S ?

SIMON FRASER UNIVERSITY

University Secretariat

MEMORANDUM

To: ?

Senate

From: ?

Alison Watt, Secretary, Senate Committee on Agenda and Rules

Subject:

?

Bond Funds Allocation Policy

Date: ?

24 September, 2003

Attached is a proposed Bond Funds Allocation Policy that has been developed by

Pat Hibbitts, Vice-President, Finance and Administration for approval by the Board

of Governors. SCAR determined that this policy should be circulated to Senate

for information.

CC: ?

P. Hibbitts

Attachment

3186 Strand Hall Simon Fraser University, Burnaby, B.C.

?

Phone: 604 291-3495 Fax: 604 2914860

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Bond Funds Allocation

1. Preamble

In June of 2003 Simon Fraser University issued a $150 million, 40 year, senior

unsecured debenture. This objective of this policy and the attached procedures are to

provide stewardship over the use of these funds. These debt funds are to be used in

projects for which there is an identifiable revenue source distinct from operating grant

funding from the provincial government. Eligible projects would include, for

example, ancillary operations with user fees, projects funded through federal granting

councils, and projects which present advancement opportunities in the long term.

2.

Policy

To provide stewardship, the following criteria will apply in assessing potential bond

funded projects:

• Degree of certainty of cash inflows and outflows

• Probability of repayment of principal and interest

• Debt coverage ratio

• Assessment of alternative for repayment of principal and interest

• Other relevant factors

The Vice President Finance & Administration is responsible for the assessment of

projects and will make recommendation to the President. To aid in this process, the

Vice President Finance & Administration will form a Bond Project Review

Committee. The committee will consist of SFU staff with appropriate technical

expertise and where necessary, up to four external "experts". A project must also

have the support of the responsible Vice President. Projects requiring funds of less

then $1 million are not considered appropriate for bond funding.

The BPRC will receive requests in the format and by the process and procedures

outlined in the Bond Funds Allocation Procedures document.

3. Interpretation

Questions of interpretation or application of this policy shall be referred to the

President whose decision shall be final.

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