Goto Section: 54.715 | 54.719 | Table of Contents
FCC 54.717
Revised as of October 1, 2011
Goto Year:2010 |
2012
§ 54.717 Audits of the Administrator.
The Administrator shall obtain and pay for an annual audit conducted by
an independent auditor to examine its operations and books of account
to determine, among other things, whether the Administrator is properly
administering the universal service support mechanisms to prevent
fraud, waste, and abuse:
(a) Before selecting an independent auditor, the Administrator shall
submit preliminary audit requirements, including the proposed scope of
the audit and the extent of compliance and substantive testing, to the
Office of Inspector General.
(b) The Office of Inspector General shall review the preliminary audit
requirements to determine whether they are adequate to meet the audit
objectives. The Office of Inspector General shall prescribe
modifications that shall be incorporated into the final audit
requirements.
(c) After the audit requirements have been approved by the Office of
Inspector General, the Administrator shall engage within thirty (30)
calendar days an independent auditor to conduct the annual audit
required by this paragraph. In making its selection, the Administrator
shall not engage any independent auditor who has been involved in
designing any of the accounting or reporting systems under review in
the audit.
(d) The independent auditor selected by the Administrator to conduct
the annual audit shall be instructed by the Administrator to develop a
detailed audit program based on the final audit requirements and shall
be instructed by the Administrator to submit the audit program to the
Office of Inspector General. The Office of Inspector General shall
review the audit program and make modifications, as needed, that shall
be incorporated into the final audit program. During the course of the
audit, the Office of Inspector General may direct the Administrator to
direct the independent auditor to take any actions necessary to ensure
compliance with the audit requirements.
(e) During the course of the audit, the Administrator shall instruct
the independent auditor to:
(1) Inform the Office of Inspector General of any revisions to the
final audit program or to the scope of the audit;
(2) Notify the Office of Inspector General of any meetings with the
Administrator in which audit findings are discussed; and
(3) Submit to the Chief of the Wireline Competition Bureau any
accounting or rule interpretations necessary to complete the audit.
(f) Within 105 calendar days after the end of the audit period, but
prior to discussing the audit findings with the Administrator, the
independent auditor shall be instructed by the Administrator to submit
a draft of the audit report to the Office of Inspector General Audit
Staff.
(g) The Office of Inspector General shall review the audit findings and
audit workpapers and offer its recommendations concerning the conduct
of the audit or the audit findings to the independent auditor.
Exceptions of the Office of Inspector General to the findings and
conclusions of the independent auditor that remain unresolved shall be
included in the final audit report.
(h) Within fifteen (15) calendar days after receiving the Office of
Inspector General's recommendations and making any revisions to the
audit report, the Administrator shall instruct the independent auditor
to submit the audit report to the Administrator for its response to the
audit findings. At this time the auditor also must send copies of its
audit findings to the Office of Inspector General. The Administrator
shall provide the independent auditor time to perform additional audit
work recommended by the Office of Inspector General.
(i) Within thirty (30) calendar days after receiving the audit report,
the Administrator shall respond to the audit findings and send copies
of its response to the Office of Inspector General. The Administrator
shall instruct the independent auditor that any reply that the
independent auditor wishes to make to the Administrator's responses
shall be sent to the Office of Inspector General as well as the
Administrator. The Administrator's response and the independent
auditor's replies shall be included in the final audit report;
(j) Within ten (10) calendar days after receiving the response of the
Administrator, the independent auditor shall file with the Commission
the final audit report.
(k) Based on the final audit report, the Inspector General may take any
action necessary to ensure that the universal service support
mechanisms operate in a manner consistent with the requirements of this
Part, as well as such other action as is deemed necessary and in the
public interest.
[ 67 FR 13227 , Mar. 21, 2002, as amended at 68 FR 18907 , Apr. 17, 2003;
71 FR 38267 , July 6, 2006]
Subpart I--Review of Decisions Issued by the Administrator
Goto Section: 54.715 | 54.719
Goto Year: 2010 |
2012
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