Friday, February 14, 2014

Question of the Week

When doing our financial review our CPA came across a question that asks if we have Fidelity Bonding Insurance. What is this?

The Bond policy covers anyone who your organization trusts with the money.  This can be a president, treasurer, volunteer, committee chairperson, courier or others. It is not required; it is up to the PTA if they want to add this coverage.  If you decide to add this insurance, a safe practice is to take your annual budget and carry a bond for that amount.  If you are unsure about how much to carry, then project what your biggest fundraiser of the year will bring in and carry a bond for that amount.  Please call your insurance company for additional information regarding this coverage.