divider page 10 23 17 - njsig.org · PDF [email protected] Personnel Steven K. Robinson...

NJSIG Board of Trustees Meeting

October 24, 2017

New Jersey Schools Insurance Group 6000 Midlantic Drive, Suite 300 North

Mount Laurel, New Jersey 08054 (609) 386-6060 • FAX (609) 386-8877

www.njsig.org

Revised: 9/25/17

2017/2018 NJSIG Board of Trustees

Irene Le Febvre Chairperson v2016-2019

North Board Member

180 South Terrace Boonton, NJ 07005 (Boonton Town BOE)

O: (973)614-8585x3811 F: (973)614-1334 C: (973)513-2772

H: (973)335-3382 [email protected] Committees: Claims, Policy

Christopher Russo, Ed.D. Vice-Chairperson v2016-2019

South Business Administrator

1310 Mallard Lane Millville, NJ 08332 (Delran BOE)

O: (856)461-6800x1006 F: (856)461-6125 C:

H: (609)694-1505 [email protected] Committees: Claims, Personnel

Thomas F. Connors, Ph.D. Trustee

v2015-2018 Central Board Member

10 Seward Avenue Piscataway, NJ 08854 (Piscataway Twp BOE)

O: F: C: (732)491-3248

H: (732)463-3230 [email protected] Committees: Finance

James J. Jencarelli, Jr. Trustee

v2015-2018 North Superintendent

2 Mill Creek Road Sparta, NJ 07871 (Morris Hills Regional)

O: (973)664-2291 F: (973)627-6588 C: (201)320-7049

H: (201)320-7049 [email protected] Committees: Personnel

Joseph Meloche, Ed.D. Trustee

v2016-2019 South Superintendent

45 Ranoldo Terrace Cherry Hill, NJ 08034 (Cherry Hill Public Schools)

O: (856)429-5600x4309 F: (856)616-9647 C: (856)229-4318

H: (856)906-5523 [email protected] Committees: Personnel

Steven K. Robinson Trustee

v2015-2018 North Business Administrator

5 Rodin Lane Marlboro, NJ 07746 (Livingston Twp. BOE)

O: (973)535-8000x8009 F: C: (973)476-1046

H: (732)617-1219 [email protected] Committees: Finance

Dana Sullivan Trustee

v2016-2019 Central Business Administrator

302 Elm Street, Rm 101 Westfield, NJ 07090 (Westfield BOE )

O: (908)789-4414 F: (908)789-4180 C: (201)803-2028

H: (973) 884-1737 [email protected] Committees: Claims, Policy

Gerald North Trustee

v2016-2019 Central Superintendent

117 Evergreen Road New Egypt, NJ 08533 (Plumsted Twp. BOE)

O: (609)758-6800x4206 F: (609)758-6808 C: (609)209-5018

H: [email protected] Committees: Finance, Policy

Anthony Grafton Trustee

v2017-2020 South Board Member

350 Clinton Street Clayton, NJ 08312 (Clayton Public Schools)

O: (856)625-5887 F: C:

H: [email protected] Committees:

William Mayo Executive Director

6000 Midlantic Drive, Suite 300 North Mt. Laurel, NJ 08054

O: (609)386-6060x3039 F: (609)386-8877 C: (609)500-4787

H: (609)217-4845 [email protected]



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2017/2018 NJSIG Sub Fund Liaisons

Rev: 9/18/17

Vacant

BACCEIC Sub Fund Liaison

v

O: F: C:

Barbara Prettyman

CAIP Sub Fund Liaison

v

Hammonton BOE 566 Olds Forks Road PO Box 631 Hammonton, NJ 08037

O:(609)567-7000 x353 F: (609)561-3567

[email protected]

Vacant

ERIC North Sub Fund Liaison

v

O: F: C:

Gene Mercoli ERIC South

Sub Fund Liaison v

Cumberland Cnty. Voc. 601 Bridgeton Avenue Bridgeton, NJ 08302

O: (856) 451-9000 F: (856) 451-8487

[email protected]

John Csatlos ERIC West

Sub Fund Liaison v

Florham Park P.O. Box 39 Florham Park, NJ 07932

O: (973)822-3880x1005 F: (973)822-0716

[email protected]

Loretta Hill MOCSSIF

Sub Fund Liaison, v

Belmar BOE 1101 Main Street Belmar, NJ 07719

O: (732)681-8888 F: (732)681-8709

[email protected]

Anthony Dragona

NJEIF Sub Fund Liaison

v

Union City BOE 3912 Bergen Turnpike Union City, NJ 07087

O: (201) 348-5677 F: (201) 223-0471

[email protected]



www.njsig.org

Meeting Dates 2017/2018

September 20, 2017 NJSIG Marlboro Office

October 24, 2017

Atlantic City Convention Center Room 419,

1 Convention Blvd, Atlantic City, NJ 08401

November 29, 2017 NJSIG Mount Laurel Office

March 21, 2018

NJSIG Marlboro Office

May 16, 2018 NJSIG Mount Laurel Office

June 27, 2018

NJSIG Marlboro Office

All meetings will begin at 4:00 p.m. unless otherwise noted.



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10/23/17

BOARD OF TRUSTEES MEETING Tuesday, October 24, 2017

Atlantic City Convention Center, Room 419 1 Convention Boulevard, Atlantic City, NJ 08401

Meeting 4:00 p.m.

OCTOBER AGENDA

PUBLIC SESSION ITEM #

1. Call to Order

In accordance with the Sunshine Law, due notice of all pending meetings was given to the Atlantic City Press, Newark Star Ledger, and Trenton Times on September 6, 2017. Copies of these notices are on file with the New Jersey Secretary of State.

2. Roll Call

Thomas F. Connors, Ph.D. Irene Le Febvre Steven K. Robinson Anthony Grafton Joseph Meloche, Ed.D. Christopher Russo, Ed.D. James J. Jencarelli, Jr. Gerald North Dana Sullivan

3. Acceptance of the public and executive session minutes for September 20, 2017. 4. Public Participation - Opportunity for public to address the NJSIG Trustees

regarding specific agenda items. Each person will have five minutes to speak. 5. Sub Fund Liaisons - Reports/Comments 6. Reports:

6A. Executive Director Report William Mayo 6B. Comptroller Report Michele Carosi 6C. Client Relations and Underwriting Report Kelly Machu 6D. Claims Report Tony Ruggeri 6E. Information Technology Report Jeff Cook



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10/23/17

Board of Trustee Meeting October 24, 2017 Agenda Pg. 2 7. Action Items:

7A. Financial Audit Valerie Dolan, Nisivoccia 7B. Contracting: 1. Executive Director Irene Le Febvre 2. Property Appraisal Services William Mayo 7C. Checking Accounts & New Claims Ratification William Mayo

8. New Business 9. Executive Session

EXECUTIVE SESSION

EXECUTIVE SESSION RESOLUTION

WHEREAS, N.J.S.A. 10:4-6 et. seq., (“the Open Public Meetings Act”), authorizes public entities to meet in executive session under certain circumstances; and WHEREAS, the Open Public Meetings Act requires that the Group adopt a resolution at a public meeting to go into private session; now, therefore, BE IT RESOLVED by the Board of Trustees of the New Jersey Schools Insurance Group that it is necessary to meet in executive session to discuss certain items involving: 9A. Matters involving attorney client privilege; BE IT FURTHER RESOLVED that any discussion held by the Board of Trustees which need not remain confidential will be made public as soon as feasible. The minutes of the executive session will not be disclosed until the need for confidentiality no longer exists. FURTHER RESOLVED that the Board of Trustees will not return to open session to conduct business at the conclusion of the executive session.



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Board of Trustees Meeting of October 24, 2017

Board of Trustees Meeting Minutes of September 20, 2017 New Jersey Schools Insurance Group’s (NJSIG) Board of Trustees Meeting of September 20, 2017 at NJSIG’s Marlboro office. ATTENDEES Trustees: Thomas F. Connors, Irene Le Febvre, Joseph Meloche, Gerald North,

Christopher Russo, Steven Robinson, and Dana Sullivan. Participants: David Rapuano, Esquire representing Archer & Greiner, Stacy Mina

representing Willis Towers Watson; Dave Ritch representing Willis Re; Jay Lynch, Sub-fund Administrator representing MOCSSIF; and John Csatlos, Sub-fund Liaison representing ERIC West.

NJSIG Staff: William Mayo, Executive Director; Michele Carosi, Comptroller; Jill Deitch, Chief

Legal Officer; Stephen Tucker, Assistant General Counsel; Kelly Machu, Underwriting/Client Relations Manager; Anthony Ruggeri, Claims Manager; Jeffrey Cook, Information Systems Manager; and Renee Johnson-Payne, Executive Assistant.

ITEM #1 CALL TO ORDER

With a quorum present, the meeting was called to order at 3:31 p.m. In accordance with the Sunshine Law, due notice of all pending meetings was given to the Atlantic City Press, Newark Star Ledger, and Trenton Times on September 6, 2017. Copies of these notices are on file with the New Jersey Secretary of State.

ITEM #2 ROLL CALL

Thomas F. Connors, Ph.D. √ Gerald North √ James J. Jencarelli, Jr. A Steven K. Robinson √ Irene Le Febvre √ Christopher Russo, Ed. D √ Joseph Meloche √ Dana Sullivan √



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Board of Trustees Meeting Minutes of September 20, 2017 Pg. 2

ITEM #3 EXECUTIVE SESSION

EXECUTIVE SESSION

EXECUTIVE SESSION RESOLUTION

WHEREAS, N.J.S.A. 10:4-6 et. seq., (“the Open Public Meetings Act”), authorizes public entities to meet in executive session under certain circumstances; and

WHEREAS, the Open Public Meetings Act requires that the Group adopt a resolution at a public meeting to go into private session; now, therefore,

BE IT RESOLVED by the Board of Trustees of the New Jersey Schools Insurance Group, that it is necessary to meet in executive session to discuss certain items involving:

3A. Litigation; 3B. Matters involving attorney client privilege; BE IT FURTHER RESOLVED that any discussion held by the Board of Trustees which need not remain confidential will be made public as soon as feasible. The minutes of the executive session will not be disclosed until the need for confidentiality no longer exists. FURTHER RESOLVED that the Board of Trustees will return to open session to conduct business at the conclusion of the executive session. Action Taken: M (Connors)\ S (Robinson\ C (Affirmative Votes = Connors,

Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to close open session at 3:33p.m. and move meeting into executive session.

Action Taken: M (Meloche)\ S (Robinson\ C (Affirmative Votes = Connors,

Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to move meeting to open session at 5:19p.m. and close executive session.



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ITEM #9 ACTION ITEM:

A. Willis Towers Watson – Reserve Study Stacy Mina, Towers Watson, conducted a presentation and discussion relative to estimating liabilities, allocated loss adjustment liabilities and unallocated loss adjustment liabilities as of 6/30/17 and potential implications for the 2017/2018 program year. She explained how and why the 65% confidence level of estimated ultimate unpaid loss is $210,135,000 and unallocated loss adjustment liabilities is $8,800,000 in the reserve study of June 30, 2017 dated September 6, 2017.

Action Taken: M (Connors)\ S (Robinson)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to approve the reserve study as presented in the WTW’s draft and presentation at the September 20, 2017 meeting and adopt the 65% confidence level estimates of ultimate unpaid loss and ALAE liability and the ULAE liability from the WTW reserve study of June 30, 2017. The 65% confidence level estimates are $210,135,000 for the unpaid loss and ALAE liability and $8,800,000 for the ULAE liability.

ITEM #11 ACTION ITEMS A. Safety Grant Action Taken: M (Robinson)\ S (Russo)\ Carried (Affirmative Votes =

Connors, Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to approve a $8.5 million safety grant to be expensed from the 2016/2017 fund year for future safety grant awards to be distributed to the NJSIG members of record in the respective future years as follows: $4 million safety grant distributed after 07/01/2018 to NJSIG 2016/2017 members of record as of 7/01/2018; $1.5 million distributed after 07/01/2019 to NJSIG 2017/2018 members of record as of 07/01/2019; $1.5 million distributed after 07/01/2020 to NJSIG 2018/2019 members of record as of 07/01/2020; and $1.5 million distributed after



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07/01/2021 to NJSIG 2019/2020 members of record as of 07/01/2021.

B. Resolution Appointing Designated Representative to AGRiP Action Taken: M (Sullivan)\ S (Connors)\ Carried (Affirmative Votes =

Connors, Le Febvre, Meloche, North, Robinson, Russo, Sullivan) WHEREAS NEW JERSEY SCHOOLS INSURANCE GROUP desires membership in the ASSOCIATION OF GOVERNMENTAL RISK POOLS; and WHEREAS, the organizational By-Laws of the ASSOCIATION OF GOVERNMENTAL RISK POOLS requires the governing Board of a Regular Member to appoint a Designated Representative who shall vote on matters on behalf of the Regular Member;

NOW, THEREFORE, BE IT RESOLVED by the governing

board of the New Jersey Schools Insurance Group that it appoints Stephen Tucker, Esquire, Assistant General Counsel to be NJSIG’s designated representative to the Association of Governmental Risk Pools.

C. Contracting 1. Office Supplies Action Taken: M (Connors)\ S (Robinson)\ Carried (Affirmative Votes =

Connors, Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to authorize NJSIG to participate in State of New Jersey, cooperative purchasing contract number 15-x-23609, index number T0052, for the procurement of office supplies through W.B. Mason Company, Incorporated.

2. School employee and official training services Action Taken: M (Russo)\ S (Sullivan)\ Carried (Affirmative Votes = Connors,

Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to award a contract for school employee and official training services to Scenario Learning, LLC and Educational Development Software, LLC based on the results of the committee’s evaluation.



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3. Workers’ compensation managed care services Action Taken: M (Russo)\ S (Sullivan)\ Carried (Affirmative Votes = Connors,

Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to award a contract for workers' compensation managed care services to QualCare, Inc. based on the results of the committee’s evaluation.

4. Tax Audit Action Taken: M (Connors)\ S (Russo)\ Carried (Affirmative Votes = Connors,

Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to award a contract for tax auditing servicing to Nisivoccia, LLP for a duration of twelve months for an amount not to exceed $25,000.

C. Checking Accounts and New Claims Action Taken: M (Russo)\ S (Sullivan)\ Carried (Affirmative Votes = Connors,

Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to approve and ratify the checks and new claims which have been issued from accounts XXXXXXX210 (operating account) and XXXXXXX229 (claim account) for the period of 6/1/2017 to 8/31/2017 as shown in the online (Microscribe) version of the meeting package.

D. Wilmington Trust Resolutions Action Taken: M (Russo)\ S (Robinson)\ Carried (Affirmative Votes =

Connors, Le Febvre, Meloche, North, Robinson, Russo, Sullivan) to adopt the two Wilmington Trust resolutions that designate the officers of NJSIG that are authorized to transact on behalf of NJSIG and affirming that the Executive Director has the authority to conduct transactions.

ITEM #4 TRUSTEE NOMINATION:

3A. NJSBA Southern Board Member – Anthony Grafton

Action Taken: M (Connors)\ S (Sullivan)\ Carried (Affirmative Votes = Connors, Le Febvre, Meloche, North, Robinson, Russo, Sullivan)



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to approve the NJSBA appointment of Anthony Grafton as the southern board member representative for the term 9/20/17 to 6/30/20.

ITEM #5 ACCEPTANCES OF THE PUBLIC AND EXECUTIVE SESSION

MINUTES OF JUNE 21, 2017. Action Taken: M (Connors)\ S (Robinson)\ Abstention (Grafton, Russo)

\Carried (Affirmative Votes = Connors, Le Febvre, Meloche, North, Robinson, Sullivan) to accept the June 21, 2017 Public Session Board of Trustees Meeting Minutes.

ITEM #6 PUBLIC PARTICIPATION There was no public participation. ITEM #7 SUB-FUND LIAISONS – Reports/Comments Jay Lynch, MOCSSIF Sub-fund Administrator, reported MOCSSIF set their

meeting schedule for 2017/2018. The first meeting is scheduled for December, the next meeting is planned for March. MOCSSIF along with ERIC North is planning the annual joint training meeting for May.

John Csatlos, ERIC West Sub-fund Liaison, thanked the Board for the safety

grant awards. He also reported the training at the ERIC West meeting was very informative.

ITEM #8 REPORTS A. Executive Director’s Report William Mayo, Executive Director, introduced an initiative to have each

manager provide a very brief presentation of their departments’, current projects and challenges.

B. Comptroller Comptroller, Michele Carosi, reported the financial auditors will be attending

the October meeting to present the 6/30/17 financial audit.



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C. Client Relations and Underwriting Report Kelly Machu, Client Relations and Underwriting Manager, had nothing to add

to her written report, but offered to answer questions. D. Claims Report

Tony Ruggeri, Claim Manager, reported on the favorable claim audit results.

E. Information Technology

Jeff Cook, Information Technology Manager, reported on the implementation of the new claims system.

ITEM #10 DISCUSSION ITEMS A. Risk Based Capital/Surplus Study Guideline as of 6/30/17

Comptroller, Michele Carosi, explained the details of risk-based capital and total adjusted capital how it was derived and its uses.

ITEM #12 NEW BUSINESS There was no new business. Action Taken: M (Sullivan)\ S (Russo)\ Carried (Affirmative Votes = Connors,

Grafton, Le Febvre, Meloche, North, Robinson, Sullivan) to adjourn meeting at 5:50 p.m.

William Mayo William M. Mayo, CPCU, ARM Executive Director

New Jersey Schools Insurance Group 6000 Midlantic Drive Suite 300 North


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Executive Director’s Report

Early damage estimates for the series of hurricanes and the California wildfires are beginning to come in. Some estimates are as high as $100 billion in insured losses. For perspective, Katrina insured losses were in the $60 billion range. Combined, these events will have a material impact on reinsurance markets. Because reinsurance expense represents almost 25% of the NJSIG annual budget, we are very focused on meeting with our reinsurers to present our risk exposures in the most effective way. We are also investigating potential new reinsurers and structural changes to the reinsurance program. Willis Towers Watson, NJSIG’s reinsurance broker, is working closely with us to structure the most advantageous coverages for our Members for the 2018 plan year. It is too soon to speculate on the cost of reinsurance renewals, but NJSIG will keep the Members and our broker partners informed and updated as we proceed with reinsurance negotiations. The first sub-fund meetings for the current year were recently concluded. The focus of these meetings was a back-to-basics approach to reducing workers’ compensation costs. Members were reminded of their commitment to maintain a safety committee, and were offered help and guidance in getting the committees organized. NJSIG continues discussions with Members and Brokers on the current NJSIG loss control offerings and we continue to seek input on any additional loss control services that will benefit our Members. Respectfully Submitted, William Mayo William Mayo, CPCU, ARM Executive Director



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Revised: 10.16.17


Comptroller/Financial Reporting Report

The following are updates to and/or new accounting issues (if applicable) since the last Board Package. Ø ACCOUNTING DEPARTMENT PROCESSES:

(1) Billing & Accounts Receivable Processes: The NJSIG Accounting

Department has processed $129.3 million of 2017/2018 renewal gross member contributions and endorsements in the Peoplesoft Billing Module as of the date of this report (10/09/2017). The Accounting Department is current with all business that was bound and exported from the Underwriting system NavRisk. In addition, the Accounting Department continues to invoice our members in the Peoplesoft Billing system for monthly Workers’ Compensation installments, 2017/2018 Renewals (off 07/01/2017), miscellaneous endorsements as the billing data is exported from NavRisk. The Accounting Department has collected and applied $63.1 million of members’ contribution deposits (to date) for the 2017/2018 fiscal year. Collections of NJSIG member contributions are kept current with the Accounting Department’s issuance of color-coded NJSIG Member Statements on the 15th of each month.

(2) Accounts Payable: All Accounts Payable vouchers and payments are current. The Accounting Department processed $5.4 million of broker commissions as part of the Direct Bill procedures during the 2017/2018 fiscal year. The Accounting Department is also processing safety grant payments as per the grant resolution from the 06/30/16 reporting period (approved at the 9/2016 board meeting).

Ø FINANCIAL REPORTING ISSUES 2016/2017:

Please find the attached final financial reports for 06/2017. These reports represent more detailed data than the Nisivoccia audit report and also reconcile to the summarized data in the Nisivoccia audit report. The fiscal year 2017 change in net position is $10.4 million which includes a 2017 safety



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Revised: 10.16.17

Comptroller’s Report October 24, 2017 Page 2

grant of $8.5 million. The favorable results this year were primarily the result of overall favorable claims experiences, as reported by Stacy Mina, Willis Towers Watson, at our last board meeting. These favorable 2017 results increased the net position/surplus to $78.7 million. I have also included the most current Investment/Cash report and the final 07/2017 financial reports.

Ø FISCAL YEAR-END AUDIT 2016/2017: The Nisivoccia auditors have completed the 06/30/2017 audit. The final draft of their report is included in the action item section of this board package. The auditors will be at our October, Atlantic City, meeting to present their report and answer any of your questions. As you will see, this was another strong financial year for NJSIG, allowing for the $8.5 million safety grant from the fiscal year 2017 underwriting operating results.

Ø SPECIAL PROJECTS:

In addition to my standard responsibilities, I have also been working on the following special projects since our last board meeting:

(1) 2017-2018 Budget Upload – I have successfully completed the upload process for the 2017/2018 budget data into the PeopleSoft/Financial Reporting database. This is the budget that the Trustees approved at the June 2017 meeting and which was filed with the NJ Department of Banking and Insurance.

(2) Custodial/Asset Management (Wilmington Trust): - The NJSIG team and the Wilmington Trust team met in September to fully execute the legal documents between the two organizations. Wilmington Trust subsequently opened the NJSIG accounts for future investment and custodial activity. Bill Mayo will be



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Revised: 10.16.17

Comptroller’s Report October 24, 2017 Page 3

providing a general description of the services that Wilmington will offer NJSIG at this board meeting. The Wilmington Trust team will be attending our November board meeting to discuss more detailed investment plans and answer any Trustee questions.

(3) Willis Towers Watson 2018/2019 Pricing Study – I have developed and provided Willis Towers Watson with forecasted 2018/2019 administrative expenses for their use in determining the pricing of NJSIG’s 2018/2019 member contributions.

(4) Open Enrollment – I am working with our Senior Payroll and Benefits Specialist to coordinate all documentation and summary plan documents for NJSIG employee 2018 benefits open enrollment.

Please contact me if you have any questions or concerns email is [email protected] and cell number is 609-949-1973.

Michele Carosi

Michele Carosi, Comptroller

10/9/20172:30 PM

N J S I G

DATE 10/9/2017

U.S. TREASURIES & AGENCIESINTEREST

DATE MATURITY NO OF PURCHASE RATE @ VALUE AT INVESTMENT DAYS TO

AQUIRED DATE DAYS PRICE PURCHASE MATURITY TYPE MATURITY

=========== =========== ============ ================ =========== =========== ================ =====================

Totals at: 10/9/2017 0 0

CERTIFICATES OF DEPOSIT

DATE MATURITY NO OF INTEREST DAYS TO NAME OF money

ACQUIRED DATE DAYS AMOUNT RATE MATURITY BANK from

=========== =========== ============ ================ =========== =========== ================ =====================

Totals at: 10/9/2017 0

1

10/9/20172:30 PM

N J S I G

SUMMARY OF CASH AND INVESTMENTS

CASH

AS OF 7/31/2017

CASH MGT STATE 325,825

CLAIMS TD BANK (140,630)

CLAIMS INVESTORS (1,665,914)

TD WEALHT MGT - NJ Trst Fnd 0

LOCK BOX TD BANK 0

ASSMNT COLLINVESTORS (203,518)

PAYROLL TD BANK 0

OPERATING #2 TD BANK (9,276)

OPERATING INVESTORS (26,028,931)

FSA/DCA TD BANK 0

Concentration TD BANK 1,572,423

Concentration INVESTORS 322,250,353

Petty Cash 253

TOTAL CASH AS OF 7/31/2017 296,100,584

TOTAL CASH AS OF 7/31/2017 = 296,100,584

TOTAL CD'S & US TREAS/AGENCIES AS OF 10/9/17 = 0

TOTAL = 296,100,584

2

NJSIG

Income Statement

For the Period Ending 7/31/2017

Actuals YTD Budget YTD Actuals Month Budget Month

Income:

Member Contributions 91,740,967.77 131,180,680.00 91,740,967.77 131,180,680.00

Retro Accounts Income 0.00 0.00 0.00 0.00

Total Income 91,740,967.77 131,180,680.00 91,740,967.77 131,180,680.00

Adjustments:

Reinsurance Recoveries 74,363.91 0.00 74,363.91 0.00

Accrued Reins Recoveries (1,068,230.00) 0.00 (1,068,230.00) 0.00

Subrogation Income 562,364.12 0.00 562,364.12 0.00

Recoveries & Subro Income (431,501.97) 0.00 (431,501.97) 0.00

Revenue 91,309,465.80 131,180,680.00 91,309,465.80 131,180,680.00

Page 1 of 4

NJSIG

Income Statement



Expenses:

Salaries-Temporary Employees 1,470.40 9,376.67 1,470.40 9,376.67

Salaries 512,691.88 537,503.00 512,691.88 537,503.00

Salaries-Overtime 0.00 416.67 0.00 416.67

Payroll Tax Expenses 18,718.44 46,509.17 18,718.44 46,509.17

Pension Expense 0.00 62,101.25 0.00 62,101.25

Recruiting Costs 697.00 2,555.83 697.00 2,555.83

Post Retirement Bene Exp 0.00 15,200.17 0.00 15,200.17

Employee Medical Benefits 78,657.85 101,610.00 78,657.85 101,610.00

Employee Dental Benefits 4,574.27 5,466.83 4,574.27 5,466.83

Employee Vision Benefits 3,737.44 2,361.17 3,737.44 2,361.17

Employee ST Disab & Other Ins (3,724.48) 6,833.33 (3,724.48) 6,833.33

Defined Contrib Retirement Exp 475.44 560.17 475.44 560.17

Personnel Expenses 617,298.24 790,494.25 617,298.24 790,494.25

Marketing Expenses 179.17 704.17 179.17 704.17

Member Services Dept Expenses 179.17 704.17 179.17 704.17

Loss Prevention 1,206.77 14,550.00 1,206.77 14,550.00

Loss Control Dept Expenses 1,206.77 14,550.00 1,206.77 14,550.00

Claims Audit Expense 0.00 1,333.33 0.00 1,333.33

Claims Dept Expenses 0.00 1,333.33 0.00 1,333.33

Accounting Fees 0.00 91.67 0.00 91.67

Actuary Fees (38,094.06) 18,333.33 (38,094.06) 18,333.33

Loss Control Outside Services 0.00 7,500.00 0.00 7,500.00

Legal & Professional Fees (7,600.00) 20,833.33 (7,600.00) 20,833.33

Third Party Admin.-Willis (337,500.00) 56,250.00 (337,500.00) 56,250.00

Outside Service Fees (383,194.06) 103,008.33 (383,194.06) 103,008.33

Total Agent Commission Expense 7,361,015.08 12,673,259.00 7,361,015.08 12,673,259.00

Claims Expense 4,252,791.06 5,755,960.08 4,252,791.06 5,755,960.08

Claims Expenses 4,252,791.06 5,755,960.08 4,252,791.06 5,755,960.08

Reinsurance Exp-District Bill 24,662,429.63 32,968,039.00 24,662,429.63 32,968,039.00

Reinsurance Exp-NJSIG Paid 7,261.88 0.00 7,261.88 0.00

Reinsurance Expenses 24,669,691.51 32,968,039.00 24,669,691.51 32,968,039.00

Page 2 of 4

NJSIG

Income Statement



IT - Office Equipment Supplies 305.42 2,416.67 305.42 2,416.67

Office Equipment Maintenance 0.00 3,325.00 0.00 3,325.00

Computer Software Maintenance 16,195.55 22,921.33 16,195.55 22,921.33

Information Technology Dept Expenses 16,500.97 28,663.00 16,500.97 28,663.00

Depreciation Expense 32,488.19 50,550.92 32,488.19 50,550.92

Dues & Subscriptions 1,111.08 8,361.42 1,111.08 8,361.42

Misc. Bank Fees 0.00 3,155.00 0.00 3,155.00

Rent Expense 75,470.18 39,282.58 75,470.18 39,282.58

Office Supplies 143.22 5,889.17 143.22 5,889.17

Office Operating Expenses 3,956.41 7,748.67 3,956.41 7,748.67

Office Leased Expenses 1,650.33 3,291.67 1,650.33 3,291.67

Telephone Expense 0.00 83.33 0.00 83.33

Group's Insurance Expense 18,238.49 20,833.33 18,238.49 20,833.33

Group's Crime Insurance Exp. 3,595.60 3,333.33 3,595.60 3,333.33

FSA Admin Fee 171.70 0.00 171.70 0.00

Postage 5,793.99 5,166.67 5,793.99 5,166.67

Employee Seminar Expenses 249.50 10,541.67 249.50 10,541.67

Insurance Course Fees 118.00 1,000.00 118.00 1,000.00

Tuition Reimursement 0.00 500.00 0.00 500.00

Audit Fees (46,000.00) 0.00 (46,000.00) 0.00

Consulting Fees 222.80 29,583.33 222.80 29,583.33

Miscellaneous Expenses 100.38 516.67 100.38 516.67

Disaster Recovery Expenses 10,995.98 10,308.00 10,995.98 10,308.00

Cell Phone Expense 1,156.70 1,687.50 1,156.70 1,687.50

OPRA expenses 0.00 8,333.33 0.00 8,333.33

Business Operating Expenses 109,462.55 210,166.58 109,462.55 210,166.58

Travel & Related Expenses 1,240.67 9,524.00 1,240.67 9,524.00

Annual Meeting 133.75 4,450.00 133.75 4,450.00

Trustee Meeting Expense 0.00 0.00 0.00 0.00

Conferences & Meeting Expenses 1,374.42 13,974.00 1,374.42 13,974.00

Total Expenses 36,646,325.71 52,560,151.75 36,646,325.71 52,560,151.75

Page 3 of 4

NJSIG

Income Statement



Other Revenue and Expenses:

Interest-Concentration Acct 867.80 0.00 867.80 0.00

Interest-NJ Cash Mgmt Fund 246.76 18.67 246.76 18.67

Interest-Commerce Concentr 0.00 48,189.08 0.00 48,189.08

Interest on Assesment Recvbl's 3.41 0.00 3.41 0.00

Interest - InvBk Concentration 279,155.40 0.00 279,155.40 0.00

Investment Income 280,273.37 48,207.75 280,273.37 48,207.75

Financial Income 0.00 0.00 0.00 0.00

Seminar Income 395.00 729.17 395.00 729.17

Change in Unrnd Ag Comm (43,977.67) 0.00 (43,977.67) 0.00

Change in Unrnd Reins (115,030.23) 0.00 (115,030.23) 0.00

Other Revenues (158,612.90) 729.17 (158,612.90) 729.17

Investment Expenses 0.00 0.00 0.00 0.00

Total Other Revenue and Expenses 121,660.47 48,936.92 121,660.47 48,936.92

Net Revenue 54,784,800.56 78,669,465.17 54,784,800.56 78,669,465.17

Page 4 of 4

NJSIG

Balance Sheet

For the Period Ended 7/31/2017

Current Balance Prior Year

Current Assets:

D.W. Active Assets 0.00 0.00

Petty Cash 252.79 226.74

Cash Mgmt. Fund - N.J. State 325,824.61 323,900.16

Operating Account (1st Union) 0.00 0.00

Concentration (1st Union) 0.00 0.00

Payroll (1st Union) 0.00 0.00

Claims (1st Union) 0.00 0.00

Legal Account (1st Union) 0.00 0.00

A.G. Edwards Cash 0.00 0.00

Concentration Acct (TD Bank) 1,572,423.03 237,876,613.95

Operating Acct (TD Bank) 0.00 0.00

Payroll Acct (TD Bank) 0.00 0.00

Claims Acct (TD Bank) (140,630.48) (2,455,764.08)

FSA/DCA Acct (TD Bank) 0.00 0.00

Lock Box Account(TD Bank) 0.00 (183,503.56)

Willis/NJSBAIG Cash (Commerce) 0.00 0.00

Cash Suspense 0.00 0.00

Tri-State Capital Bank Account 0.00 0.00

Beneficial Bank Accont 0.00 0.00

Operating Account (TD Bank2) (9,276.12) (930,370.03)

Concentration Acct (Investors) 322,250,352.68 0.00

Operating Acct (Investors) (26,028,930.71) 0.00

Claims Acct (Investors) (1,665,913.67) 0.00

Payroll Acct (Investors) 0.00 0.00

FSA/DCA Acct (Investors) 0.00 0.00

Assessmnt Collection Acct(INV) (203,517.95) 0.00

CASH IN BANKS 296,100,584.18 234,631,103.18

Certificates of Deposit 0.00 40,000,000.00

Partnership Interests 0.00 2.00

U.S. Treasury Bills (A.G. Edw) 0.00 0.00

N.J. State Investment Fund 0.00 139.66

Investment Premiums (NJ Inv F) 0.00 0.00

Market Value Adjust (NJ Inv F) 0.00 (0.02)

Certificates of Deposit Suspns 0.00 0.00

MARKETABLE SECURITIES 0.00 40,000,141.64

Reinsurance Rebate Receivable 0.00 0.00

Reinsurance Recoverables 0.00 0.00

Reins. Recovery Receivable 0.00 0.00

Reins. Recovery 85/86 Recvb'l (34,844.13) (36,223.49) REINSURANCE RECEIVABLES (34,844.13) (36,223.49)

Interest/Divid Recvb'l-AG Ewds 0.00 0.00

NJSIG

Balance Sheet



Interest/Divid. Recvb'l-NJ Inv 0.00 0.02

Interest/Divid Recvb'l-CD's 0.00 477,322.23

Interest/Divid Recvbl-Ptnr Dst 0.00 0.00

INTEREST/DIVIDENDS RECEIVABLES 0.00 477,322.25

Misc. Accounts Receivable 0.00 0.00

Assessments Receivable 0.00 0.00

Legal Settlement Recvb'l 100.00 100.00

Seminar/Training Academy Rec 0.00 0.00

Retro Premium/Service Recvbl 0.00 0.00

Retro Audit Receivable 0.00 0.00

Retro Endorsement Receivable 0.00 0.00

Retro Add'l Servcs Recvb'l 0.00 0.00

MISC ACCOUNTS RECEIVABLES 100.00 100.00

Audit Premium Receivable 0.00 0.00

Premium Recvb'l Installments 29,197,164.92 9,976,997.68

Premium Recvb'l Prebill 0.00 0.00

Premium Receivable 62,464,934.75 25,150,591.59

Commission Recvbl Control Acct 0.00 0.00

Allowance of Doubtful Accts 0.00 0.00

A/R Maintenance Control Acct. 0.00 0.00

Asset Transfer Control Acct. 0.00 0.00

Agent Commission Receivable 0.00 0.00

PREMIUM RECEIVABLES 91,662,099.67 35,127,589.27

TOTAL Current Assets 387,727,939.72 310,200,032.85

F&F Original Value 1,323,150.75 1,347,135.56

Accumulated Depreciation (580,406.77) (596,046.62)

Leasehold Improvements 0.00 0.00

Accumulated Amortization 0.00 0.00

TOTAL FIXED ASSETS 742,743.98 751,088.94

Other Assets:

Prepaid General Insurance 82,825.64 95,927.97

Prepaid Crime Insurance 13,334.31 21,291.61

Prepaid General Expenses 82,600.38 209,508.76

Prepaid TPA Expenses 0.00 112,499.88

PREPAID ASSETS 178,760.33 439,228.22

Unearned M&M Fees 0.00 0.00

Unearned Marsh Reins Exp 0.00 0.00

Unearned Marsh Ag Comm 0.00 0.00

NJSIG

Balance Sheet



Unearned Willis Fees 0.00 0.00

Unearned Reins Exp 0.00 651,390.18

Unearned Agent Comm. 0.00 199,824.44

Unrn'd Cigna/Fireman's Reins. 0.00 0.00

Unrnd Cigna/Fireman's Ag. Comm 0.00 0.00

Retro Reinsurance Unearned 0.00 0.00

Retro Agent Comm Unearned 0.00 0.00

Retro M&M Fee Unearned 0.00 0.00

UNEARNED EXPENSES 0.00 851,214.62

Travel Advance 0.00 0.00

Deposits 0.00 0.00

OTHER ASSETS 0.00 0.00

GASB68-Defer Out-ChngInAssump 4,290,832.00 1,703,943.00

GASB68-DeferOut-ChngProportion 1,056,205.00 1,347,926.00

GASB68-DeferOut-ExpectvsActual 385,217.00 378,521.00

GASB68-DeferOut-NETDiffProjInv 789,843.00 0.00

GASB68DeferOut-SubsqntContrib 0.00 0.00

DEFERRED OUTFLOWS 6,522,097.00 3,430,390.00

TOTAL OTHER ASSETS 6,700,857.33 4,720,832.84

TOTAL ASSETS 395,171,541.03 315,671,954.63

A/P Module ADM01 0.00 0.00

Notes Payable 0.00 0.00

Accrued Expenses Payable 122,294.69 122,496.71

A/P Module INS01 (6,043.88) (4,280.77)

Safety Grant Payable 11,920,840.33 5,015,029.71

Reins Recov Paybl- XL Reins 0.00 0.00

Mngmt Maintenance Syst Paybl 0.00 0.00

Broker Refund Payable 0.00 0.00

Federal Income Tax W/H 0.00 0.00

FICA W/H Employee 0.00 0.00

FICA W/H Employer 0.00 0.00

FUI Taxes Payable 0.00 0.00

SUI Payable 0.00 0.00

State Income W/H-NJ 0.00 0.00

State Income W/H-PA 0.00 0.00

Garnishment Payable 0.00 0.00

Medicare - Employee 0.00 0.00

Medicare - Employer 0.00 0.00

Employee Savings Payable 0.00 0.02

Local Income W/H-Phila 0.00 0.03

NJSIG

Balance Sheet



FSA MED Payable 767.81 0.00

FSA Depend Payable 5,325.21 0.00

Group Term Life Payable 0.00 0.00

TOTAL CURRENT LIABILITIES 12,043,184.16 5,133,245.70

Estimated Unpaid Losses 210,135,000.00 217,262,000.00

Reserve-Unalloc Loss Adjust 8,800,000.00 1,498,994.27

Unearned Premiums-Marsh 0.00 0.00

Aggregate Contingency Fund 0.00 0.00

Unearned Premiums 0.00 1,606,448.11

Unrn'd Cigna/Fireman's Premium 0.00 0.00

Unernd Willis Mgt Fees/Ret Prm 0.00 0.00

Post Retirement Bene Paybl 1,363,319.80 1,186,460.64


Rate Stabilization-ERIC North 593,362.40 593,362.40

Rate Stabilization-ERIC South 99,230.99 232,385.94

Rate Stabilization - ERIC West 197,760.85 216,760.85

Rate Stabilization - BACCEIC 169,787.47 290,564.19

Rate Stabilization - MOCSSIF 320,824.09 320,824.09

Rate Stabilization - NJEIF 437,559.63 437,559.63

TOTAL LONG TERM LIABILITIES 222,116,845.23 223,645,360.12

Employee Benefits Payable 0.00 0.00

Pensions Payable 38,662.11 40,660.66

GASB68-Pension Payable 20,713,990.00 15,866,572.00

DCRP Payable 1,079.41 0.00

Dividend Payable 0.00 0.00

403B/T. Rowe Price Payable 0.00 4,928.59

Colonial Life Payable 0.00 0.00

Retro Claims (Cash) 130,426.08 276,700.47

STARS Recon/Claims Liability 0.00 0.00

Return of excess subrogation 0.00 0.00

AFLAC Payable 0.00 0.00

Group Term Life Payable 15,792.55 4,264.08

Due to Retro Reinsurer 0.00 0.00

Retro Agent Comm Payable 0.00 0.00

M&M Retro Fee Payable 0.00 0.00

Retro Unearned Prem/Service 0.00 0.00

Marsh Due to Reinsurers 0.00 0.00

Marsh Ag. Comm. Payable 0.00 0.00

Agent Comm. Payable 9,303,304.12 3,344,995.93

Due To Reinsurers Installments 0.00 0.00

Due To Reinsurers Prebill 0.00 0.00

Ag Comm Paybl Installments 0.00 0.00

Ag Comm Paybl Prebill 0.00 0.00

TOTAL OTHER LIABILITIES 30,203,254.27 19,538,121.73

TOTAL REINSURANCE PAYABLES (2,760,132.81) (21,269,560.79)

NJSIG

Balance Sheet



GASB68-DeferIn-DiffInInvest 0.00 255,104.00

GASB68-DeferIn-ChngIn Proport 120,962.00 0.00

TOTAL DEFERRED INFLOWS 120,962.00 255,104.00

TOTAL LIABILITIES 261,724,112.85 227,302,270.76

Retained Earnings Fund Balance 78,662,627.62 68,222,366.06

Year-to-Date Earnings 54,784,800.56 20,147,317.81

Total Capital 133,447,428.18 88,369,683.87

Total Liabilities and Capital 395,171,541.03 315,671,954.63

NJSIG

Income Statement


FINAL 9/21/17


Income:

Member Contributions 129,714,984.18 130,379,676.00 (160,681.12) 0.00

Retro Accounts Income 0.00 0.00 0.00 0.00

Total Income 129,714,984.18 130,379,676.00 (160,681.12) 0.00

Adjustments:

Reinsurance Recoveries 10,692,209.22 1,576,000.00 242,784.29 0.00

Reins Recovery W/C 85/86 1,379.36 0.00 1,379.36 0.00

Accrued Reins Recoveries 534,115.00 0.00 534,115.00 0.00

Subrogation Income 1,110,218.44 0.00 105,128.14 0.00

Recoveries & Subro Income 12,337,922.02 1,576,000.00 883,406.79 0.00

Revenue 142,052,906.20 131,955,676.00 722,725.67 0.00

Page 1 of 5

NJSIG

Income Statement


FINAL 9/21/17


Expenses:

Salaries-Temporary Employees 61,074.33 107,500.00 13,139.34 8,958.33

Salaries 5,759,502.73 6,064,978.99 491,152.97 505,414.92

Salaries-Overtime 0.81 3,000.00 0.00 250.00

Payroll Tax Expenses 484,123.28 590,000.00 41,726.38 49,166.67

Pension Expense 643,434.37 660,312.00 (340.19) 55,026.00

GASB68-Pension Expense 1,621,569.00 0.00 1,621,569.00 0.00

Recruiting Costs 24,742.82 7,500.00 928.07 625.00

Post Retirement Bene Exp 182,402.00 171,553.00 182,402.00 14,296.08

Employee Medical Benefits 934,501.67 1,245,828.00 77,727.50 103,819.00

Employee Dental Benefits 54,271.87 56,400.00 4,476.64 4,700.00

Employee Vision Benefits 22,571.16 24,720.00 1,970.71 2,060.00

EE HRA Benefits 120,937.27 342,000.00 0.00 28,500.00

Employee FSA Benefits 19,251.73 33,000.00 0.00 2,750.00

Employee ST Disab & Other Ins 58,920.08 75,000.00 21,341.93 6,250.00

Defined Contrib Retirement Exp 7,572.53 0.00 0.00 0.00

Personnel Expenses 9,994,875.65 9,381,791.99 2,456,094.35 781,816.00

Marketing Expenses 19,856.92 12,000.00 179.17 1,000.00

Member Services Dept Expenses 19,856.92 12,000.00 179.17 1,000.00

Loss Prevention 141,846.67 175,400.00 10,836.22 14,616.67

Loss Control Dept Expenses 141,846.67 175,400.00 10,836.22 14,616.67

Claims Audit Expense 0.00 12,000.00 0.00 1,000.00

Claims Admin. Expenses (68.00) 0.00 0.00 0.00

Claims Dept Expenses (68.00) 12,000.00 0.00 1,000.00

Accounting Fees 940.00 1,200.00 410.00 100.00

Actuary Fees 111,658.18 180,000.00 (13,000.00) 15,000.00

Loss Control Outside Services 77,859.54 90,000.00 53,000.00 7,500.00

Legal & Professional Fees 158,413.99 300,000.00 14,934.47 25,000.00

Third Party Admin.-Willis 675,000.00 675,000.00 337,500.00 56,250.00

Outside Service Fees 1,023,871.71 1,246,200.00 392,844.47 103,850.00

Total Agent Commission Expense 14,870,511.35 15,924,027.00 1,889,999.89 3,465,159.33

Claims Expense 64,447,176.00 68,707,000.00 5,252,148.78 5,725,583.33

Change in Claims Reserves (7,127,000.00) 0.00 (7,127,000.00) 0.00

Page 2 of 5

NJSIG

Income Statement


FINAL 9/21/17


Change in Rsrv for ULAG 7,301,005.73 0.00 7,301,005.73 0.00

NEPHA Deductible Reimb. Exp. 5,000.00 0.00 0.00 0.00

Claims Expenses 64,626,181.73 68,707,000.00 5,426,154.51 5,725,583.33

Reinsurance Exp-District Bill 32,395,261.20 33,495,926.00 0.00 2,791,327.17

Reinsurance Expenses 32,395,261.20 33,495,926.00 0.00 2,791,327.17

IT - Office Equipment Supplies 13,649.35 27,000.00 2,131.04 2,250.00

Office Equipment Maintenance 38,709.28 39,400.00 0.00 3,283.33

Computer Software Maintenance 309,439.76 296,760.00 31,825.73 24,730.00

Information Technology Dept Expenses 361,798.39 363,160.00 33,956.77 30,263.33

Depreciation Expense 369,039.39 578,740.00 31,455.01 48,228.33

Dues & Subscriptions 89,537.92 89,764.99 2,797.83 7,480.42

Misc. Bank Fees 3,500.02 3,500.00 291.67 291.67

IRS Penalty Fees 195.00 0.00 0.00 0.00

Rent Expense 442,261.33 466,697.00 0.00 38,891.42

Office Supplies 33,432.75 72,170.00 5,566.28 6,014.17

Office Operating Expenses 61,496.61 61,578.00 4,886.11 5,131.50

Office Leased Expenses 35,160.06 39,500.00 7,382.33 3,291.67

Telephone Expense 0.00 2,500.00 0.00 208.33

Group's Insurance Expense 192,678.05 225,000.00 20,480.83 18,750.00

Group's Crime Insurance Exp. 41,371.45 20,000.00 5,255.60 1,666.67

FSA Admin Fee 1,272.40 0.00 343.40 0.00

Postage 49,834.56 63,500.00 979.22 5,291.67

Employee Seminar Expenses 24,906.44 110,174.99 13,317.60 9,181.25

Insurance Course Fees 3,128.65 7,999.99 155.00 666.67

Tuition Reimursement 1,042.00 21,750.00 0.00 1,812.50

Audit Fees 45,110.00 70,500.00 46,000.00 47,583.33

Consulting Fees 260,936.58 342,500.02 125,274.55 28,541.67

Miscellaneous Expenses 2,212.13 7,450.00 511.52 620.83

Disaster Recovery Expenses 103,897.65 114,409.99 7,149.40 9,534.17

Bad Debt Expense 522.18 0.00 522.18 0.00

Cell Phone Expense 13,292.88 19,000.00 1,231.49 1,583.33

OPRA expenses 38,428.71 100,000.00 0.00 8,333.33

Ins. Write-off Exp (755,233.49) 0.00 (755,233.49) 0.00

Safety Grant Distribution Exp 8,500,000.00 0.00 8,500,000.00 0.00

Business Operating Expenses 9,558,023.27 2,416,734.98 8,018,366.53 243,102.92

Travel & Related Expenses 64,792.39 150,835.99 7,018.35 12,569.67

Annual Meeting 50,341.22 50,600.00 1,378.75 4,216.67

Page 3 of 5

NJSIG

Income Statement


FINAL 9/21/17


Trustee Meeting Expense 5,934.83 20,000.00 827.37 0.00

Conferences & Meeting Expenses 121,068.44 221,436.00 9,224.47 16,786.33

Total Expenses 133,113,227.33 131,955,675.96 18,237,656.38 13,174,505.08

Page 4 of 5

NJSIG

Income Statement


FINAL 9/21/17


Other Revenue and Expenses:

Interest-NJ St Inv Fund 139.64 258.00 0.00 21.50

Interest-NJ Cash Mgmt Fund 1,792.47 224.00 212.33 18.67

Interest-Commerce Concentr 924,327.05 152,000.00 890.98 12,666.67

Interest - Certificate of Dep 37,754.36 75,000.00 0.00 6,250.00

Interest - InvBk Concentration 368,606.27 0.00 204,271.50 0.00

Investment Income 1,332,619.79 227,482.01 205,374.81 18,956.83

Financial Income 0.00 0.00 0.00 0.00

Miscellaneous Income 5,010.87 0.00 0.00 0.00

Seminar Income 3,944.13 3,250.00 0.00 270.83

Change in Unrnd Ag Comm 43,977.67 0.00 43,977.67 0.00

Change in Unrnd Reins 115,030.23 0.00 115,030.23 0.00

Other Revenues 167,962.90 3,250.00 159,007.90 270.83

Investment Expenses 0.00 0.00 0.00 0.00

Total Other Revenue and Expenses 1,500,582.69 230,732.00 364,382.71 19,227.67

Net Revenue 10,440,261.56 230,732.04 (17,150,548.00) (13,155,277.41)

Page 5 of 5

NJSIG

Balance Sheet


FINAL 9/21/17


Current Assets:

D.W. Active Assets 0.00 0.00

Petty Cash 182.79 300.00

Cash Mgmt. Fund - N.J. State 325,577.85 323,785.38

Operating Account (1st Union) 0.00 0.00

Concentration (1st Union) 0.00 0.00

Payroll (1st Union) 0.00 0.00

Claims (1st Union) 0.00 0.00

Legal Account (1st Union) 0.00 0.00

A.G. Edwards Cash 0.00 0.00

Concentration Acct (TD Bank) 1,578,200.53 268,251,961.41

Operating Acct (TD Bank) 0.00 0.00

Payroll Acct (TD Bank) 0.00 0.00

Claims Acct (TD Bank) (147,275.78) (2,069,257.90)

FSA/DCA Acct (TD Bank) 0.00 0.00

Lock Box Account(TD Bank) 0.00 (604,061.02)

Willis/NJSBAIG Cash (Commerce) 0.00 0.00

Cash Suspense 0.00 0.00

Tri-State Capital Bank Account 0.00 0.00

Beneficial Bank Accont 0.00 0.00

Operating Account (TD Bank2) (9,276.12) (117,202.39)

Concentration Acct (Investors) 325,988,685.46 0.00

Operating Acct (Investors) (106,032.52) 0.00

Claims Acct (Investors) (1,998,506.11) 0.00

Payroll Acct (Investors) 0.00 0.00

FSA/DCA Acct (Investors) 0.00 0.00

Assessmnt Collection Acct(INV) 0.00 0.00

CASH IN BANKS 325,631,556.10 265,785,525.48

Certificates of Deposit 0.00 40,000,000.00

Partnership Interests 0.00 2.00

U.S. Treasury Bills (A.G. Edw) 0.00 0.00

N.J. State Investment Fund 0.00 0.02

Investment Premiums (NJ Inv F) 0.00 0.00

Market Value Adjust (NJ Inv F) 0.00 (0.02)

Certificates of Deposit Suspns 0.00 0.00

MARKETABLE SECURITIES 0.00 40,000,002.00

Reinsurance Rebate Receivable 0.00 0.00

Reinsurance Recoverables 0.00 0.00

Reins. Recovery Receivable 534,115.00 534.00

NJSIG

Balance Sheet


FINAL 9/21/17


Reins. Recovery 85/86 Recvb'l (34,844.13) (36,223.49) REINSURANCE RECEIVABLES 499,270.87 (35,689.49)

Interest/Divid Recvb'l-AG Ewds 0.00 0.00

Interest/Divid. Recvb'l-NJ Inv 0.00 0.02

Interest/Divid Recvb'l-CD's 0.00 477,322.23

Interest/Divid Recvbl-Ptnr Dst 0.00 0.00

INTEREST/DIVIDENDS RECEIVABLES 0.00 477,322.25

Misc. Accounts Receivable 0.00 0.00

Assessments Receivable 0.00 0.00

Legal Settlement Recvb'l 100.00 100.00

Seminar/Training Academy Rec 0.00 0.00

Retro Premium/Service Recvbl 0.00 0.00

Retro Audit Receivable 0.00 0.00

Retro Endorsement Receivable 0.00 0.00

Retro Add'l Servcs Recvb'l 0.00 0.00

MISC ACCOUNTS RECEIVABLES 100.00 100.00

Audit Premium Receivable 0.00 0.00

Premium Recvb'l Installments (2.14) 174,057.92

Premium Recvb'l Prebill 0.00 0.00

Premium Receivable 1,467,214.77 2,473,621.64

Commission Recvbl Control Acct 0.00 0.00

Allowance of Doubtful Accts 0.00 0.00

A/R Maintenance Control Acct. 0.00 0.00

Asset Transfer Control Acct. 0.00 0.00

Agent Commission Receivable 0.00 0.00

PREMIUM RECEIVABLES 1,467,212.63 2,647,679.56

TOTAL Current Assets 327,598,139.60 308,874,939.80

F&F Original Value 1,322,600.95 1,347,135.56

Accumulated Depreciation (548,390.78) (555,569.91)

Leasehold Improvements 0.00 0.00

Accumulated Amortization 0.00 0.00

TOTAL FIXED ASSETS 774,210.17 791,565.65

Other Assets:

Prepaid General Insurance 91,558.13 112,084.68

NJSIG

Balance Sheet


FINAL 9/21/17


Prepaid Crime Insurance 16,929.91 24,467.36

Prepaid General Expenses 133,015.71 155,707.45

Prepaid TPA Expenses 0.00 168,749.88

PREPAID ASSETS 241,503.75 461,009.37

Unearned M&M Fees 0.00 0.00

Unearned Marsh Reins Exp 0.00 0.00

Unearned Marsh Ag Comm 0.00 0.00

Unearned Willis Fees 0.00 0.00

Unearned Reins Exp 115,030.23 651,390.18

Unearned Agent Comm. 43,977.67 199,824.44

Unrn'd Cigna/Fireman's Reins. 0.00 0.00

Unrnd Cigna/Fireman's Ag. Comm 0.00 0.00

Retro Reinsurance Unearned 0.00 0.00

Retro Agent Comm Unearned 0.00 0.00

Retro M&M Fee Unearned 0.00 0.00

UNEARNED EXPENSES 159,007.90 851,214.62

Travel Advance 0.00 0.00

Deposits 0.00 0.00

OTHER ASSETS 0.00 0.00

GASB68-Defer Out-ChngInAssump 4,290,832.00 1,703,943.00

GASB68-DeferOut-ChngProportion 1,056,205.00 1,347,926.00

GASB68-DeferOut-ExpectvsActual 385,217.00 378,521.00

GASB68-DeferOut-NETDiffProjInv 789,843.00 0.00

GASB68DeferOut-SubsqntContrib 663,243.57 0.00

DEFERRED OUTFLOWS 7,185,340.57 3,430,390.00

TOTAL OTHER ASSETS 7,585,852.22 4,742,613.99

TOTAL ASSETS 335,958,201.99 314,409,119.44

A/P Module ADM01 0.00 0.00

Notes Payable 0.00 0.00

Accrued Expenses Payable 3,141,500.46 2,094,991.93

A/P Module INS01 (6,043.88) (3,090.11)

Safety Grant Payable 11,920,840.33 5,797,293.65

Reins Recov Paybl- XL Reins 0.00 0.00


NJSIG

Balance Sheet


FINAL 9/21/17


Broker Refund Payable 0.00 0.00

Federal Income Tax W/H 0.00 0.00

FICA W/H Employee 0.00 0.00

FICA W/H Employer 0.00 0.00

FUI Taxes Payable 0.00 0.00

SUI Payable 0.00 0.00

State Income W/H-NJ 0.00 0.00

State Income W/H-PA 0.00 0.00

Garnishment Payable 0.00 0.00

Medicare - Employee 0.00 0.00

Medicare - Employer 0.00 0.00

Employee Savings Payable 0.00 0.02

Local Income W/H-Phila 0.00 0.03

FSA MED Payable (769.26) 0.00

FSA Depend Payable 4,562.70 0.00

Group Term Life Payable 0.00 0.00

TOTAL CURRENT LIABILITIES 15,060,090.35 7,889,195.52

Estimated Unpaid Losses 210,135,000.00 217,262,000.00

Reserve-Unalloc Loss Adjust 8,800,000.00 1,498,994.27

Unearned Premiums-Marsh 0.00 0.00

Aggregate Contingency Fund 0.00 0.00

Unearned Premiums 418,661.29 1,606,448.11

Unrn'd Cigna/Fireman's Premium 0.00 0.00

Unernd Willis Mgt Fees/Ret Prm 0.00 0.00

Post Retirement Bene Paybl 1,363,342.64 1,186,961.81


Rate Stabilization-ERIC North 593,362.40 593,362.40

Rate Stabilization-ERIC South 99,230.99 232,385.94

Rate Stabilization - ERIC West 197,760.85 216,760.85

Rate Stabilization - BACCEIC 169,787.47 290,564.19

Rate Stabilization - MOCSSIF 320,824.09 320,824.09

Rate Stabilization - NJEIF 437,559.63 437,559.63

TOTAL LONG TERM LIABILITIES 222,535,529.36 223,645,861.29

Employee Benefits Payable 0.00 0.00

Pensions Payable 40,396.57 45,838.53

GASB68-Pension Payable 20,713,990.00 15,866,572.00

DCRP Payable 1,079.41 0.00

Dividend Payable 0.00 0.00

403B/T. Rowe Price Payable 5,656.40 5,221.22

Colonial Life Payable 0.00 0.00

Retro Claims (Cash) 136,361.98 189,588.29

STARS Recon/Claims Liability 0.00 0.00

NJSIG

Balance Sheet


FINAL 9/21/17


Return of excess subrogation 0.00 0.00

AFLAC Payable 0.00 0.00

Group Term Life Payable 15,790.68 4,388.78

Due to Retro Reinsurer 0.00 0.00

Retro Agent Comm Payable 0.00 0.00

M&M Retro Fee Payable 0.00 0.00

Retro Unearned Prem/Service 0.00 0.00

TOTAL OTHER LIABILITIES 20,913,275.04 16,111,608.82

Marsh Due to Reinsurers 0.00 0.00

Marsh Ag. Comm. Payable 0.00 0.00

Due to Reinsurers (1,468,088.32) (1,915,660.48)

Agent Comm. Payable 133,805.94 200,644.23

Due To Reinsurers Installments 0.00 0.00

Due To Reinsurers Prebill 0.00 0.00

Ag Comm Paybl Installments 0.00 0.00

Ag Comm Paybl Prebill 0.00 0.00

TOTAL REINSURANCE PAYABLES (1,334,282.38) (1,715,016.25)

GASB68-DeferIn-DiffInInvest 0.00 255,104.00

GASB68-DeferIn-ChngIn Proport 120,962.00 0.00

TOTAL DEFERRED INFLOWS 120,962.00 255,104.00

TOTAL LIABILITIES 257,295,574.37 246,186,753.38

Retained Earnings Fund Balance 68,222,366.06 57,315,325.86

Year-to-Date Earnings 10,440,261.56 10,907,040.20

Total Capital 78,662,627.62 68,222,366.06

Total Liabilities and Capital 335,958,201.99 314,409,119.44



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Rev.: 10/11/17


Client Relations and Underwriting Report

UNDERWRITING: Efforts are currently underway to recruit two experienced and effective Underwriters to add to our Underwriting Department. Claire King, Underwriting Supervisor, has successfully cross trained many employees within the department and developed written guidelines for each position. Claire has also successfully released the first group of Reinsurance Exposure Based reports for the 2017/2018 program year. CLIENT RELATIONS: To date, we have completed the CAIP, ERIC West, BACCEIC, ERIC South, ERIC North and NJEIF sub-fund meetings. Interactive and educational presentations relative to Workers’ Compensation and the development of an effective safety committee have been provided. The MOCSSIF meeting is just around the corner. Lauren Schilling, NJSIG Communications Specialist, along with the Client Relations Staff (Deb Rice, Ivy Davis and Joe Semptimphelter) have dedicated significant time and resources to ensure the successful outcome of each meeting. The unanimous conclusion both in house and from our Broker community has been that these meetings far exceed the success of past meetings. I am very proud of these dedicated, experienced and resilient individuals.

Client Relations will also assist our Loss Control Staff in ensuring that all of our NJSIG members have effective safety committees with diverse agendas.

We will be heading down to the NJSBA Workshop October 24-26th. We will be at Booth # 631 on the convention floor. We will also have a “Meet and Greet” room available that will have light snacks and refreshments in room #419. We have reached out to several partners and vendors (in addition to staff) to come to the room to answer any questions members may have about our coverages and services.



www.njsig.org

Rev.: 10/11/17

Underwriting and Client Relations Report October 24, 2017 Page 2

We will be hosting 3 trainings while at the Conference:

10/24/17: Insuring School Districts (It’s Complicated): 2:30-3:30 p.m. in room #410. This would be a great presentation for new Board Members. It is also worth 1 QPA.

10/25/17: Ethics Complaints (Are you Covered as a School Board Member?). We will host this presentation at 2 times: 9:30-10:30 p.m. in room #415 and again at 1:00-2:00 p.m. in room #405/406. Thank you, Kelly A. Machu Kelly A. Machu, CSRM Client Relations and Underwriting Manager



www.njsig.org

Revised: 10/4/17

Board of Trustees Meeting of October 24, 2017 Claims Report

v September 1, 2017 to September 30, 2017 CLAIM ACTIVITY Workers' Compensation

Total pending work comp cases as of September 1st 2287 New workers’ comp cases months from September 1st to September 30th 596 Total workers’ comp cases months from September 1st to September 30th 2883 Total closed workers’ comp cases from September 1st to September 30th (375)

Total Pending Workers’ Comp Cases as of September 30, 2017 2508

Property / Liability

Total new property-liability reports as of September 1st 601 New property-liability cases from September 1st to September 30th 78 Total property-liability cases from September 1st to September 30th 679 Total closed property-liability cases from September 1st to September 30th (71)

Total Property-Liability Cases as of September 30, 2017 608

Office Totals

Total pending cases as of September 1st 2888 Total new reports from September 1st to September 30th 674 Total cases from September 1st to September 30th 3562 Total closed cases from September 1st to September 30th (446)

Total Pending Cases as of September 30, 2017 3116



www.njsig.org

Revised: 10/4/17

Claim Report – October 24, 2017 Page 2

nPENDING BY ADJUSTER TITLE

Job Title September Claim Representatives 8 1064 Senior Claim Representatives 4 645 Claim Examiner 10 1407 Totals 3116

Work Load Standards Property/Liability Claim Representative to 150 files Senior Claim Representative to 150 files Claim Examiner to 150 files Workers’ Compensation Claim Representative to 175 files Senior Claim Representative to 180 files Claim Examiner to 185 files nCLAIMS ACTIVITY In September, 674 new claims were received, representing an increase of 35% compared with an average of 437 claims received in June, July and August. September is traditionally one of the months with the highest volume of new claims. This increase resulted in a 7% increase in pending claim volume.

In September, 596 new workers’ compensation claims were received. This was a significant increase from an average of 349 new claims received in June, July and August. NJSIG received 78 new property-liability claims in September, which represents a slight decrease from the average of 88 new claims in June, July and August.



www.njsig.org

Revised: 10/4/17


nCLAIMS PERSONNEL There were no changes in personnel this month in the Claims Department. nSELECTED SELF-AUDIT RESULTS Results for previous review period:

PERCENT

Reporting & Communication 94%

Direction 93% 48 Hour Contact 87%

Investigation 88% TOTALS 92%

We are transitioning self-audit reviews to an automated format. Results are not yet available for the current review period. This information will be reported as soon as the information is complete. Based on the results of the last review period, we will continue to concentrate on improving our results in all categories. nFRAUDULENT CHECK We reviewed 50 checks issued in September to determine if any were fraudulent. No internal or external problems were found.



www.njsig.org

Revised: 10/4/17


nACCOUNT VISITATIONS AND INSTALLATIONS September 13, 2017 The CAIP sub-fund meeting was attended by Tony Ruggeri, Claims

Manager and Sherwin Archibald, Liability Claims Supervisor.

September 26, 2017 The ERIC South sub-fund meeting was attended by Karen Olsen, Workers’ Compensation Claims Supervisor.

September 27, 2017 The BACCEIC sub-fund meeting was attended by Joan Madden, Workers’ Compensation Claims Supervisor.

September 29, 2017 The ERIC West sub-fund meeting was attended by Mike Weiner, Workers’ Compensation Claims Examiner.

nEDUCATION AND TRAINING September 7, 2017 A Seminar was held regarding Radiology, CAT Scans and MRIs

presented to the Claims Staff by One Call Medical

September 27, 2017 A webinar was held on Post-Concussion Syndrome conducted for the Claims Staff by Paradigm Outcomes.

nLITIGATION One upcoming trial is scheduled for November 13, 2017. This matter has already been reviewed by the Board. nMISCELLANOUS/ MANAGED CARE RFP The evaluation process was completed and a conclusion was reached based on a comprehensive review of the material submitted. QualCare was selected as NJSIG’s managed care provider.



www.njsig.org

Revised: 10/4/17


CLAIMS OUTCOMES We continue to receive favorable outcomes through the efforts of our Claims Staff.

• In the case of Rodriguez v. Edgewater Board of Education, our summary judgement motion was granted.

• Our final open Hurricane Sandy claim was approved for settlement. Final

documents are being exchanged. Tony Ruggeri Anthony Ruggeri, AIC, ARM, INS Claims Manager Email: [email protected]



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Board of Trustees Meeting of October 24, 2017 Information Technology Report

Broker Dashboard Release The broker dashboard was released on October 2nd. We will be hosting a training session on the dashboard in the next couple of weeks. RFP for Document Management System The IT department started drafting the RFP for the document management system. We will keep you updated as we move forward with this process. Risk Management Dashboard Shadi Hermina is in the process of testing the iOS application with the Client Relations and Loss Control Departments. This dashboard has had many revisions and will be fully functional before end of year. Jeff Cook Jeff Cook, Information Systems Manager



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Action Item NJSIG Financial Audit as of June 30, 2017

Representatives from Nisivoccia will be presenting NJSIG’s 06/30/2017 draft financial audit report at this meeting. Please find the attached draft audit report for your review and approval. After board resolution, the final audit report will be posted on NJSIG’s website and submitted to NJ Department of Banking and Insurance (DOBI). Recommended Resolution: to approve the financial statements and audit report as presented by Nisivoccia for the 2016/2017 fund year. Michele Carosi Michele Carosi, Comptroller



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Board of Trustees Meeting of October 24, 2017 Action Item

Executive Director Contract Recommended Resolution: to approve the contract for Executive Director be awarded to William M. Mayo, CPCP, ARM based on technical criteria, management criteria and cost criteria. Irene Le Febvre Irene Le Febvre, Chairperson



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Resolution Authorizing the Execution of a Contract Pursuant to the Public School Contracts Law

Page 1 of 2

WHEREAS, the New Jersey Schools Insurance Group (“NJSIG”) is

authorized by N.J.S.A. 18A:18B-1, et seq. to provide insurance coverage for its

members; and,

WHEREAS, NJSIG requires an Executive Director to manage the operations

of the organization.

NOW THEREFORE, BE IT RESOLVED, on this 24th day of October,

2017 that:

1) NJSIG awards the contract for Executive Director to William M. Mayo, CPCU,

ARM;

2) NJSIG awards the contract for Executive Director to this individual based on

technical criteria, management criteria and cost criteria;

3) The Board Chairperson is hereby authorized to execute a contract with the

above-referenced individual;

4) This designation is in accordance with the Public School Contracts Law,

N.J.S.A. 18A:18A-1, et seq.;

5) A notice of this action shall be published once in the official newspaper

designated by NJSIG, and is on file and available for public inspection at the

office of NJSIG.



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Page 2 of 2

I certify that the foregoing is a true copy of a Resolution passed by the New

Jersey Schools Insurance Group at the meeting duly held on the 24th day of October,

2017.

New Jersey Schools Insurance Group

By:

Irene Le Febvre, Chairperson

Board Secretary

Use Only DATE: MOVED BY: SECONDED BY: VOTE:



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Property appraisal services As a part of NJSIG’s efforts to maintain compliance with the PSCL, NJSIG issued a request for proposals for property appraisal services (U-2017-0001). As a result of this competitive contracting process, NJSIG received five proposals. These proposals were evaluated using weighted evaluation criteria, and the results of that evaluation are attached. Thus, it is proposed that the contract for property appraisal services be awarded to CBIZ Valuation Group, LLC based on the results of the committee’s evaluation. Recommended Resolution: to approve the contract for property appraisal services be awarded to CBIZ Valuation Group, LLC based on the results of the committee’s evaluation. William Mayo William Mayo, CPCU, ARM Executive Director



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Page 1 of 2

WHEREAS, the New Jersey Schools Insurance Group (“NJSIG”) is

authorized by N.J.S.A. 18A:18B-1, et seq. to provide insurance coverage for its

members;

WHEREAS, NJSIG requires property appraisal services;

WHEREAS, NJSIG has engaged in a fair and open competitive contracting

process, pursuant to which proposals were solicited; and,

WHEREAS, an evaluation committee was convened by NJSIG and has

evaluated all proposals submitted.

NOW THEREFORE, BE IT RESOLVED, on this 24th day of October,

2017 that:

1) NJSIG awards the contract for property appraisal services to CBIZ Valuation

Group, LLC;

2) NJSIG awards the contract for property appraisal services to this provider

based on technical criteria, management criteria and cost criteria;

3) The Executive Director is hereby authorized to execute a contract with the

above-referenced provider;

4) This designation is in accordance with the Public School Contracts Law,

N.J.S.A. 18A:18A-1, et seq.;



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Page 2 of 2

5) A notice of this action shall be published once in the official newspaper

designated by NJSIG, and is on file and available for public inspection at the

office of NJSIG.

I certify that the foregoing is a true copy of a Resolution passed by the New

Jersey Schools Insurance Group at the meeting duly held on the 24th day of October,

2017.

New Jersey Schools Insurance Group By: _________________________________________ Irene Le Febvre, Chairperson

Board Secretary Use Only

DATE: MOVED BY: SECONDED BY: VOTE:



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Checking Accounts and New Claims

Attached are the check registers for September 2017. In addition, attached is a list of all new claims. The claims list has been provided to coincide with the check registers. The list includes all new claims for September 2017. This report shows the nature and financials for each claim. Recommended Resolution: Approve and ratify the checks and new claims which have been issued from accounts XXXXXXX210 (operating account) and XXXXXXX229 (claim account) for the period of 9/1/2017 to 9/30/2017 as shown in the online (Microscribe) version of the meeting package. William Mayo William Mayo, CPCU, ARM Executive Director

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