February 22, 2013 - Oregon State Bar

2013 PLF BUDGET, AND 2013 PRIMARY ASSESSMENT PAGE 7
OCTOBER 6, 2012
The PLF copiers /scanners were recently replaced. There should not be additional purchases for
several years.
The PLF replaced all personal computer units and upgraded software in the fall of 2011. We do
not expect to replace these units unti12014. Several servers were replaced during 2011 and 2012.
We only expect one significant server upgrade during 2013. The capital budget also includes
some funds for the purchase of tablet computers to be used to electronically distribute Board of
Director materials.
Other Primary Operating Expenses
Because of successful litigation, the budget no longer includes the external costs related to
Medicare reporting. The judicial decision to exempt the PLF from reporting also significantly
simplifies clann handling.
Insurance expense in the 2012 projections and the 2013 budget was increased because of a lazge
increase in the cost of E&O insurance. The E&O insurers increased the cost of renewing the policy
because they are currently covering a significant claim made against the PLF.
The Information Services 2012 projection was over budget because the costs of developing a new
website for the PLF defense panel. The 2013 budget for this item was increased because of
anticipated major changes to the current PLF website.
The PLF has traditionally had defense panel meetings every other year. The 2013 budget includes
estimates of costs for the scheduled 2013 meeting. Defense panel members pay for their own
lodging and meal expenses and some facility and supply costs. The PLF pays for the cost of staff
and Board of Director lodging and meals and a portion of supplies and speakers.
PLF Policies require an outside claims department audit at least every five years. (The PLF has a
financial audit every year.) A claims audit was performed in 2011 and we do not expect to have
another claims audit for several years.
The 2012 budget included a $200,000 contribution to the OSB Bar Books. This contribution was
made pursuant to a vote by the PLF Board of Directors at the request of the Oregon State Bar
Board of Governors. The BOD believed there was substantial loss prevention value in free access
to Bar Books via the Internet which had the potential to reduce future claims. The $200,000
contribution was part of an agreement that provided the PLF contribute $300,000 for 2011,
$200,000 in 2012 and another $100,000 in 2013. The 2013 PLF budget includes the $100,000
contribution.
For many years, the PLF Primary Program has included a contingency budget item. In the past, the
contingency items was been used for items such as CEO recruitment expense, the costs of a focus
group on SUA, and the Medicare reporting litigation expense. For 2012, we included a contingency
budget of equal to 2 percent of operating costs ($145,541). The costs of the Medicaze reporting