Everett School Employee Benefit Trust

Kay Nickel

Absent

John Morrill

I.	Call To Order

The meeting was called to order by Jeff Riddle at 3:40 p.m.


II.	Adoption of Agenda

The agenda was adopted as presented.

III. Minutes

Minutes from the June 18^th and August 25^th meetings were reviewed and approved.


IV.	Trust Audit

Catherine Hallgrimson and Betsy Pedersen Suydam of Moss-Adams were present to update the Trustees on the upcoming audit. Betsy spoke about the process and Catherine clarified some points. Their procedure will include examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Betsy noted that the state auditor is not requiring a GAP (Generally Accepted Accounting Principals) opinion. She and Catherine felt that a modified cash basis audit was appropriate for the Trust and would be able to complete it by the end of October. In addition, it was their recommendation that Mercer perform audits on the claims paid by Zenith and PCN on an ongoing basis, possibly testing quarterly, so that there would be a clearer picture of activities throughout the year.

Jeff felt we needed to come up with some projections since using a cash basis approach can be tricky. It was suggested that there should to be some conversation about what needs to be in the reports (in layman terms).

A motion was made to request that Mercer perform modified cash audits of PCN and Zenith on an ongoing basis throughout the year. The motion was approved.

A motion was made and approved to authorize Moss-Adams to perform a modified cash basis audit for the year ended.


V.	Appeal Process (Draft)

Melanie Curtice of Stoel Rives was present to explain the draft claims and appeals procedure. As was stated at the August 25^th meeting, it was not easy to understand. Melanie assured the group that the document could be modified to make it more user friendly and discussed what should be included. She felt it should be a starting place for employees to help guide them in the right direction. She noted that its important members know they cannot appeal to the Trust if an insured carrier covers them. That carrier is responsible for administering and determining initial claims and considering appeals. If they are insured through First Choice, appeals need to be submitted to Zenith prior to appealing to the Trust. Melanie recommended that directions for filing an appeal be included in the employee insurance booklet.

With respect to appealing to the Trust, Melanie felt it was not necessary to have a form but she recommended setting up a standard format for letters. In turn the Trust would respond with a “form” letter for consistency. Jeff felt it would be a good idea for claimants to refer to the section in the employee booklet that supports their claim. Additionally it was suggested that verbiage addressing a voting deadlock be developed as well as some bylaws. Melanie will make the necessary changes to the procedures document and will provide Trustees with some sample bylaws. She will bring the revisions to the October 20^th meeting.