Factors the political subdivision should consider in setting a surety bond amount include, but are not limited to:

· The amount of money the employee will handle;

· The likelihood of fraud, waste, and abuse given the internal controls in place;

· The amount of insurance coverage for any potential loss, if any, and the amount such deductible; and

· The level of material impact any potential risk of loss would have on the financial position/stability of the political subdivision.

The political subdivision should consult with its legal counsel and its insurer to review the various factors applicable to their situation and risks of loss. Any policy developed requiring such bond, should generally be adopted through ordinance.