November 16, 2010
Bakke asked why she was concerned of retaliation by Blunt when she didn't report to Blunt. She said she did report to him administratively, but that he had enormous influence over the board. Bakke established Blunt left WSI in December of 2007, but that she was fired in March of 2008.
Bakke asked about whether she had documents that Blunt had given out the safety grant. She replied that there was a commitment letter committing funds, that she did not have a copy but she assumed that WSI does.
Bakke then introduced an audit work plan from 2007 and asked whether it specifically said she should get into issues of claims payments and denials. She said it did not but those issues arose and this was a plan designed to be flexible.
Bakke said that trying to extrapolate that 12 of 84 claims had not been paid to say that 14% of claims were not paid for the whole organization was not possible. Grinsteinner replied that that should have been a statistical sample and that auditors sample that way all the time.