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):
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):
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):
Required documents and access:
- Audited financial statements
Frequency and timing: