Friday, July 5, 2019

PRESS assists members with bond disclosure obligations

PRESS Issue 97, January/February 2018, debuted a new administrative procedure 4:40-AP, Preparing and Updating Disclosures, to assist districts in complying with federal securities laws for bond issues.  The administrative procedure is based on a sample document from the law firm of Chapman and Cutler, LLP and was last updated in PRESS Issue 100, February/March 2019.  Typically, as part of the due diligence preparations for a bond issue, a district will have to certify that it has a “policy” on disclosures. According to Chapman, the implementation of 4:40-AP, although not a board policy, satisfies this requirement. Alternatively, some districts may choose to re-number 4:40-AP for placement as a policy in their board policy manuals. However, in that case, any future changes to the policy will require board action. In contrast, changes to administrative procedures can be implemented more quickly because they do not require board action.

Board members who would like to brush up on their board policy duties can do so by enrolling in “Policy 101,” a 20-minute course that was recently released through the IASB Online Learning Center. The course is for both new and veteran board members wanting to understand and refresh their understanding of the policy and school board connection.