POST BONDING INFORMATION
* WHO SHOULD BE BONDED IN THE POST AND HOW MUCH COVERAGE.
Each officer accountable for funds or property should be bonded with
an indemnity company as surety in a sum at least or equal to the amount
of the “liquid assets” for which, so far as can be anticipated,
he may be accountable. Anyone who has access to funds should be bonded,
particularly club employees and others who regularly handle cash.
* WHAT DOES THE TERM “LIQUID ASSETS” MEAN.
Liquid Assets are defined as cash, checking accounts, savings accounts, CDs, investments, etc.,; inventories such as post liquor, food items, etc.,; revenue such as expense generating efforts, Bingo fund raisers, canteen activities, etc. These are assets that can be easily converted to cash regardless of the number of counter signatures.
* WHAT IS A POST AUDIT AND HOW OFTEN IS AN AUDIT REQUIRED.
An audit is an examination and verification of the post records conducted by the post trustees. The by-laws require the books and records of all post activities be audited on a quarterly period.
* HOW TO AVOID A POST LOSS.
Keep accurate records. Conduct regular audits. A good audit is the best favor you can do for your Quartermaster. Remember, it is for the good of the order.
* HOW TO SUBMIT AN INDEMNITY CLAIM.
The insured Post has the responsibility of reporting a loss just as soon as possible after it is discovered. If the bond is held through a local agent, that agent should be informed immediately when a loss is discovered. If the bond was obtained through the Department, the Department Headquarters must be notified so the information can be passed on to the proper person.
The Post or other insured unit will be required to show evidence of loss and submit a “Proof of Loss” form with any further information which may be required. This form will be provided by the bonding company or its agent. The final claim should not be submitted until it is substantiated, preferably through an audit by a qualified accountant. The bond requires the Post to give all reasonable cooperation in determining details of facts to substantiate the claim.
The bonding company will follow—up the claim or they may have
an outside attorney or adjuster gather details on the claim and on the
defaulting officer or employee. The bonding company will make the appropriate
claim decision. The Post, in accepting the bonding or surety company’s
check, passes on its right of recovery of Post funds to the bonding company.
Department of PA VFW, 4002 Fenton Ave.,
Harrisburg, PA 17109 - 5943
Ph: (717) 234-7927 • Fax: (717) 234-1955 • Email:
GMullen@VFWPAHQ.org