HD Faculty's liquidity facilities require the designated Auditors, from time to time, to perform quarterly evaluations on HD Faculty's financing needs, plans, and alternatives and its flexibility to accomplish its financing program in respect to stress, without damaging its creditworthiness. The Internal Auditor is required to provide regular reports, where applicable, quarterly, in respect to HD Faculty's:

Capital Strength;

Level of short-term debt of floating rate debt, if any;

Funding philosophy;

Hedging of interest rate and currency risks;

Inventory Management;

Overall assessment of near-term sources of funds compared with requirements for funds (internal financial self-sufficiency compared with the need for external financing);

Capital spending flexibility;

Asset redemption potentials – nature of assets and undervalued liabilities;

Trend of marketable securities (such as portfolio shares price and market capitalization);

Banking and other financial institution relationships; and

Debt covenants, if any.