WASHINGTON - The Internal Revenue Service is auditing $162.53 million of general fee revenue bonds issued by Auburn University in 2007.
The university disclosed the audit of the Series A tax-exempt bonds in a notice filed with the Municipal Securities Rulemaking Board's EMMA system.
The notice said the letter the IRS sent the university "indicated that the ... bonds had been selected by the Service for a routine examination."
"The University is not aware of any fact or circumstance that would adversely affect the exemption of the interest of the Series 2007-A bonds from federal income taxation.
"This is a voluntary disclosure for information purposes only" and "is not required by Rule 15c2-12," the notice added.
The bonds are being used to finance the acquisition and construction of new housing and dining facilities, including eight dormitory buildings as well as the construction of pedestrian and vehicular road and access projects, additional parking facilities, and general infrastructure facility additions and improvements.
They are special obligations of the university, secured by a pledge of the general fees it has levied on students enrolled at the Auburn campus, which is 55 miles east of Montgomery, Ala., according to the official statement. The bonds also will also be secured by a subordinate pledge of gross revenues from the operation of housing and dining facilities on the campus.
Merchant Capital LLC and Raymond James & Associates, Inc. underwrote the bonds.
Balch & Bingham LLP in Birmingham served as bond counsel.
Underwriters' counsel was Maynard, Cooper & Gale, P.C.