Hospitals Lead Muni Sector in Audit Disclosure

HFA Partners  |  October 28, 2015

According to a recent report by MuniNet Guide, hospitals continue to lead the municipal sector in the timely filing of audits, but many providers still lag behind the higher SEC standards applicable to public corporations.


The MuniNet Guide report says that in 2014, hospitals took on average 112 days to file audits on EMMA, the MSRB's Electronic Municipal Market Access website.

State and counties reported the slowest pace: they took on average 175 days to file.

Stale audits remain one of the biggest hurdles to improving transparency in the municipal bond markets.

In the corporate world, the SEC mandates public companies to file within 60 to 90 day, depending on size.

In the muni world, SEC Rule 15c2-12 does require borrowers to disclose certain material events within 10 days, but does regulate financial or utilization information.

Most not-for-profit hospitals are required by continuing disclosure agreements (CDA) to post audited financial statements on EMMA within 120 days, although some are allowed as much as 180 days.

According to MuniNet Guide, 29% of hospitals reported within 90 days and 71% within 120 days

Many hospitals are also required by their CDA's to disclose quarterly financial information.


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This material is intended for general information purposes only and does not constitute legal advice. For legal issues, readers should consult legal counsel. To discuss this article or municipal advisory services, email info@hfapartners.com or call 888-699-4830. HFA Partners, LLC is an Independent Registered Municipal Advisor registered with the Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB) under the Dodd-Frank Act of 2010.
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