DEP Form 62-673.900(4)(I) "Financial Assurance Tests for Closure, Water Management and Long-Term Care Costs" - Florida

What Is DEP Form 62-673.900(4)(I)?

This is a legal form that was released by the Florida Department of Environmental Protection - a government authority operating within Florida. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on July 2, 2005;
  • The latest edition provided by the Florida Department of Environmental Protection;
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  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

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Financial Assurance Tests for Closure, Water Management and Long-Term Care Costs
Instructions:
ƒ
Complete all sections for both the most recent and the previous fiscal years and, in the spaces provided, include the calculated
ratios and the indication of pass or fail. Complete the information pertaining to either Alternative I or Alternative II. If information
is not available on reported financial statements, indicate as NA and attach a statement explaining why this information is not
available.
An explanation must be provided for any deviations of the “Previous Year” information shown below from what was disclosed in
ƒ
the previous year’s report.
ƒ
Attach a copy of the audited financial statements for the current year, along with the auditor’s report.
Check this box if there is an adverse opinion, a disclaimer of opinion or a “going concern qualification” in the most recent annual audit
[See Rule 62-
.
673.640(5)(b), Florida Administrative Code (F.A.C.)] If this box is checked, THIS FINANCIAL TEST MAY NOT BE USED.
1
Part 1:
Financial Information
2
Amount, in millions
Item
Description
Most recent fiscal year
Previous fiscal year
1
Current cost of closure estimate
$
$
1a
3
Amount of credit for cash or third party instrument
($
($
)
1b
)
Net current cost of closure estimate to be covered by financial test
$
$
2
Asset retirement obligation
$
$
3
Closure obligation [the greater of line 1b or line 2]
$
$
4
Total liabilities
$
$
5
Tangible net worth
$
$
6
Cash flow from operations
$
$
7
Current assets
$
$
8
Current liabilities
$
$
9
Tangible U.S. assets
$
$
10
4
Bond rating of most recently issued non-guaranteed debenture bond
1
See Parts 3 and 4 for Source of Financial Information and Definitions
2
Reported per United States Generally Accepted Accounting Standards (U.S. GAAP) and in U.S. dollars.
3
Attach identifying list, description and amount of cash or third party instrument.
4
The bond rating must have been issued within the twelve months prior to the completion of this form and applicable to an unsecured and outstanding bond with a maturity of at
least five years remaining and a maturity value of the greater of $100 million or 5% of the company’s total assets by either Moody’s, Standard and Poor’s or Fitch IBCA/Duff &
Phelps and must indicate an investment grade rating. The reporting company must provide an attachment that details the issue date, outstanding amount of the issue, the date of
the rating, and the identity of the rating service.
1
DEP Form 62-673.900(4)(i)
Effective July 2, 2005
Financial Assurance Tests for Closure, Water Management and Long-Term Care Costs
Instructions:
ƒ
Complete all sections for both the most recent and the previous fiscal years and, in the spaces provided, include the calculated
ratios and the indication of pass or fail. Complete the information pertaining to either Alternative I or Alternative II. If information
is not available on reported financial statements, indicate as NA and attach a statement explaining why this information is not
available.
An explanation must be provided for any deviations of the “Previous Year” information shown below from what was disclosed in
ƒ
the previous year’s report.
ƒ
Attach a copy of the audited financial statements for the current year, along with the auditor’s report.
Check this box if there is an adverse opinion, a disclaimer of opinion or a “going concern qualification” in the most recent annual audit
[See Rule 62-
.
673.640(5)(b), Florida Administrative Code (F.A.C.)] If this box is checked, THIS FINANCIAL TEST MAY NOT BE USED.
1
Part 1:
Financial Information
2
Amount, in millions
Item
Description
Most recent fiscal year
Previous fiscal year
1
Current cost of closure estimate
$
$
1a
3
Amount of credit for cash or third party instrument
($
($
)
1b
)
Net current cost of closure estimate to be covered by financial test
$
$
2
Asset retirement obligation
$
$
3
Closure obligation [the greater of line 1b or line 2]
$
$
4
Total liabilities
$
$
5
Tangible net worth
$
$
6
Cash flow from operations
$
$
7
Current assets
$
$
8
Current liabilities
$
$
9
Tangible U.S. assets
$
$
10
4
Bond rating of most recently issued non-guaranteed debenture bond
1
See Parts 3 and 4 for Source of Financial Information and Definitions
2
Reported per United States Generally Accepted Accounting Standards (U.S. GAAP) and in U.S. dollars.
3
Attach identifying list, description and amount of cash or third party instrument.
4
The bond rating must have been issued within the twelve months prior to the completion of this form and applicable to an unsecured and outstanding bond with a maturity of at
least five years remaining and a maturity value of the greater of $100 million or 5% of the company’s total assets by either Moody’s, Standard and Poor’s or Fitch IBCA/Duff &
Phelps and must indicate an investment grade rating. The reporting company must provide an attachment that details the issue date, outstanding amount of the issue, the date of
the rating, and the identity of the rating service.
1
DEP Form 62-673.900(4)(i)
Effective July 2, 2005
Part 2:
Financial Tests
Most recent fiscal year
Previous fiscal year
Item
Result
Standard
Pass?
Result
Standard
Pass?
ALTERNATIVE I: PASS THE FOLLOWING CRITERIA
11
[1a] Total liabilities (line 4) divided by tangible net worth (line 5)
< 1.5
< 1.5
12
[1b] Cash flow from operations (line 6) divided by the amount of total liabilities (line 4)
> 0.1
> 0.1
13
[1b] Cash flow from operations (line 6) divided by the amount of total liabilities (line 4) averaged
> 0.1
> 0.1
over the past two years
14
[1b] Current assets (line 7) divided by current liabilities (line 8)
>1.5
>1.5
15
Pass 12, 13 or 14?
16
[1c] Tangible net worth (line 5 ) divided by the closure obligation (line 3)
≥ 6.0
≥ 6.0
17
[1d] Tangible assets located in the U.S. (line 9), divided by the closure obligation (line 3)
≥ 10.0
≥ 10.0
18
Pass Alternative I? [Pass 11, 15, 16 and 17]
ALTERNATIVE II: PASS THE FOLLOWING CRITERIA
19
[2a] Current bond rating on the most recently issued unsecured and outstanding bond with a
Investment
Investment
maturity of at least five years remaining
grade
grade
20
[2b] Tangible net worth (line 5 ) divided by the closure obligation (line 3)
≥ 2.0
≥ 2.0
21
[2c] Tangible assets located in the U.S. (line 9), divided by the closure obligation (line 3)
≥ 5.0
≥ 5.0
22
Pass Alternative II? [Pass 19, 20 and 21]
2
DEP Form 62-673.900(4)(i)
Effective July 2, 2005
Part 3:
Source of financial information
Item
Source
Description
Asset retirement obligation
Balance sheet
The total liability related to the retirement of assets, per Statement of
Financial Standards Number 143.
Cash flow from operations
Statement of cash flows
This is the sum of net income and depreciation, amortization, depletion, and
changes in operating accounts, with adjustments for other non-cash income
and expense items. Cash flow from operations was introduced with the
Financial Accounting Standards Board Statement No. 95, effective for fiscal
years after July 15, 1988.
Current assets
Balance sheet
The sum of assets that can be converted into cash within one year or one
operating cycle.
Current liabilities
Balance sheet
The sum of liabilities due within one year.
Tangible net worth
Balance sheet
The equity of a company, less the amount of intangible assets shown as an
asset of the company. Tangible net worth does not include deferred taxes
or investment tax credits.
Tangible U.S. assets
Balance sheet
The difference between the amount of tangible U.S. assets and liabilities
associated with the U.S. assets and operations.
Total liabilities
Balance sheet
The sum of current and non-current (that is, long-term) obligations of the
company.
Part 4:
Definitions
Item
Definition
Current cost of closure estimate
An estimate of the costs of closure, including closing, long-term care, and water
management, based on the stack system configuration as of the end of its useful
life. [See Rule 62-673.640(2), F.A.C.]
U.S. generally accepted accounting principles
The set of standards that consist of a hierarchy of principles promulgated from a
(U.S. GAAP)
many sources, including from the Financial Accounting Standards Board.
Investment grade bond rating
The rating of a bond that is evaluated to be of Investment Grade (e.g., BBB or
better rating using Standard and Poor’s) by either Moody’s, Standard and Poor’s, or
Fitch IBCA/Duff & Phelps for an unsecured and outstanding bond with a maturity
of at least five years remaining.
3
DEP Form 62-673.900(4)(i)
Effective July 2, 2005
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