Township Council Prepares for New SEC Requirements
Wednesday, August 13, 2014 • 10:45pm
SPARTA, NJ - The Township Council approved a resolution to hire an outside contractor, Phoenix Advisors, LLC of Bordentown, NJ, as a Continuing Disclosure Specialist. They were hired to review and monitor all relevant and required information regarding the issuance of Bonds.
Deputy Mayor Jerry Murphy inquired if this was something that could be done in- house. Township manager Bill Close explained that, in light of the US Securities and Exchange Commission’s announced Municipalities Continuing Disclosure Cooperation Initiative, it would be prudent to hire the outside firm. “It will serve to have another layer of checks and balances, another layer of protection,” said Close.
TheMCDC Initiative requires that all Bond information be updated and corrected going back the past five years. Phoenix Advisors, LLC will be preparing a review of all pertinent reports and filings. Should any amendments or corrections be recommended, they will complete a questionnaire that is part of the new MCDC Initiative. If they determine it is necessary, filing the questionnaire will trigger a process with the SEC to move ahead with a corrective action plan. Failing to file a questionnaire when one was necessary would result in more punitive action including fines.
With such potential consequences the township council approved the measure to hire the financial advisors. The mandate was originally scheduled to go into effect on September 10, 2014. “That date has since been pushed back to December but we wanted to be sure to have all of our ducks in a row,” said Mayor Molly Whilesmith.