Kentucky Administrative Regulations
Title 702 - EDUCATION AND WORKFORCE DEVELOPMENT CABINET - BOARD OF EDUCATION, DEPARTMENT OF EDUCATION - OFFICE OF DISTRICT SUPPORT SERVICES
Chapter 3 - School Administration and Finance
Section 702 KAR 3:080 - Fidelity bond, penal sum for Treasurer, Finance Officer and others
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 156.010, 160.560
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.
Section 2.
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 |
STATUTORY AUTHORITY: KRS 156.029(7), 156.070, 160.560(2)
