Bond Renewal Process

Assigned To: Sarah Dungan

Category: School Life Cycle

Department: Compliance, Finance

SOP Rule: Cadence

Status: Approved by CEO and Implemented

Purpose

This SOP outlines the process for managing bond renewals to ensure continuous regulatory compliance, including tracking expiration dates, requesting renewals, and filing required documentation.

Scope

This procedure applies to all Zollege schools that require bonds for operational and regulatory compliance, including both renewals and new bond requests.

Definitions

• Surety Instrument: Bond or letter of credit ensuring student refunds if a school closes.
• Bond Renewal: Extension of an existing bond to maintain compliance.
• Bond Tracking Sheet: Document used to monitor bond expiration dates.
• New School Pipeline: Process triggering bond requirements for new schools.

Responsibilities

• Compliance Team:
  • Track bond expirations using Smartsheet
  • Request renewals at least one month prior to expiration
  • Send invoices to Accounts Payable
  • Route documents for signature
  • Update tracking sheet
  • Store and archive bond documents
  • Handle new bond requests
• Accounting Team:
  • Process bond invoice payments
  • Ensure invoices are submitted correctly

Procedure

Trigger Events

• Bond renewal: One month before expiration based on tracking sheet
• New bond: Triggered by new school pipeline entry

Bond Renewal Process

Step 1: Review Expiring Bonds

• Review Bond Tracking Sheet monthly
• Identify bonds expiring in the upcoming month

Step 2: Request Renewal

• Compile list of expiring bonds
• Send renewal request to insurance provider

Step 3: Obtain Signatures

• Send required documents for signature via DocuSign

Step 4: Receive Renewal

• Obtain renewal confirmation within one week

Step 5: Process Payment

• Forward invoices to Accounting team

Step 6: Update Records

• Update Bond Tracking Sheet
• Save renewed bond documents
• Archive expired bonds

New Bond Process

Step 1: Initiate Request

• Identify new school in pipeline
• Obtain state-specific bond form

Step 2: Submit Request

• Send bond request with school details to insurance provider

Step 3: Receive Bond

• Receive processed bond within one week

Step 4: Process Payment

• Send invoice to Accounting

Step 5: Update Records

• Add bond to tracking sheet
• Store documentation in school folder
• Prepare for state submission

Tools and Resources

• Bond Tracking Smartsheet
• New School Pipeline
• Bond SOP Documentation

Revision History

• 1st Version - 03/21/25
• 2nd Version - TBD
• 3rd Version - TBD