The Intersection of Local Government Organizational Characteristics and Official Bonding Policy
Abstract
The primary goal of risk management policy is the protection of government assets based on an evaluation of internal and external procedures and activities. The bonding of public officials with asset responsibilities is a policy component that provides an assurance of resource protection and public trust. This exploratory study examines the level of county bond issuance on selected appointed and elected government officials in North Carolina. Ordered logistic regression analyses tested official bonding amounts with government attributes. Initial findings indicate more standardized bonding practices for appointed officials while bonding practices for elected officials is more discretionary. Specified finance office staff and audit findings influenced bond amount increases for both appointed and elected officials with county characteristics also having an influence on elected official bonding increases. Implications of the study include the importance of internal control prevention through well-trained finance personnel.
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