The Internal Revenue Service is auditing $220.74 million of general obligation and refunding bonds issued by the San Diego Unified School District in 2010 and 2012.
The school district announced the audit in an event notice filed with the Municipal Securities Rulemaking Board’s EMMA system on July 9.
In a letter dated May 21, the school district was notified by the IRS that the bonds had been selected for an examination to “determine compliance with federal tax requirements.”
The district said in the notice that it believes the bonds complied with all applicable provisions of the Internal Revenue Code and will cooperate with the IRS in the examination.
The $56.87 million of GO bonds issued in March 2012 were used to refund and defease some of the district’s previously issued bonds, according to the official statement.
Citi was managing underwriter. De La Rosa & Co., Goldman Sachs & Co and J.P. Morgan also were underwriters. Orrick, Herrington & Sutcliffe LLP was bond counsel.
The $163.87 million of GO bonds issued in August 2010 were issued to construct and improve various school facilities, the official statement said.
Orrick, Herrington was bond counsel. Citi and Goldman Sachs were co-managing underwriters. Bank of America Merrill Lynch, De La Rosa , and Loop Capital Markets LLC were also underwriters.
The school district serves an area of 211 square miles and encompasses most of the populated portions of the city of San Diego. The district is governed by a five-member board of education nominated by district and elected at large to serve alternating four-year terms. The school district operates more than 300 facilities including preschool through high school.
