E-rate reimbursements coming to the district via a credit from a vendor:

Q: What should be done if e-rate reimbursements are coming to the district via a credit from a vendor?

A:  The district should discuss the situation with the vendor and indicate that State guidelines do not allow credits from vendors, rather refunds should be issued. (See USFR Memorandum No. 161)

Handling check issued by vendor for an e-rate reimbursement:

Q: When a vendor issues a check to us for an e-rate reimbursement how should this be handled?

A:  According to USFR memorandum No. 161, an e-rate fund (other federal projects fund #300-399)should be established. The reimbursement check should be recorded in the e-rate fund. If the related expenditures have been recorded in a different fund (probably the M&O Fund or a capital fund), then these expenditures should be reversed from the other fund, and recorded in the e-rate fund. As the USFR memorandum indicates, the district should try to record the expenditures in the e-rate fund initially, even if the reimbursement has not yet come from the vendor. This is especially important if the expenditures are incurred in one year, and not reimbursed until the following year.