Duty of Prudence Sample Clauses

Duty of Prudence. The Trustee shall discharge its duties hereunder with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The Trustee shall not be liable for any loss sustained by the Trust Fund by reason of the purchase, retention, sale or exchange of any investment in good faith and in accordance with the provisions of this Agreement and of any applicable federal law.

Duty of Prudence. Be trustworthy to a degree of care and skill that a prudent board member, member of management, or fiduciary would exercise. Prudent means acting with wisdom and care, including exercising good judgment. • Duty of Disclosure: Act with complete candor. Be open, sincere, honest and transparent. Disclose all financial interests on Form 700, Statement of Economic Interests. As the charter high school’s leader, the executive director sets the organizational tone, influencing all activities and decisions, developing the internal control mindset of its employees. The chief business official is responsible for integrating all five internal control components into the charter high school’s administrative and operational systems. The administrative team provides leadership and direction to managers. Administrators and managers are responsible for developing and implementing specific internal control activities, communicating and monitoring those activities to ensure they are imple- mented in practice and making appropriate modifications to ensure they are effective. The governing board works as a group to provide governance, guidance and oversight. Individual board members can improve the control environment when they are inquisitive, free from bias, informed, and conduct themselves in an ethical manner. Independent auditors assess the adequacy of the internal control system in conjunction with the annual audit to determine the extent of substantive testing necessary to provide an opinion as to whether the financial statements are free of material misstatement. They also make recommendations for improve- ment where weaknesses are identified; however, this should never be the only method of monitoring internal controls. Control activities are a fundamental component of internal control and are a direct result of policies and procedures designed to prevent and detect misuse of a district’s assets, including preventing any employee from overriding system controls. Examples of control and transaction activities include the following: