Bond Application Policy: Audit Documentation Requirements
Bond Application Policy: Audit Documentation Requirements
- Purpose
The purpose of this policy is to establish the specific audit documentation required for each governmental unit seeking to borrow through the facilities of the NH Municipal Bond Bank (the “Bond Bank”). These requirements ensure a standardized level of fiscal transparency and risk assessment.
- Primary Requirement
Each application for approval to borrow through the Bond Bank must be accompanied by Annual Audited Financial Statements prepared by a certified public accountant or a firm of certified public accountants.
- Submission Standards
To satisfy the Board’s review process, the following standards must be met:
- Historical Scope: Applicants must provide audited financial statements for the past 1–3 years, as determined by the Board of the Bond Bank on a case-by-case basis. Audited financial statements must not be more than eighteen (18) months old as of the application date unless otherwise approved by the Board of Directors.
- Professional Certification: All statements must be prepared by an independent Certified Public Accountant (CPA) or a firm of certified public accountants.
- Ongoing Compliance: Borrowers are required to submit timely annual audits to the Bond Bank throughout the entire life of the loan/borrowing term.
- Objectives
The Bond Bank mandates these requirements to achieve the following:
- Verification: To independently verify the organization’s financial health.
- Credit Analysis: To assess the creditworthiness of the governmental unit.
- Market Confidence: To maintain the integrity of the Bond Bank’s lending pool for all participating members.
Note to Applicants: Failure to provide certified audits within the timeframe requested by the Board may result in delays or the denial of the borrowing application.