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ERIC Number: EJ1000269
Record Type: Journal
Publication Date: 2012-Oct
Pages: 2
Abstractor: ERIC
Reference Count: 0
ISBN: N/A
ISSN: ISSN-0036-651X
Protecting Your District's Ability to Sell Bonds or Other Debt
Warden, Dan; Palsma, Abigail Stokes
School Business Affairs, v78 n9 p23-24 Oct 2012
If a school district has more than $10 million in tax-exempt debt, inclusive of all outstanding bonds, certificates of participation, and other public debt issues with durations of more than nine months, it must comply with the contractual requirements entered into under Securities and Exchange Commission (SEC) rules. District administrators and finance staff are responsible for providing required information to investors for debt issued since 1995. Unfortunately, many districts may not be fully aware of what they need to report. Developing policies and procedures to file the necessary information is critical. The most serious consequence of noncompliance is the possibility that a district may be unable to issue new debt when it wants to. The first step the district should take is to verify that annual reporting and event filings from the last five years are up-to-date. In addition, the district should establish policies for meeting requirements in order to ensure future compliance. The policy should designate the official(s) responsible for reporting and should provide for the periodic review and updating of procedures. Continuing education for staff is important both for addressing changes in SEC and industry rules and operations and for continuity in district compliance beyond the tenure of current staff.
Association of School Business Officials International (ASBO). 11401 North Shore Drive, Reston, VA 20190. Tel: 866-682-2729; Fax: 703-478-0205; e-mail: asboreq@asbointl.org; Web site: http://www.asbointl.org
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A