Gustav-Ike Parish Outreach Representatives and other OCD-DRU staff members will,
from time to time, send updates, clarifications, further guidance, etc. to parish and
municipal officials. These communications are gathered here for future reference.
Feb. 12, 2014
Insurance and Bonding Requirements in CEAs
Because the U.S. Department of Housing and Urban Development requires that all grantees safeguard CDBG payments from any misuse, all cooperative endeavor agreements (CEAs) require the following regarding insurance and bonding:
Insurance & Bonding
Grantee shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from OCD/DRU.
In order for OCD/DRU to ensure all grantees are complying with this safeguarding requirement, grantees will be required to provide proof of their fidelity bond or crime insurance coverage for all employees when a new CEA is entered into or when an existing CEA is amended. Such coverage must be equal to at least 10% of the amount of the CEA or 10 % of the amount left unpaid, if that amount can be determined.
Note that any grantees who are state agencies or others who are insured by the state Office of Risk Management (ORM) will not have to supply proof of insurance, because they are automatically covered in adequate amounts by ORM. Samples of proofs of insurance can be viewed here.
If you have any questions on this requirement, please contact Bonita “Bonnie” Brown at 225‐342‐0856 or Bonita.Brown@la.gov.