Policy Type: Executive Limitations
Policy Title: Asset Protection
The President may not allow assets to be unprotected, inadequately maintained, or unnecessarily risked.
Accordingly, the President may not:
- Fail to insure against theft and casualty losses in amounts consistent with replacement values or against liability losses to Board members, staff, or the college itself in amounts consistent with limits of coverage obtained by comparable organizations.
- Allow unbonded personnel access to material amounts of funds or insufficient maintenance.
- Unnecessarily expose the college, the Board or staff to claims of liability.
- Make any purchase or commit the organization to any expenditure greater than $100,000 without prior board authorization.
- Make any purchase over $10,000 without soliciting formal quotations, nor make purchases between $5,000 to $10,000 without evaluating at least three quotations, which may be received by fax or phone. A summary report on transactions from $10,000 and above will be presented to the Board monthly.
- Make any purchase or award any contract where a conflict of interest exists.
- Fail to make a good faith effort to ensure purchases from minority and women owned enterprises, or to initiate programs to acquaint vendors with purchasing policies and procedures.
- Receive process or disburse funds under controls that are not sufficient to meet the auditor’s standards.
- Acquire, encumber or dispose of real property without Board approval.
- Invest funds in non-interest bearing accounts or in investments not permitted by Michigan law. Further, no investments shall be made without compliance with, in order of priority, the following principles: a) security of the investment; b) receiving favorable consistent interest earned on the investment; c) local financial institutions receiving favorable consideration where (a) and (b) are relatively equal.
- Fail to protect property, information, and files from loss or damage.