IRS closes audit of refunding bonds used by Gettysburg College
WASHINGTON -- The Internal Revenue Service has taken no action regarding tax-exempt refunding bonds that were issued for Gettysburg College, after closing an audit that appears to have been randomly initiated, said a senior college official.
IRS officials announced last year that the agency was implementing a data-driven approach to municipal bond audits.
Over the summer the IRS notified the Adams County, Pa., Industrial Development Authority and Gettysburg College that it was auditing $67 million of refunding bonds issued by the ACIDA for the college in 2010.
But in a Sept. 19 letter the IRS said it “has formally closed the audit with no change in the tax-exempt status,” according to an event notice filed on the Municipal Securities Rulemaking Board's EMMA website by the Adams County IDA.
“Our understanding is that the IRS routinely examines municipal debt issuances to determine compliance with federal tax requirements and the ACIDA/Gettysburg College Revenue Bonds, Series 2010 was selected on random basis,” Christopher Delaney, associate vice president for finance and associate treasurer of Gettysburg College, told The Bond Buyer.
The 2010 Adams County refunding bonds were used to refund two sets of bonds issued in 2008 for Gettysburg College.
The 2008 Series A bonds included $18.295 million used to help finance the construction of a Center for Athletics, Recreation and Fitness.
The $31.38 million of Series B bonds issued later the same year covered additional costs for the same center and other “miscellaneous capital improvements.” But most of the proceeds were used to refund a 2002 bond issue of $28 million through the Pennsylvania Higher Education Facilities Authority.
Gettysburg College broke ground for the John F. Jaeger Center for Athletics, Recreation, and Fitness in June 2008.
The 55,000-square-foot facility opened in late 2009 with amenities that include a swimming facility with a spectator area, a student lounge, a multipurpose room for classes, and a climbing wall.
The college’s website says the facility cost $25 million overall and that part of the construction costs were paid by a $1.2 million donation from the alumnus for whom the facility is named.
The private independent liberal arts college, which opened in 1832, says on its website that its 200-acre campus has 72 buildings adjacent to Gettysburg National Military Park.