Despite Challenges, Reserves Stay Strong
During these uncertain economic times, it’s critical that CIS maintains a strong financial foundation. Despite many challenges in 2022 (continuing pandemic, the downturn in the stock market, record inflation, and overall economic insecurity), CIS had a solid financial year. While our consolidated net position (assets minus liabilities) declined $16.2 million because the holding value of CIS’ investments declined along with the market, CIS operating activities and reserves (also known as Net Position) of $212 million remain strong.
As a public entity with no shareholders, CIS’ resources are set aside for your benefit — and the benefit of every CIS member. Because you're a member, your entity owns a part of our capital.
In 2022, the CIS Board of Trustees commissioned the respected accounting firm, PricewaterhouseCoopers (PwC), to conduct an independent study of CIS’ reserves — and to provide a capital adequacy assessment. PwC confirmed that reserves are within Board approved capitalization target ranges.
The reason that CIS remains strong is because of your investment in the Trusts’ capital. This investment is important because it ensures strong coverage regardless of any calamities.
The Board works to protect the Trusts’ capital positions to ensure we continue to have strong reserves to stabilize rates for you and all CIS members. Capital helps minimize the impact of catastrophic claims, economic conditions, and volatile markets, particularly for investments and reinsurance. This year we subsidized member contributions for our healthcare program to ensure a more stable rate.
As we prepare for more uncertainty in 2023, CIS’ financial strength stands with you. CIS will continue to help cities and counties be safer, stronger, and healthier — and be there during difficult times — because that’s what families do.
Pictured below: current risk capital target range for the property and liability programs. (Click to expand the image.)
Pictured below: current risk capital target ranges for the EBS (cities) and AOCIT (counties) benefits program. (Click to expand each image.)
The Summary Financial Information on the following page is unaudited and has been derived from the Financial Statements with Independent Auditor’s Report for the Fiscal Years Ended June 30, 2022, 2021, and 2020; which is readily available at http://www.cisoregon.org/About/TrustDocs.
CIS’ Financial Statements with Independent Auditor’s Report is also filed annually with the Oregon Secretary of State-Audits Division and those filings are available at: https://secure.sos.state.or.us/muni/public.do. Search for government name starting with “CIS.” The Summary Financial Information is unaudited and does not contain all the disclosures, Management’s Discussion and Analysis and other required supplementary information required by generally accepted accounting principles as established by the Governmental Accounting Standards Board who considers that information an essential part of financial reporting for placing basic financial statements in an appropriate operational, economic or historical context. Reading the Summary Financial Information at June 30, 2022, therefore, is not a substitute for reading the Financial Statements with Independent Auditor’s Report for the Fiscal Years Ended June 30, 2022, 2021, and 2020.
Click on the financial statement below and on the following page to open and view it larger, download it to your device, or print a letter-size PDF.