ASSET AND RISK MANAGEMENT
This chapter reviews Houston Community College System (HCCS) asset and risk management functions in the following sections:
- A. Cash Management and Investment Strategies
- B. Bond Issuance and Indebtedness
- C. Fixed Asset Management
- D. Risk Management
- E. Accounts Receivable, Tuition and Fee Collection Process
D. RISK MANAGEMENT
Risk management is the identification, analysis and reduction of different types of risk through insurance and safety programs that are designed to protect an organization's assets and employees. Workers' compensation protects employees in case of a work-related accident or injury. Property and casualty insurance protects HCCS from liabilities that arise from property damage, bodily injury and other risk. A group health plan ensures HCCS employees are protected from catastrophic illness and financial ruin by spreading that risk across the pool of employees.
An effective risk management program includes cost-effective insurance and loss-control techniques to minimize financial liability for the institution and its employees. Sound risk management involves identifying operation areas where hazardous situations may occur or where opportunities for physical property loss exist. The risk management function is responsible for the cost-effectiveness of health insurance, workers' compensation, property insurance and alternative insurance coverage, such as self-insurance and other products.
HCCS' risk management functions are divided among three departments. The risk manager is responsible for acquiring and monitoring property, casualty, liability, school insurance and workers' compensation coverage. Employee health insurance is the responsibility of the director of Benefits and Payroll. The Safety Department coordinates safety-training programs and addresses facility safety issues. Exhibit 6-17 presents the organizational structure for the risk management function at HCCS.
Exhibit 6-17 Source: HCCS interviews, November 2002.
Risk Management Department Organization
2002-03The Texas Employees Uniform Group Insurance Program, the program under which all state employees are insured, with the exception of physical plant employees, provides HCCS employee health and life insurance. This program offers a variety of coverages and carriers. All employee premiums for health insurance and the first $5,000 of life insurance coverage are paid by the state. The employee pays partial premiums for spouses and dependents. The HCCS Benefits Department administers health and life insurance for all employees.
The Texas Legislature heavily regulates workers' compensation insurance. In 2001, significant changes were made to the existing law to improve the quality of care for injured workers, to increase the accountability of doctors and insurance carriers and to reduce overall medical costs in the workers' compensation system. These eight changes include:
- improving the ability of the Texas Workers' Compensation Commission (TWCC) to regulate and sanction doctors who do not provide quality medical care;
- allowing the state to establish regional healthcare delivery networks with the guidance of a network advisory committee;
- promoting return-to-work programs by requiring employers to report whether they have modified duty and by requiring insurance carriers to provide return-to-work services to employers;
- improving injured employees' ability to receive prescriptions filled for the first seven days after their injury, giving preference to generic drugs;
- revising the process for seeking an independent medical opinion for impairment rating and data of maximum medical improvement issues (A TWCC-designated doctor, not an insurance carrier-selected doctor, will examine the injured employee first. If the insurance carrier disputes the designated doctor's opinion, the carrier can request the TWCC to order the injured employee to attend a required medical exam conducted by a doctor selected by the insurance carrier.);
- expanding the definition of lifetime income benefits to include workers with third-degree burns;
- allowing injured workers with multiple jobs to calculate their income benefits based on all their wages, not just the wages of the job where they were injured (Insurance carriers can seek reimbursement for these additional benefits from the state's Subsequent Injury Fund.); and
- prohibiting nonsubscribers from asking their employees to waive their right to sue for damages for on-the-job injuries.
HCCS' workers' compensation insurance is now carried by Texas Mutual Insurance Company. Prior to 2002-03, Farmers Insurance Group carried the coverage; however, when Farmers Insurance Group left the Texas insurance market temporarily HCCS had to find another carrier. Texas Mutual offered the lowest bid and the highest level of performance of all respondents. One benefit HCCS receives from Texas Mutual is improved reporting capability. Texas Mutual has a stand-alone system from which HCCS can directly obtain information.
Exhibit 6-18 outlines the HCCS insurance policies in force.
Exhibit 6-18 Source: HCCS Risk Management Department.
HCCS Property and Casualty Coverage
Type of
CoverageInsurer Description of Limits
and DeductiblesPolicy
ExpiresPremium
AmountEducator Legal Liability Professional United Educators $5,000,000 Limit
$250,000 deductible
Any actual or alleged breach of duty, neglect, error, misstatement, misleading, statement or omission, committed solely in the performance of duties.9/1/03 $318,800 General Liability Including Police Professional and Allied Health United Educators $1,000,000 Limit per Occurrence
$3,000,000 PI / Advertising
$500,000 Fire Legal
$5,000 Med Pay
General Liability for all locations, including fitness center and daycare centers, etc.9/1/03 $125,382 Educators Excess Liability United Educators $4,000,000 Limit
Excess over primary general liability and workers' compensation.9/1/03 $55,799 Excess Liability
3100 - 3200 MainEssex Insurance Company $2,000,000
Excess limit over primary limits.9/1/03 $4,047 Board Members' Accident AIG Life $2,500,000 Per Accident
$500,000 Accidental Death
Full 24 hour all risk accident protection on business trips, inside and outside city limits.9/1/03 $1,192 Student Accident (optional / health and accident plan) Connecticut General Student accident insurance. System also offers PPO and dental for students and P/T faculty at reduced rates. 8/24/03 Paid by student and P/T employee Workers' Compensation Texas Mutual $1,000,000 Limit 9/1/03 $1,157,672 Commercial Property Various Companies $200,000,000 Limit
All risk coverage, real and personal property insurance of all kinds and description including electronic equipment, including flood and earthquake.9/1/03 $1,441,595 Commercial Crime and Robbery Chubb Insurance Group $200,000 Employee Dishonesty with $5,000 deductible
$200,000 Forgery and Alteration with $5,000 deductible
$100,000 Theft
$100,000 Robbery & Burglary
$100,000 Computer Fraud9/1/03 $12,000 Environmental Liability Kemper Insurance $5,000,000 Limit with $25,000 deductible
The policy contains coverage for claims and environmental clean up cost and limited to legal defense expense.9/1/03 $50,650 Student Blanket Professional Liability TIG Insurance
CompanyStudent sickness and accident insurance plan. 9/15/03 Paid by student Business Automobile Old American County Mutual $1,000,025 with deductibles of $500 for other than collision and $500 for collision with bodily injuries, property damage liability and uninsured bodily injuries / property damage insurance non-owned liability. 9/1/03 $119,557 Special Risk/Accident Program, Health Science Program and Truck Driving Students AIG $10,000 Limit Accident protection coverage for health science and truck driving students. 9/1/03 $7,350 / Health Science student
$2,078 / Truck Driving StudentPeace Officers' Bond Colonial American Casualty and Surety $1,000 Limit
Bonding coverage per state statutes.12/1/05 $765 Flood Insurance First Community Insurance Company $157,500 Contents with $5,000 contents deductible
For 8505 Glen Vista2/22/04 $1,971 Flood Insurance Bankers Insurance Company $500,000 Building, $5,000 deductible
$250,000 Contents, $5,000 deductible10/02/03 $77,311 Electronic Data Processing Coverage Lumbermen's Mutual $20,843,046 Limit
$5,000 Deductible
9/1/03 $52,108 Youth Build Student Accident Policy AIG Life $10,000 Limit
$100 Deductible
6/3/03 $1,491 Boiler and Machinery Chubb Insurance Group $15,000 Limit
$5,000 Deductible9/1/03 $40,916 Terrorism Coverage Lexington Insurance /AIG Group $5,000,000 Limit
2% of Value Loss Deductible
9/1/03 $204,420 In June 2002, HCCS faced having to renew most of its property insurance coverages. This was the first time the institution had had to renew since the September 11, 2001, terrorist attack. HCCS experienced a substantial increase in its property insurance premiums for every policy it renewed. Insurance premiums increased 75.5 percent over the previous year on the renewed policy.
Exhibit 6-19 compares premiums between 2002 and 2003 by coverage. Of the policies renewed, the highest increases were in property and casualty coverage with 160.6 percent, asbestos and environmental liability with 150.8 percent and boiler and machinery with 163.7 percent.
Exhibit 6-19 Source: HCCS Risk Management Department, October 2002 through January 2003.
Comparison of Premium Cost
Type of Coverage 2001-02 2002-03 Percent
ChangeEducator Legal Liability Professional $311,680 $318,800 2.3% General Liability Including Police Professional and Allied Health $106,280 $125,382 18% Educators Excess Liability $48,500 $55,799 15% Excess Liability 3100-3200 Main $2,000 $4,047 102.4% Board Members Accident $4,500 $4,500 0.0% Workers' Compensation $859,029 $1,157,672 34.8% Commercial Property $553,280 $1,441,595 160.6% Commercial Crime and Robbery (Employee Dishonesty/Loss of Money) $10,315 $12,000 16.3% Asbestos/Environmental Liability $20,199 $50,650 150.8% Business Automobile $83,398 $119,557 43.4% Peace Officer's Bond None $765 N/A Flood Insurance - 8505 Glen Vista $1,681 $1,920 14.2% Boiler and Machinery $15,516 $40,916 163.7% Terrorism Coverage * $204,420 N/A Total $2,016,378 $3,538,023 75.5%
*Included in commercial propertyFINDING
HCCS has used an outside consultant since 1983 to provide professional advice about its insurance program at a more reasonable cost than maintaining this expertise in-house. The Risk Management Department has only recently been created and does not yet have the expertise to run a risk management program for a system the size of HCCS. The consultant works closely with the Risk Management Department to help secure the necessary insurance coverage at a competitive price. This individual has experience in the Houston insurance market. The consultant identifies risks and develops the optimum risk management program, prepares insurance specifications to be contained in the RFPs for coverage, reviews bid proposals to identify the best coverage at the best price, provides claims assistance as necessary and offers advice, analysis and assistance to the risk manager.
The contract term runs five years, but it requires annual board approval. The consulting contract is scheduled to be bid before 2003-04. The contract is an annual fixed fee arrangement of $35,000. Salary and benefit costs for an HCCS employee with the same level of expertise and experience would be much higher than the fixed fee.
COMMENDATION
HCCS uses an insurance consultant who provides cost-effective expertise to ensure that the institution is adequately protected against loss.
FINDING
The Risk Management Department has taken measures to ensure that HCCS' authorized drivers have satisfactory driving records. Drivers must complete a driver information form annually. Risk Management investigates each driver's record and terminates the driving privileges as necessary. If HCCS discovers that one of its drivers has had a moving violation or was at fault in an accident, that driver may no longer drive an HCCS vehicle. The risk manager told TSPR that there were a number of accidents reported by the Drivers Education program. Risk Management found that those accidents involved the instructors, not the students, so HCCS terminated the program.
The Risk Management Department forwards a list of approved drivers to its insurance carrier at the beginning of each fiscal year. Changes to the list are given to the insurance company as soon as possible. The HCCS Risk Management Department secretary monitors driving and vehicle records.
COMMENDATION
The Risk Management Department reviews authorized drivers annually and terminates driving privileges as necessary to protect HCCS from liability and risk.
FINDING
HCCS has no programs in place to reduce the number of workers' compensation claims. Although the institution has a risk manager and a workers' compensation analyst on staff, loss runs are not analyzed to identify trends and develop training for workers in how to make the workplace safer. The reason given for this lack of claim analysis is that the loss runs provided by the previous insurance carrier from 1996-97 through 2001-02 do not present the information in a usable format. Texas Mutual, HCCS' new workers' compensation carrier, provides access to a database that offers reports by type of injury and other categories. During review team interviews, college administrators stated that there is a problem with the number of such claims and the number of individuals with recurring claims.
HCCS employees are grouped into four worker classifications: professional employees, clerical, security/police and all others. Professional employees account for 77.2 percent of the HCCS payroll, clerical staff makes up 15.6 percent, security/police for 2.6 percent, and all other employees comprise the remaining 4.6 percent.
Exhibit 6-20 compares the number of claims and the average cost per claim between 1999-2000 and 2001-02. Although the number of claims has decreased 3.7 percent, the average cost per claim has increased by 69.9 percent. According to HCCS workers' compensation loss runs, there were no claims filed by clerical staff, security officers or police from 1999-2000 to 2001-02. Professional staff has the highest number of claims. The average cost per claim for professional workers has increased by 59.3 percent. This class of workers is not normally considered to be high risk in terms of workers claims. The fact that this worker group has consistently filed the highest percentage of HCCS claim activity indicates a lack of training related to safety issues throughout HCCS.
Exhibit 6-20 Source: HCCS Workers Compensation Loss Runs, 1999-2000 through 2001-02.
Workers Compensation Claims
1999-2000 through 2001-02
Worker Class 1999-2000 2000-01 2001-02 Percent Change
from 1999-2000
to 2001-02Number of Claims Cost per Claim Number of Claims Cost per Claim Number of Claims Cost per Claim Number of Claims Cost per Claim Professional 72 $4,600 80 $3,531 72 $7,330 0.0% 59.3% Clerical 0 $0 0 $0 0 $0 0.0% 0.0% Security/Police 0 $0 0 $0 0 $0 0.0% 0.0% All Others 10 $1,141 12 $5,693 7 $4,710 (30.0%) 313%* Total ** 82 $4,178 92 $3,813 79 $7,097 (3.7%) 69.9%
*Note: HCCS rounded this figure to a whole percent in the loss run file.
**Note: Represents total number of claims and total cost per claim. Cost per claim columns do not total to total cost per claim.El Paso Community College (EPCC) has made a strong commitment to employee safety and training, which has positively affected its workers' compensation costs. EPCC workers' compensation payments decreased by 45 percent from fiscal 1996 ($582,000) to fiscal 1998 ($316,000). The college has a full-time safety coordinator who administers a wide range of safety programs and conducts more than 16 safety workshops on a variety of different topics, including:
- back safety;
- blood-borne pathogens;
- carpal tunnel syndrome;
- confined space;
- ergonomics;
- fire safety;
- hazard communication;
- hazard communication refresher course;
- hazard communication standard (Spanish);
- heat stress;
- laboratory safety;
- materials handling (proper lifting);
- personal protective equipment;
- portable fire extinguishers;
- right-to-know; and
- safety awareness.
EPCC attributes much of its success in reducing workers' compensation claims to its safety training programs and the work of a third-party administrator to provide loss data to help management identify areas where additional education is needed.
Some community colleges have established safety committees and have regular meetings at every campus to evaluate their individual safety initiatives and safety records. A safety monitor is assigned to each campus to act as the contact point for issues that involve the safety of students, faculty and staff. A safety monitor is often assigned responsibility for the following tasks:
- coordinate all safety activities with the college Risk Management and/or Safety Department for those worksites;
- act with authority of college administrator/department head as the safety representative for the site;
- ensure monthly inspection is performed per checklist;
- investigate employee complaints and accidents;
- chair the Site Safety committee;
- maintain safety bulletin boards;
- provide and/or arrange for safety training for site employees;
- maintain or oversee records of accidents, employee training and inspections;
- coordinate required hazardous material communications and waste disposal;
- perform other safety duties as directed by the college administrator/department head;
- report all observed unsafe acts or conditions to the appropriate supervisor; and
- maintain the Site Safety Monitor Handbook.
A college with an effective Risk Management Department provides a training program for its college safety monitors. Training is documented and filed at the worksite and consists of the following elements:
- an introduction to Occupational Safety and Health Administration regulations;
- an overview of Texas State Safety Regulations;
- emergency plans;
- instructional techniques for safety training;
- accident reporting and investigation;
- job safety analysis;
- new employee orientation safety training requirements;
- job-specific training;
- contents of the college safety program, including the responsibility of various levels of administration;
- site safety committee and employee suggestion program; and
- enforcement of safety rules and regulations.
By providing comprehensive training and trained on-site safety monitors at all times, the colleges communicate their commitment to safety. A college with an effective risk management staff is often responsible for evaluation loss run data to identify and correct trends, thereby reducing the number of workers' compensation claims. For instance, if a campus has several back injuries over a period of time, a materials-handling course may be needed to teach steps that can prevent these injuries.
Recommendation 55:
Use workers' compensation claims loss data to develop an education program to reduce the number and severity of workers' compensation claims.
HCCS should develop a safety education-training program for its employees. A safety monitor should be appointed for every campus and department, and safety meetings should be held at least annually, and more frequently if the number of accidents warrants it. A safety committee comprising safety monitors, the risk manager, the director of Safety and Loss Control and all college operations officers (COOs) should be established, and quarterly meetings should be scheduled. This committee will review all accidents and determine what should be changed, if anything, to ensure the accident does not recur. Annual safety training should be mandatory for all system employees. Members of the safety committee should provide training to staff and faculty on a rotating schedule. In addition, the system should track the amount of time each employee misses work on a workers' compensation claim to help identify recurring claims and ensure their legitimacy.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The risk manager and the director of Safety and Loss Control develop a safety program and create a section on employee safety for the existing HCCS employee handbooks. July - August 2003 2. The chancellor reviews the safety program, makes any necessary revisions and distributes the program to staff. August 2003 3. The COOs and the department heads appoint safety monitors from their staffs. September 2003 4. The safety committee meets and establishes a committee charter. October 2003 5. The safety committee develops a safety-training program and schedule. December 2003 6. All staff attends safety training. January - July 2004
7. Safety meetings are held in each department and at every college. August 2004 and Ongoing FISCAL IMPACT
If the system can decrease the number of claims listed in Exhibit 6-20 by 30 percent (79 claims x 30 percent = 24 claims) and the average cost per claim by 50 percent from 2001-02 levels ($7,097 x 50 percent = $3,549), the savings would be $85,176 (24 claims x $3,549).
Recommendation 2003-04 2004-05 2005-06 2006-07 2007-08 Use workers' compensation claims loss data to develop an education program to reduce the number and severity of workers' compensation claims. $85,176 $85,176 $85,176 $85,176 $85,176 FINDING
HCCS does not have a limited duty policy, which keeps injured workers from returning to work sooner. College administrators are concerned that employees who are out on workers' compensation claims are not encouraged to return to work, so many stay out for the maximum period allowed. Administrators also suspect that the same workers file repeated claims. Unfortunately, HCCS does not have data to determine whether this is really happening. There are no statistics on the amount of time an employee has been out on claim or whether the same workers file claims repeatedly.
HCCS policy requires a full release from a physician before an employee can return to work. This leaves the employee's position vacant until the employee fully recovers from the injury. HCCS is prohibited from filling the position until workers' compensation benefits have been exhausted. Because of this, HCCS loses productivity, must continue providing benefits to the absent worker and faces increases in workers' compensation premiums.
The purpose of the workers' compensation system is to provide a method to restore an injured worker as closely as possible to the worker's pre-injury earning capacity and potential. Returning to suitable work helps employees more readily recover from injuries and allows employers to gain lost productivity, lower compensation costs and reduce dependency on other types of assistance. It is helpful if employers have some type of limited duty, or alternate work, to help workers gradually get used to being back in the workforce.
Studies have shown that employers who have return-to-work programs had a lower rate of lost workday cases, a reduction in workers' compensation claims and fewer lost workdays per 100 employees. Effective programs include coordinated, supportive, company-based ways to help injured workers return to work. Employees who participate in such programs successfully return to work, typically at their pre-injury pay rate. These programs reduce claims, lower premium and litigation expenses and improve the employer's public image.
Most injured workers want to go back to work. Recent national research shows that most workers will return to their jobs early in their recovery period if their employers have a return-to-work program. Research also indicates that there is only a 50 percent chance that an injured employee will be able to return at all if the employee misses six months of work. Injured employees who are out for a year return in only 25 percent of such cases, and employees who are out for two or more years have little potential to return to work.
Recommendation 56:
Develop a limited-duty return-to-work program for injured workers to provide them the opportunity to come back to HCCS as soon as possible.
HCCS should develop a return-to-work program for its injured workers. The employee will perceive that HCCS cares about his or her unique situation. Often, workers who are eager to get back to work and contribute return too soon, only to be sent home. A limited-duty return-to-work program will prevent this and will enhance the overall productivity of HCCS employees. Jobs will not have to be held open waiting for the workers' release, which can cause undue stress and can overtax employees who must cover the duties of the absent worker.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The risk manager researches available limited-duty programs. HCCS' insurance carrier should be included in the search because they may have such programs or can advise the risk manager on choosing a program. July -
September 20032. The risk manager drafts a limited-duty program for returning injured workers. September 2003 3. The executive director of Financial and Budgetary Control drafts an action item to have the limited-duty program approved by the board. October 2003 4. The board approves the limited-duty program. November 2003 FISCAL IMPACT
This recommendation can be implemented with existing resources.
FINDING
The Safety Department is understaffed and cannot provide the level of service required to protect HCCS students and staff from potential safety hazards. HCCS does not have a formal safety plan. The Safety and Loss Control Department has begun to develop a safety plan, but it does not have the time or staff for proper implementation. Although the limited staff in place has done a commendable job with limited resources, the system is vulnerable. Safety education is provided only upon request, usually in response to a problem. HCCS has a number of facility issues that represent significant safety hazards to both students and staff. For example, TSPR observed that there are weak spots in the steps at Heinen Theatre. One woman was injured when a section of stair disintegrated under her feet when she attended a performance at the theatre. Facilities and safety staff have reviewed the problem and are in the process of fixing it.
According to the director of Safety and Loss Control, HCCS has problems with asbestos at Central College. The environmental manager is responsible for monitoring these hazards. The environmental manager is trained to take air samples in response to complaints or conditions indicative of poor indoor air quality. Based on air sample results, corrective actions are taken or recommended where warranted. If more intensive study is required, the environmental manager will coordinate an additional study with an industrial hygiene firm with indoor air quality expertise. The manager acts as the HCCS liaison.
Not all campuses hold fire drills. Before the new administration building was built, there was no policy in place for fire drills to be conducted at any HCCS facility. In addition, evacuation drills are not held. Fire wardens have been trained for all colleges. As of the time of the team site visit, two colleges had not yet conducted fire drills. It is important for facilities to have a well-thought-out evacuation plan that all occupants understand and can carry out in an orderly manner.
Usually a college's Risk Management or Safety Department assumes responsibility for maintaining and controlling risks associated with the physical environment, for developing a safety plan that is used by all campuses and departments of the college and for developing a safety-training program for the entire college. This department is also responsible for monitoring the physical environment to ensure that all safety measures are in place, for identifying areas of potential risk and for eliminating the risks where possible. Generally the Safety Manager is responsible for the daily safety functions for the college and for maintaining a close relationship with state, county and municipal emergency response personnel. Safety specialists are assigned to specific areas within a college. Safety specialists' salaries range from $28,000 to $45,000 based on experience level. These specialists respond to any complaint or emergency in their area. Periodically, the specialists test the air quality and physical integrity of the facilities, conduct emergency drills and meet with site safety monitors. Because the specialists have a thorough knowledge of their areas, internal problems can be detected and managed early.
Colleges with a sound crisis and safety education plan understand that such a plan requires strong leadership and input from college administrators, faculty, students, media representatives and emergency response personnel. The final plan must be the result of collective ideas from all involved professions and must be tailored to the needs of each campus location. Effective safety training programs include periodic, goal-oriented emergency response exercises. Active training and drills are essential elements of an effective crisis plan and safety program and procedures. These exercises drastically reduce panic and delay during an unexpected natural or man-made disaster.
Recommendation 57:
Hire one safety specialist to help develop a comprehensive safety education plan and conduct periodic fire inspections and drills, air-quality testing, asbestos abatement and safety training throughout HCCS.
Safety issues have become an important topic of concern since the September 11 attack. HCCS accepts liability for the safety of every individual who enters its facilities. An additional safety specialist should provide enough staff resources to give this issue proper attention. HCCS should take a more preventative approach to protecting its students, faculty and staff. Reacting to an emergency without an adequate plan leaves the institution at risk and could prove disastrous.
The safety specialist should be a certified fire inspector who is certified to perform air-quality testing and asbestos testing.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The director of Safety and Loss Control meets with the Houston Department of Emergency Response to research effective crisis plans. July 2003 2. The director of Safety and Loss Control, the risk manager, the executive director of Facilities Management and the executive director of Financial and Budgetary Control draft a safety education plan that includes mandatory disaster drills at all system facilities twice a year. The plan should detail the objectives of the drill and should provide performance standards to measure HCCS' emergency readiness. August -
October 20033. The director of Safety and Loss Control develops a job description for the safety specialist. Prerequisites include environmental safety certifications that the system must contract out on a regular basis. August 2003 4. The director of Safety and Loss Control drafts an action item for the board to create a safety specialist position. The draft item should include the fiscal impact of creating the position. August 2003 5. The board approves the creation of the safety specialist position. September 2003 6. The Human Resources Department posts the opening and screens initial candidates. September - October 2003 7. The director of Safety and Loss Control interviews candidates and makes a selection. October - November 2003 8. The safety specialist is hired. November 2003 FISCAL IMPACT
The annual salary for the safety specialist is estimated at $45,000. Including benefits, the annual cost would be $47,700 ($45,000 salary x 6-percent benefit rate = $2,700). In the first year, the cost would be $39,750 because the position would not be filled until November 2003 ($47,700/12 months = $3,975 per month x 10 months).
Recommendation 2003-04 2004-05 2005-06 2006-07 2007-08 Hire one safety specialist to help develop a comprehensive safety education plan and conduct periodic fire inspections and drills, air-quality testing, asbestos abatement and safety training throughout HCCS. ($39,750) ($47,700) ($47,700) ($47,700) ($47,700)
