University of North Dakota Faculty/Staff Newsletter

Tax-Exempt Bond Post Issuance Tax Compliance policy announced

President Kelley signed UND policy 2.31, Tax-Exempt Bond Post Issuance Tax Compliance, on July 17. This is a new policy that complies with Internal Revenue Service restrictions.

Policy Statement: The University of North Dakota (UND) must comply with all applicable federal laws and regulations which apply to tax-exempt and certain taxable bonds issued to finance facilities and equipment owned or used by UND. The Office of Vice President for Finance and Operations will create and maintain written guidelines and procedures to document the processes to be used to ensure compliance with applicable federal laws and regulations, and will designate the positions and individuals responsible for these processes.

Reason for Policy: UND finances facilities and equipment through the issuance of governmental bonds, qualified 501(c)(3) tax-exempt bonds, and certain taxable bonds that are subject to tax-exempt bonds laws and regulations. The tax-exempt status of bonds remains throughout the life of the bonds, but may be lost if certain applicable federal laws are not satisfied. Other consequences can result from failure to comply with Internal Revenue Service (IRS) restrictions relating to arbitrage, timing and use of bond proceeds, and other aspects of a bond issue.

To view this policy document in its entirety (including procedures), visit the Division of Finance and Operations’ policy website:

Contact Jennifer Rogers, special projects assistant to the VPFO, if you have questions: 777.4392.

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