The DCS General Questionnaire℠

An Effective Approach for Managing Compliance

Many treasuries lack the time and the tools to develop an effective compliance process for their non-financial covenants. For these treasuries, an easy-to-implement, cost-effective way to manage their non-financial covenant risks is with our new web-based DCS General Questionnaire℠.

Based on our experience of analyzing thousands of debt agreements, we have identified the 35 non-financial covenants included in most debt agreements. Each covenant has a questionnaire module of 2-5 broadly-written questions on the covenant’s typical requirements. We do not include any pre-conditions, exceptions and other legalese for the SME respondents to struggle to figure out. Instead, we simply ask whether the requirement happened or not.

For example, many companies have an Asset Sale covenant, often qualified by “if material” or “if exceeding $x million”, etc. We simply ask “Was there an Asset Sale?” and if “Yes”, our web questionnaire process – DCS Covenant Manager℠ – requires the SME to provide the facts of the sale.

It is then the Compliance Team’s job to evaluate the facts against their interpreta- tion of the covenant to determine how the facts should be managed. By cutting out the legalese, our questions are easy for your SMEs to accurately answer — and trains them on the actions and events that have covenant implications.

Quickly Implemented & Easily Customized

The 35 covenants are divided into three categories: 15 modules related to compliance with external laws and regulations, 15 related to internal events and conditions, and 5 dealing with common kinds of reporting requirements. You review the module listing, decide which ones you want covered, and assign them to your SMEs.

You can edit the questions or delete unnecessary ones. You can create or add your own covenant questions. The process can be completed in 2-3 hours.

You have a draft email for explaining the questionnaires to your respondents. They are notified by email that their questionnaires are open. They login to your dedicated subdomain at the DCS website and click the links to the module(s) they need to answer. You have a dashboard for monitoring their progress. When needed, automatic email reminders are sent. You receive extensive reporting, including the Issue Evaluation Report for your CFO and the Audit Trail Report for your auditors.

Service Agreement & Fees

The DCS General Questionnaire℠ service agreement includes unlimited users, five hours of technical support, and a mutual confidentiality clause. The annual service fee is $4,750, payable in advance, renewable at $4,000.