SLIDE 5 11/12/2019 5
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HB 291
Applic a b le to b o th tra ditio na l sc ho o l distric ts a nd c o mmunity sc ho o ls An "E mplo ye e disho ne sty a nd fa ithful pe rfo rma nc e o f duty po lic y"
s de fine d a s a po lic y o f insura nc e to pro te c t a sc ho o l fro m fina nc ia l o r pro pe rty lo ss c a use d b y the fra udule nt o r disho ne st a c tio ns o f, a nd the fa ilure to pe rfo rm a duty pre sc rib e d b y la w fo r, a n o ffic e r, e mplo ye e , o r a ppo inte e tha t is o the rwise re q uire d b y la w to g ive a n individua l sure ty b o nd b e fo re e nte ring upo n the disc ha rg e o f o ffic ia l dutie s.
- Ma y b e a do pte d b y po lic y, b y o rdina nc e o r re so lutio n, fo r use ra the r tha n
a sure ty b o nd, fo r tho se tha t wo uld o the rwise b e re q uire d to g ive o ne .
- Must b e in e ffe c t a nd a pply to the individua l b e fo re the b e g inning o f the ir
te rm o f o ffic e . A la c k o f c o ve ra g e o n the da te o n whic h the disc ha rg e o f dutie s a re c o mme nc e d b y the individua l sha ll re nde r the o ffic e va c a nt a nd it sha ll b e fille d a s re q uire d b y la w.
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HB 291
If suc h a po lic y is a do pte d, a ll o f the fo llo wing a pply:
he individua l sha ll b e c o nside re d q ua lifie d to ho ld the o ffic e o r e mplo yme nt, witho ut g iving b o nd, o n the da te the o a th o f o ffic e is ta ke n, c e rtifie d, a nd file d a s re q uire d b y la w.
he individua l sha ll b e e ntitle d to e nte r upo n the dutie s o f the o ffic e o r e mplo yme nt whe n the po lic y is in e ffe c t a nd the o a th is file d.
- Any individua l who wo uld o the rwise b e re q uire d to file a b o nd b e fo re
c o mme nc ing the disc ha rg e o f dutie s sha ll b e c o ve re d b y a nd a re sub je c t to the po lic y inste a d o f a sure ty b o nd re q uire me nt.
he c o ve ra g e a mo unt fo r a n individua l sha ll b e e q ua l to o r g re a te r tha n the ma ximum a mo unt o f the b o nd o the rwise re q uire d b y la w (o r a n a mo unt a g re e d to b y the b o a rd if no sta tuto ry re q uire me nt a mo unt).
If no suc h po lic y is a do pte d:
he sc ho o l must c o ntinue to use sure ty b o nds a s o the rwise re q uire d b y Ohio . Re v. Co de .
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HB 291
Cha ng e s to a udit te sts a nd re q uire me nts:
- Audito rs c urre ntly te st sure ty b o nd c o mplia nc e (in OCS
- Ch. 3), c ha ng e s will b e ma de to mo dify o r re mo ve this
te sting in future pe rio ds.
- Audito rs c urre ntly pe rfo rm so me risk ma na g e me nt
a na lysis, inc luding e va lua tio n o f insura nc e c o ve ra g e s. T he y will c o ntinue to do so inc luding so me a na lysis o f a ny po lic ie s o b ta ine d in lie u o f sure ty b o nds.
- Ab se nc e o f sure ty b o nds o r insura nc e c o ve ra g e will
re sult in c o mme nts in the Ma na g e me nt L e tte r o r sc he dule o f finding s b a se d o n a udito r judg e me nt o f the lo ss risk e xpo sure .
