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Council adopts Act 106 compliance resolutions: risk manager designation, bond limits and compliance procedure
Summary
Council approved compliance items under Pennsylvania Act 106, including designation of a risk manager and acceptance of security levels (crime coverage $1,000,000; wire transfer bond $4,000,000; treasurer’s bond $72,000; magisterial district justice bond $55,000), and adopted a procedure for annual review and approval of bonds and insurance.
Northampton County Council on Jan. 23 approved a set of resolutions to comply with Pennsylvania Act 106 of Nov. 23, 2011, including designation of a risk manager, acceptance of specified levels of security, and adoption of a formal procedure for annual review and approval of bond and insurance form and amounts.
Council Member Brown introduced the Act 106 item. The council recorded that Act 106 authorizes counties to obtain blanket bonds or crime insurance covering county officers and employees and permits counties to appoint a risk manager to compile information relevant to the amount of security required. The county’s recommendation—after review by the county solicitor and the director of administration—was to accept coverage through the County Commissioners Association of Pennsylvania’s (CCAP) Pennsylvania Counties Risk Pool (PCOR) and to maintain additional security where required by law.
The council approved the following levels of security as recorded in the meeting transcript: crime coverage through the county’s insurance policy with PCOR covering officials and employees for fraud, embezzlement, theft, forgery and other criminal acts up to $1,000,000 per recurrence; a wire transfer bond in the amount of $4,000,000 to provide additional security for employees authorized to initiate wire transfers; a treasurer’s bond of $72,000 required by state law for the county treasurer acting as tax collector; and magisterial district justice bonds of $55,000 per magisterial district justice (Act 106 does not apply to those officials). Council adopted these coverage levels by unanimous vote.
Council also adopted a companion resolution designating the director of the Department of Administration (or designee) as the risk manager and establishing a procedure by which the director will compile and submit information before the end of each calendar year recommending the form and amount of security for the succeeding year. That procedure calls for the department and solicitor to confer on form and content, and for presentation to council at least two weeks before year-end with a recommendation for approval. The council voted 8-0 to adopt the procedure resolution.
Both resolutions were adopted unanimously; no amendments were recorded on Jan. 23.
