Executive Director View from HQ

Executive Director View HQ IA7f An ounce prevention worth pound cure~ Protecting Assets AMA Chartered Clubs Special Interest Groups advantages afforded club chapter associated Academy Model Aeronautics insurance protection major portion protection directed toward liability concerns primarily arising incidents associated flying activities however other areas concern groups along Special Interest Groups SIGs should address whether incorporated have officers written bylaws some clubs chapters Special Interest Groups maintain large balances treasuries others may result flying site development acquisition funds monies dispersed later community projects major events protection funds very important group should consider following operational insurance protection procedures 1 checking and/or savings accounts established name group 2 officers directors name account and/or signature required checks writtenespecially exceeding specific dollar amount 3 treasurer required provide regular financial reports least quarterly 4 group maintain accurate up-to-date inventory assets including equipment 5 individual individuals responsible financial assets covered insurance referred Fidelity Bonding 6 bank account must reconciled someone does have check-signing authority Items two may prove difficult achieve some financial institutions institution may require group apply tax number identification Internal Revenue Service will result need file yearly federal return cases groups account can established using officers Social Security numbers individual becomes party responsible account Item five can accomplished through special type insurance called Fidelity Bonding contacting local insurance agent can obtain rates conditions applicable area general bonding individuals provides protection event officer misappropriates funds repaying funds part full according terms agreement present time Fidelity Bond rates fairly reasonable instance $25000 protection can obtained $100-$200 year An additional item group may wish consider referred D&O insurance specifically designed protect directors officers group against claims suits resulting officers decisions regarding club policy discrimination site use environmental issues kinds claims suits covered Royal member/club liability policy covers bodily injury property damage Smaller groups limited financial assets may consider points unimportant unnecessary however should noted small amount missing funds might create significant hardship group Additionally may thought people authority engage fraudulent dishonest acts misuse abscond funds organization rare occurrence Unfortunately such case todays world club chapter Special Interest Group encouraged carefully study its needs operational procedures areas old adage An ounce prevention worth pound cure appropriate matters y flying CL Joyce Hager Executive Director jhager@modelaircraftorg 176 Model Aviation 4