D-640 Property and Liability Insurance Fund

The College has established an Internal Service Fund for the following purposes:

• To account for property and liability insurance premium expenditures.

• To establish a reserve for property and liability losses not covered by insurance due to deductible levels.

• To account for property and liability losses incurred by the College.

All liability and property insurance premiums and property and liability losses will be accounted for in the Internal Service Fund, which shall be known as the Property and Liability Insurance Fund (Insurance Fund). All premium discounts or dividends on liability and property insurance policies shall be credited to the Insurance Fund.

The amount budgeted for the cost of liability and property insurance premiums will be charged back to the General Fund annually. If the amount budgeted exceeds the premium paid, the Insurance Fund shall retain the excess. If the amount budgeted is less than the actual premium paid, the reserve fund balance in the Insurance Fund will be used to fund the difference. If the reserve fund balance is insufficient, the District Board will take budgetary action to make the Insurance Fund whole.

The College shall maintain a minimum reserve balance of $100,000 in the Insurance Fund. If the reserve balance falls below $100,000, the District Board shall take budgetary action to restore it to $100,000. The budgetary action shall take place within three (3) months following the acceptance of the audit report for the fiscal year in which the reserve balance fell below $100,000.

ELIGIBLE PROPERTY LOSS EXPENDITURES FOR THE INSURANCE FUND

• Total property loss related to any single incident must exceed $500.

• Property loss must be due to an accidental incident, an act of nature, or due to criminal activity.

• Property no longer in good working condition due to age or property that has become obsolete due to technological advances is not eligible to be expensed from the Insurance Fund.

• Minor office supplies shall not be eligible to be expensed from the Insurance Fund. They shall not be included in calculating the total loss related to a single incident.

PROCEDURES FOR REPORTING PROPERTY LOSSES

• All incidents and property loss must be promptly reported to Campus Safety and Security.  

• Purchases to be made from the Insurance Fund shall be approved by the Vice President of Finance and College Operations/CFO before issuance of a purchase order.