WASHINGTON — The Internal Revenue Service has begun auditing $12.93 million of general obligation bonds issued in 2006 by the Brighton School District No. 27J in Colorado.
The school district, located in Broomfield and Weld counties, disclosed the audit in an event notice posted on the Municipal Securities Rulemaking Board’s EMMA site on Friday.
A total of $74.0 million of the Series 2006C bonds were issued, but the CUSIP number on the event notice is for the last of a series of serial bonds that matures on Dec. 1, 2028.
The bonds were used to be used finance the construction, and equipping of a new elementary school and two new middle schools, as well as improvements to existing school buildings, according to the official statement. School officials could not be reached for comment.
The bonds were underwritten by Stifel Nicolaus & Co. Kutak Rock, LLP was bond counsel and Caplan and Earnest LLC was counsel to the district.
Meanwhile, the IRS has notified the Metropolitan Water Reclamation District of Greater Chicago that it has closed an audit of $193.71 million of general obligation refunding bonds issued in 2007 with no change to the bonds’ tax-exempt status.
The issuer received the IRS notification on Nov. 13 and disclosed the examination’s completion in an event notice filed with the Municipal Securities Rulemaking Board’s EMMA system on Thursday.
The IRS notified the district on Aug. 15 that it was auditing the bonds as part of an initiative involving advance refunding bonds.
As part of the market segment approach to examinations that the IRS began in fiscal year 2013, the agency is examining some advance refunding bonds every year, Other market segments that the IRS’ tax-exempt bond office are examining every year include form 8038-T forms, tax and revenue anticipation notes, 501(c)(3) bonds and solid waste bonds.
The water reclamation district bonds were issued to advance refund bonds issued in 2006, according to bond documents. Chapman and Cutler LLP and Pugh, Jones, Johnson & Quandt, P.C. were co-bond counsel. A syndicate led by Banc of America Securities LLC underwrote the bonds.