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� <br />� <br />�o0 9 �ue�; -�- <br />PEQUOT LAKES FIRE RELIEF ASSOCIATION ��,�o�.�, <br />NOTES TO THE BASIC FINANCIAL STATEMENTS <br />AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2009 <br />NOTE 6 FUNDING STATUS AND FUNDING PROGRESS <br />The funded status as of December 31, 2009, is as follows: <br />Annual UAAL as a <br />Actuarial Covered Percentage <br />Actuarial Accrued Liability Unfunded Funded Payroll' of Covered <br />Value of (AAL) AAL Ratio (Previous Payroll <br />Plan Assets Entry Age (UAAL) (%) Fiscal Year) (%) <br />(a) (b) (b-a) (a/b) (c) ((b-a)/c) <br />$ 831,439 $ 773,518 $ (57,921) 107.49% N/A N/A <br />�` Because all active plan members are volunteers, there is no actual payroll. <br />The Schedule of Funding Progress, presented as required supplementary information (RSI) <br />following the notes to the financial statements, presents similar information but uses a multi- <br />year format to show trend information. These trends indicate whether the actuarial values of <br />plan assets are increasing or decreasing over time relative to the Actuarial Accrued Liability for <br />benefits. The trend information was obtained from the Association's annual valuation report. <br />Additional information as of the latest valuation follows: <br />• the most recent actuarial valuation date is December 31, 2009 <br />■ actuarial cost is determined using the Entry Age Normal Cost Method expressed as a <br />level percentage of earnings; <br />■ the actuarial value of assets is market value; and <br />■ the unfunded accrued liability is amortized using a 20-year rolling end date. <br />Because the standardized measure is used only for disclosure purposes by the Association, the <br />measurement is independent of an actuarial computation made to determine contributions to <br />the Association. <br />NOTE 7 RISK MANAGEMENT <br />The Association is exposed to various risks of loss related to torts; theft of, damage to, and <br />destruction of assets; errors; and omissions. The Association manages its risk of loss through <br />the City's insurance. There were no significant reductions in insurance from the previous year, <br />nor have there been settlements in excess of insurance coverage for any of the past three fiscal <br />years. <br />11 <br />