1. Safekeeping Financial Assets
NSWERS shall develop specific safeguards to reduce the risk of theft and destruction of cash on hand and in transit as well as other financial assets.

1.1. Internal Controls
NSWERS shall adhere to a system of internal controls that provides for the necessary oversight and separation of duties to protect financial assets, is responsive to any audit findings identifying weaknesses, and includes on-going monitoring. Bank reconciliations shall be completed monthly and reviewed by an individual independent of disbursement authorization. Evidence of review shall be documented. NSWERS shall maintain a disbursement log (checks, ACH, and other electronic payments) sufficient to support periodic reporting to the Executive Council under Policy 6801.

1.2. Covered and/or Bonded Employees
NSWERS shall obtain bond(s) and/or equivalent commercial insurance covering employee dishonesty of any Executive Council members and employees who handle money on behalf of the Executive Council; and the amount of such bond(s) and/or insurance coverage shall be in an amount of at least one million dollars ($1,000,000) and subject to review and approval of the Executive Council on an approximately annual basis.

2. Safeguarding Personal Property
Appropriate capital and non-capital inventories of tangible personal property shall be maintained by NSWERS. NSWERS shall be responsible for maintaining required inventory records for tangible personal property, performing physical inventories, reconciling physical inventories to the related records and reconciling additions and deductions on the inventory system to the general accounting system.

2.1. Capital Inventory
Procedures should be in place to ensure that newly acquired capital items are promptly added to the inventory records and any item which has been determined to be surplus to the needs of NSWERS, and has been transferred, sold, traded-in or disposed of, is deleted from the inventory records. A physical inventory is to be conducted annually to compare assets on hand to those listed on the inventory records. The location of equipment and other capital items should be updated as necessary to reflect the current status of the inventory; it is essential that persons taking the physical inventory be able to locate all items listed on the inventory promptly. Physical inventory as of June 30 should be completed and documented by August 31 each year.

2.2. Non-Capital Inventories
All desktop, laptop, and tablet computers will be tracked on inventory and tagged. NSWERS should define an appropriate level of control for other movable assets, including art, not included on the capital inventory and noncapital inventories.

2.3. Tagged Properties
All capital inventory and other non-capital inventory items required to be tracked shall be indelibly tagged, marked or stamped as belonging to NSWERS.

2.4. Recovery of Tangible Personal Property
If any property identified in the inventories is lost, destroyed or unaccounted for due to negligence or carelessness, proper steps shall be taken to recover such property or the reasonable value thereof from the responsible party.