Far West

ALAMEDA, Calif. — The auditor of Bell’s financial reports failed to follow many generally accepted fieldwork audit standards, according to a review published Tuesday by California Controller John Chiang.

The National Federation of Municipal Analysts is urging market participants to take a critical look at the feasibility studies or appraisals that issuers use and cite in bond documents to support the viability of bond-financed projects.

State and local governments will be able to issue a total of $32.441 billion of private-activity bonds under a national volume cap next year — 5.1%, or $1.584 billion more than in 2010.

California's Business, Transportation & Housing Agency is in the early stages of a plan to remake the state's infrastructure investment market, with a clear focus on public-private partnerships.

California officials announced this week that they have signed an agreement for construction of the first state courthouse financed through a public-private partnership.

Some transaction participants appear to be rushing to market questionable Build America Bond, bank-qualified or other municipal bond deals before tax incentives expire at the end of the year and risking Internal Revenue Service enforcement action for violations of tax requirements, according to market sources.

The Securities and Exchange Commission Monday proposed a lengthy new rule to establish a permanent registration system for municipal advisory firms as well as individual advisers that would replace a temporary system for firms the SEC put in place in September.

The Asian Art Museum in San Francisco faces a deepening financial crisis as its bond rating has been downgraded to junk due to accelerated payments on $120 million of debt.

The Senate is expected to vote Tuesday on a measure to keep the federal government and some of its bond-related programs funded through March 4, by which time Republicans will control the House and wield considerable bargaining power in the Senate.

WASHINGTON — The outlook for public power utilities is uncertain for next year, as federal regulators ramp up efforts to implement greenhouse-gas regulations and states and regions push for developing more renewable energy sources.