4.2 ERMUSR 08-10-2021 - Laserfiche WebLink

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______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4l Protection of Assets PURPOSE: With this policy, the Commission sets forth its expectations for the General Manager concerning the protection of ERMU’s assets. POLICY: The General Manager shall not allow ERMU’s assets to be unprotected, inappropriately used or disposed of, inadequately maintained, or placed at undue risk. Consistent with this general statement, the General Manager shall: 1. Maintain comprehensive security program, property insurance program and loss prevention program which adequately protect ERMU from significant damage or loss to its corporate assets including, but not limited to, physical assets, real property, rights-of-way, corporate image or credibility, intellectual property, and information. 2. Not allow any investment of ERMU funds that violates State of Minnesota law, any provision of ERMU’s bond indentures (as adopted and amended), or the provisions of any present or future Commission-approved investment policy (See Investments Policy). 3. Implement and maintain management policies and procedures that establish effective and sufficient controls with appropriate checks and balances, including separation of duties, which are regularly tested for adequacy and compliance. Functions that require such management policies and procedures include, but are not limited to designation of banking signatories and transactions, cash management, accounting, and procurement of goods and services, and inventory management. 4. Maintain a comprehensive physical asset inspection and proactive maintenance program consistent with accepted utility industry practice. 52