SigEp provides a crime insurance policy with a $50,000 limit. The crime policy covers both the undergraduate chapter and the AVC and protects the entities against the dishonesty of anyone controlling the chapter or AVC monies. The crime insurance carrier, Zurich/Fidelity & Deposit Company of Maryland. 

The following safeguards should be in place. Failure to have them in place may affect your coverage in the event of a claim.

1. Separate monthly account reconciliation duties from the officer with check writing authority and appoint another officer to be responsible for this function. Liquid asset accounts should be reconciled on a monthly basis.
2. Review bank statements regularly as a chapter or board.
3. Require receipts for all expense reimbursement.
4. Justify and document how the money is used through an expense report that requires submission of receipts.
5. Have an account that prohibits debit card and ATM withdrawals. A separate account, with a balance no greater than $1,000, can provide cash through ATM withdrawals.
6. Have an approval process in place to approve expenses prior to writing checks, and consider having a 3rd party review/approve invoices.
7. Make checks out directly to vendors. Review all vendor invoices to check for accuracy in payment and order fulfillment.
8. Manage online accounts and change passwords with position rotation.
9. Ensure each officer has a separate login username and password.
10. If financial constraints prevent an independent audit by an outside firm, have an independent third party conduct an annual audit of the chapters’ or AVCs’ financials when a new officer is elected. An alumnus may do this at no charge.
11. Appoint an internal “audit committee” of 3-5 persons who would review the deposits and disbursements annually.
12. Clearly communicate that anyone who commits this type of crime will be prosecuted to the fullest extent of the law. Such activity is contrary to the values of our organization.