To: MVRMA Board of Trustees

From:  Kathy St. Pierre

Date: February 1, 2008

Re: MVRMA Chart of Budgetary Accounts

In order to assist each Board Member in understanding the 2008 Budget, I have provided the following memo explaining MVRMA’s chart of budgetary expenditure accounts.

MVRMA’s budgetary/accounting system has evolved to its current level of sophistication over a number of years. The system includes seven (7) major expense categories:

100: Excess Insurance Provides for the pool’s group purchase of excess insurance and related items

200: Professional Services Provides for professional services purchased from third parties by the pool

300: Employment Services Provides for the pool’s staffing needs

400: Pool Operations Provides for the pool’s operations and related overhead expenses

500: Loss Reserve Funding Provides for the reserves necessary to pay claims within the pool’s Self-Insured Retention (SIR) of $1M/claim for liability losses and $200K/claim for property losses

700: Workers’ Comp Group Provides for expenses relating to the Workers’ Comp Group Rating program sponsored by the pool

800: Training Fund Provides for various training expenses using funds collected from seminar attendees

Within these broad budgetary/accounting categories are line-item accounts which delineate MVRMA's pooling activities in greater specificity.