Division of Finance & Administration

Private Business Use

The University of Vermont is subject to post-issuance bond compliance requirements as a result of its outstanding tax-exempt bond issues. One such requirement is Private Business Use (PBU) compliance. Facilities financed with tax-exempt financing must be monitored on a consistent and regular basis throughout the life of the financing to ensure compliance with the limitations on tax-exempt private business use. For each tax-exempt debt issuance, the University is required to record, update and retain private business use activity documentation to substantiate compliance.

In brief, private business use means:

Use (directly or indirectly)
Of the “facilities” (facilities financed by, or the proceeds of, a tax-exempt financing)
In a “trade or business” (any activity carried on by a person other than a natural person)
Carried on by a “nonqualified user.” (Qualified users are limited to state or local government units. Note: the federal government and its agencies are NOT considered qualified users.)

Responsibilities for Officials and Delegates - Year-round Monitoring and Yearly Reporting

Monitor all non-UVM space usage contracts, agreements, leases, and non-contract/informal space usage arrangements in bond-financed spaces for your area, as designated in the space survey.
Create methods to review, oversee, and collect space usage data for yearly PBU questionnaires, such as having all space usage arrangements flowing through your office.
Record, update, and retain all documentation of any private business use.
Forward all usage arrangements (new, amended, terminated) pertaining to bond-financed spaces to Treasury.Management@uvm.edu throughout the year.
Advise individuals responsible for the specific space usage arrangements not processed by SPA (non-SPA) to track buildings, room numbers, and days of usage.
Supply information regarding any Non-institutional Agency (not UVM paid) designations made in the space survey under your purview to Treasury Management.
Collect data and complete yearly questionnaire and biennial training.

Annual Questionnaire

To ensure compliance with University policy, all administrators of units that benefit from tax-exempt bond proceeds and bond-financed property are required to complete an annual questionnaire and biennial training.