Sheet: Sheet1

          U. S.  DEPARTMENT  OF  AGRICULTURE

 DATE

     RURAL  UTILITY SERVICE

(insert date in cell I2)

 FINANCIAL  FORECAST

PREPARED BY

REVIEW  AND  EVALUATION  WORK  SHEET

(insert name in cell I5)

BORROWER DESIGNATION

(insert designation in cell I7)

 A.

EVALUATION  OF  FINANCIAL  FORECAST

1.

RATE  THE  FINANCIAL  FORECAST  AS  TO  ITS  THOROUGHNESS  OF  PREPARATION,  BASIC  DATA,  REASONABLENESS  OF  ASSUMPTIONS

AND  CRITERIA,  AND  ACCURACY  OF  CALCULATIONS.

YES

NO

2.

a.

HAS  THE  MATTER  BEEN  DISCUSSED  WITH  THE  MANAGER  AND  BOARD?..................................................................

b.

HAS  THE  BOARD  INDICATED  BY  APPROPRIATE  RESOLUTION  THAT  IT  WILL  TAKE  ACTION  

TO  REVERSE SUCH TRENDS  AT  THE  PRESENT  TIME?.......................................................................................................

c.

ARE  THE  MANAGER  AND  BOARD  AWARE  OF  THE  TIMING  NECESSARY  TO  REVERSE  THE  ADVERSE  TRENDS?.

 B.

RUS  FORM  325b,  PRO-FORMA  BALANCE  SHEET

1

DOES  DATA  FOR  LAST  HISTORICAL  YEAR  AGREE  WITH  DATA  FROM  RUS  FORM  7,  PART  C,  FOR  THAT  YEAR?........

2.

DO  ITEMS  ON  THE  BALANCE  SHEETS  AGREE  WITH  THE  OTHER  ELEMENTS  OF  THE  FORECAST?..................................

3.

DO  BALANCE  SHEET  RATIOS  SHOW  ACCEPTABLE  TRENDS?........................................................................................................

 C.

RUS  FORM  325c,  STATEMENT  OF  OPERATIONS

1.

DOES  THE  FORECAST  INDICATE  ACCRUED  AND  CASH  MARGINS  FOR  EACH  OF  THE  YEARS?...........................................

2.

DOES  TIER  EQUAL  1.50  OR  BETTER  IN  EACH  YEAR  OF  THE  FORECAST?................................................................................

3.

DOES  DSC  EQUAL  1.25  OR  BETTER  IN  EACH  YEAR  OF  THE  FORECAST?..................................................................................

4.

ARE  REVENUE  ESTIMATES  BASED  UPON  CONSUMER  AND  kWh  USAGE  ESTIMATES  TAKEN  FROM  A  CURRENT,  RUS-

APPROVED  POWER  REQUIREMENTS  STUDY?.....................................................................................................................................

5.

DO  REVENUE  ESTIMATES  APPEAR REASONABLE?..............................................................................................................................

6.

WERE  CURRENT  RETAIL  RATES  USED  IN  ESTIMATING  REVENUES?............................................................................................

7.

DO  EXPENSE  ESTIMATES  APPEAR  REALISTIC  AND  IN  LINE  WITH  TRENDS  ASSUMPTIONS  AND  ESTIMATED  PLANT

INVESTMENTS?.............................................................................................................................................................................................

8.

ARE  PLANT  INVESTMENTS  BASED UPON  LONG-RANGE  ENGINEERING  AND  TWO-YEAR  WORK  PLAN?.................................

9.

WERE  RUS  PRESCRIBED  DEPRECIATION  RATES  USED?...................................................................................................................

10.0

DO  DEBT  SERVICE  PROJECTIONS  APPEAR  ACCURATE?...................................................................................................................

11.0

ARE  G & T  CAPITAL  CREDITS ALLOCATIONS  CONSIDERED  WHERE  APPLICABLE?.......................................................................

 D.

RUS  FORM  325d,  GENERAL  FUNDS  SUMMARY

1.

IF  MEMBER  OF CFC,  ARE  CTC  SUBSCRIPTIONS  SHOWN  EACH  YEAR?...........................................................................................

2.

ARE  NET  GENERAL  FUNDS - END  OF  YEAR  ADEQUATE?...................................................................................................................

3.

DO  CAPITAL  CREDIT  RETIREMENTS  PROPOSED  FOR  FUTURE  YEARS  CONFORM  TO  MORTGAGE  REQUIREMENTS?........

4.

DOES  THE  GENERAL  FUNDS  SUMMARY  IN  GENERAL  REFLECT  GOOD   CASH  MANAGEMENT?...............................................

Interest rate for supplemental loans is

%.

A 2.  Retail rate increases projected in years 199

 RUS FORM  324   11-73  (Computer generated form, version 2, 12/96)