InTrust - August 1, 2014

Military Vehicles, Upcoming WC Audit, Loss of a Friend


TNRMT'S Position on Donated Military Vehicles

-Ruby Keith & Tom Montgomery, NGU Risk Management

The military draw down from Afghanistan has resulted in numerous surplus military vehicles being stockpiled, and in many cases these are available to other government agencies and authorities at no charge.

TNRMT will provide liability coverage only for these vehicles.  We will be unable to provide physical damage coverage for them should they be damaged or destroyed.

The reason for this position is as follows:

Typically these vehicles are provided to our members at no cost, and for the foreseeable future, they should continue to be available at no cost.  As you know, in the event of a covered loss, TNRMT vehicle coverage provides for the cost to repair or-in the event of a total loss-the actual cash value, whichever is less. 

As the replacement cost of these military vehicles is arguably zero since they are free when available-save perhaps some minimal transport charges-the ACV is arguably zero as well.  Parts and repairs generally are not available locally (if at all) and would likely prove to be very expensive. This is not a cost that TNMRT contemplates in its physical damage rate structure. 

So, we are happy to provide liability coverage at no charge for authorized use of these vehicles. If you have questions, please let us know.

Workers Compensation Audit “ Why Be Afraid?

-Jeff Mathis, NGU Risk Management

Most of us on the financial side of business want to run and hide when we hear the word auditor.  I know here at NGU Risk Management, I am frequently tempted to do so.   If seems that every time I turn around someone wants to audit something.  You have your own internal auditors, independent financial auditors, sales tax auditors, state auditors, workers compensation auditors, and yes, maybe even the most feared of all, the dreaded IRS auditor.  This list doesn't include all of those voluntary audits you complete each day disguised as "can you verify this form.  How many times do you want to yell "just leave me alone and let me do my job.

With that being said, I think you will agree that one of the least painful audits you can endure is the TNRMT workers compensation payroll audit.  If it is not the least painful it is one of the few that may actually bring you good news.

For the last several years TNRMT has hired a practicing certified public account, Roger Kehrt, to conduct on site payroll audits.  Most of the time the audit produces results which are consistent with the estimate.  You may find it interesting that in the most recently completed audit period 55% of the audits came within 5% of the original estimates while 78% were within 10% of the estimates.  However, there are always a few each year where the payroll has increased or decreased substantially.  The increases are generally due to additional employees being hired in a certain department while the decrease is due to an overall reduction of employees due to outsourcing. 

So why be afraid of the workers compensation audit?  The purpose of the audit is merely to confirm your actual payroll numbers.  Remember, this is one of the few audits that can bring good news-a return of premium $'s!!!-in addition to confirming the good work you know you do.  In the most recent audit completed by TNRMT over 55% of the membership actually got money back. 

When Mr. Khert calls to schedule your audit, don't be afraid, be happy, you may get a check in the mail.


SEC Loses long-time Employee and Friend

-Safety Engineering and Claims Management & NGU Risk Management

The staff at SEC, NGU, and TNRMT are saddened by the passing of long time employee and friend Clayton Cabron.  Clayton served SEC and the Trust since November of 2004.  After fighting health issues, he passed peacefully in his sleep early Sunday morning.

Clayton's obituary can be viewed at the following link:

We will all miss Clayton dearly.