Fulton County Schools chief financial officer Robert Morales told the board that the federal government failed to make an interest payment due this month on a $35.63 million qualified school construction bond and the district had to wire $842,767.75 to the Bank of New York on Jan. 3 to avoid defaulting on the bond. Morales said it’ s not yet clear why the feds failed to make the interest payment they are obligated to make according to the bond agreement.
“The district is actively working with the U.S. Treasury to resolved the subsidy reimbursement request issue,” Morales told the board. “Once resolved, the district would be reimbursed for the wire transfer.” Morales said he is not sure how long it will be before the district is reimbursed. Superintendent Robert Avossa said it is also not clear if the federal government will refund the district the interest it would have earned on the $842,000.
About the Author
