Ace rus school and symposium
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ACE/RUS School and Symposium. Pro-forma Financial Requirement May 9, 2012. Shawn Arner Director, Southern Division RUS Telecom. P rogram [email protected] (202) 720-0800 Richard Anderson Operations Chief, Northern Div. RUS Telecom. Program [email protected]

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ACE/RUS School and Symposium

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Ace rus school and symposium

ACE/RUS School and Symposium

Pro-forma Financial Requirement

May 9, 2012

Shawn Arner

Director, Southern Division

RUS Telecom. Program

  • [email protected]

  • (202) 720-0800

  • Richard Anderson

  • Operations Chief, Northern Div.

  • RUS Telecom. Program

  • [email protected]

  • (202) 720-0733


Ace rus school and symposium pro forma financial requirement

ACE/RUS School and SymposiumPro-forma Financial Requirement

  • Why collect pro-forma financials?

  • New format – not new requirement

  • What is required?

  • Common problems

2


Ace rus school and symposium pro forma financial requirement1

ACE/RUS School and SymposiumPro-forma Financial Requirement

  • Why collect pro-forma financials?

    • FCC USF & ICC Reform Order and FNPRM of 11/18/11 rendered old toll calculation method obsolete

    • Completes transition begun for non-op. and non-reg. net income and op. expenses

    • Makes financial data required more like Broadband application

3


Ace rus school and symposium pro forma financial requirement2

ACE/RUS School and SymposiumPro-forma Financial Requirement

  • New format – not new requirement

    • 7 CFR 1751.51(a) requires a finding of feasibility and security for the loan based on self-liquidation, economic feasibility, growth in equity, and other factors determined to be relevant by the Administrator

    • 7 CFR 1737.22(b) states that an application should contain 3 years of certified financial statements, toll settlement statements and related data, and any other supporting data required by the Administrator

4


Ace rus school and symposium pro forma financial requirement3

ACE/RUS School and SymposiumPro-forma Financial Requirement

  • What is required?

    • 4 years’ Operating Reports + 3 years’ audits

    • Pro-forma balance sheet, income statement, and statement of cash flows (paper and electronic)

    • Supporting schedules, including Network Access Revenues ,Schedule S (paper and electronic)

    • Assumptions and reasons for each line item, plus a narrative and certification for Schedule S

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Ace rus school and symposium pro forma financial requirement4

ACE/RUS School and SymposiumPro-forma Financial Requirement

  • Common problems

    • Missing materials

    • Internal inconsistencies

    • Inadequate schedules or support

6


Ace rus school and symposium pro forma financial requirement5

ACE/RUS School and SymposiumPro-forma Financial Requirement

4.a. Missing materials

  • Not all parts provided (lacking schedules)

  • No certification provided (Schedule S-a or b)

  • No assumptions or reasons provided

  • Explanation not provided for every line item

  • Pro-formas not in required format

  • Electronic format not provided

7


Ace rus school and symposium pro forma financial requirement6

ACE/RUS School and SymposiumPro-forma Financial Requirement

4.b. Internal inconsistencies

  • Pro-formas do not match Operating Reports

  • Schedules do not agree with one another

8


Ace rus school and symposium pro forma financial requirement7

ACE/RUS School and SymposiumPro-forma Financial Requirement

4.c. Inadequate schedules or support

  • Assumptions and reasons problems

    • Insufficient explanation of assumptions

    • Need to explain the “how and why” projections were derived

  • Insufficient Detail and Explanations of Network Access Revenues (schedule S)

    • Need to break into components such has HCLS, ICLS, LSS, as appropriate.

    • Need to tie in exactly how the projections were calculated – cannot be generic

  • Cash Flow shows negative cash balance – no explanation

9


Ace rus school and symposium1

Pro-forma Financial Requirement

ACE/RUS School and Symposium

QUESTIONS?

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