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- Efficient Process
- Prompt Responses to Client Inquiries
- Personalized Service
The Scope of Arbitrage Rebate and Verification Services and Procedures
Arbitrage Rebate Procedures:
- Review of closing documents and investment activity in order to determine which funds are subject to the arbitrage rebate and yield restriction calculations.
- Analyze the data contained in source documents in order to evaluate whether all bond proceeds are included in the calculation
- Calculate the gross proceeds through a reconciliation of the sources and uses of funds.
- Obtain trust statements directly from your financial institution if not provided by issuer.
- Calculation the bond yield.
- Test for exceptions from rebate.
- Compute the arbitrage rebate amount and determine that yield restrictions are met.
- Prepare a detailed report in an easily understood format, which describes the procedures performed and the amount of any rebate or yield reduction payments owed.
- present cumulative results since the issue date (based upon the frequency requested by issuer)
- Consultation of the results of our report with issuers staff, bond counsel, auditors, trustees and the IRS, if requested.
- Prepare the IRS Form 8038-T for any necessary payments to the IRS.
- Calculate any interest and penalties that are due to the IRS.
- Prepare a waiver of penalty letter.
- Advise you of situations where bond counsel consultation is recommended.
- Prepare IRS Form 8038-R for any issuers applying for a refund of a previous rebate payment.
- Verifying the mathematical accuracy of certain computations relating to the refunding bonds contained in schedules provided to us by the financial advisor or underwriter.
- Calculate the yield on the refunding bonds and compare it to the yield calculated on the escrow investments.
- Calculate the future cash receipts from the escrow investments.
- Calculate the debt service requirements related to the refunded bonds.
- Compare the information contained in our analysis to independent documentation, such as the official statement, escrow agreement, and SLGS Subscription Forms.
- Prepare a report in an easily understood format, which describes the procedures performed and the results of our testing.
Next Step...Request a quote for your tax-exempt bond issue.
Please fill out the quote form and include your e-mail address and contact information. A comprehensive fee and service proposal will be forwarded promptly.