Goto Section: 54.419 | 54.422 | Table of Contents
FCC 54.420
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 54.420 Low income program audits.
(a) Independent audit requirements for eligible telecommunications carriers.
Companies that receive $5 million or more annually in the aggregate, on a
holding company basis, in Lifeline reimbursements must obtain a third party
biennial audit of their compliance with the rules in this subpart. Such
engagements shall be agreed upon performance attestations to assess the
company's overall compliance with rules and the company's internal controls
regarding these regulatory requirements.
(1) For purposes of the $5 million threshold, a holding company consists of
operating companies and affiliates, as that term is defined in section 3(2)
of the Communications Act of 1934, as amended, that are eligible
telecommunications carriers.
(2) The initial audit must be completed one year after the Commission issues
a standardized audit plan outlining the scope of the engagement and the
extent of compliance testing to be performed by third-party auditors and
shall be conducted every two years thereafter, unless directed otherwise by
the Commission. The following minimum requirements shall apply:
(i) The audit must be conducted by a licensed certified public accounting
firm that is independent of the carrier.
(ii) The engagement shall be conducted consistent with government accounting
standards (GAGAS).
(3) The certified public accounting firm shall submit to the Commission any
rule interpretations necessary to complete the biennial audit, and the
Administrator shall notify all firms subject to the biennial audit
requirement of such requests. The audit issue will be noted, but not held as
a negative finding, in future audit reports for all carriers subject to this
requirement unless and until guidance has been provided by the Commission.
(4) Within 60 days after completion of the audit work, but prior to
finalization of the report, the third party auditor shall submit a draft of
the audit report to the Commission and the Administrator, who shall be
deemed authorized users of such reports. Finalized audit reports must be
provided to the Commission, the Administrator, and relevant states and
Tribal governments within 30 days of the issuance of the final audit report.
The reports will not be considered or deemed confidential.
(5) Delegated authority. The Wireline Competition Bureau and the Office of
Managing Director have delegated authority to perform the functions
specified in paragraphs (a)(2) and (a)(3) of this section.
(b) Audit requirements for new eligible telecommunications carriers. After a
company is designated for the first time in any state or territory the
Administrator will audit that new eligible telecommunications carrier to
assess its overall compliance with the rules in this subpart and the
company's internal controls regarding these regulatory requirements. This
audit should be conducted within the carrier's first twelve months of
seeking federal low-income Universal Service Fund support.
[ 77 FR 12974 , Mar. 2, 2012, as amended at 77 FR 38534 , June 28, 2012]
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Goto Section: 54.419 | 54.422
Goto Year: 2014 |
2016
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