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The Kentucky Association of Counties Unemployment Compensation Self-Insurance Fund held a Board of Directors meeting at 9:30 a.m. on Wednesday, August 21, 2024. This meeting was held at the KACo offices located at 400 Englewood Drive in Frankfort, Ky. and via video teleconference, pursuant to proper notice given in accordance with KRS 61.826 and KRS 65.312(3).
The roll was called. The following Directors were present: Chairman David Fields, Pendleton Co. Judge/Executive; Vice-Chair John Ward, Hardin Co. Sheriff (via video teleconference); Jacqalynn Riley, Grant Co. Magistrate (via video teleconference); Elbert Bennett, Caldwell Co. Magistrate; Randy Dial, Casey Co. Judge/Executive; David Livingston, Scott Co. Magistrate; and Mike Welsh, Metcalfe Co. PVA.
Others present included: Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Temple Juett, Director of Insurance and Business; Marie Skinner, Accounting Manager; Rich Ornstein, Attorney; Lindsey Bowman, Customer Service Representative; Andrea Morse, Insurance Agency Manager; Alyssa Rogers, Staff Accountant; Shellie Hampton, Director of Government Affairs; Jennifer Burnett, Director of Strategic Operations; Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant to CEO/Director of Administrative Services.
Chairman Fields called the meeting to order at 9:33 a.m.
Motion made by Elbert Bennett, seconded by David Livingston, to approve the minutes of the June 26, 2024, meeting as presented. Motion carried.
Ms. Skinner presented and discussed the following financial reports: balance sheets as of June 30, 2024 and July 31, 2024; statement of activities for period July 2023 through June 2024 and July 1, 2024 through July 31, 2024; FY 2024/25 PAF budget for period July 1 - 31, 2024; and the customer balance summary as of Aug. 15, 2024.
Motion made by Randy Dial, seconded by Jacqalynn Riley, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented and discussed the investment report for month ended July 31, 2024, including the investment transactions for the month of July. The Board received a full listing of the Fund's investments electronically.
Motion made by David Livingston, seconded by Elbert Bennett, to acknowledge receipt of the investment report and to ratify the investment transactions as presented. Motion carried.
Ms. Basham said, based on the advice of Strategic Asset Alliance (SAA), the KACo Workers Compensation Fund board voted in June to move funds managed by Central Bank to Conning. Shortly thereafter, Central Bank notified her by letter of their intent to increase custodial fees from 5 basis points to 25 basis points for all KACo's investments accounts not managed by Central Bank effective Sept. 1. As the result of the proposed increase in Central Bank's custodial fees, staff recommends that KACo and all its programs terminate their investment management and custodial agreements with Central Bank. Ms. Basham said KACo sent out a request for proposal for custodial services and received responses from Fifth Third Bank and U.S. Bank. Fifth Third Bank offers a local contact and the lowest basis point fee on investments. She recommended that the U.I. Board move custody of its investment account from Central Bank to Fifth Third Bank.
Motion made by David Livingston, seconded by Jacqalynn Riley, to authorize Ms. Basham to take all action necessary to move custodial services from Central Bank to Fifth Third Bank. Motion carried.
Ms. Bowman presented the second quarter claim charges for period April 1, 2024 through June 30, 2024.
Ms. Bowman presented a report on the unemployment rates by county for June 2024 and a list of potential benefit claims for July 2024.
Mr. Juett provided an update on the KACo insurance programs.
Mr. Henderson said the KACo Listening Tour has been in ten regions across the state with five sessions remaining. He said the number one issue for counties continues to be jail costs.
The next meeting is Sept. 18 at 9:30 a.m.
Motion made by David Livingston, seconded by Randy Dial, to adjourn the meeting at 10:58 a.m. Motion carried.
