Understanding Municipal Revenue Bonds
What is bond classification? definition and meaning

Other sponsored activities means programs and projects financed by Federal and non-Federal agencies and organizations which involve the performance of work other than instruction and organized research. Examples of such programs and projects are health service projects and community service programs.

Federal awarding agencies are required to follow internal control compliance requirements in OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control. See annually published Bureau of Indian Affairs list of Indian Entities Recognized and Eligible to Receive Services. Incorrect amounts are overpayments or underpayments that are made to eligible recipients . An improper payment also includes any payment that was made to an ineligible recipient or for an ineligible good or service, or payments for goods or services not received .

What is bond classification? definition and meaning

The program income must be used for the purposes and under the conditions of the Federal award. If authorized by Federal regulations or the Federal award, costs incidental to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the Federal award. Records that identify adequately the source and application of funds for federally-funded activities.

Lpl Financial Research

Micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. Purchase cards can be used for micro-purchases if procedures are documented and approved by the non-Federal entity. Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit. The non-Federal entity is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost.

When establishing documentation requirements for payments, agencies should ensure that all documentation requirements are necessary and should refrain from imposing additional burdensome documentation requirements. Demonstrates that audit findings are either invalid or do not warrant auditee action. Federal agency leadership sending a clear message that continued failure to correct conditions identified by audits which are likely to cause improper payments, fraud, waste, or abuse is unacceptable and will result in sanctions. Compliance supplement means an annually updated authoritative source for auditors that What is bond classification? definition and meaning serves to identify existing important compliance requirements that the Federal Government expects to be considered as part of an audit. Auditors use it to understand the Federal program’s objectives, procedures, and compliance requirements, as well as audit objectives and suggested audit procedures for determining compliance with the relevant Federal program. Class of Federal awards means a group of Federal awards either awarded under a specific program or group of programs or to a specific type of non-Federal entity or group of non-Federal entities to which specific provisions or exceptions may apply.

  • Bonds that are priced above par—higher than face value—are said to trade at a premium, while bonds that are priced below their face value—below par—trade at a discount.
  • For information on determining bonding requirements and to download a comprehensive list of all businesses licensed to offer surety products in this State by the Arizona Department of Insurance, visit our bond information page.
  • The non-Federal entity is exempt from the pre-procurement review in paragraph of this section if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part.
  • Investment in such bonds may be motivated by a lack of other investment or spending opportunities, and/or by an appeal to patriotism.
  • A governmental department or agency unit that receives more than $35 million in direct Federal funding must submit its indirect cost rate proposal to its cognizant agency for indirect costs.
  • To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available.

Special test equipment does not include material, special tooling, real property, and equipment items used for general testing purposes or property that with relatively minor expense can be made suitable for general purpose use. Labor surplus area concern means a concern that together with its first-tier subcontractors will perform substantially in labor surplus areas. Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production, or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price. Studies, analyses and evaluations, i.e., contracted services that provide organized, analytical assessments/evaluations in support of policy development, decision-making, management, or administration.

Glossary Of Supply Chain Terms

The non-Federal entity’s procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase.

  • Any acceptance of common items as allocable to the terminated portion of the Federal award must be limited to the extent that the quantities of such items on hand, in transit, and on order are in excess of the reasonable quantitative requirements of other work.
  • In some instances (e.g., discretionary research awards), this will be limited to the requirement to submit technical performance reports .
  • Porter’s five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979.
  • An Insured Bond is a bond with interest and principle payments insured by a third party.
  • Since a common pool is established for each major function of the institution, a separate indirect (F&A) cost rate would be established for each of the major functions described in Section A.1 under which Federal awards are carried out.
  • The License Classification Requirements form provides the minimum number of years of experience and the types of examinations required for a Qualifying Party to be eligible for a specific license classification.

Under this simplified procedure, the institution’s most recent annual financial report and immediately available supporting information must be utilized as a basis for determining the indirect (F&A) cost rate applicable to all Federal awards. The institution may use either the salaries and wages or modified total direct costs as the distribution basis. They include the salaries and expenses of the head of such organization, assistants, and immediate staff, together with the salaries and expenses of personnel engaged in supporting activities maintained by the organization, such as stock rooms, print shops, and the like. This category also includes an allocable share of fringe benefit costs, general administration and general expenses, operation and maintenance expenses, and depreciation. Appropriate adjustments will be made for services provided to other functions or organizations. In the absence of the alternatives provided for in Section A.2.d, the expenses included in this category must be grouped first according to common major functions of the institution to which they render services or provide benefits.

Investing In Bonds

No proposal costs of past accounting periods will be allocable to the current period. Pre-award costs are those incurred prior to the effective date of the Federal award or subaward directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency.

Costs of prosecution of claims against the Federal Government, including appeals of final Federal agency decisions, are unallowable. A final decision by an appropriate Federal official to debar or suspend the non-Federal entity, to rescind or void a Federal award, or to terminate a Federal award by reason of a violation or failure to comply with a statute, regulation, or the terms and conditions of the Federal award. Charges for work performed on Federal awards by faculty members having only part-time appointments will be determined at a rate not in excess of that regularly paid for part-time assignments. The non-Federal entity establishes a consistent written definition of work covered by IBS which is specific enough to determine conclusively when work beyond that level has occurred.

The Term Of The Bond

Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the non-Federal entity awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. The non-Federal entity must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with Federal funds as provided to property owned by the non-Federal entity. Federally-owned property need not be insured unless required by the terms and conditions of the Federal award. Values for non-Federal entity contributions of services and property must be established in accordance with the cost principles in subpart E of this part. If a Federal awarding agency authorizes the non-Federal entity to donate buildings or land for construction/facilities acquisition projects or long-term use, the value of the donated property for cost sharing or matching must be the lesser of paragraph or of this section.

What is bond classification? definition and meaning

The problem that large organizations run into is that they typically need far more money than the average bank can provide. A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate to debtholders. As a member of the PBUS, and like to support other companies which follow the association’s bylaws.

Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software includes those development costs capitalized in accordance with generally accepted accounting principles .

There are 12 District Feds, headquartered in Boston, New York, Philadelphia, Cleveland, St. Louis, San Francisco, Richmond, Atlanta, Chicago, Minneapolis, Kansas City and Dallas. The Dodd–Frank Wall Street Reform and Consumer Protection Act is a federal https://accountingcoaching.online/ statute in the United States that was signed into law by President Barack Obama on July 21, 2010. The Act implements financial regulatory reform sponsored by the Democratically controlled 111th United States Congress and the Obama administration.

Class 6 Bonds To Total Bonds

The Federal Reserve’s monthly index of industrial production and the related capacity indexes and capacity utilization rates cover manufacturing, mining, and electric and gas utilities. The industrial sector, together with construction, accounts for the bulk of the variation in national output over the course of the business cycle. The industrial detail provided by these measures helps illuminate structural developments in the economy. Private employment includes persons employed at nonfarm establishments outside federal, state and local government. Government or public sector employment includes employees at Federal, state and local governments.

IShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience and a global line-up of 900+ ETFs, iShares continues to drive progress for the financial industry. IShares funds are powered by the expert portfolio and risk management of BlackRock. WAL is the average length of time to the repayment of principal for the securities in the fund.


Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio. US government agency responsible for data collection, analysis and forecasting of energy-related statistics in support of efficient markets, sound policymaking and transparency. The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. An obligation rated CCC is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation.

Breakeven yield allows a decision-maker to have knowledge about the minimum volume yield required to earn a specific rate of return on a product or service. The Bloomberg Barclays Long-Term Government/Corporate Bond Index is an unmanaged index that includes fixed-rate debt issues rated investment grade or higher by Moody’s Investors Services, Standard & Poor’s Corporation, or Fitch Investor’s Service, in order. With a callable bond, you might not receive the bond’s original coupon rate for the entire term of the bond, and it might be difficult or impossible to find an equivalent investment paying rates as high as the original rate.

Puttable Bond

Charges for work performed on Federal awards by faculty members during the academic year are allowable at the IBS rate. Except as noted in paragraph of this section, in no event will charges to Federal awards, irrespective of the basis of computation, exceed the proportionate share of the IBS for that period. IBS is defined as the annual compensation paid by an IHE for an individual’s appointment, whether that individual’s time is spent on research, instruction, administration, or other activities. IBS excludes any income that an individual earns outside of duties performed for the IHE.

Audit findings (e.g., internal control findings, compliance findings, questioned costs, or fraud) that relate to the same issue must be presented as a single audit finding. Where practical, audit findings should be organized by Federal agency or pass-through entity. Proposal costs are the costs of preparing bids, proposals, or applications on potential Federal and non-Federal awards or projects, including the development of data necessary to support the non-Federal entity’s bids or proposals. Proposal costs of the current accounting period of both successful and unsuccessful bids and proposals normally should be treated as indirect (F&A) costs and allocated currently to all activities of the non-Federal entity.

A gross pledge is a stronger pledge, because it is a pledge on revenues before operating or other expenses. A net pledge is a pledge of revenues after the enterprise pays for operating and other expenses.

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