|How Debt Compliance is Organized & Authorized
||No written procedures or policy.
||Written procedures but no policy.
||Explicitly included at some length in the quarterly SOX process.
||CFO-approved policy with objectives and Compliance Team and SME responsibilities.
||Treasury and Legal.
||Treasury, Legal and some SMEs.
||Treasury, Legal and many non-Treasury SMEs.
|Debt Agreement Repository
||Incomplete set of debt agreements.
||All agreements in one location. Some may be unconformed for amendments.
||And all agreements are conformed.
||All agreements converted to hyperlinked web pages with consolidated multi-agreement searching.
|Financial Ratios (if at risk)
||Quarterly calculations with stressing/forecasting.
||Monthly/quarterly calculations, stressing and forecasting.
|Permitted Baskets (if at risk)
||Controlling permitted baskets analysis. Treasury controls over new baskets.
|All Other Covenants (aka Non-Financial Covenants)
||No covenant checklist.
||List of the senior debt’s major covenants.
||List of the major debts’ major covenants.
||Comprehensive, risk-based list of all unique agreements.
|Quarterly Non-Financial Covenant Review
||No review or a review of just the agreements.
||Undocumented covenant list review.
||Emails with questions or excerpts. Not prospective.
||Retro- and prospective risk-based, web questionnaires with issue reporting and audit trail.
||No list of due dates.
||Personal Excel or Outlook calendars.
||Departmental calendar of all deliverables.
||Web calendar workflow process with assigned tasks and email reminders and notifications.