Debt Management

From Appalachian State University Policy Manual
Revision as of 13:15, 14 April 2017 by Deaskc (talk | contribs) (→‎Scope)

Policy 109

Introduction

1.1 Appalachian State University (“Appalachian” or “University”) views its debt capacity as a limited resource that should be used, when appropriate, to help fund the capital investments necessary for the successful implementation of the University’s strategic vision to prepare its students to lead purposeful lives as engaged global citizens who understand their responsibilities in creating a sustainable future for all. The University recognizes the important role that debt- related strategies may play as it makes the necessary investments in its infrastructure in order to become and remain the destination institution for dedicated students seeking challenging academic programs, engaged faculty and a vibrant campus culture.

1.2 This Policy has been developed to assist the University’s efforts to manage its debt on a long-term, portfolio basis and in a manner consistent with the University’s stated policies, objectives and core values. Like other limited resources, the University’s debt capacity should be used and allocated strategically and equitably.

Scope

Policy Objective and Scope

2.1 The objective of this Policy is to provide a framework that will enable the University’s Board of Trustees (the “Board”) and finance staff to:

  1. Identify and prioritize projects eligible for debt financing;
  2. Limit and manage risk within the University’s debt portfolio;
  3. Establish debt management guidelines and quantitative parameters for evaluating the University’s financial health, debt affordability and debt capacity;
  4. Manage and protect the University’s credit profile in order to maintain the University’s credit rating at a strategically optimized level and maintain access to the capital markets; and
  5. Ensure the University remains in compliance with all of its post-issuance obligations and requirements.

2.2 This Policy is intended solely for the University’s internal planning purposes. The Vice Chancellor for Business Affairs will review this Policy annually and, if necessary, recommend changes to ensure that it remains consistent with the University’s strategic objectives and the evolving demands and accepted practices of the public higher education marketplace.

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