Asset Protection

Board Policy 305

The President may not allow assets to be unprotected, inadequately maintained nor unnecessarily risked.

1. Fail to insure against theft and casualty losses in amounts consistent with replacement values or against liability losses to Board members, staff or the Institution itself in amounts consistent with limits of coverage obtained by comparable organizations.
2. Allow unbonded personnel access to material amounts of funds.
3. Permit plant and equipment to be subjected to improper use, wear and tear or inadequate maintenance.
4. Unnecessarily expose the Institution, the Board or staff to claims of liability.
5. Receive, process or disburse funds under controls which are not sufficient to meet the Board-approved auditor's standards.
6. Make any purchase or award any contract: (a) wherein normally prudent protection has not been given against conflict of interest; (b) where an administrative procedure for purchasing has not been established, which includes consideration for protected groups, as defined by applicable statutes; or (c) where a conflict of interest exists.
7. Fail to have an investment policy which prohibits investing or holding operating capital in insecure instruments, including uninsured checking accounts and bonds of less than prime rating, or in non-interest bearing accounts except where necessary to facilitate ease in operational transactions.
8. Acquire, encumber or dispose of real property without Board approval.