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The Kentucky Association of Counties Unemployment Compensation Self-Insurance Fund held a special Board of Directors' meeting, pursuant to proper notice given in accordance with KRS 61.823, at 11:10 a.m. on Wednesday, August 19, 2020. This meeting was held in the KACo Training Room located at 400 Englewood Drive in Frankfort, Kentucky and via teleconference.
The following Directors participated in person: Chairman Phil Sammons, Boyle Co. Magistrate; Vice-Chairman Larry Foxworthy, Fleming Co. Judge/Executive; David Livingston, Scott Co. Magistrate; John Ward, Hardin Co. Sheriff; David Nicholson, Jefferson Co. Circuit Court Clerk; David Fields, Pendleton Co. Judge/Executive; and Jacqalynn Riley, Grant Co. Commissioner (via teleconference).
Others present were: Marie Skinner, Accountant/UI Manager; Katie Stewart, Administrative Assistant; Jim Henderson, Executive Director/CEO; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Grant Satterly, Director of Financial Services; Rich Ornstein, Staff Attorney; Jon Sharp, IT Manager; Kyle Hutcherson, Network Engineer; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to the CEO.
Chairman Sammons called the meeting to order at 11:12 a.m.
Motion made by David Livingston, seconded by John Ward, to approve the minutes of the July 22, 2020 meeting as presented. Motion carried.
Ms. Skinner presented and discussed the following financial reports: balance sheet as of July 31, 2020; statement of activities for period July 2020; FY 2020/21 PAF budget for period July 1 - 31, 2020. She also presented and discussed the deposit and check details for July 2020. Ms. Skinner also provided an update on the CY 2020 customer balance summary report as of August 17, 2020 and reported that twelve entities did not pay their premium by August 1, therefore, forgoing the 10% discount.
Motion made by David Nicholson, seconded by Larry Foxworthy, to acknowledge receipt of the financial reports as presented. Motion carried.
There was discussion concerning those entities who were unable to receive a discount.
Motion made by David Nicholson, seconded by David Livingston, to extend the discount deadline to September 30 for premiums owed by members this calendar year due to the COVID-19 pandemic. Motion carried.
Ms. Basham presented and discussed the audit engagement letter from MCM, CPAs & Advisors, LLP to conduct an audit as of June 30, 2020. She said a request for proposal was sent out with two proposals being received and MCM submitting the lower bid.
Motion made by David Nicholson, seconded by David Fields, upon recommendation of legal counsel to authorize the chair to execute the engagement letter as presented. Motion carried.
Mr. Satterly presented and discussed the investment report for month ended July 31, 2020 including the security position changes for the month of July. He also presented his personal view of the economic outlook for August.
Motion made by Jacqalynn Riley, seconded by David Livingston, to acknowledge receipt of the investment report and approve the security position changes. Motion carried.
A map of the preliminary unemployment rates by county for June 2020 was provided to the board. The document was prepared by the Workforce Intelligence Branch, Kentucky Center for Statistics, Kentucky Education and Workforce Development Cabinet.
The board agreed to move the September 23rd regularly scheduled meeting from 11:00 a.m. to a special time at 11:10 a.m. to allow participation for both in-person and virtual participation given the COVID-19 pandemic.
Squire Livingston asked if there was an opportunity to market the program. Mr. Sturgill provided an overview of the benefits that the Fund offers over the state's program including the ability to spread payments over time. Mr. Henderson said staff will look at the opportunity to market the program.
Mr. Henderson said KACo sent a letter of support to Governor Beshear requesting that CARES Act funds be used to help restore the state unemployment insurance fund. He said doing so would help the state fund to potentially assess employers as well as affect rates.
Motion made by John Ward, seconded by Larry Foxworthy, to adjourn the meeting at 12:10 p.m. Motion carried.
