Unrealized loss in investments is chipping away at Workforce Safety and Insurance's surplus.

The Audit Committee of the WISboard of directors met Wednesday afternoon to hear reports, including a financial audit from Brady Martz.

Although that audit, completed June 30, 2008, showed the agency at nearly $90 million over its allowable surplus, a report by the agency's accountant showed a loss of more than $37 million below its allowable surplus of 140 percent of the agency's reserve.

WISdiffers with statute in its definition of the calculation of its surplus, however, an issue that will receive attention in the 2009 Legislature.

While WISdoes not count unrealized gains and deducts money paid into a revolving school loan fund, capital assets and a safety grant, the state auditor's office only deducts investments towards capital assets.

According to the state's formula, the agency would still be $22.2 million above the allowable surplus limit.

The WIS board of directors is scheduled to meet at 8:15 a.m. today.

One of the first orders of business is a discussion of the passing of Measure 4, which places the hiring or appointment of the executive director in the governor's hands.

This may be the last board meeting for Bruce Furness, the interim executive director and former Fargo mayor, who was hired after former director Sandy Blunt left the agency after turmoil that resulted in two felony charges being filed against him.

The directors meet quarterly.

Blunt's trial is scheduled for early December.

- Crystal R. Reid