Kentucky State University Business Policies and Procedures Manual
Evaluate debt capacity
Prioritize eligible projects
Recommend debt financed project(s) to President
Submit recommended project to Board for approval
Debt Capacity Calculation (Debt Service Coverage Ratio)
Responsible position(s):
CFO
Required documents and access:
Audited financial statements
Frequency and timing:
At least annually in conjunction with the audit.
Steps
The total income before other revenues, expenses, gains or losses + depreciation expense + interest on capital asset – related debt DIVIDED by the total reduction in total bonds = reduction in total notes and capital leases + interest on capital asset – related debt
Issuance
Responsible position(s):
CFO
Required documents and access:
Board approval for debt financing
Frequency and timing:
As needed for approved debt financing
Steps
The University will work in conjunction with The Commonwealth of Kentucky's Office of Financial Management to ensure compliance with related laws and statutes.
Post Issuance Compliance
Responsible position(s):
Controller
Required documents and access:
Audited financial statements
Frequency and timing: