In a negotiated sale, which of the following expenses does GFOA recommend not be included in the underwriter's fee?

In a negotiated sale, the Government Finance Officers Association (GFOA) recommends that commuting costs to and from work by the underwriter's staff should not be included in the underwriter's fee. This recommendation is rooted in the principle that underwriter fees should only encompass costs that are directly related to the services rendered for the specific bond issuance. Commuting costs are considered general business expenses that do not pertain to the execution of the bond transaction itself.

In contrast, underwriter's legal fees, marketing costs for bond issuance, and fees for financial advisory services are directly related to the process of structuring, marketing, and executing the sale of bonds. These expenses are integral to the services that underwriters provide and therefore are typically included in the overall fee structure for a negotiated sale. By excluding commuting costs, GFOA emphasizes the importance of clearly itemizing relevant expenses to ensure transparency and accountability in the underwriting process.