702 KAR 3:080. Treasurer's bond, penal sum.

 

      RELATES TO: KRS 156.010, 160.560

      STATUTORY AUTHORITY: KRS 156.029(7), 156.070

      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 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 the KETS District Administrative System Chart of Accounts incorporated by reference in 702 KAR 3:120.

      (2) "Total revenue" means codes 1000-4999 in the revenue object codes as provided in the KETS District Administrative Chart of Accounts incorporated by reference in 702 KAR 3:120.

 

      Section 2. By July 1 of each year, a local board of education, on the advice of the Commissioner of Education, shall determine the amount of the penal sum of the bond of treasurer of the board and that of other school employees who are responsible for board of education funds.

 

      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, pursuant to the commissioner's authority in KRS 156.010.

 

      Section 4. A district board of education shall require the bonding of all employees who are responsible for board funds. The cost of bonds may 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. 11-13-74; Am. 1552; eff. 12-9-90; 28 Ky.R. 1690; 2028; eff. 3-18-2002.)