement.

Interest Rate Risk

Interest rate risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates.

The Pool recognizes that, over time, longer-term portfolios have higher volatility of return. The Pool mitigates

interest rate risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments

only with funds that are not needed for current cash flow purposes. The Pool has deposits of $695,990 with the

Spokane County Investment Pool and $3,825,100 with the Washington State Investment Pool that are available

immediately. The Pool further recognizes that certain types of securities will affect the interest rate risk profile of

the portfolio differently in different interest rate environments. The Pool restricts callable securities to a maximum

of 20% of the portfolio, restricts maximum maturity to 5 years, and constrains duration to plus or minus 20% of a

market benchmark index selected by the Investment Committee based on the Pool’s investment objectives,

constrains and risk tolerances.

Investment in Local Government Investment Pool (LGIP)

The Washington Counties Risk Pool is a participant in the Local Government Investment Pool (LGIP). The LGIP

was authorized by Chapter 294, Laws of 1986 and is managed and operated by the Washington State Treasurer. The

State Finance Committee is the administrator of the statue that created the pool and adopts rules. The State

Treasurer is responsible for establishing the investment policy for the pool and reviews the policies annually and

proposed changes are reviewed by the LGIP advisory Committee.

Investments in the LGIP, a qualified external investment pool, are reported at an amortized cost which approximates

fair value. The LGIP is an unrated external investment pool. The pool’s portfolio is invested in a manner that meets

the maturity, quality, diversification, and liquidity requirements set forth by the GASBS 79 for external investment

pools that elect to measure, for financial reporting purposes, investments at amortized cost. The LGIP does not have

any legally binding guarantees of share values. The LGIP does not impose liquidity fess or redemption gates on

participant withdrawals.

The Office of the State Treasurer prepares a stand-alone LGIP financial report. A copy of the report is available

from the Office of the State Treasurer, PO Box 40200, Olympia, WA 98504-0200, online at http://www.tre.wa.gov.

NOTE 4 – JOINT SELF-INSURED RETENTION

WCRP retains complete responsibility for the payment of covered liability claims, both within its specified self-

insured retention limits and that provided under its reinsurance contracts. For 2024, the Pool’s SIR for liability

claims was $3,000,000. Each member’s selected and applicable deductible is a part of, and not in addition to, the

Pool’s SIR. Through pre-funded member liability assessments (deposit assessments) collected at the beginning of

the Pool’s fiscal year, WCRP committed assets of $27,725,549, specifically for funding its liability SIR and

insurance premiums for the 2024 year.

For 2024, the WCRP group-purchased first-party property coverage through various insurers. The WCRP carried a

Pool deductible of $100,000 for all first-party property claims. The Pool’s deductible is fully funded by the

membership at amounts using actuarial projections. Each member’s selected and applicable deductible is a part of,

and not in addition to, the Pool’s deductible. Through pre-funded member property assessments (deposit

assessments) collected at the beginning of the Pool’s fiscal year, WCRP committed assets of $8,649,431,

specifically for funding its property deductible and insurance premiums for the 2024 year.

The WCRP also secures cyber coverage for all participating member counties. For 2024, the WCRP’s Self-Insured

Retention was $500,000 with zero member deductibles. This SIR is fully funded by the membership at amounts

Page 24

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

using actuarial projections. Through pre-funded member cyber assessments (deposit assessments) collected at the

beginning of the Pool’s fiscal year, WCRP committed assets of $225,881, specifically for funding its cyber SIR for

the 2024 year.

During the past three fiscal years, the Pool has not approved a settlement that exceeded the insurance coverage noted

herein that is more specifically outlined in Note 4.

NOTE 5 – REINSURANCE/EXCESS INSURANCE CONTRACTS

Through Gallagher Risk Management Services, Inc., the Producer (Broker-of Record) retained by the Pool’s Board

of Directors, WCRP partners with multiple superior-rated commercial insurers by acquiring reinsurance agreements

and “following form” excess, property, and cyber risk insurances. The limits provided by these insuring agreements,

contracts, and policies for FY2024 follow:

A. Memorandum of Liability Coverage (“MLC”): Since October 1, 1988, the Pool has provided its

member counties with risk-shared (jointly purchased and/or self-insured), occurrence-based coverage under a

MLC Coverage Form for 3^rd-party liability claims against members due to bodily injury, personal injury,

property damage, errors and omissions, and advertising injury.

For 2024, the total “occurrence” coverage remained at $20,000,000 with an additional “occurrence” limit of

$5,000,000 available for member counties to acquire as an individual (county-by-county) option. For the first

$10,000,000 of coverage, the Pool acquires reinsurance from reinsurers that follow the WCRP’s MLC

coverage form. The reinsurance is acquired from multiple higher-rated carriers as protection for the Pool

from unexpected losses and for the membership from contingent liabilities that might result otherwise.

Reinsurance agreements respond up to the applicable policy limits and the agreements contain aggregate

limits for the maximum annual reimbursements to the Pool of $20,000,000 (lowest reinsured layer) and

$20,000,000 (second layer). The Pool purchases following form excess coverage for the additional

$10,000,000 with an aggregate limit of $20,000,000 (first layer), $10,000,000 (second layer), $10,000,000

(third layer), and $7,500,000 (fourth layer). Since the Pool is a cooperative program, there is a joint liability

among the participating members. Fifteen of the Pool’s member counties group purchase an additional

$5,000,000 policy in excess of the pooled $20,000,000.

Each member annually selected a deductible amount of $10,000, $25,000, $50,000, $100,000, $250,000, or

$500,000, which is applied to each of the member’s occurrences from that year. There were/are no aggregate

limits for the payments the Pool makes for any individual member county’s losses.

Reinsurance and excess premiums ceded for liability coverage during the year totaled $14,061,549.

B. Washington Counties Property Program (“WCPP”): For FY2024, WCRP offered jointly-purchased

(1^st-party) property coverage as an individual (county-by-county) option. This coverage was acquired from a

consortium of higher-rated commercial carriers. The coverage offered follows the commercial property

policies issued by the various participating insurers. All 24 WCRP counties participated in the FY2024 WCPP,

with covered properties (in composite) exceeding $4 billion.

The WCPP limits include $370 million for typical (All Other Perils or AOP) losses, $200 million for catastrophe

(earthquake or flood), and many sub-limited coverages including Equipment Breakdown / Boiler & Machinery

($100 million) and Special Flood Hazard Areas ($25 million). Other coverages included Green Construction

Upgrades, and Reproduction for Historic Structures,

All Other Perils (AOP) occurrence deductibles between $5,000 and $50,000 were/are selected by the

participating counties which they are solely responsible for paying. Higher deductibles apply to catastrophe

losses.

Page 25

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

C. Cyber Risk and Other Coverage: For FY2024, the Pool group purchased cyber risk and security coverage

which includes (1st party) business interruption, data recovery, cyber extortion, breach response and

management (regulatory compliance) protections associated with date breaches. The coverage offered follows

the Cyber and Technology Liability Policy issued by the AXA XL, the single insurer providing the coverage.

For FY2024, the WCRP group purchased first and third-party terrorism coverage, with the liability coverage

having per occurrence limits of $25 million, no WCRP retentions and no member deductibles, and the property

coverage having a per occurrence limit of $100 million, with a $10,000 WCRP retention and no member

deductibles.

Beginning FY2024, the WCRP group purchased crime coverage having per occurrence limits of $2,000,000,

which includes employee theft, forgery or alteration, theft of money and securities, and funds transfer fraud.

Twenty-two member counties participated with a $25,000 deductible per claim.

NOTE 6 – MEMBER'S SUPPLEMENTAL ASSESSMENTS AND CREDITS

RCW 48.62.141 and the WCRP Interlocal Agreement provide for the contingent liability of participants in the

program if assets of the program are insufficient to cover the program's liabilities. Deficits of the WCRP are

financed through supplemental (retroactive) assessments against those counties that were WCRP members for the

deficient period(s). During fiscal year 2024, there was no deficiency, and no additional retroactive assessments were

levied or collected.

NOTE 7 – CAPITAL ASSETS

Capital assets are defined by WCRP policy as having an initial, individual cost of at least $2,500 and an estimated

useful life in excess of one year. Capital assets are recorded at historical cost.

Capital assets activities for the fiscal year ended September 30, 2024, were as follows:

Beginning

Balance

Ending

Balance

10/01/2023

Increase

(Decrease)

09/30/2024

Capital Assets being

Depreciated

Building & Improvements

Furniture/Equipment/Vehicles

Total Capital Assets being

depreciated

1,338,353

255,904

1,338,353

248,906

(6,998)

$1,594,257

$1,587,259

Less Accumulated

Depreciation:

Building & Improvements

Furniture/Equipment/Vehicles

Total Accumulated

Depreciation

728,632

199,373

48,572

26,825.92

777,204

219,201

(6,998)

75,398

(6,998)

$928,005

$996,405

TOTAL CAPITAL ASSET

NET

$666,252

$590,853

Page 26

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

Capital assets activities for the fiscal year ended September 30, 2023, were as follows:

Beginning

Balance

Ending

Balance

10/01/2022

Increase

(Decrease)

09/30/2023

Capital Assets being Depreciated

Building & Improvements

1,338,353

282,105

1,338,353

Furniture/Equipment/Vehicles

Total Capital Assets being

depreciated

(26,201)

255,904

$1,620,458

$1,594,257

Less Accumulated Depreciation:

Building & Improvements

680,060

197,896

48,572

27,678

728,632

199,373

(26,201)

Furniture/Equipment/Vehicles

Total Accumulated

Depreciation

$877,956

$928,005

TOTAL CAPITAL ASSET

NET

$742,502

$666,252

When equipment is retired or otherwise disposed of, the original cost is removed from WCRP’s capital assets

accounts, and the net gain or loss on disposition is credited to or charged against income.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Asset

Building

Building Improvements

Vehicles

Years

30

5

Equipment

5

NOTE 8 – SUBSCRIPTION-BASED IT ARRANGEMENTS (SBITA)

Per GASB Statement No. 96, a SBITA is a contract that conveys control of the right to use another party’s IT

software, alone or in combination with tangible capital assets, as specified in the contract, for a period of time in an

exchange or exchange-like transaction.

ACCOUNTING OVERVIEW

The WCRP implemented the reporting requirement for SBITA contracts with a term greater than one (1) year (with

annual auto-renewal contracts extended out an estimated three (3) years), and that exceed the capitalization

threshold of $10,000 in payments over the subscription term as indicated below.

All subscription agreements are recorded on a tracking spreadsheet noting contract length, right-to-terminate notes,

and the total subscription amount through the term of each agreement.

LIABILITY

ASSET

COMMENCEMENT OF SUBSCRIPTION

TERM*

Record Subscription Liability (GL 8600001) Record Subscription Asset (GL 8300004)

equal to present value of subscription

payments (fixed payments, variable

payments that depend on a rate, and variable

payments that are fixed in substance)

Reduce Subscription Liability as payments

are made for portion related to principal for

FYE

equal to Subscription Liability +

capitalizable initial implementation costs +

payments made to SBITA vendor at contract

commencement

Record amortization expense (GL 5011900)

and allowance for amortization subscription

(GL 8300005) over the subscription term

using straight-line method

SUBSEQUENT PERIODS

Page 27

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

*The subscription term begins when the subscription asset is placed into service. This occurs when (1) the initial

implementation stage is completed and (2) the pool has obtained control of the right to use the underlying IT assets.

Initial Implementation Stage expenses are capitalizable. These activities include ancillary charges to design the

chosen path, such as configuration, coding, testing and installation. It does not include training.

Short-term SBITA contracts have a maximum subscription term of one year or less, including options to

extend. Non-Capitalized SBITA contracts that do not meet the reporting threshold are recorded as an expense (GL

5190050.X).

New contracts are recorded in the tracking spreadsheet regardless of length of contract. Details associated with each

contract will be identified and reported on, as necessary. Any contract with auto-renewal policies are recorded as an

estimated three (3) year contract period. The three (3) year carryover is utilized as the Pool has no advanced

knowledge of new software availability and/or better pricing structures for similar software.

SBITA Reporting

The following represents capitalized SBITA asset balances as of September 30, 2024.

Beginning Balance

$181,896

Increases

59,841

Decreases

($2,855)

Ending Balance

$179,041

SBITA Assets

Less

53,178

113,019

Accumulated Amortization

Net SBITA Asset

$128,718

$66,022

Principal and Additions/Deletions

As of September 30, 2024, the principal requirements to maturity are as follows:

Assure Claims (SAS): Expiration 10/31/2026

Year Ended September 30

Principal

$34,257

$2,855

Addition/(Deletion)

Total

2025

2026

2027

2028

$34,257

$2,855

ISO Services, Inc (PAS): Expiration 5/31/2026

2025

2026

2027

2028

$10,486

$7,260

$10,486

$7,260

JTC Technologies, LLC (SAS): Auto-renewal Contract

2025

2026

2027

2028

$5,687

Praetorian Digital – Lexipol (PAS) Auto-renewal Contract

2025

$8,334

2026

2027

2028

Total – All Contracts

$68,879

Page 28

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

NOTE 9 – SOLVENCY

Washington Administrative Code (WAC) 200-100 requires the Washington Counties Risk Pool to maintain certain

levels of primary and secondary assets to meet solvency standards. As defined in WAC 200-100-03001 total

primary assets, i.e. cash and cash equivalents less non-claims liabilities, must at least equal the independent

actuary’s expected estimate of unpaid claims. Furthermore, a pool’s total primary and secondary assets must at least

equal the independent actuary’s 80% confidence level estimate of unpaid claims (70% before 2015). Secondary

assets include insurance receivables, real estate or other assets less any non-claim liabilities, the values for which

can be independently verified by the state risk manager.

Primary Asset Test 1

Cash and cash equivalents

Investments

2024

2023

$875,522

78,610,033

$79,485,585

777,480

$1,291,033

58,243,977

$59,535,011

729,945

Total

Non-claims Liabilities

Unearned Revenues

0.00

Total Primary Assets

Claims Liability – Expected Level

Test 1 Result – Primary Asset Test

$78,708,105

$66,573,231

PASS

$58,805,066

$44,061,499

PASS

Secondary Asset Test

Cash and cash equivalents

Investments

Receivables

Prepaid Expenses

Accrued Interest

Capital Assets

Net Pension Asset

Less:

2024

2023

$875,552

78,610,033

2,003,113

197,167

563,570

588,275

231,222

$1,291,033

58,243,977

9,268,215

143,125

224,891

666,252

315,189

Non-Claims Liabilities

Unearned Revenues

Total Secondary Assets

Total Primary plus Secondary Assets

777,480

0.00

$3,583,347

$82,291,452

729,945

0.00

$10,617,672

$69,422,738

Claims Liabilities at 80%

$81,322,000

$54,668,500

Test 2 Results – Secondary Asset Test

PASS

NOTE 10 – PENSION PLANS

The following table represents the aggregate pension amounts for all plans for the year 2024 and 2023:

Aggregate Pension Amounts – All Plans

2024

($94,973)

2023

Pension liabilities

$136,326

315,189

223,364

206,091

(128,904)

Pension assets

231,222

315,302

114,872

(35,680)

Deferred outflows of resources

Deferred inflows of resources

Pension expense/expenditures

State Sponsored Pension Plans

Page 29

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

Substantially all (city/county/district’s) full-time and qualifying part-time employees participate in one of the

following statewide retirement systems administered by the Washington State Department of Retirement Systems,

under cost-sharing, multiple-employer public employee defined benefit and defined contribution retirement plans.

The state Legislature establishes, and amends, laws pertaining to the creation and administration of all public

retirement systems.

The Department of Retirement Systems (DRS), a department within the primary government of the State of

Washington, issues a publicly available annual comprehensive financial report (ACFR) that includes financial

statements and required supplementary information for each plan.

The DRS ACFR may be downloaded from the DRS website at www.drs.wa.gov.

Public Employees’ Retirement System (PERS)

PERS members include elected officials; state employees; employees of local governments; and higher education

employees not participating in higher education retirement programs. PERS is composed of and reported as three

separate plans for accounting purposes: Plan 1, Plan 2/3 and Plan 3. Plan 1 accounts for the defined benefits of Plan

1 members. Plan 2/3 accounts for the defined benefits of Plan 2 members and the defined benefit portion of benefits

for Plan 3 members. Plan 3 accounts for the defined contribution portion of benefits for Plan 3 members. Although

employees can be a member of only Plan 2 or Plan 3, the defined benefits of Plan 2 and Plan 3 are accounted for in

the same pension trust fund. All assets of Plan 2/3 may legally be used to pay the defined benefits of any Plan 2 or

Plan 3 members or beneficiaries.

PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as 2% of the

member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the

member’s 24 highest consecutive service months. Members are eligible for retirement from active status at any age

with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of

service. PERS Plan 1 retirement benefits are actuarially reduced if a survivor benefit is chosen. Members retiring

from active status prior to the age of 65 may also receive actuarially reduced benefits. Other benefits include an

optional cost-of-living adjustment (COLA). PERS 1 members were vested after the completion of five years of

eligible service. The plan was closed to new entrants on September 30, 1977.

PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as 2% of the

member’s AFC times the member’s years of service for Plan 2 and 1% of AFC for Plan 3. The AFC is the average

of the member’s 60 highest-paid consecutive service months. Members are eligible for retirement with a full benefit

at 65 with at least five years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan

2/3 members who have at least 20 years of service credit and are 55 years of age or older, are eligible for early

retirement with a benefit that is reduced by a factor that varies according to age for each year before age 65. PERS

Plan 2/3 retirement benefits are actuarially reduced if a survivor benefit is chosen. Other PERS Plan 2/3 benefits

include a COLA based on the CPI, capped at 3% annually. PERS 2 members are vested after completing five years

of eligible service. Plan 3 members are vested in the defined benefit portion of their plan after ten years of service;

or after five years of service if 12 months of that service are earned after age 44. PERS Plan 3 defined contribution

benefits are totally dependent on employee contributions and investment earnings on those contributions. Members

are eligible to withdraw their defined contributions upon separation. Members have multiple withdrawal options,

including purchase of an annuity. PERS Plan 3 members are immediately vested in the defined contribution portion

of their plan.

PERS Contributions

The PERS Plan 1 member contribution rate is established by State statute at 6%. The PERS 1 employer and PERS

2/3 employer and employee contribution rates are developed by the Office of the State Actuary, adopted by the

Pension Funding Council and is subject to change by the legislature. The PERS Plan 2/3 employer rate includes a

component to address the PERS Plan 1 Unfunded Actuarial Accrued Liability (UAAL).

As established by Chapter 41.34 RCW, Plan 3 defined contribution rates are set at a minimum of 5% and a

maximum of 15%. PERS Plan 3 members choose their contribution rate from six options when joining membership

Page 30

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

and can change rates only when changing employers. Employers do not contribute to the defined contribution

benefits.

The PERS Plans defined benefit required contribution rates (expressed as a percentage of covered payroll) for the

fiscal year were as follows:

Employer Contribution Rates PERS Plan 1

PERS Plan 1

Actual Contribution Rates

January 2024 – June 2024

PERS Plan 1

PERS Plan 1 UAAL

Administrative Fee

Total

Employer

Employee

6.36%

2.97%

0.20%

9.53%

6.00%

July 2024 – August 2024

PERS Plan 1

PERS Plan 1 UAAL

Administrative Fee

Total

6.36%

2.47%

0.20%

9.03%

6.00%

September 2024 – December 2024

PERS Plan 1

PERS Plan 1 UAAL

Administrative Fee

Total

6.36%

2.55%

0.20%

9.11%

6.00%

The WCRP’s actual contributions to the plan for fiscal years ended September 30, 2024, and 2023 were $33,025 and

$37,618, respectively.

Employer Contribution Rates PERS Plan 2/3

PERS Plan 2/3

Actual Contribution Rates

January 2024 – June 2024

PERS Plan 2/3

PERS Plan 1 UAAL

Administrative Fee

Total

Employer 2/3 Employee 2

Employee 3

6.36%

2.97%

0.20%

9.53%

6.36%

Varies

6.36%

July 2024 – August 2024

PERS Plan 2/3

6.36%

2.47%

0.20%

6.36%

Varies

PERS Plan 1 UAAL

Administrative Fee

Employee PERS Plan 3

Total

September 2024 – December 2024

PERS Plan 2/3

PERS Plan 1 UAAL

Administrative Fee

Employee PERS Plan 3

Total

9.03%

6.36%

2.55%

0.20%

6.36%

9.11%

6.36%

Page 31

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

The WCRP’s actual contributions to the plan for the years ended September 30, 2024, and 2023 were $73,217 and

$65,786, respectively.

Actuarial Assumptions

The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation

completed in 2024 with a valuation date of June 30, 2023. The actuarial assumptions used in the valuation were based

on the results of the Office of the State Actuary’s (OSA) 2013-2018 Demographic Experience Study and the 2023

Economic Experience Study. Additional assumptions for subsequent events and law changes are current as of the 2023

actuarial valuation report. The TPL was calculated as of the valuation date and rolled forward to the measurement date

of June 30, 2024. Plan liabilities were rolled forward from June 30, 2023, to June 30, 2024, reflecting each plan’s

normal cost (using the entry-age cost method), assumed interest and actual benefit payments.

x

Inflation: 2.75% total economic inflation; 3.25% salary inflation

Salary increases: In addition to the base 3.25% salary inflation assumption, salaries are also expected to

grow by service-based salary increase.

x

Investment rate of return: 7.00%

Mortality rates were developed using the Society of Actuaries’ Pub.H-2010 Mortality rates, which vary by

member status (that is...active, retiree, or survivor), as our base table. OSA applied age offsets for each system, as

appropriate, to better tailor the mortality rates to the demographics of each plan. OSA applied the long-term MP-

2017 generational improvement scale, also developed by the Society of Actuaries, to project mortality rates for

every year after the 2010 base table. Under “generational” mortality, a member is assumed to receive additional

mortality improvements in each future year throughout their lifetime.

Assumptions did not change from the prior contribution rate setting June 30, 2022 Actuarial Valuation Report

(AVR). OSA adjusted their methods for calculating UAAL contribution rates in PERS 1 to reflect the delay between

the measurement date of calculated Plan 1 rates and when the rates are collected. OSA made an adjustment to their

model to reflect past inflation experience when modeling future COLAs for current annuitants in all plans except

PERS1.

Discount Rate

The discount rate used to measure the total pension liability for all DRS plans was 7.0%. To determine that rate, an

asset sufficiency test was completed to test whether each pension plan’s fiduciary net position was sufficient to

make all projected future benefit payments for current plan members. Based on OSA’s assumptions, the pension

plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current

plan members. Therefore, the long-term expected rate of return of 7.0% was used to determine the total pension

liability.

Long-Term Expected Rate of Return

The long-term expected rate of return on the DRS pension plan investments of 7.0% was determined using a

building-block-method. In selecting this assumption, OSA reviewed the historical experience data, considered the

historical conditions that produced past annual investment returns, and considered Capital Market Assumptions

(CMAs) and simulated expected investment returns provided by the Washington State Investment Board (WSIB).

The WSIB uses the CMA’s and their target asset allocation to simulate future investment returns at various future

times.

Page 32

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

Estimated Rates of Return by Asset Class

The table below summarizes the best estimates of arithmetic real rates of return for each major asset class included

in the pension plan’s target asset allocation as of June 30, 2024. The inflation component used to create the table is

2.5% and represents the WSIB’s most recent long-term estimate of broad economic inflation.

% Long-Term Expected

Asset Class

Target Allocation

Real Rate of Return

Arithmetic

Fixed Income

Tangible Assets

Real Estate

Global Equity

Private Equity

19%

8%

18%

30%

25%

100%

2.1%

4.5%

4.8%

5.6%

8.6%

Sensitivity of the Net Pension Liability/(Asset)

The table below presents Washington Counties Risk Pool’s proportionate share of the net pension liability calculated

using the discount rate of 7%, as well as what Washington Counties Risk Pool proportionate share of the net pension

liability would be if it were calculated using a discount rate that is 1-percentage point lower (6%) or 1-percentage

point higher (8%) than the current rate.

1% Decrease

(6%)

Current Rate

(7%)

1% Increase

(8%)

2024

PERS 1

PERS 2/3

$139,701

416,821

$94,972

(231,222)

$55,743

(763,446)

Pension Plan Fiduciary Net Position

Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS

financial report.

Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of

Resources Related to Pensions

At June 30, 2024 and 2023, the Washington Counties Risk Pool reported its proportionate share of the net pension

liabilities (assets) as follows:

Liability (or Asset)

2024

2023

PERS 1

PERS 2/3

$94,972

($231,222)

$136,325

($315,189)

At June 30, 2024 the Washington Counties Risk Pool proportionate share of the collective net pension liabilities was

as follows.

Proportionate

Share 6/30/24

Proportionate

Share 6/30/23

Change in

Proportionate Share

PERS 1

PERS 2/3

.005345%

.007014%

.005972%

.007690%

.000645%

.000627%

Page 33

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30, 2024 are

used as the basis for determining each employer’s proportionate share of the collective pension amounts reported by

the DRS in the Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1.

Pension Expense

For the year ended September 30, 2024 and 2023, the Washington Counties Risk Pool recognized pension expense

as follows:

Pension Expense

2024

2023

PERS 1

($17,135)

$ 19,492

PERS 2/3

TOTAL

(18,544)

(44,992)

($35,680)

($25,500)

Deferred Outflows of Resources and Deferred Inflows of Resources

At September 30, 2024, the Washington Counties Risk Pool reported deferred outflows of resources and deferred

inflows of resources related to pensions from the following sources:

PERS 1

Deferred Outflows of

Resources

Deferred Inflows of

Resources

Differences between expected and

actual experience

Net difference between projected

and actual investment earnings on

pension plan investments

($7,599)

Changes of assumptions

Changes in proportion and

differences between contributions

and proportionate share of

contributions

Contributions subsequent to the

measurement date

7,408

TOTAL

$7,408

($7,599)

PERS 2/3

Deferred Outflows of

Resources

Deferred Inflows of

Resources

Differences between expected and

actual experience

$131,385

($535)

Net difference between projected

and actual investment earnings on

pension plan investments

(66,262)

Page 34

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

Changes of assumptions

127,681

30,467

(14,650)

(25,825)

Changes

differences between contributions

and proportionate share of

contributions

in

proportion

and

Contributions subsequent to the

measurement date

18,360

Total

$307,894

($107,272)

Deferred outflows of resources related to pensions resulting from the Washington Counties Risk Pool’s contributions

after the measurement date will be recognized as a reduction of the net pension liability in the year ended September

30, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be

recognized in pension expense as follows:

Year ended

September:

2025

2026

2027

PERS 1

($12,576)

PERS 2/3

($54,040)

102,688

44,687

6,461

(684)

(800)

2028

43,946

2029

22,795

Thereafter

TOTAL

22,185

$182,261

($7,599)

Deferred outflows of resources related to pensions resulting from the Washington Counties Risk Pool’s contributions

after the measurement date will be recognized as a reduction of the net pension liability in the year ended September

30, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be

recognized in pension expense as follows:

Year ended

September:

PERS 1

PERS 2/3

2024

2025

2026

2027

($10,463)

($67,115)

(76,380)

95,014

(13,158)

8,113

129

31,501

2028

30,707

Thereafter

TOTAL

(1,731)

$11,996

($15,378)

NOTE 11 – QUALIFIED PENSION PLAN

The WCRP also participates in a defined contribution pension plan created in accordance with Internal Revenue Code

Section 401(a). This plan is with MissionSquare Retirement (formerly known as The International City/County

Management Association). Employer contributions to the Qualified Pension Plan for the years ended September 30, 2024

and 2023 were $77,392 and $72,572, respectively. There are no employee contributions to this plan.

NOTE 12 – DEFERRED COMPENSATION PLANS

The WCRP offers its employees a choice of two deferred compensation plans created in accordance with Section

457 of the Internal Revenue Code that are strictly employee contributions only.

Page 35

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

The plans are with MissionSquare Retirement (formerly known as The International City/County Management

Association) and the Washington State Department of Retirement. The plans, available to all eligible employees,

permit them to defer a portion of their wages until future years. The deferred compensation is not available to

contributing employees until their termination, retirement, death, or unforeseeable emergency.

In 1998, the ICMA Deferred Compensation Program plans’ assets were placed into trust for the exclusive benefit of

participants and their beneficiaries. Pursuant to Governmental Accounting Standards Board (GASB) Statement 32,

and since the WCRP is not the owner of these assets, these plans’ assets and liabilities are not reported in the WCRP

financial statements.

NOTE 13 – LONG TERM LIABILITIES

During the year ended September 30, 2024, the following changes occurred in long-term liabilities:

Beginning

Balance

9/30/2023

Ending

Balance

9/30/2024

Due Within

One Year

Changes in Long -Term Liabilities

Additions

Reductions

Claims Reserves

Corridor Reserves

$42,163,022

15,000

$22,367,101

257,680

$64,530,123

15,000

$14,317,874

15,000

Property

ULAE Reserve

SBITA Liability

Compensated Absences

Net Pension Liability – GASB 68

666,641

1,148,000

125,862

202,097

136,326

924,321

1,036,000

66,023

271,779

94,973

924,321

(112,000)

(59,840)

58,763

69,682

(41,353)

Total Long-Term Liabilities

$44,456,948

$22,694,463

($213,193)

$66,938,219

$15,315,958

During the year ended September 30, 2023, the following changes occurred in long-term liabilities:

Beginning

Balance

9/30/2022

Ending

Balance

9/30/2023

Due Within

One Year

Changes in Long -Term Liabilities

Additions

Reductions

Claims Reserves

Corridor Reserves

Property

ULAE Reserve

SBITA Liability

$31,226,060

2,218,156

911,626

967,001

0

$10,936,962

$42,163,022

15,000

$8,397,058

15,000

(2,203,156)

(244,985)

666,641

1,148,000

125,862

202,097

136,326

666,641

180,999

179,041

77,165

(53,179)

(11,998)

Compensated Absences

Net Pension Liability – GASB 68

124,931

148,324

Total Long-Term Liabilities

$35,596,098

$11,374,022 ($2,513,318)

$44,456,948 $9,078,699

NOTE 14 – UNPAID CLAIMS LIABILITIES

As discussed somewhat in Notes C.6 and C.9, WCRP establishes a liability for both reported and unreported insured

events that include estimates of both future payments of losses and related claims adjustment expenses. The following

represents comparative changes in those aggregate liabilities for WCRP’s SIR Reserves, reinsurance’ Corridor

Deductibles, and Quota Share during the past two years:

Page 36

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

2024

2023

SIR - Incurred Claims & Claims Adjustment Expenses:

$42,163,023

13,664,000

20,744,604

$76,571,627

$31,226,060

13,750,000

4,587,572

SIR - Unpaid claims and claim adjustment expense/claims reserve at beginning of the year

Provisions for Insured Events of the Current Year

Increase (Decrease) in Provision for Insured Events Prior Years

SIR - Total Incurred Claims & Claims Adjustment Expense

$49,563,632

SIR - Payments:

Claims & Claims Adjustment Expenses Attributable to Insured Events of the Current Year

Claims & Claims Adjustment Expenses Attributable to Insured Events of Prior Years

(12,041,503)

($12,041,503)

$64,530,123

(7,400,609)

($7,400,609)

$42,163,023

SIR - Payments

SIR - Total Payments & Adjustments

SIR - Total Unpaid Claims & Claims Expense Reserves at End of Year

Corridor – Incurred Claims & Claims Adjustment Expenses:

15,000

2,218,156

Corridor - Unpaid claims and claim adjustment expense/claims reserve at beginning of the year

Provisions for Insured Events of the Current Year

Increase (Decrease) in Provision for Insured Events Prior Years

$15,000

$2,218,156

Corridor - Total Incurred Claims & Claims Adjustment Expense

Corridor – Payments:

Claims & Claims Adjustment Expenses Attributable to Insured Events of the Current Year

Claims & Claims Adjustment Expenses Attributable to Insured Events of Prior Years

(2,203,156)

($2,203,156)

$15,000

Corridor – Payments

Corridor - Total Payments & Adjustments

$15,000

Corridor - Total Unpaid Claims & Claims Expense Reserves at End of Year

Property – Incurred Claims & Claims Adjustment Expenses:

Property Program Balance at beginning of year

Provisions for Insured Events of the Current Year

Increase (Decrease) in provision for Property Program

Property - Total Incurred Claims & Claims Adjustment Expense

Property – Payments:

$666,641

1,111,000

4,000

$911,626

500,000

(402,366)

$1,009,260

$1,781,641

Claims & Claims Adjustment Expenses Attributable to Insured Events of the Prior Year

Property – Payments

(857,320)

($857,320)

$924,321

(342,619)

($342,619)

$666,641

Property - Total Payments & Adjustments

Property - Total Unpaid Claims & Claims Expense Reserves at End of Year

Cyber – Incurred Claims & Claims Adjustment Expenses:

Cyber Program Balance at beginning of year

$68,837

$125,851

200,000

Provisions for Insured Events of the Current Year

Page 37

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

(5,000)

(120,851)

Increase (Decrease) in provision for Cyber Program

$63,837

$205,000

Cyber - Total Incurred Claims & Claims Adjustment Expense

Cyber – Payments:

4,148

(198)

Claims & Claims Adjustment Expenses Attributable to Insured Events of the Prior Year

Cyber – Payments

(136,164)

($136,164)

$68,837

3,950

Cyber - Total Payments & Adjustments

$67,786

Cyber - Total Unpaid Claims & Claims Expense Reserves at End of Year

$65,537,230

1,036,000

$42,913,499

1,148,000

Grand Total all Coverages (SIR, Corridor, Property, and Cyber) at year end

Unallocated Loss Adjustment expense (ULAE) at year end

Total Claims Reserve at Year End

$66,573,230

$44,061,499

The actuary estimated the current portion of total liability net reserves at the end of FY24 and FY23 to be

$14,332,874 and $9,147,535, respectively.

Page 38

Page 39

Page 40

Page 41

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

REQUIRED SUPPLEMENTARY INFORMATION

This required supplementary information is an integral part of the accompanying financial statements.

1.

Ten-Year Claims Development Information

The 10-year Claims Triangle table illustrates how the WCRP earned revenues (net of reinsurance) and

investment income compared to related costs of loss (net of loss assumed by reinsurers) and other expenses

assumed by the WCRP as of the end of each of the last ten years. The rows of the table are defined as

follows:

a. This line shows the total of each fiscal year gross earned contribution revenue and investment revenue,

contribution revenue ceded to reinsurers, and net earned contribution revenue and reported investment

revenue.

b. This line shows each fiscal year's other operating costs of the WCRP including overhead and claims

expenses not allocable to individual claims.

c. This line shows the WCRP gross incurred claims and allocated claims adjustment expenses, claims

assumed by reinsurers, and net incurred claims and allocated adjustment expenses (both paid and

accrued) as originally reported at the end of the first year in which the event that triggered coverage

under the contract occurred (called policy year).

d. This section of ten rows shows the cumulative net amounts paid as of the end of successive years for

each policy year.

e. This line shows the latest estimated amount of claims assumed by reinsurers as of the end of the

current year for each accident year.

f. This section of ten rows shows how each year’s net incurred claims increased or decreased as of the

end of successive years. (This annual estimation results from new information received on known

claims, reevaluation of existing information on known claims, as well as emergence of new claims not

previously known.)

g. This line compares the latest estimated net incurred claims amount to the amount originally established

(line 3) and shows whether this latest estimate of net claims cost is greater or less than originally

thought. As data for individual policy years mature, the correlation between original estimates and

estimated amounts is commonly used to evaluate the accuracy of net incurred claims currently

recognized in less mature policy years. The columns of the table show data for successive policy

years.

2.

Reconciliation of Claims Liabilities by Type of Contract

The schedule presented in Note 13 presents the changes in claims liabilities for the past two years for the

WCRP’s one type of contract, liability insurance.

Page 42

tĂƐŚŝŶŐƚŽŶꢀꢁŽƵŶƚŝĞƐꢀZŝƐŬꢀWŽŽůꢀ

Dꢀꢁ'ꢂEK͘ꢂϬϳϳϰ

&zϮϬϮϰꢀꢄꢃ^ꢀ^ĐŚĞĚƵůĞꢀŽĨꢀꢁǆƉĞŶƐĞƐ

ϬϵͬϯϬͬϮϬϮϰ

/ŶƐƵƌĂŶĐĞꢂWƌĞŵŝƵŵƐͬZĞƐĞƌǀĞꢂꢃǆƉĞŶƐĞ

h>ꢁꢃꢂꢃǆƉĞŶƐĞ

ꢁĚũƵƐƚŵĞŶƚꢂƚŽꢂWƌŝŽƌꢂzĞĂƌƐΖꢂΗϭƐƚͬϮŶĚꢂ>ĂǇĞƌƐΖꢂꢀŽƌƌŝĚŽƌΗꢂZĞƐĞƌǀĞƐ

ꢁĚũƵƐƚŵĞŶƚꢂƚŽꢂWƌŝŽƌꢂzĞĂƌƐΖꢂΗ^/ZΗꢂZĞƐĞƌǀĞƐ

ꢁĚũƵƐƚŵĞŶƚꢂƚŽꢂWƌŝŽƌꢂzĞĂƌΖꢂWƌŽƉĞƌƚǇͬꢀǇďĞƌꢂ

Ψϯϲ͕ϲϵϬ͕ϰϳϱ

;ϭϭϮ͕ϬϬϬͿ

;Ϯ͕ϱϯϱͿ

ϮϬ͕ϳϰϰ͕ϲϬϰ

;ϭ͕ϬϬϬͿ

ꢀŽŶƚƌĂĐƚĞĚꢂ^ĞƌǀŝĐĞƐ͗

ꢂꢁĐƚƵĂƌŝĂů

ꢂ^ƚĂƚĞꢂꢁƵĚŝƚꢂꢃǆƉĞŶƐĞ

ꢂ^ƚĂƚĞꢂZŝƐŬꢂDĂŶĂŐĞƌꢂꢃǆƉĞŶƐĞƐ

ꢂ>ĞŐĂůꢂ&ĞĞƐ

ꢂ/dꢂꢀŽŶƐƵůƚĂŶƚƐ

ꢂWƌŽƉĞƌƚǇꢂꢁƉƉƌĂŝƐĞƌ

ꢂ/ŶĚĞƉĞŶĚĞŶƚꢂꢁĚũƵƐƚŝŶŐꢂꢃǆƉĞŶƐĞ

ꢂ/ŶǀĞƐƚŵĞŶƚꢂꢁĚǀŝƐŽƌ

ꢂKƚŚĞƌꢂꢀŽŶƐƵůƚŝŶŐͬꢀŽŶƚƌĂĐƚĞĚꢂ^ĞƌǀŝĐĞꢂΘꢂ&ĞĞƐ

ϭϱϮ͕ϬϬϬ

Ϯϵ͕ϲϬϳ

ϭϰ͕ϲϱϭ

ϴϭϭ͕ϬϳϮ

ϯϰ͕ϱϮϲ

ϰϰ͕ϰϮϵ

ϵ͕ϰϮϳ

ꢂϯϴ͕ϵϰϯ

ϰϴ͕ϱϴϵ

'ĞŶĞƌĂůꢂꢁĚŵŝŶŝƐƚƌĂƚŝǀĞꢂꢃǆƉĞŶƐĞƐ

ꢂꢃŵƉůŽǇĞĞꢂ^ĂůĂƌŝĞƐꢂĂŶĚꢂꢅĞŶĞĨŝƚƐ

ꢂꢀŽŵŵƵŶŝĐĂƚŝŽŶ

ꢂ^ƵƉƉůŝĞƐ

ꢂꢄƵĞƐꢂĂŶĚꢂDĞŵďĞƌƐŚŝƉƐ

ꢂdƌĂǀĞůꢂͲꢂꢃŵƉůŽǇĞĞ

ꢂꢀŽŵŵŝƚƚĞĞꢂĂŶĚꢂꢅŽĂƌĚꢂDĞĞƚŝŶŐƐ

ꢂꢄĞƉƌĞĐŝĂƚŝŽŶ

ꢂꢅƵŝůĚŝŶŐꢂĂŶĚꢂꢁƵƚŽꢂ/ŶƐƵƌĂŶĐĞ

ꢂKƉĞƌĂƚŝŶŐꢂ>ĞĂƐĞƐ

ꢂhƚŝůŝƚŝĞƐͬꢅƵŝůĚŝŶŐꢂDĂŝŶƚ͘

ꢂDĞŵďĞƌꢂ^ĞƌǀŝĐĞƐꢂͲꢂdƌĂŝŶŝŶŐ

ꢂDĞŵďĞƌꢂ^ĞƌǀŝĐĞƐꢂͲꢂ^ĐŚŽůĂƌƐŚŝƉƐ

ꢂDŝƐĐĞůůĂŶĞŽƵƐꢂꢃǆƉĞŶƐĞƐ

ϭ͕ϲϭϰ͕ϳϳϰ

ϭϵ͕Ϯϱϱ

ϭϰ͕ϴϵϲ

ϭϭ͕ϰϲϮ

ϳϬ͕Ϭϵϴ

ϴϵ͕ϳϰϬ

ϭϯϱ͕Ϯϯϴ

Ϯϯ͕ϵϴϳ

ϱϮ͕ϭϭϭ

ϱϴ͕ϱϴϱ

ϳϵϲ͕Ϯϰϭ

ϴϯ͕ϰϲϴ

ϴ͕ϲϳϮ

dŽƚĂůꢂKƉĞƌĂƚŝŶŐꢂꢃǆƉĞŶƐĞƐ

Ψϲϭ͕ϰϴϭ͕ϯϭϮ

Page 43

Washington Counties Risk Pool – MCAG NO. 0774

Notes to Financials

October 1, 2023 Thru September 30, 2024

LIST OF PARTICIPATING MEMBERS

The following is a list of WCRP membership during the fiscal year 2023-24

Adams County

Benton County

Chelan County

Clallam County

Cowlitz County

Lewis County

Mason County

Okanogan County

Pacific County

Pend Oreille County

Douglas County

Franklin County

Grays Harbor County

Island County

San Juan County

Skagit County

Spokane County

Thurston County

Walla Walla County

Jefferson County

Kittitas County

Klickitat County

Whatcom County

Yakima County

Page 44

ABOUT THE STATE AUDITOR’S OFFICE

The State Auditor’s Office is established in the Washington State Constitution and is part of the

executive branch of state government. The State Auditor is elected by the people of Washington

and serves four-year terms.

We work with state agencies, local governments and the public to achieve our vision of increasing

trust in government by helping governments work better and deliver higher value.

In fulfilling our mission to provide citizens with independent and transparent examinations of how

state and local governments use public funds, we hold ourselves to those same standards by

continually improving our audit quality and operational efficiency, and by developing highly

engaged and committed employees.

As an agency, the State Auditor’s Office has the independence necessary to objectively perform

audits, attestation engagements and investigations. Our work is designed to comply with

professional standards as well as to satisfy the requirements of federal, state and local laws. The

Office also has an extensive quality control program and undergoes regular external peer review

to ensure our work meets the highest possible standards of accuracy, objectivity and clarity.

Our audits look at financial information and compliance with federal, state and local laws for all

local governments, including schools, and all state agencies, including institutions of higher

education. In addition, we conduct performance audits and cybersecurity audits of state agencies

and local governments, as well as state whistleblower, fraud and citizen hotline investigations.

The results of our work are available to everyone through the more than 2,000 reports we publish

each year on our website, www.sao.wa.gov . Additionally, we share regular news and other

information via an email subscription service and social media channels.

We take our role as partners in accountability seriously. The Office provides training and technical

assistance to governments both directly and through partnerships with other governmental support

organizations.

Stay connected at sao.wa.gov

Other ways to stay in touch

• Find your audit team

• Main telephone:

(564) 999-0950

• Request public records

• Search BARS Manuals (GAAP and

cash ), and find reporting templates

• Learn about our training workshops

and on-demand videos

• Toll-free Citizen Hotline:

(866) 902-3900

• Email:

• Discover which governments serve you

— enter an address on our map

• Explore public financial data

with the Financial Intelligence Tool

webmaster@sao.wa.gov

Page 45

Office of the Washington State Auditor

sao.wa.gov