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Friday, June 2, 2023
HomeNewsLocal newsSecuritization Board Sets Policies, Learns of Interest Earnings

Securitization Board Sets Policies, Learns of Interest Earnings

Gov. Albert Bryan Jr., pictured at the recent spring revenue estimating conference, chairs the Matching Fund Special Purpose Securitization Corporation Board of Directors. (File photo)

The Matching Fund Special Purpose Securitization Corporation Board of Directors has a long name but its meeting Wednesday was short, lasting only a half hour.

The board was formed as part of the plan to derail the Government Employees’ Retirement System trajectory toward bankruptcy.

Its formation, according to Gov. Albert Bryan Jr., enables a method of refinancing and reducing debt. The first report it heard Wednesday was from the accounting firm Causey Demgen and Moore PC.

Bill Glasso, a senior partner with the firm, told the board that higher-than-expected interest rates have benefitted its portfolio. He said bonds had been earning a 2.25 percent interest rate and it was hoped that new investments would earn 2.5 percent but actually they earned 2.75 percent interest. He added that this increase in interest could earn the Securitization Corporation $1 million this year.

The other items on the board’s agenda concerned its inner workings.

The Public Finance Authority has assumed the administrative duties of the corporation. It appeared that some members of the board were in the PFA meeting room during the Zoom conference. Nathan Simmonds, the director of finance administration at the Public Finance Authority, gave reports during the meeting. He outlined $7,000 in expenses incurred by the PFA and requested that amount be reimbursed. The board approved his request.

The board also adopted the PFA’s procurement procedures manual, as amended, to conduct procurement and contracting activities on behalf of the Matching Fund Special Purpose Securitization Corporation.

In other business, the board adopted a financial policy where purchases under $5,000 would not have to be approved by the board.

Directors and officers will now be protected from liability as a contract with ACE American Insurance Company (a Chubb USA Company), was approved for liability coverage for the corporation.

Simmonds alerted the board members to the fact that a contract for an audit of the board was being finalized and the audit should be completed by June 30.

The board is an independent, autonomous public corporation and government instrumentality, with a legal existence separate from the government of the Virgin Islands. Members besides the governor include Sheila Robinson, Michelle Dreyer, Pamela Jasinski, and Kristine Eppes.

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