Section V: Budget Assurances and Intent to use USF Discounted Services

What to Include:

Must provide for a sufficient budget to acquire and support the non-discounted elements of the plan:  the hardware, software, professional development, and other services that will be needed to implement the strategy.

Include a Statement of Intent to use the Universal Services Fund discounts and list the eligible services and equipment that you have included in Form 470/471. A list of possible services is provided below. Choose only those that apply to your library.

Identify funding sources (e.g. county or city general fund or grant), one-time and on-going expenditures, and if appropriate, prioritize these purchases. Be sure to include Point 2 (below) in your plan to address those items that are necessary to support your technology plan, but not eligible for E-rate discounts.

It is difficult to develop a formula for projecting the costs for a three-year plan because of uncertainties about what technology will be come available and what the costs will be. One way to forecast future technology expenditures is to measure where your library technology dollars are being spent currently. Use your current expenditures to forecast where you may expend dollars over the course of the plan.

Sample Wording (Be specific to YOUR plan; don't list a service if you did not request that service on 470/471.) These samples should be revised to fit your library circumstances.

1.  The XYZ Public Library intends to use the Universal Service discounts for the following services and equipment (choose appropriate):

• Purchase and installation of telecommunications services: (or continue monthly charges for x if no installation necessary) local and long distance telephone service
  

    cell phone
    PCS (wireless)
    alarm line
    800 service
    data circuit (DSL) used for phone service
    phone service through Centrex system
    transmission charges for videoconferencing
        (All ICN libraries  should have this)

• Purchase and installation of Internet

    Internet connectivity
    Internet access fee
    Continue monthly Internet connectivity charges

• Purchase and installation of eligible internal connections equipment: internal wiring, a portion of a network file server, hubs, CSU/DSU, router
  

BE SURE TO INCLUDE ACTUAL BUDGET INFORMATION  Additional budget assurances are now required.  It is not enough to state the non-discounted amounts will be taken from the regular budget as was printed in plans in the past.  Some additional information is needed.  Auditors must be assured you have/had the money to pay for services requested and goals outlined in your plan. Complexity of the plan is dependent upon services requested.

It has been reported that technology plans have been denied by SLD because they did not have sufficient evidence to prove that the agency had sufficient funds.  All
technology plans submitted now must have either option 1 or option 2 in your plan:

Option 1.  Submit a budget sheet with actual $$ in it. 

This section should include budget estimates for staff training and maintenance and upgrades of computers if for Internet.  Sample budget sheet or use the tool Tech Atlas to create a budget sheet. 

Option 2.  Words to the effect:  In fiscal year 20xx, the XYZ Library spent $$$ on hardware, software and professional development to support e-rate activities. Money from the general fund of our operating budget will be used. We anticipate to spend the same amount in 20xx and 20xx to support library e-rate activities.

If audited you will be expected to provide actual budget documention.  For information on what you should be prepared to provide, read the SLD Web site guidance for a selective review.  This details the budget information that you would be required to have. 

http://www.universalservice.org/_res/documents/sl/pdf/selective-reviews/srir-sample.pdf

Note:  If you include in your budget statement that you will use grant funds to pay for the discounted portion, you must be able to prove that the grants dollars were secured when you submitted the 471 Form.

In order to certify your plan, the State Library must have some assurance that you have the funds available to pay for the non-discounted costs.  Including the budget sheet or the above wording in point 2 will aid in this.  You do not have to submit entire budgets, but if audited you will have to provide that information.