702 KAR 3:080. Fidelity bond, penal sum for treasurer, finance officer, and others

Link to law: http://www.lrc.ky.gov/kar/702/003/080.htm
Published: 2015

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      702

KAR 3:080. Fidelity bond, penal sum for treasurer, finance officer, and others.

 

      RELATES TO: KRS

156.010, 160.560

      STATUTORY

AUTHORITY: KRS 156.029(7), 156.070, 160.560(2)

      NECESSITY,

FUNCTION, AND CONFORMITY: KRS 156.029(7) requires the Board of Education to

develop policies and to promulgate administrative regulations by which the Department

of Education shall be governed. KRS 156.070 authorizes the Board of Education

to promulgate administrative regulations necessary for the efficient

management, control, and operation of the schools and programs under its

jurisdiction. KRS 160.560(2) requires each local board of education treasurer

to be bonded in accordance with Kentucky Board of Education administrative

regulations. This administrative regulation establishes a penal sum for the

bond of treasurer and requires the bonding of other school employees.

 

      Section 1.

Definitions. (1) "Total current assets" means the 61XX series in the

balance sheet object codes as provided in 702 KAR 3:120.

      (2) "Total revenue"

means codes 1000-4999 in the revenue object codes as provided in 702 KAR 3:120.

 

      Section 2. (1) A

local board of education shall require a fidelity bond from the board

treasurer, the finance officer, and others holding similar positions who are

responsible for district funds or who receive and expend funds on behalf of the

school district.

      (2) A local board

of education, on the advice of the Commissioner of Education, shall determine

the amount of the penal sum of the fidelity bond for all employees by July 1st

of each year.

      (3) The local

board of education shall submit the fidelity bonds to the Commissioner of

Education for approval no later than July 31st of each year. A district shall

not resubmit a multiyear bond for approval in subsequent years if the bond

amount is still adequate.

 

      Section 3. A bond

shall not be approved if the Commissioner of Education determines that the bond

is inadequate to safeguard the funds of the district board of education.

 

      Section 4. The

cost of bonds shall be a liability of the general fund or of any account which

the specific bond protects. The penal sum of any bond shall be determined by

the following table based on an exposure factor of twenty (20) percent of the

total current assets plus ten (10) percent of the total revenue in the prior

fiscal year:

 

REVISED

EXPOSURE SCHEDULE



 

EXPOSURE

FACTOR





MINIMUM

AMOUNT

OF

BOND







Up to $25,000





$2,500







$25,001 to $125,000





$25,000







$125,001 to $400,000





$50,000







$400,001 to $1,000,000





$100,000







$1,000,001 to

$2,000,000





$150,000







$2,000,001 to

$4,000,000





$200,000







$4,000,001 to

$6,000,000





$300,000







$6,000,001 to

$10,000,000





$400,000







$10,000,001 to

$15,000,000





$600,000







$15,000,001 to

$25,000,000





$800,000







$25,000,001 to

$75,000,000





$1,000,000







$75,000,001 to

$175,000,000





$1,500,000







$175,000,001 to

$500,000,000





$2,000,000







$500,000,001 to

$1,000,000,000





$3,000,000







$1,000,000,001 to

$1,500,000,000





$4,000,000





      (SBE 21.080; 1 Ky.R. 70; eff. 11-13-1974; Am. 1552; eff.

12-9-1990; 28 Ky.R. 1690; 2028; eff. 3-18-2002; 35 Ky.R. 635; 1461; eff.

1-5-2009.)