BEAD applicants must submit audited financials and other documentation to demonstrate they have the financial capacity to fulfill the grant and to successfully complete the project. 

At the time of application submission, applicants will also need to disclose any other applications they or their affiliates have submitted or plan to submit (such as to another broadband grant program), and every broadband deployment project they or affiliates are undertaking or have committed to undertake, using public funds

Questions to ask before completing this section

Will you need to provide financial capacity certifications in a pre-qualification round?

  • Depending on your state, you may need to gather this information months before the application window opens. If this is the case, prioritize certifying financial capacity early in 2024.

Do you have affiliates that will also need to participate in financial disclosures?

  • Affiliates means a person who (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For purposes of this, the term “own” means to own an equity interest (or the equivalent thereof) of more than 10%.

What other projects do you or your affiliates have that are publicly funded?

  • This includes projects funded under:
    • The Families First Coronavirus Response Act
    • The Consolidated Appropriations Act, 2021 
    • The American Rescue Plan of 2021 
    • Any federal Universal Service Fund high-cost program (e.g., RDOF, CAF)
    • Any state or local universal service or broadband deployment funding program

What to prepare before the application window opens 

Audit requirements
  1. Financial statements from the prior fiscal year that are audited by an independent certified public accountant. This process can take months, so make sure you have a plan for getting this done well ahead of time.
  2. If you do not have audited financials, you must submit unaudited financial statements from the prior fiscal year and certify that you will provide audited financial statements from the prior fiscal year at a deadline specified by your state. Set aside ample time for audited financial statements as they can take upward of four months, or more, to complete depending on where you operate and the complexity of your financials. 
Public funding information 

States will require applicants to disclose any application you or your affiliates have submitted or plan to submit and every broadband deployment project that you or your affiliates are undertaking or have committed to undertake at the time of the application using public funds. 

For each project applicants will need to provide:

  • The speed and latency of the broadband service to be provided (as measured and/or reported under the applicable rules).
  • The geographic area to be covered. 
  • The number of unserved and underserved locations committed to serve (or, if the commitment is to serve a percentage of locations within the specified geographic area, the relevant percentage).
  • The cost of service to the consumer.
  • The matching commitment, if any, is provided by you or your affiliates.
Applicant certifications

In addition to the above information you will be required to certify that your entity:

  • Is financially qualified to meet the obligations associated with the project. 
  • Has available funds for all project costs that exceed the amount of the grant.
  • Will comply with all program requirements, including service milestones. 
  • Has and will continue to have sufficient financial resources to cover eligible costs for the project until the Eligible Entity authorizes additional disbursements.

Questions? Get in touch. 

If you have any additional questions or would like help with your BEAD application, please contact us.