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ROWAN UNIVERSITY POLICY
Title: Debt Management Policy
Subject: Financial Management: Guidance for the Use and Management of Debt
Policy No: FIN: 2008:01
Applies: University-Wide
Issuing Authority: President
Responsible Officer: Senior VP for Finance and CFO
Adopted: 6/4/2008
Last Revision:
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10/
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25/
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2021
Last Reviewed:
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10/
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25/
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2021
I. PURPOSE
This Debt Policy serves to articulate Rowan University’s philosophy regarding debt and to establish a framework to help guide decisions regarding the use and management of debt. As the University establishes institutional priorities through its strategic planning processes, including its campus master planning, the University will consider utilizing an appropriate mix of financing and funding sources, including State funding, gifts, internal reserves and investments, and external debt. This policy will help ensure that an appropriate mix of funding sources are utilized, that the University’s debt capacity is allocated strategically, and that Rowan University’s debt levels and types of debt are appropriate and responsible, given the University’s financial strength and risk tolerance levels.
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- The Board of Trustees will review and consider for approval the annual capital project plan as well as each individual debt financing transaction.
- The President and Senior Vice President for Finance are directly responsible for capital debt issuance and debt management.
- Facilities will take the lead role in estimating and defining project costs and obtaining Board of Trustee approval of the projects before debt issuances are constructed.
- Accounting Services will coordinate with Capital Construction and Facilities to oversee the capital budgeting and funding plans for major projects financed with debt.
- This The Senior Vice President for Finance’s office will work with Accounting, Bond Counsel, Legal, Financial Advisors and others to help prepare and review the documents necessary for bond issuance and rating agency reviews and visits.
- Accounting Services will maintain a schedule of current and forecasted debt and associated payment of principal, interest, and fees. They will provide debt service budgets in the annual budget process and individually to all campus units which are assessed debt service. The Director of Accounting is responsible for the accounting, reporting and other disclosures, monitoring compliance with covenants, and arbitrage calculations associated with existing debt issues.
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