An evaluation of such financing strategies will include a comprehensive assessment of the risks, costs and benefits specific to the project, KSU resources at-large, and the overall debt portfolio.
A Debt Management Committee consisting of the CFO, Director of Capital Planning and Facilities Management, Provost, and General Counsel will meet regularly to review KSU's debt capacity and present recommendations to the President for projects to be funded with debt financing.
The CFO is responsible for all debt management including post issuance compliance monitoring. The President and Board of Regents must approve all debt financing.
The Director of Capital Planning and Facilities Management is responsible for estimating and defining capital project costs and maintaining a list of potential projects under consideration. The CFO is responsible for developing university-wide capital planning documents for the current year, current biennium, and the six-year capital plan.
Projects considered for debt financing must consider project expenses and incremental operating costs and revenues. The net present value of each project will be calculated by summing the discounted value of the annual net project cash flows over the life of the project.
The CFO shall regularly monitor the debt capacity and maintain a schedule of current and forecasted debt and associated payment of principal, interest, and fees. The CFO is responsible for the administration of all aspects of debt financing, including accounting, reporting, and coordination with financial advisors, underwriters, bond counsel and rating agencies to issue new debt or refinance existing debt.
KSU will assess its ability to absorb additional fixed capital costs while maintaining overall financial health, considering its ability to repay debt from operating revenues while still fulfilling its mission. To support the evaluation of the debt capacity, KSU will utilize the Moody's investors service higher education scorecard based on the most recent fiscal year-end audited financial statements.
KSU will continuously monitor its outstanding debt portfolio for refunding and/or restructuring opportunities. In analyzing possible refunding candidates, KSU will consider the net present value savings as a percentage of refunded debt, as well as the potential cash flow savings from the refunding. A refunding may also be considered if it relieves KSU of certain limitations, covenants, payment obligations, or reserve requirements.
To maintain an acceptable credit rating, KSU will maintain ongoing communication and interaction with the rating agencies to inform the agencies about the general credit structure and financial performance of KSU.
KSU will monitor its debt portfolio to remain within compliance of federal and state law and maintain its tax-exempt status. All required continuing disclosures shall be timely filed.
Business Policies and Procedures Manual