2018-2019

WSRMPANNUAL REPORT

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MISSION AND VALUES

VALUESEquitable Treatment

Integrity

Collaboration

Innovation

State/Industry Leadership

WSRMPMISSIONWashington Schools Risk Management Pool exists in partnership with its members to provide their staff and student communities a safe and protected educational environment, while protecting member financial resources.

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TABLE OF CONTENTS

TABLE ofCONTENTS

About WSRMP.................................................................5

Letter to the Membership................................................6

Executive Board...............................................................7

Financials.........................................................................8

Members.......................................................................11

Staff...............................................................................12

Service Providers...........................................................14

Safe Successful Schools 4 5

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ABOUT WSRMP

AboutWSRMP

Founded in 1986, Washington Schools Risk Management Pool- WSRMP - is a member-owned, member-governed, and member-driven risk pool for public school districts in Washington. While WSRMP does provide strong financial protection, education-based coverage, and customized risk management services to our members, any similarity to common insurance ends there. From representation on our Executive Board to our member-centric Risk Roundtables, member surveys and inclusive claims litigation management, our members are our owners and have a voice in the decisions and direction of the pool.

We partner with our members to create safe educational environments and communities. We seek to be on the leading edge of issues that impact schools. We work with legislators, serve on relevant state and local committees, sponsor educational organizations and advocate for school districts at every turn. We share our knowledge with others pools in our industry so that we can influence student safety beyond Washington state.

We go far beyond the limitations of traditional insurance.

This is pooling, and this is WSRMP.

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LETTER TO THE MEMBERSHIP

Dear Members,

The 2018-19 Fiscal Year is officially on the books. Reflecting back over this past year, school districts in Washington State saw many changes, especially with the McCleary funding and legislative decisions which impact each school district differently based on local circumstances. We know that local bargaining was stressful on everyone, and at the end of the day, the most important work we continue to do is focus on ensuring that each student has a safe and nurturing environment for learning.

From an insurance perspective, the 2018-19 Fiscal Year brought hurricanes, fires, floods and other global catastrophes costing over $298 billion dollars. Add to that the continued escalation of concussion claims and sexual abuse claims. In response, the reinsurance market swiftly narrowed capacity and raised prices. A fair number of pools in our nation struggled financially.

WSRMP did well compared to other risk-sharing pools. We met or exceeded all State financial tests and met the Executive Board benchmark of 90% confidence level a full eight (8) quarters in a row. Further, WSRMP was well-positioned to weather the hardening trend of the reinsurance market. While other pools were impacted with significant rate increases or cancellations, WSRMP’s three-year property rate guarantee kept property pricing low. Additionally, our extremely low property loss ratio will carry us forward through the hard market cycle for property reinsurance.

Although we received a significant number of sexual abuse and molestation (SAM) claims this past year, a combination of claims-handling strategies and the work of our member districts on their Member Benefit Review Action Plans have diminished the impact and stabilized our equity. We would like to recognize and thank our membership for their contribution to the pool.

We are pleased to share that WSRMP is financially stable, resilient and strong. The strategies our staff bring to the table allow us to be a leader in the industry

Diana Reaume Deborah Callahan Board Chair Executive Director

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EXECUTIVE BOARD

Diana ReaumeBoard ChairPosition #3Large District: Quillayute Valley

Thomas JayVice ChairPosition #2Small District: Skykomish

Krestin BahrPosition #1Small District: Eatonville

Jason Thompson Position #7Large District: Marysville

Erin Murphy Position #4Medium District: Bainbridge Island

Dr. Ron SpanjerPosition #5Medium District: Blaine

Dr. Kathi WeightPosition #6Small District: Steilacoom

Lydia SelliePosition #8Large District: Northshore

Dr. Mark AndersonPosition #9Large District: Spokane

Clairmonte CappellePosition #10Interlocals: SWRMIC

Tom FlemingEx-OfficioESD 105

Gavin HottmanEx-OfficioESD 112

Michelle DearloveEx-OfficioESD 123

Lisa MatthewsEx-OfficioNorthwest ESD 189

Jerry McDermottEx-OfficioNEWESD 101

Monica HunsakerEx-OfficioOlympic ESD 114

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FINANCIALS

Condensed Statement of Net Position as of August 31(Unaudited, for Management Purposes Only)

Condensed Statement of Revenues, Expenses andChanges in Net Position for the years ended August 31.(Unaudited, for Management Purposes Only)

2019 2018

$56,072,386$56,304

$2,834,294$20,617

$58,983,601

$58,535,566$58,535,566

$448,035$20,870,032$21,318,067

$48,663,588$120,425

$525,552$7,000

$49,316,565

$44,536,944$44,536,944

$4,779,621$16,090,411$20,870,032

Operating RevenuesMember Contributions

Miscellaneous Revenue

Non-operating RevenuesInvestment Income

Gain on Sale of Capital AssetsTotal Revenues

Operating ExpensesTotal Expenses

Change in Net PositionBeginning Net Position

Ending Net Position

2019 2018$20,886,462 $61,204,100 $82,090,562

$23,260,745$37,511,750$60,772,495

$566,562$0

$20,751,505 $21,318,067

$30,273,155 $45,196,370 $75,469,525

$25,771,068$28,828,425$54,599,493

$592,586$1,486

$20,275,960 $20,870,032

Current AssetsNoncurrent Assets (net)

Total Assets

Current LiabilitiesNoncurrent Liabilites

Total Liabilities

Invested Capital AssetsRestricted Other Items

UnrestrictedTotal Net Position

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FINANCIALS

Net PositionAs of August 31, 2019, the actuary has determined claims liabilities of $57M and a confidence level of 90% which is at the Board’s 90% minimum capital target.

Confidence Levels - FundedConfidence level is used by actuaries to determine the realistic possibilities that given capital will be sufficient to cover all claims that might be incurred for the covered period. For instance, an 80% confidence level indicates that the capital identified with this should be adequate 8 out of 10 years of probability. Our net position is $21.3M so we equal or exceed the 90% funded confidence level.

Our net position eroded from 2014/2015 through 2016/2017 due to many large claims, credits to members and a low member contribution rate at the 50% confidence level. The equity improved in 2017/2018 and 2018/2019 due to the strengthening of the rate and the continuing partnership with members in putting in systems to reduce and prevent claims.

YEARNET POSITION

CONFIDENCELEVEL

NET POSITION TO MEETCONFIDENCE LEVELS

2018/2019

2017/2018

$21.3 million

$20.9 million

90%

90%

2016/2017 $16.0 million 85%

2015/2016 $35.0 million 98%

2014/2015 $50.4 million 98%

2013/2014 $48.1 million 98%

2012/2013 $42.7 million 98%

55%70%75%80%85%90%95%

CONFIDENCE LEVEL BENCHMARKS AUG 2019$0.0 million$5.0 million$7.2 million$9.7 million

$17.7 million$13.1 million

$25.8 million

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MEMBERS

Aberdeen School DistrictAnacortes School DistrictArlington Public SchoolsAuburn School DistrictBainbridge Island School DistrictBlaine School DistrictBrinnon School DistrictBurlington-Edison School DistrictCape Flattery School DistrictCarbonado Historical School DistrictChimacum School DistrictCle Elum-Roslyn School DistrictClover Park School DistrictConcrete School DistrictConway School DistrictCoupeville School DistrictCrescent School DistrictDarrington School DistrictDieringer School DistrictEastmont School DistrictEatonville School DistrictEdmonds School DistrictEnumclaw School DistrictEverett Public SchoolsFederal Way Public SchoolsFife School DistrictFranklin Pierce Schools Granite Falls School DistrictIndex School DistrictIssaquah School DistrictLa Conner School DistrictLake Stevens School DistrictLake Washington School DistrictLopez Island School DistrictLynden School DistrictMarysville School DistrictMercer Island School DistrictMeridian School DistrictMonroe School DistrictMount Baker School DistrictMount Vernon School DistrictMukilteo School DistrictNooksack Valley School DistrictNorth Kitsap School DistrictNorth Mason School District

Northshore School DistrictOak Harbor School DistrictOrcas Island School DistrictOrting School DistrictPasco School DistrictPeninsula School DistrictPort Angeles School DistrictPort Townsend School DistrictPuyallup School DistrictQueets-Clearwater School DistrictQuilcene School DistrictQuillayute Valley School DistrictRiverview School DistrictSan Juan Island School DistrictSeattle Public SchoolsSedro-Woolley School DistrictSequim School DistrictShaw Island School DistrictShoreline School DistrictSkykomish School DistrictSouth Kitsap School DistrictSouth Whidbey School DistrictSpokane Public SchoolsStanwood-Camano School DistrictSteilacoom Historical School DistrictSultan School DistrictSumner-Bonney Lake School DistrictTacoma Public SchoolsTahoma School DistrictThorp School DistrictTukwila School DistrictUniversity Place School DistrictVashon Island School DistrictWhite River School DistrictESDs/Other AgenciesESD 123 – (Pasco region) /ESD 123 WCTNEW ESD 101/NEW ESD 101 WCTNW ESD 189/NW ESD 189 WCTOlympic ESD 114/Olympic ESD WCTPuget Sound ESD 121Puget Sound ESD 121 WCTSouthwest WA Risk Mgmt Insurance Coop

WSRMP Members 2019-2020(Effective September 1, 2019 through August 31, 2020)

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STAFF

Colette GuionBob FulmerDirector of Member Services

MEM

BER

SERV

ICES

Member Services Coordinator Ray RobertsSr. Member Services Consultant

EXEC

UTI

VE

Deborah CallahanExecutive Director Executive Assistant

Dawn MayesCharles UpchurchDeputy Executive Director

Suzanne BissettFinance Manager

FIN

AN

CE

Accounting ConsultantJoan Tapia-Beeman

Kenneth CurtisIT/

TECH

NO

LOG

Y/A

DM

IN

IT ManagerOleana RypichProgram Specialist

Helen RogersUnderwriting Consultant

UN

DER

WRI

TIN

G

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STAFFCL

AIM

S SE

RVIC

ESCL

AIM

S SE

RVIC

ESRI

SK S

ERVI

CES

RISK

SER

VICE

S

Everett TyrrellRisk Services Consultant

Sharon CarmichaelRisk Services Consultant

Alix PattRisk Services Coordinator

Gerald MartensDirector of Risk Management

Amber GarriottSr. Risk Services Consultant

Colin MacRaeRisk Services Consultant

Yzabel McKeeRisk Services Consultant

Seema PandeyClaims Consultant

Nancy NicholsClaims Consultant

Sue PetersonClaims Consultant

Ingrid BrownSr. Claims Coordinator

Dana GrandeyDirector of Claims & Litigation

Sharon SampsonSr. Claims Consultant

Lisa DayClaims Consultant

Cai HadfieldClaims Consultant

Iesha KiddLegal Affairs

Naomi ZierClaims Coordinator

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SERVICE PROVIDERS

CFO James Marta & Co

Coverage Counsel Cozen O’Conner

WSRMP Counsel Tyna Ek Law Soha & Lang

Defense Panel Freimund Jackson Tardif & Benedict Garratt PLLC Pacifica Law Group Patterson Buchanan Fobes & Leitch Porter Foster Rorick LLP Preg O’Donnell & Gillett PLLC Stevens Clay Vandeburg Johnson & Gandara Willams Kastner The Wolfe Firm

Broker A.J. Gallagher - Denver

Actuary Bickmore Risk Services Investment Advisor Government Portfolio Advisors Professional Association of Governmental Risk Pools (AGRiP) Organizations Chartered Property Casualty Underwriters (CPCU) Public Risk Management Association (PRIMA) Puget Sound Claim Managers Council Seattle Claims Adjusters Association Society of Claims Law Associates (SCLA) Washington State School Safety Center Advisory Committee Washington Association of School Business Officials (WASBO) Washington Association of School Administrators (WASA) Washington Association of Maintenance & Operations Administrators (WAMOA) Washington School Personnel Association (WSPA)

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Safe Successful Schools

Post Office Box 88700; Tukwila, WA 98138-2700PHONE (206) 394-9737 FAX (206) 394-9712 www.wsrmp.com