Do you know the difference between CFFA and CFA? (No – not a typo!) Or what ACA stands for? How about the terms: joint powers authority or risk pooling? All are key to fully understanding the California fair industry as well as CFSA’s programs and services.
This page is a work in progress with new acronyms being added all the time. Don’t see what you’re looking for? Please contact Melissa at email@example.com. Chances are one of your colleagues would like to know “What’s that mean?” too.
ACA – Affordable Care Act
ADA – Americans with Disabilities Act
BFE – Branch of Fairs & Expositions
CAL HR – California Department of Human Resources
Cal OSHA – California Offices if Safety and health Administration
CARF – California Association of Racing Fairs
CDFA – California Department of Food & Agriculture
CEQA – California Environmental Quality Act
CFA – California Fairs Alliance
CFFA – California Fairs Financing Authority (formerly CCA – California Construction Authority)
CFSA – California Fair Services Authority. Created by legislation in 1986, CFSA is a joint powers authority (JPA) that was initially tasked with providing California’s fairs with affordable workers’ compensation and general liability protection at a time when commercial insurance for fairs was becoming increasingly unavailable and increasingly unaffordable. As the fairs’ needs have grown, so has CFSA’s offering of pooled programs and business services. In fact, since 1986, significant scope changes have resulted in three agency name changes and several JPA agreement changes. Today, the number of pools CFSA manages for the fairs, along with the variety of business and financial services its staff offers sets CFSA miles apart from the typical JPA.
Confidence Level or Confidence Margin – Pool reserves are often described as having a “confidence level” or “confidence margin” of 70, 80 or 90 percent. A confidence level is the degree of certainty that a particular pool’s assets are sufficient to pay the pool members’ claims losses. A 90 percent confidence margin projects that in nine out of 10 years, a pool’s funding is sufficient to cover all losses.
CSAC EIA – California State Association of Counties Excess Insurance Authority
DGS – Department of General Services
F&E – Fairs & Expositions – a branch of the California Department of Food & Agriculture
GASB – Governmental Accounting Standards Board
JPA – Joint Powers Authority. Joint Powers Authorities are established through state legislation to manage and administer programs and services for a group of public entities that share the same type of businesses, such as California’s fairs. JPAs have their own boards of directors and any or all of the powers of the participating members (as specified in a JPA’s agreement).
ORIM – Office of Risk and Insurance Management
PERS – Public Employees Retirement System
Risk Sharing Pool or Risk Pooling – A risk sharing pool is an alternative to commercial insurance. Instead of paying annual premiums to an insurance company with stockholders, self-insurance program members pay an annual fee that is invested into an interest-generating pool to the benefit of all pool participants. Interest is reinvested back into the pool, again to the pool members’ benefit. All claim settlements and related claims costs (such as lawyer fees) are paid from the pool.
Actuaries ( professional experts in finance and probability who attempt to predict the probability and severity of risk) determine how much additional pool funding is required each year, if any, to cover the year’s projected losses. They do this by factoring in pool-member loss histories, and economic trends and claims costs, among other factors.
Pool reserves are often described as having a “confidence level” or “confidence margin” of 70, 80 or 90 percent. A confidence level is the degree of certainty that a particular pool’s assets are sufficient to pay the pool members’ claims losses. A 90 percent confidence margin projects that in nine out of 10 years, a pool’s funding is sufficient to cover all losses.
STOP – Statement of Operations