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.

The University will assess its ability to absorb additional fixed capital costs while maintaining overall financial health considering the ability to repay debt from operating revenues and still fulfill the University's mission. To support the evaluation of the debt capacity, the University will utilize the Moody's Investors Service higher education scorecard based on the most recent fiscal year-end audited financial statements.

The University will continuously monitor its outstanding debt portfolio for refunding and/or restructuring opportunities. In analyzing possible refunding candidates, the University 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 the University of certain limitations, covenants, payment obligations, or reserve requirements.

The University will maintain ongoing communication and interaction with the rating agencies to inform the agencies about the general credit structure and financial performance of the University to maintain an acceptable credit rating.

The University will monitor its debt portfolio to remain within compliance of federal and state law to maintain the tax-exempt status. All required continuing disclosures shall be timely filed.

Approval for Debit Financing

Responsible position(s):

Frequency and timing:

Steps: