2.5. Asset Protection

With respect to proper stewardship of the organizations assets, the Executive Director may not risk losses beyond those necessary in the normal course of business.

1. The Executive Director will not:
1. Fail to insure against theft, casualty losses to at least 80% replacement value and against liability losses to board members, staff or the organization itself to beyond the minimally acceptable prudent level. 
2. Allow unbonded personnel access to material amounts of funds, unless the Board approves such access in advance on an annual basis.
3. Subject facility and equipment to improper wear and tear or insufficient maintenance.
4. Unnecessarily expose the organization, its board or staff to claims of liability.
5. Make on their own authority any purchase of greater than $20,000.
6. Make any purchase of over $10,000 without competitive bids.
7. Enter into any contract unless the service or product contracted is consistent with the organization’s strategic goals and the organization’s liability does not exceed the amount approved by the Board through budget approval or special resolution, in accordance with the Authorization for Execution of Documents approved by the Board on _____________, 2011.
8. Receive, process or disburse funds under controls insufficient to meet the board appointed auditor’s standards.
9. Fail to place the organization’s funds in accounts that do not risk loss of principal and are insured by the FDIC, unless the Board of Directors has approved an investment policy that gives the Executive Director wider discretion and, in such case, fail to follow the investment policy approved by the Board.
10. Fail to protect intellectual property, information and files from loss or significant damage.

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