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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, April 15, 2020 at 400 Englewood Drive in Frankfort, Kentucky.
The following Directors participated via teleconference: 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; and David Fields, Pendleton Co. Judge/Executive.
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; and Sonya Chesser, Executive Assistant/Events Manager.
Chairman Sammons called the meeting to order at 11:14 a.m.
Motion made by Larry Foxworthy, seconded by David Nicholson, to approve the minutes of the March 18, 2020 meeting as presented. Motion carried.
Ms. Skinner presented and discussed the following financial reports: balance sheet as of March 31, 2020; statement of activities for period July 2019 through March 2020; FY 2019/20 PAF budget for period July 1, 2019 - March 31, 2020. She also presented and discussed the deposit and check detail for March 2020. Ms. Basham said the Fund's investments have gained over the past month in spite of the drop in the market in March due to the COVID-19 outbreak.
Motion made by David Nicholson, seconded by John Ward, to accept the financial reports as presented. Motion carried.
Ms. Skinner presented the customer balance premium receivables for calendar year 2020.
Ms. Stewart provided an update on claims activity. Since March 20th, the Fund has received approximately 440 claims, with about 300 of those claims filed before April 1st. That's about four times the normal amount of claims. Ms. Basham said the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") went into effect on April 1, 2020 and the state has announced that employers, including members of the Fund, will not be responsible for COVID-19 related claims filed after that date. However, the Fund will be responsible for the claims prior to April 1.
Mr. Henderson presented a draft board travel policy for consideration as adopted by the KACo Board of Directors.
Motion made by David Nicholson, seconded by John Ward, to adopt the board travel policy as presented and established by the KACo Board of Directors. Motion carried.
Ms. Basham provided detailed information concerning the actuarial rate study as prepared by Oliver Wyman.
Mr. Satterly presented and discussed the investment report for March 2020 including the security position changes for the month. He also presented his personal view of the economic outlook for April. He said the Fund recouped a good portion of March's losses.
Motion made by David Livingston, seconded by David Fields, to accept the investment report and approve the security position changes. Motion carried.
A map of the preliminary unemployment rates by county for February 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 change the next regularly scheduled meeting from May 20th at 11:00 a.m. to a special time at 11:10 a.m. via teleconference. Motion carried.
There being no further business, the meeting adjourned at 11:56 a.m. Motion carried.
