2019 South Bend Financial Assurance Test Report

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SOLID WASTE LAND DISPOSAL FACILITIES (cc)A ratio of current assets to current liabilities greater than one and one-half (1.5). (BB)Net working capital and tangible net worth each at least six (6)times the sum of the current closure and current post-closure cost estimates. (CC)Tangible net worth of at least ten million dollars ($10,000,000). (DD)Assets located in the United States amounting to at least ninety percent (90%)of the permittee’s total assets or at least six (6)times the sum ofthe current closure and current post-closure costs estimates. (iii)The permittee meets the following four (4)tests: (AA)A current rating for the permittee’s most recent bond issuance of AAA,AA,A,or BBB as issued by Standard and Poor’s or Aaa,Aa,A,or Baa as issued by Moody’s. ~B)Tangible net worth of at least six (6)times the sum of the current closure and current post-closure cost estimates. (CC)Tangible net worth of at least ten million dollars ($10,000,000). (DD)Assets located in the United States amounting to at least ninety percent (90%)of the permittee’s total assets or at least six (6)times the sum of the current closure and current post-closure estimates. (C)To demonstrate the financial test has been met,the permittee shall submit the following documents to the commissioner to establish financial assurance and annually within ninety (90)days after the close of each fiscal year: (i)A letter signed by the permittee’s chief financial officer,demonstrating the applicable criteria have been met. (ii)A copy of an independent certified public accountant’s report examining the permittee’s financial statements for the latest completed fiscal year. (iii)A special report from the permittee’s independent certified public accountant to the permittee stating the following: (AA)The certified public accountant has compared the data that the letter from the chief financial officer specifies as having been derived from the independently audited,year-end financial statements for the latest fiscal year with the amounts in the financial statements. (BB)In connection with that procedure,no matters came to the attention ofthe certified public accountant that caused the certified public accountant to believe that the specified data should be adjusted. (D)If at any time the permittee fails to meet the financial test,the permittee shall establish one of the financial assurance mechanisms described in subdivisions (1)through (4)or an alternate mechanism described in clause (G) within one hundred twenty (120)days after the end ofthe fiscal year for which the year-end financial data shows that the permittee no longer meets the requirements. (E)The commissioner may disallow use of this test on the basis of qualifications in the opinion expressed in the independent certified public accountant’s report examining the permittee’s financial statements.An adverse opinion or a disclaimer of opinion will be cause for disallowance.Other qualifications may be cause for disallowance if,in the opinion of the commissioner,they indicate the permittee does not meet the requirements of this subdivision.The permittee shall establish one of the financial assurance mechanisms described in subdivisions (1)through (4)or an alternate mechanism described in clause (G)within thirty (30)days after notification of the disallowance. (F)If a permittee using clause (B)(iii)for the financial test has a current bond rating of BBB-as issued by Standard and Poor’s or Baa3 as issued by Moody’s for the permittee’s most recent bond issuance,the commissioner may request that the permittee submit the following information to the department on a quarterly basis until the bond rating is upgraded: (i)The current bond rating of the most recent issuance. (ii)The name of the rating service. (iii)The date of issuance of the bond. (iv)The date of maturity of the bond. (v)The last credit rating action. (vi)An explanation of any events such as a decrease in the bond ratings,as well as inclusion on a negative credit watch list. This quarterly update will supplement the annual financial update specified in clause (C).On the basis of the submitted information,if the commissioner finds that the permittee no longer meets the restricted waste financial test Indiana Administrative Code Page 251