The Qualified School Construction Bonds Questionnaire
In April 2012, TEB initiated a questionnaire project to evaluate the compliance and record retention policies, procedures, and practices of 111 issuers of qualified school construction bonds (QSCBs). TEB sent letters notifying selected issuers of the project as well as instructions for accessing and completing the online questionnaire. Paper copies of the QSCB questionnaire are not available.
The questions in the online questions are reproduced below. Due to space limitations, there are no response choices shown.
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PART I Current Debt Management Policies and Procedures
Q1(a) Who first raised with you the possibility of issuing QSCBs?
Q1(b) What approvals are required for your issuance of QSCBs?
Q1(c) Do you have procedures in place -- regardless of whether they are written -- to review the structure of your QSCBs prior to
issuance?
Q1(d) If Yes, are any of those procedures written?
Q1(e) Do your written procedures for reviewing the structure of your QSCBs prior to issuance ensure that:
(i) the proposed bond issuance will qualify for tax-advantaged status pursuant to applicable federal tax law;
(ii) the proceeds of the proposed bond issuance will be used only for construction, rehabilitation, or repair of a public school
facility or for acquisition of land on which a public school facility is to be constructed;
(iii) the proceeds of the proposed bond issuance will be spent within three years of the date of issuance; and
(iv) the issuance costs financed by the proposed bond issue will not exceed two percent of the proceeds of the proposed
issue?
Q1(f) With respect to the procedures you reported in Part I, Questions 1(c)-1(e) -- regardless of whether they are written -- indicate the
earliest date that any of the procedures were first implemented?
Q1(g) With respect to the procedures you reported in Part I, Questions 1(c)-1(e) -- regardless of whether they are written -- indicate the
most recent date that any of the procedures were revised?
PART II Volume Cap Allocation Policies and Procedures
Q2(a) For purposes of receiving a QSCB allocation, which one of the following three choices best describes you:
(i) an entity identified as a Large Local Education Agency in Section 4 of Notice 2009-35 or in Section 3 of Notice 2010-17;
(ii) an Indian Tribal Government; or
(iii) an Issuer that is not a Large Local Education Agency or an Indian Tribal Government?
Q2(b) If you are a Large Local Education Agency, do you have procedures in place -- regardless of whether they are written --
to reallocate or carryover any unused QSCB volume cap allocation you received?
Q2(c) Are any of those procedures written?
Q2(d) Identify the specific information required as part of the application for a portion of the State’s allocation of QSCB volume cap.
Q2(e) Does the State charge any fees in connection with the application for a portion of the State’s allocation of QSCB volume cap?
Q2(f) Does the State distinguish among different purposes for QSCBs (for example, construction or repair) when deciding whether to
grant or deny an application for a portion of its allocation of QSCB volume cap?
Q2(g) What is the basis to distinguish among different purposes for QSCBs?
PART III Current Procedures Related to Determining Issue Price
Q3(a) Do you have procedures -- regardless of whether they are written -- for determining the issue price for your QSCBs?
Q3(b) Are any of those procedures written?
Q3(c) Under those procedures, how do you determine the issue price for your QSCBs?
Q3(d) With respect to the procedures you reported in questions 3(a)-3(c) -- regardless of whether they are written -- indicate the earliest
date that any of the procedures were first implemented.
Q3(e) With respect to the procedures you reported in questions 3(a)-3(c) -- regardless of whether they are written -- indicate the most
recent date that any of the procedures were revised.
Q3(f) Are records of trading activity for your QSCBs available through the Municipal Securities Rulemaking Board’s Electronic Municipal
Market Access System (see www.emma.msrb.org)?
Q3(g) Did you or a consultant to the issuer (NOT the underwriter or initial purchaser) review the records of the trading activity for your
QSCBs?
Q3(h) Did you receive a written analysis of trading activity for your QSCBs?
Q3(i) Did the written analysis of trading activity for your QSCBs include an analysis of the pricing?
PART IV Current Record Retention Procedures
Q4(a) In what form do you maintain records supporting the tax credit status of your QSCBs?
Q4(b) Do you have procedures -- regardless of whether they are written -- regarding maintenance of records supporting the tax credit
status of your QSCBs?
Q4(c) Are any of those procedures written?
Q4(d) What records do these procedures require you to maintain copies of?
Q4(e) With respect to the procedures you reported in questions 4(b)-4(d) -- regardless of whether they are written -- indicate the
earliest date that any of the procedures were first implemented.
Q4(f) With respect to the procedures you reported in questions 4(b)-4(d) -- regardless of whether they are written -- indicate the most
recent date that any of the procedures were revised.
PART V Post-Issuance Compliance Procedures
Q5(a) Do you have procedures (other than the bond documents provided at closing) to monitor compliance with federal tax
requirements during the term of the bonds and to ensure that noncompliance is timely identified and corrected?
Q5(b) If yes, are any of those procedures written?
Q5(c) What controls are included in those procedures?
Q5(d) With respect to the procedures you reported in questions 5(a)-5(c) -- regardless of whether they are written -- indicate the earliest
date that any of the procedures were first implemented.
Q5(e) With respect to the procedures you reported in questions 5(a)-5(c) -- regardless of whether they are written -- indicate the most
recent date that any of the procedures were revised.
PART VI Current Awareness of Voluntary Compliance Options
Note: The questions in Part VI relate to your awareness of voluntary compliance options generally available for all types of
tax-advantaged bonds.
Q6(a) Are you aware of the following options available for voluntarily correcting failures to comply with post-issuance federal tax
compliance requirements:
(i) taking remedial actions to redeem or defease nonqualified bonds pursuant to the Income Tax Regulations; or
(ii) entering into a closing agreement under the Tax Exempt Bonds Voluntary Closing Agreement Program (more
information available here).
Q6(b) Are you aware that under the Tax Exempt Bonds Voluntary Closing Agreement Program your settlement amount will be reduced
if you have written procedures in place to monitor compliance with federal tax requirements during the term of the bonds
and to ensure that noncompliance is timely identified and corrected?
