Yes, Revenues are used to generate taxable income, which is then used to find income tax expenses, which is used in the CWC calculation.
 

Users used to be required in the allocation of other billings and collection, allocated pursuant to 36.380 (b), effective for the 1998 studies. Now, 1/3 of the expense is allocated to the interstate jurisdiction, and 2/3 of the expense is allocated to the state jurisdiction.

These adjustments represent items necessary for the appropriate calculation of income taxes. The adjustments recognize permanent timing difference between book income and tax income. Examples of expense timing differences are the difference between depreciation recorded on the books and the depreciation allowed for tax purposes. Another example is meals and entertainment expenses, which for tax purposes; only 50% can be taken, while for books the entire amount is used.  

An income tax surcharge is used when the Company's Tax rate differs from the 35% rate that NECA uses as a standard.

Yes, the commission did not provide for separate counts to be used. The same count must be used for the allocation of exchange line investment for COE and CWF. WGA does not agree with this procedure because there are differences, such as rural radio loops, which do not use CWF facilities. This item has been documented by NECA in cost issue 4.16 where they conclude that COE and CWF loops should match. 
 

If, in each jurisdiction, the special access is billed through CABS, then there should be an allocation between message toll (switched services) and special access (50/50 between state and interstate). WGA uses the relationship of access revenues billed split between switched and special access, to allocate the jurisdictional portion of the CABS factor between the two services.
 

Always use the Targeted rate of 11.25 and any applicable state and local rates.
 

This file contains a listing of the frozen factors and their corresponding line numbers. Click here.
 

• Category relationships are frozen, not category amounts. The relationships are frozen within certain accounts.
• This file contains a listing of the categories frozen and their corresponding line numbers. Click here.
 

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No, The LSS algorithm is intended to be used for budgeted or forecast computations, when processing a historical study. Actual LSS amounts provided by NECA/USAC should be input on RMS line 760 with an input on line 759.
 

Yes, WGA recommends that ILEC's perform a line port study. If the resulting factor is less then 30%, we recommend filing the study with NECA/USAC and using the lower percentage. If the line port study is greater then 30%, we recommend using the default factor of 30%. Our theory is to reduce or keep the amount allocated to CCL at a minimum because the CCL revenue requirement is recovered from either end users or from LTS/ICLS which is portable to other carriers if they capture your customer's loop. We believe its in the Company's beset interest to keep the portable amount as low as possible, to avoid becoming a target, or a larger target, for CLECL trying to capitalize on high support areas.
 

If you were in the NECA pools, NECA calculated TIC revenue on behalf of all pool members. Your company should have received a letter on November 6, 2001 which indicated the NECA calculated TIC revenues for the 12 month period ending 6/30/01. If you cannot locate that letter, we suggest you contact your NECA member services representative for the amount. If you were not in the NECA pools, then you should summarize your TIC Revenue from all carrier bills (CABS) from 7/1/00 to 6/30/01 to obtain the amount.
 

It depends. The amounts are used to allocate fixed charges between operating and non-operating. If you do an interest synchronization worksheet, or use the NECA worksheet from Cost issue 3.5, then you don't need to enter any amount.
 

• TRS fees are recorded as "Other Customer Service Expense" and apportioned among the jurisdictions.

• USF is recovered through CCL, by directly assigning it in Part 36. And including it in the CCL Revenue Requirement for Part 69.

• FCC Fees are recorded in Acct. 7240, and are assigned directly to the appropriate jurisdiction. If they cannot be direct assigned, place the amount in the joint use column of line 506 and let RMS allocate based on Acct 2001.
 

When a company's TIC Revenues exceed their Revenue Requirement, the company can only allocate the amount up to the Revenue Requirement, the remaining amount is not recorded anywhere.
 

No, according to NECA Cost Issue 7.2, these amounts are allowed only when a company performs its own lead/lag study.