This event took place June 16, 2016, in Falmouth, MA.
Event Description
This peer exchange was a facilitated-discussion for finance professionals from state departments of transportation to share best practices, and to discuss challenges related to debt management and compliance with applicable policies and regulations. The transportation sector is one of the largest issuers of infrastructure debt, averaging $36 billion in new issuances annually for the period 2005 through 2014. Post-issuance compliance related to municipal bonds is receiving increasing attention from federal oversight agencies such as the Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC).
The Government Finance Officers Association, National Association of Bond Lawyers and other professional organizations frequently note the importance of having documented, post-issuance policies and procedures. However, there is minimal capacity building focused on tools, techniques and best practices related to developing a strong, post-issuance compliance program that can hold up under regulatory scrutiny and audits. This peer exchange provided capacity building for debt management and compliance staff at state departments of transportation to better address these gaps.
Materials
- Summary Report (PDF)
Relevant Web Links and Information Sources
An information packet was compiled for the peer exchange participants that covered basic concepts and terminology as well as more advanced topics related to post issuance compliance. The information packet included the web links and information sources listed below:
NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM (NCHRP) RESEARCH
- NCHRP Synthesis Study (37-11): Debt Finance Practices for Surface Transportation, 2009
https://www.trb.org/Publications/Blurbs/161569.aspx
POST-ISSUANCE COMPLIANCE GUIDANCE
- IRS -After the Bonds are Issued
https://www.irs.gov/pub/irs-tege/bonds_act_0607.pdf - IRS TEB-Post-Issuance-Compliance
https://www.irs.gov/tax-exempt-bonds/teb-post-issuance-compliance-some-basic-concepts - Government Finance Officers Association (GFOA) Guidance for Issuers
https://gfoa.org/developing-and-implementing-procedures-post-issuance-tax-compliance-issuers-governmental-bonds - National Association of Bond Lawyers (NABL) Considerations for Developing Post-Issuance Tax Compliance Procedures
https://www.nabl.org/DesktopModules/Bring2mind/DMX/Download.aspx?portalid=0&EntryId=1068 - Basic Arbitrage Concepts – Web Forum Presented by IRS Office of Tax Exempt Bonds to “Complying with Arbitrage Requirements”
https://www.irs.gov/pub/irs-pdf/p5271.pdf
EXAMPLES OF POST-ISSUANCE COMPLIANCE POLICIES
- Virginia Commonwealth Transportation Board Post-Issuance Compliance Policy
http://www.ctb.virginia.gov/resources/policies/CTBPolicyIndex.pdf (pages 77-81)
OTHER RESOURCES
- The Public Finance Tax Blog
https://www.publicfinancetaxblog.com/ - Post-Issuance Tax Compliance and Continuing Disclosure Responsibilities for Issuers and Borrowers of Tax-Exempt Bonds
https://www.orrick.com/Generic-Articles/~/media/634C0B4C14CF45A2A2E39D69E0E0BDB9.ashx
