Fidelity Bond
Per KRS 160.560. and 702 KAR 3:080, it is the duty of each board of education to bond their board treasurer and any other school employees who are responsible for board of education funds. Accordingly, by July 1 of each year, the treasurer and other employees responsible for board of education funds, shall execute an official (fidelity) bond for the faithful performance of the duties of his/her office to be approved by the local board and the Commissioner of Education. The bond shall be guaranteed by a surety company authorized to do business in this state and shall be in an amount determined by the local board of education in accordance with the administrative regulations promulgated by the Kentucky Board of Education. The premium on the bond shall be paid by the board of education. A copy of the bond shall be filed with the board of education and with the commissioner of education, with the information contained within the bond, submitted electronically through KDE's web-based system.
The requirements for the penal sum of the fidelity bond are summarized in 702 KAR 3:080. Accordingly, it shall be the duty of each local board of education, on the advice of the Commissioner of Education, to determine the amount of the penal sum of the bond for employees who are responsible for board of education funds. No fidelity bond shall be approved which, in the opinion of the Commissioner of Education, is inadequate to safeguard the funds of the local board of education. The penal sum for the bond is calculated by KDE and provided in a report entitled the "Exposure Calculation Report". This report is placed on the fidelity bond website each year by the end of April. It is the responsibility of the district to check this report for any changes in the exposure calculation amount of the bond for their district.
Important Fidelity Bond Dates:
April 30th – The Exposure
Calculation Report posted to KDE website
June 1st – The SEEK window will open for bond information
submission by district
July 1st – Bond information due annually to KDE through the SEEK
application
July 31st – Bond information is sent to the Commissioner of
Education for approval
August – Final Approval Report posted to KDE website The Fidelity Bond Web Based Form must be completed online at the following link:
SEEK District Data Submission To access the SEEK web-based form, a user name and password must be obtained from your district's Web Administrator. The instructions are shown below, along with a list of “Frequently Asked Questions” (FAQ’s).
Fidelity Bond Web Based Form Submission Instructions Dated 8-4-21Fidelity Bond FAQs Dated 7-7-21
The
Bond of Treasurer form is being provided as a courtesy to be used by the district for their records only when
bonding a new treasurer or when needing to make changes to a current fidelity
bond. This form can be used with conjunction to the actual surety bond and can be used by the district when bonding a new treasurer or
when needing to make changes to a current fidelity bond. The beginning date
on this form should coincide with the beginning fiscal year date of July 1. If
the bond becomes effective during the fiscal year, you should list the
actual beginning date the bond will be effective. This form will remain in
effect until canceled either by the school board or by the surety company. This
form does not need to be filled out by the surety company if there are
no changes to the fidelity bond during the life of the bond, however; the
school board MUST approve the fidelity bond each year per KRS & KAR
guidelines. NOTE: The original hard copy of this Bond of Treasurer form and
all legal bond documentation, are to be retained in the local school district
office.
Bond of Treasurer Form Dated 7-7-21
The Fidelity Bond Penal Sum (Exposure Calculation) Report listed below, is used by local school districts as a tool to determine the bond amount for district employees who handle district funds. This spreadsheet is created annually and posted to the website by the end of April.