|CMP 132: Debt Policy|
To establish policies, procedures and guidelines for debt issuance according to Arizona State law and Arizona Board of Regents Policy.
University Policy, ABOR, ARS
Debt financing allows NAU to purchase capital assets over time, which
better matches the use of the facility or asset over its depreciable
life therefore matching expense with revenues. Debt financing may also
be financially beneficial if borrowing rates are below investment
returns or if the University invests in capital assets which provide
investment returns or construction cost savings which are larger than
the cost of borrowing. Debt financing also allows the University to
provide needed infrastructure more quickly than a pay-as-you go approach
may permit, thereby allowing the University to better meet the
educational and social needs of its constituent students, as well as the
broader community. The ability to fund capital needs with the proceeds
of debt issuances is a critically important function of the University
as State funding of capital projects on a pay-as-you go basis has not
been available since the mid-1980’s.
NAU Debt Management Policy
Build America Bonds – The University has issued Build America Bonds. Procedures for application of the subsidy payments are available in the Comptroller’s Office.Debt Capacity. The University, according to Arizona Board of Regents Policy, issues an annual Debt Capacity Report in conjunction with the Capital Improvement Plan.
Arizona Board of Regents Policy
CMP 131 Use of Bond Proceeds
Build America Bonds Subsidy Policy CMP 134
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