It is required by ERISA that Plan Fiduciaries be bonded for plan assets. A Plan Fiduciary is anyone who has access to and/or control over a plan's assets. A Fidelity Bond is necessary to protect the plan against loss through fraud or dishonesty on the part of the plan officials.

Plan Fiduciaries should be insured for a minimum of 10% of the plan assets, but not less than $1,000. The maximum amount required is $500,000 per plan.

Please be advised, the Department of Labor can issue an injunction prohibiting plan fiduciaries from handling plan assets if they are not properly bonded. The annual form 5500 filed for the plan with the I.R.S. must disclose whether the plan is adequately bonded.

A Fidelity Bond may be obtained through your business property and casualty insurance carrier.

EXCEPTION: Plans are exempt from the fidelity bonding requirements where the only employee is the owner or in plans where the only employees are the owner and the owner's spouse.

Kinol Sharie Leyh & Associates will work directly with the accountant to provide any information necessary to complete the audit.