2014 South Bend Financial Assurance Test Report

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SOLID WASTE LAND DISPOSAL FACILITIES (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 tothe 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 sections 2(a)(1) through 2(a)(4) [subdivisions (1) through (4)J or an alternate mechanism described in 2(a)(5)(G) [clause (G)J 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 permitteds 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 sections 2(a)(1) through 2(a)(4) [subdivisions (1) through (4)J or an alternate mechanism described in 2(a)(5)(G) [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 ofany 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 requirements, the permittee shall provide alternate financial assurance. (G) A permittee may propose a financial assurance mechanism for restricted waste sites other than those listed in sections 2(a)(1) through 2(a)(4) and 2(a)(5)(A) through 2(a)(5)(F) [subdivisions (1) through (4) and clauses (A) through (F)J in accordance with the following: (i) The permittee must demonstrate to the satisfaction of the commissioner that the proposed mechanism provides equivalent or greater financial responsibility for closure of all the permitted acreage than the listed mechanisms. (ii) Any proposed mechanism is subject to the approval of the commissioner. (6) The local government financial test option, including the following: (A) This financial test is only available for permittees that are local governments. As used in this subdivision, "local government" means a county, municipality, township, or solid waste management district. (B) A local government permittee that satisfies the following requirements may demonstrate financial assurance up to the amount specified in clause (C): (i) The local government permittee shall meet the following financial component requirements: (AA) The local government permittee shall satisfy the following as applicable: (aa) If the local government permittee has outstanding, rated general obligation bonds that are not secured by insurance, a letter -of- credit, or other collateral or guarantee, the local government permittee shall have a current rating of: (1) Aaa, Aa, A, or Baa as issued by Moody's; or (2) AAA, AA, A, or BBB as issued by Standard and Poor's; Indiana Administrative Code Page 251