The amount of any required bond must in each instance be based on
funds handled ``during the preceding fiscal year,'' and must be fixed
``at the beginning'' of an organization's fiscal year--that is, as soon
after the date when such year begins as the necessary information from
the preceding fiscal year can practicably be ascertained. This does not
mean, however, that a new bond must be obtained each year. There is
nothing in the Act which prohibits a bond for a term longer than one
year, with whatever advantages such a bond might offer by way of a lower
premium, but at the beginning of each fiscal year during its term the
bond must be in at least the requisite amount. If it is below that level
at that time for any reason, it would then be necessary either to modify
the existing bond to increase it to the proper amount or to obtain a
supplementary bond. In either event, the terms upon which this could
best be done would be left to the parties directly concerned.
