Borrowing Controls and Debt Management Policy

Responsible Unit: Finance | Executive lead: CFO 
Created: 2008 | Reviewed/Revised: 5/2011; 6/2016; 1/2023 | Effective: 6/2024 
Compliance: NWCCU 2.E.1, 2.E.2, 2.E.3
Approving Body: Board | Classification: Institution-wide 


Policy:  

  1. Financing agreements: Following review by the Finance Committee, the Board of Trustees shall approve all financing agreements, amendments, or modifications. The Board of Trustees may delegate authority to the president or chief officers of the university to execute approved financing agreements within stated parameters. 
  2. Long-term debt accounts: Long-term debt account balances shall be monitored monthly to ensure the proper interest and principal payments are reconciled 
  3. Capital leases: All leases shall be analyzed upon signing to determine whether they are operating or capital leases and to comply with Generally Accepted Accounting Principles (GAAP) regarding the classification of leases. 
  4. Debt covenants: Debt covenants shall be calculated as required by the terms of the debt agreement, at least annually. 

Definitions: 
Capital leases are classified as fixed assets and depreciated over the term of the lease. 

Related documents: 
Property and Equipment Management policy