8.2.5 Written Procedures
The GFOA Best Practice Post Issuance Policies and Procedures recommends that issuers adopt and document post issuance procedures. These may be included in debt management policies or other agency resources. Further, written procedures should describe the review process to ensure compliance and describe the actions that will be taken to correct any non compliance.
The IRS notes that an issuer that has “established and followed written procedures promoting post issuance compliance [is] less likely to violate the federal tax requirements related to its bonds than an issuer that does not have procedures.”129 For further guidance on the development of post issuance tax compliance procedures, issuers may refer to the National Association of Bond Lawyers (NABL) and GFOA white paper, “Considerations for Developing Post-Issuance Tax Compliance Procedures.”
Issuers should consistently and carefully monitor regulations, rules, and new interpretive guidance addressing changes in market practices and expectations, including the enactment of new state and local laws and amendments to existing statutes related to the administration of debt. In response to noted changes, issuers should update applicable policies and compliance procedures in a timely manner