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- 723 - Post Issuance Debt Compliance Policy
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POLICY 723 - POST ISSUANCE DEBT COMPLIANCE POLICY
I. IRS BACKGROUND
The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code (the “Code”) and regulations promulgated thereunder (“Treasury Regulations”) governing certain obligations (for example: tax-exempt obligations, Build America Bonds, Recovery Zone Development Bonds and various “Tax Credit” Bonds). The IRS encourages issuers and beneficiaries of these obligations to adopt and implement a post-issuance debt compliance policy and procedures to safeguard against post-issuance violations.
II. SEC BACKGROUND
The Securities and Exchange Commission (SEC) is responsible for enforcing compliance with the SEC Rule 15c2-12 (the “Rule”). Governments or governmental entities issuing obligations generally have a requirement to meet specific continuing disclosure standards set forth in continuing disclosure agreements (“CDA”). Unless the issuer, obligated person, or a specific obligation is exempt from compliance with CDAs, these agreements are entered into at the time of obligation issuance to enable underwriter(s) to comply with the Rule. The Rule sets forth certain obligations of (i) underwriters to receive, review and disseminate official statements prepared by issuers of most primary offerings of municipal securities, (ii) underwriters to obtain CDAs from issuers and other obligated persons to provide material event disclosure and annual financial information on a continuing basis, and (iii) broker-dealers to have access to such continuing disclosure in order to make recommendations of municipal securities transactions in the secondary market. The SEC encourages issuers and beneficiaries adopt and implement a post-issuance debt compliance policy and procedures to safeguard against Rule violations.
When obligations are issued, the CDA commits the issuer or obligated person to provide certain annual financial information and material event notices to the public. Issuers and other obligated persons may also choose to provide periodic, voluntary financial information and filings to investors in addition to fulfilling the specific responsibilities delineated in their CDA. It is important to note that issuers and other obligated persons should not give any one investor certain information that is not readily available to all market participants by disseminating information to the marketplace, at large. Issuers and other obligated persons should be aware that any disclosure activities determined to be “communicating to the market” can be subject to regulatory scrutiny.
III. POST ISSUANCE DEBT COMPLIANCE OBJECTIVE
The District desires to monitor these obligations to ensure compliance with the IRS Code, Treasury Regulations and the SEC Rule. To help ensure compliance, the District has developed the following policy (the “Post-Issuance Debt Compliance Policy”). The Post-Issuance Debt Compliance Policy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to compliance.
IV. POST ISSUANCE DEBT COMPLIANCE POLICY
The Director of Finance and Operations of the District is designated as the District’s agent who is responsible for post-issuance compliance of these obligations.
The Director of Finance and Operations shall assemble all relevant documentation, records and activities required to ensure post-issuance debt compliance as further detailed in corresponding procedures (the “Post-Issuance Debt Compliance Procedures”). At a minimum, the Post-Issuance Debt Compliance Procedures for each qualifying obligation will address the following:
1. General Post-Issuance Compliance
2. General Recordkeeping
3. Arbitrage Yield Restriction and Rebate Recordkeeping
4. Expenditure and Asset Documentation to be Assembled and Retained
5. Miscellaneous Documentation to be Assembled and Retained
6. Additional Undertakings and Activities that Support Sections 1 through 5 above
7. Continuing Disclosure Obligations
8. Compliance with Future Requirements
The Director of Finance and Operations shall apply the Post-Issuance Debt Compliance Procedures to each qualifying obligation and maintain a record of the results. Further, the Director of Finance and Operations will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis.
The Director of Finance and Operations or any other individuals responsible for assisting the Director of Finance and Operations in maintaining records needed to ensure post-issuance debt compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance.
Most of the provisions of this Post-Issuance Debt Compliance Policy are not applicable to taxable governmental obligations unless there is a reasonable possibility that the District may refund their taxable governmental obligation, in whole or in part, with the proceeds of a tax-exempt governmental obligation. If this refunding possibility exists, then the District shall treat the taxable governmental obligation as if such issue were an issue of tax-exempt governmental obligations and comply with the requirements of this Post-Issuance Debt Compliance Policy.
V. PRIVATE ACTIVITY BONDS
The District may issue tax-exempt obligations that are “private activity” bonds because either (1) the bonds finance a facility that is owned by the District but used by one or more qualified 501(c)(3) organizations, or (2) the bonds are so-called “conduit bonds”, where the proceeds are loaned to a qualified 501(c)(3) organization or another private entity that finances activities eligible for tax-exempt financing under federal law (such as certain manufacturing projects and certain affordable housing projects). Prior to the issuance of either of these types of bonds, the Director of Finance and Operations shall take steps necessary to ensure that such obligations will remain in compliance with the requirements of this Post-Issuance Debt Compliance Policy.
In a case where compliance activities are reasonably within the control of a private party (i.e., a 501(c)(3) organization or conduit borrower), the Director of Finance and Operations may determine that all or some portion of compliance responsibilities described in this Post-Issuance Debt Compliance Policy shall be assigned to the relevant party. In the case of conduit bonds, the conduit borrower will be assigned all compliance responsibilities other than those required to be undertaken by the District under federal law. In a case where the Director of Finance and Operations is concerned about the compliance ability of a private party, the Director of Finance and Operations may require that a trustee or other independent third party be retained to assist with record keeping for the obligation and/or that the trustee or such third party be responsible for all or some portion of the compliance responsibilities.
The Director of Finance and Operations is additionally authorized to seek the advice, as necessary, of bond counsel and/or its financial advisor to ensure the District is in compliance with this Post-Issuance Debt Compliance Policy.
Source: Cambridge-Isanti SchoolsCross References:
- Policy 705 (Investment of School Funds)
Review Date: 03-24-22
Approved: 04-21-22
Policy Manual
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100 - School District
- 101 - Legal Status of the School District
- 101.1 - Name of the School District
- 101.2 - Naming of School District Sites and Facilities
- 101.2P - Memorials and Naming of School District Sites and Facilities
- 102 - Equal Education Opportunity
- 103 - Complaints - Students, Employees, Parents, Other Persons
- 104 - School District Mission Statement
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200 - School Board
- 201 - Legal Status of the School Board
- 202 - School Board Officers
- 203 - Operation of the School Board - Governing Rules
- 203.1 - School Board Procedures; Rules of Order
- 203.2 - Order of the Regular School Board Meeting
- 203.5 - School Board Meeting Agenda
- 203.6 - Consent Agendas
- 203.7 - School Board Compensation Policy
- 204 - School Board Meeting Minutes
- 205 - Open Meetings and Closed Meetings
- 206 - Public Participation in School Board Meetings
- 207 - Public Hearings
- 208 - Development, Adoption, and Implementation of Policies
- 209 - Code of Ethics
- 210 - Conflict of Interest - School Board Members
- 211 - Criminal or Civil Action Against School District, School Board Member, Employee, or Student
- 212 - School Board Member Development
- 213 - School Board Committees
- 214 - Out-of-State Travel By School Board Members
- 215 - Student Representative to the School Board
- 216 - School Board Recognition and Accomplishment
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400 - Employees/Personnel
- 401 - Equal Employment Opportunity
- 402 - Disability Nondiscrimination Policy
- 403 - Discipline, Suspension, and Dismissal of School District Employees
- 404 - Employment Background Checks
- 404P - Volunteer Background Check Procedure
- 405 - Veteran's Preference
- 406 - Public and Private Personnel Data
- 407 - Employee Right to Know - Exposure to Hazardous Substances
- 408 - Subpoena of a School District Employee
- 409 - Employee Publications, Instructional Materials, Inventions and Creations
- 410 - Family and Medical Leave Policy
- 410F - Family and Medical Leave Form
- 412 - Expense Reimbursement
- 412F - Request for Mileage/Expense Reimbursement
- 413 - Harassment and Violence
- 413F - Harassment and Violence Form
- 414 - Mandated Reporting of Child Neglect or Physical or Sexual Abuse
- 414 Form - Student Maltreatment Reporting
- 415 - Mandated Reporting of Maltreatment of Vulnerable Adults
- 416 - Drug and Alcohol Testing
- 416 Form A - Drug and Alcohol Testing
- 416 Form B - Drug and Alcohol Testing
- 416 Form B1 - Drug and Alcohol Testing
- 416 Form C - Drug and Alcohol Testing
- 416 Form D - Drug and Alcohol Testing
- 416 Form E - Drug and Alcohol Testing
- 416 Form F - Drug and Alcohol Testing
- 416 Form G - Drug and Alcohol Testing
- 417 - Chemical Use and Abuse
- 418 - Drug-Free Workplace/Drug-Free School
- 418 Form - Drug-Free Workplace/Drug-Free School
- 419 - Tobacco-Free Environment; Possession and Use of Tobacco, Tobacco-Related Devices, and Electronic Delivery Devices
- 420 - Students and Employees with Sexually Transmitted Infections and Diseases and Certain Other Communicable Diseases and Infectious Conditions
- 420A - Human Sexuality and Aids Education
- 421 - Gifts to Employees and School Board Members
- 422 - Policies Incorporated by Reference - Employees
- 423 - Employee/Student Relationships
- 424 - License Status
- 425 - Professional Development
- 426 - Communications - Employer/Employee Relations
- 426R - Employer/Employee Relations
- 427 - Workload Limits for Certain Special Education Teachers
- 428 - Respectful Workplace
- 430 - Staff Leaves and Absences
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500 - Students
- 501 - School Weapons Policy
- 502 - Search of Student Lockers, Desks, Personal Possessions and Student's Person
- 503 - Student Attendance
- 504 - Student Dress and Appearance
- 505 - Distribution of Nonschool Sponsored Materials on School Premises by Students and Employees
- 505.1 - Distribution of Information for Political Campaigns and Activities
- 506 - Student Discipline
- 506F - Notice of Suspension
- 507 - Corporal Punishment
- 508 - Extended School Year for Certain Students with Individualized Education Programs
- 509 - Enrollment of Nonresident Students
- 509.1 - In-District Open Enrollment
- 509.1F - In-District Enrollment Request
- 509.2 - Entrance Age
- 509.2F - Elementary School Early Enrollment Application
- 509.2P - Early Entrance
- 509P - PROCEDURE Homeless Student Rights and Enrollment Practices
- 510 - School Activities
- 511 - Student Fundraising
- 512 - School-Sponsored Student Publications and Activities
- 513 - Student Promotion, Retention and Program Design
- 514 - Bullying Prohibition Policy
- 514F - Bullying Reporting Form
- 515 - Protection and Privacy of Pupil Records
- 515F - Notice of Special Education File Retention Policy
- 515P - Retention and Destruction of Student Records for Special Education Students
- 516 - Student Medication
- 516F - Administering Prescription Medications Form
- 517 - Student Recruiting
- 518 - DNR-DNI Orders
- 519 - Interviews of Students by Outside Agencies
- 520 - Student Surveys
- 521 - Student Disability Nondiscrimination
- 522 - Title IX Sex Nondiscrimination Policy, Grievance Procedure, and Process
- 523 - Policies Incorporated by Reference-Students
- 524 - Internet Acceptable Use and Safety Policy
- 524F - Internet Use Agreements
- 525 - Violence Prevention
- 526 - Hazing Prohibition
- 527 - Student Use and Parking of Motor Vehicles; Patrols, Inspections, and Searches
- 528 - Student Parental, Family and Marital Status Nondiscrimination
- 529 - Staff Notification of Violent Behavior By Students
- 529F - Staff Notification of Violent Behavior By Students Form
- 530 - Immunization Requirements
- 531 - The Pledge of Allegiance
- 532 - Use of Peace Officers and Crisis Teams To Remove Students with IEPs From School Grounds
- 533 - Wellness
- 534 - Unpaid Meal Charges
- 535 - Service Animals in Schools
- 535F - Approval Request Form for Use of a Service Animal
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600 - Education Programs
- 601 - School District Curriculum and Instruction Goals
- 601.1 - New Teacher Mentor Program
- 601.3 - Student Teaching and Internship
- 602 - Organization of School Calendar and School Day
- 603 - Curriculum Development
- 604 - Instructional Curriculum
- 605 - Alternative Programs
- 606 - Textbooks and Instructional Materials
- 607 - Organization of Grade Levels
- 608 - Instructional Services-Special Education
- 609 - Religion
- 610 - Field Trips
- 611 - Home Schooling
- 611.1 - Private, Parochial, and Home School Shared Services
- 612.1 - Development of Parent and Family Engagement Policies for Title I Programs
- 613 - Graduation Requirements
- 614 - School District Testing Plan and Procedure
- 615 - Testing, Accommodations, Modifications, and Exemptions for IEPS, Section 504 Accommodations, and LEP Students
- 616 - School District Systems Accountability
- 618 - Assessment of Standards Achievement
- 619 - Staff Development for Standards
- 620 - Credit of Learning
- 623 - Mandatory Summer School Instruction
- 624 - Online Learning Options
- 625 - Volunteer Policy
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700 - Non-Instructional Operations and Business Services
- 701 - Establishment and Adoption of School District Budget
- 701.1 - Modification of School District Budget
- 701.2 - Purchasing
- 701.2P - Purchasing Cell Phone
- 701.2P - Purchasing PCard
- 701.2P - Purchasing Purchase Order
- 702 - Accounting
- 703 - Annual Audit
- 704 - Development and Maintenance of an Inventory of Fixed Assets and a Fixed Asset Accounting System
- 705 - Investment of School Funds
- 706 - Acceptance of Gifts
- 707 - Transportation of Public School Students
- 708 - Transportation of Nonpublic School Students
- 709 - Student Transportation Safety Policy
- 709F - Attachment A
- 709F - Attachment B
- 709F - Attachment C
- 709R - Student Transportation Safety Policy Student Conduct-Bus Referral Procedures
- 710 - Extracurricular Transportation
- 711 - Video Recording on School Buses
- 712 - Video Surveillance Other Than on Buses
- 713 - Student Activity Accounting
- 714 - Fund Balances
- 720 - Sales of Food and Beverages
- 721 - Uniform Grant Guidance Policy Regarding Federal Reserve Sources
- 721P - Uniform Grant Guidance Procedures
- 722 - Public Data Requests
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800 - Building and Sites
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900 - School/Community Relations
- 901 - Community Education
- 902 - Use of School District Facilities and Equipment
- 902P - Use of School Facilities Procedure
- 903 - Visitors to School District Buildings and Sites
- 903.1 - Sales Calls and Demonstrations
- 904 - Distribution of Materials on School District Property by Nonschool Persons
- 905 - Advertising
- 906 - Community Notification of Predatory Offenders
- 907 - Rewards
- 908 - American Indian Committee
- 909 - Relations with Colleges and Universities
- 910 - Communications and Public Relations
- 911 - Tax Abatement