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Federal Register / Vol. 86, No. 37 / Friday, February 26, 2021 / Rules and Regulations
6 A description of the advertised prices of service offerings by competitors in the same area;
7 A network design and all supporting information as detailed in 1740.64.
8 Resumes of key management personnel, a description of the organizations readiness to manage a broadband services network, and an organizational chart showing all parent organizations and/or holding companies including parents of parents, etc., and all subsidiaries and affiliates;
9 A legal opinion that:
i Addresses the applicants ability to enter into the award documents;
ii Describes all material pending litigation matters;
iii Addresses the applicants ability to pledge security as required by the award documents; and iv Addresses the applicants ability to provide broadband service under state or tribal law.
10 Summary and itemized budgets of the infrastructure costs of the proposed project, including if applicable, the ratio of loans to grants, and any other sources of outside funding. The summary must also detail the amount of matching and other funds and the source of these funds. If the matching and other funds are coming from a third party, a commitment letter and support that the funds are available must also be submitted. Matching and other funds must be deposited into the RUS Pledged Deposit Account at the closing of the award;
11 A detailed description of working capital requirements and the sources of those funds;
12 Unqualified, comparative audited financial statements for the previous calendar year from the date the application is submitted as detailed in 1740.63;
13 The historical and projected financial information required in 1740.63;
14 All information and attachments required in the RUS Online application system;
15 A scoring sheet, analyzing any scoring criteria set forth in the funding announcement opening the application window;
16 A list of all the applicants outstanding and contingent obligations as required in 1740.63;
17 All environmental information as required by 1740.27;
18 Certification from the applicant that agreements with, or obligations to, investors do not breach the obligations to the government under the standard Award Documents located on the Agencys web page, especially
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distribution requirements, and that any such agreements will be amended so that such obligations are made contingent to compliance with the Award Documents. Such certification should also specifically identify which, if any, provisions would need to be amended;
19 If service is being proposed on tribal land, a certification from the proper tribal official that they are in support of the project and will allow construction to take place on tribal land.
The certification must:
i Include a description of the land proposed for use as part of the proposed project;
ii Identify whether the land is owned, held in Trust, land held in fee simple by the Tribe, or land under a long-term lease by the Tribe;
iii If owned, identify the landowner;
and iv Provide a commitment in writing from the landowner authorizing the applicants use of that land for the proposed project; and 20 Additional items that may be required by the Administrator through a notice in the Federal Register.
e Material representations. The application, including certifications, and all forms submitted as part of the application will be treated as material representations upon which RUS will rely in awarding grants and loans.
1740.61 Evaluation for technical and financial feasibility.

a A project is financially feasible when the applicant demonstrates to the satisfaction of RUS that it will be able to generate sufficient revenues to cover expenses; will have sufficient cash flow to service all debts and obligations as they come due; will have a positive ending cash balance as reflected on the cash flow statement for each year of the forecast period; and, by the end of the forecast period, will meet at least two of the following requirements: A minimum TIER requirement of 1.2, a minimum DSCR requirement of 1.2, and a minimum current ratio of 1.2. In addition, applicants must demonstrate positive cash flow from operations at the end of the forecast period.
b For any funding option that includes grant funds, evaluation criteria for scoring the application will be included in the Federal Register notice that opens an application window.
Grant applications submitted for a certain category will be ranked and awarded based only on those applications included in that category.
c The Agency will determine technical feasibility by evaluating the
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Applicants network design and other relevant information in the application.
1740.62 Evaluation of Awardee operations.

a RUS may send a team to the awardees facilities to complete a Management Analysis Profile MAP of the entire operation. MAPs are used by RUS as a means of evaluating an Awardees strengths and weaknesses and ensuring that awardees are prepared to fulfil the terms of the award. Once an applicant accepts an award offer, RUS
may schedule a site visit as soon as possible.
b RUS reserves the right not to advance funds until the MAP has been completed. If the MAP identifies issues that can affect the operation and completion of the project, those issues must be addressed to the satisfaction of RUS before funds can be advanced.
Funding may be rescinded if following a MAP, the agency determines that the awardee will be unable to meet the requirements of the award.
1740.63

Financial information.

a The Applicant must submit financial information acceptable to the Agency that demonstrates that the Applicant has the financial capacity to fulfill the grant, loan, and loan/grant combination requirements in this part and to successfully complete the proposed project.
1 Applicants must submit unqualified, comparative, audited financial statements for the previous year from the date the application is submitted. If an application is submitted and the most recent year-end audit has not been completed, the applicant can submit the previous unqualified audit that has been completed. If qualified audits containing a disclaimer or adverse opinion are submitted, the application will not be considered.
i An applicant can use the consolidated audit of a parent as long as the parent fully guarantees the loan, or in the case of a grant, guarantees that construction will be completed as approved in the application or will repay the grant to RUS.
ii If the applicant has more than one parent, then each parents audits must be submitted, and each parent must fully guarantee the award.
iii For governmental entities, financial statements must be accompanied with certifications as to unrestricted cash that may be available on a yearly basis to the applicant.
2 Applicants must provide detailed information for all outstanding and contingent obligations. Copies of existing notes, loan and security
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