Finance Committee Meeting WAC September 18, 2012

Finance Committee Meeting
WAC
September 18, 2012
Committee Members Present: Robert Bonina – Chair, Bob Nowlin, John Atkinson,
Siemon Slagter and Mark Chriest
Members Not Present: Richard Finafrock, Paul Ellingson and Colleen Braa
Staff Present: Teran Petrina and Anthony Anton
Robert Bonina called the meeting to order at 1:05 p.m.
Teran presented the attached report highlighting the strategic changes for the 2012/13 budget.
Current structure and history was presented to the Committee. They had no questions.
Historical management fee/reimbursements were discussed as was the taxable unrelated business
income. Discussion held about historical percentage determination.
Historical and projected taxes were presented and discussed (see WRA tax burden page).
Strategy to simplify systems was discussed including direct expensing model.
Discussion held about future percentages for each department and analysis conducted to
determine. Committee agreed proposed percentages were appropriate.
Claims management fee increase of $225K bringing our service in line with market was
discussed. Teran and Anthony believe the current aggressive marketing to our Retro members
will impact reenrollment for next year and as a result we could not raise fees to our members this
year. Discussion held about our plan to share the impact of the increase inside WRA, MSC and
the Trust. The MSC Treasurer has already been informed and has approved the change. The
Retro Trust will be contacted by Anthony and he will seek approval from them within the next
week.
The WRA budget example was presented with reducing the Sponsorship Risk Factor only as that
is the largest federally taxed item on our budget. Discussion was held.
Even though this proposal would be easier to administer by WRA staff, the Committee did not
believe it was a strategic change and we would need to make further changes next year.
The WRA budget and direct expensing examples were presented with reducing the Sponsorship
Risk Factor.

Finance Committee Meeting Minutes, Page Two
The Committee discussed the impact on the WRA staff with the direct expensing model.
Consensus was reached by the Committee that the Sponsorship Risk Factor/Fee needed to
be reduced to somewhere between $50 and $100K and that EF and MSC should no longer
pay a management fee to WRA.
EF and MSC should pay all items directly per the determined percentages. The Committee also
understood further budget cuts may be required to balance the WRA budget.
Robert asked the Committee to schedule 9 a.m. to 11 a.m. for WRA budget review on September
26 th .
Meeting was adjourned at 3:05 p.m.