UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

**Bulletin 1744-2**

**SUBJECT: [Instructions For Preparing Financial and Statistical Reports
For Telecommunications Borrowers, Form 479]{.underline}**

**TO:** All RUS Telecommunications Borrowers

**EFFECTIVE DATE** : Date of Approval.

**EXPIRATION DATE**: Four years from date of approval.

**OFFICE OF PRIMARY INTEREST**: Assistant Administrator -
Telecommunications Program

**INSTRUCTIONS**: This bulletin revises Bulletin 1744-2, Instructions
for Preparing Financial and Statistical Reports for Telecommunications
Borrowers, Form 479, dated December 22, 1995.

**PURPOSE**: To provide instructions for all Telecommunications
borrowers required to submit operating reports to RUS (Form 479). These
instructions implement the reporting requirements in the borrowers\'
mortgage agreements with RUS.

![](media/image1.png){width="2.839583333333333in"
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**Date**

**Roberta D. Purcell**

**Assistant Administrator**

**Telecommunications Program**

**Table of Contents**

**[Page No.]{.underline}**

1\. GENERAL 3

2\. SPECIFIC INSTRUCTIONS 4

PART A Balance Sheet 4

PART B Statements of Income and Retained Earnings or Margins 12

PART C Subscriber (Access Line) and Route Mile Data 17

PART D System Data 18

PART E Toll Data 19

PART F Funds Invested in Plant During Year 19

PART G Investments in Affiliated Companies 20

PART H Current Depreciation Rates 20

**1. GENERAL**

**1.1** The Financial and Statistical Report makes available to RUS
information for analyses in connection with the security of Government
loan funds. It is believed that this report, when supplemented by such
additional information as may be desired by an individual borrower, will
also be of great assistance to boards of directors and managers of the
system in successfully coping with various management problems. The
report provides RUS with sufficient information to prepare an annual
financial and statistical report of all RUS borrowers\'
telecommunications operations. The report is available as both an
electronic and a paper form.

**1.2** The report prepared by borrowers must accurately reflect the
financial data as shown by the books of account, and should be prepared
in accordance with the detailed instructions contained in this manual.
Maximum benefits can be derived from the reports only when they are
correctly prepared. Careful preparation of the report also eliminates
additional correspondence. After the report has been prepared it should
be carefully reviewed and verified for both clerical and typographical
errors. Those using the electronic form should then submit both an
electronic copy and a signed original to RUS. Those preparing a paper
only form should submit a signed original and two copies to RUS.

**1.3** This Bulletin may be reproduced fully, or in part, without
RUS\'s approval, in quantities sufficient to meet your needs.

**1.4** The Financial and Statistical Report, RUS Form 479, Pages 1 thru
4, is composed of eight parts as outlined in the table of contents.

**1.4.1** Each item of the report form has been numbered for reference
purposes. The information required for Parts A and B can be obtained
from the general ledger after all postings for the period have been made
and the subsidiary ledgers balanced. The information for Part C can be
obtained from service orders and subscriber data records.

**1.4.2** The account number shown opposite the item titles in the
instructions are those used in the Federal Communications Commission\'s
Uniform System of Accounts for Telecommunications Companies 47 CFR Part
32. Some states recommend account numbers different from those
prescribed by the FCC. In those cases the account titles correspond
generally to those used in this report form.

**1.4.3** All dollar amounts should be to the nearest whole dollar. All
percentage entries should be carried out to two decimal places. All
totals and subtotals should be the sums of the rounded figures used.

**1.4.4** It is important that all items be completed. In those cases
where the answer is none or non-applicable, this should be indicated
with a zero (0).

**1.4.5** In preparing the reports, show in parentheses (-) all deficit
or other amounts that are the reverse of normal. Do not use parentheses
to indicate that an amount is to be deducted when the format provides
for the deduction to be made. (For example, do not enclose Line 22, Part
A, in parentheses.) NOTE: Values entered as negative in the electronic
form will be shown in parentheses automatically.

**1.4.6** In those instances where more than one account is to be
reported on the same line, the sum of the account balances as shown on
the books should be inserted.

**1.4.7** Please do not alter, modify, or write in or over any items in
the printed form. Refer to the detailed instructions in this manual to
determine the proper line on which to report each item or submit
questions to RUS concerning proper reporting. Exercise care in inserting
the required data, particularly that which cannot be derived from other
data on the report.

**1.4.8** If significant adjustments are made as result of an audit,
amended reports should be prepared and submitted to RUS. DO NOT DELAY
SUBMISSION OF ANY REPORT BECAUSE OF A PENDING AUDIT. All reports should
be submitted within 30 days after the close of the reporting period.

**1.5** CERTIFICATION: This report must be signed and dated by the
manager and an officer of the borrower.

2.  **SPECIFIC INSTRUCTIONS**

**[PART A. BALANCE SHEET]{.underline}**:

The Balance Sheet section of the Form 479 includes two columns for each
side of the balance sheet, one entitled Balance Prior Year and the other
entitled Balance End of Period. As the names indicate, the data as of
the end of the period covered by the report should appear in the second
column. The first column, should have data from one year before the as
of date of the Form 479. For an annual report, this means that the first
column will contain the balance as of the end of the last year while the
second will contain the balance of the end of the year just concluded.
Even if the data for the year just ended is unaudited, be sure to use
audited data for the prior year.

**FCC Account Numbers**

**Line Class A Class B**

**[Number]{.underline} [Part A Items]{.underline}
[Companies]{.underline} [Companies]{.underline}**

**ASSETS:**

**Line 1. CASH AND EQUIVALENTS:**

Insert the sum of the accounts

covering cash in banks, petty cash, working 1130.1 1120

funds, temporary investments available for 1130.2 1120.11

general use, and amounts of cash on special 1130.3 1120.12

deposit, other than in sinking and other 1140 1120.13

special funds provided for elsewhere, 1150 1120.21

to pay dividends, interest, and other 1160 1120.31

debts when such payments are due 1 years 1120.32

or less from the date of deposit.

**Line 2. CASH - RUS CONSTRUCTION FUND-TRUSTEE ACCOUNT**:

Insert the balance of this account

representing cash received from RUS, 1130.2 1120.12

RTB, and FFB, and cash equity funds

supplied by the borrower under the

terms of the loan contract.

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Lines 3 and 4. AFFILIATES and NON-AFFILIATES**

The same three items of data are requested

in lines 3 and 4 for affiliated and

non-affiliated companies, respectively.

Specific instructions for the three items

are shown below.

**Lines 3. and 4., Item a. TELECOM. ACCOUNTS RECEIVABLE:**

Insert the sum of accounts receivable

for services rendered or products sold 1180 1180

to customers, agents, and authorized less 1181 less 1181

collectors, as well as unbilled toll

and unbilled carrier revenues, less

allowances for these accounts.

**Lines 3. and 4., Item b. OTHER ACCOUNTS RECEIVABLE:**

Insert the sum of the amounts currently

due, and not provided for in other 1190 1190

accounts, less allowance for less 1191 less 1191

uncollectible amounts.

**Lines 3. and 4., Item c. NOTES RECEIVABLE:**

Insert the sum of the amounts of 1200 1200

money receivable on demand or within less 1201 less 1201

one year from the date of issue,

less allowance for uncollectible

amounts.

**Line 5. INTEREST AND DIVIDENDS RECEIVABLE:**

Insert the sum of the amounts of interest 1210 1210

accrued to the date of the balance sheet

on bonds, notes, and other commercial

paper owned, on loans made and the amount

of dividends receivable on stocks owned.

**Line 6. MATERIAL-REGULATED:**

Insert the amount of Materials and 1220.1 1220.1

Supplies used in regulated activities. 1220.3 1220.3

**Line 7. MATERIAL-NONREGULATED:**

Insert the amount of Property Held 1220.2 1220.2

for sale or lease.

**Line 8. PREPAYMENTS:**

Insert the sum of the balances in 1290 1280

accounts covering prepaid rents, 1300 1280.1

prepaid taxes, prepaid insurance, 1310 1280.2

prepaid directory expense, and other 1320 1280.3

prepayments. 1330 1280.4

1280.5

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 9. OTHER CURRENT ASSETS:**

This item shall include the sum of 1350.1 1350.1

all account balances of current 1350.2 1350.2

asset accounts not previously 1350.3 1350.3

covered by lines 1 thru 8. 1350.4 1350.4

**Line 10. TOTAL CURRENT ASSETS:**

Insert the sum of lines 1 thru 9.

**Line 11a. INVESTMENT IN AFFILIATED COMPANIES - RURAL**

**DEVELOPMENT:**

Insert the sum of investments in 1401 1401

equity or other securities issued or

assumed by affiliates for Rural

Development purposes only. Also

include any advances to affiliates

(for rural development) not subject

to current settlement.

**Line 11b. INVESTMENT IN AFFILIATED COMPANIES - NON RURAL**

**DEVELOPMENT**

Insert the sum of investments in 1401 1401

equity or other securities issued or

assumed by affiliates. Also include

any advances to affiliates not

subject to current settlement. DO

NOT include Rural Development

investments in affiliated companies.

**Line 12a. OTHER INVESTMENTS - RURAL DEVELOPMENT:**

Insert the sum of the balances of

Rural Development investments in

accounts for Other Investments,

Sinking and Other Fund Accounts.

**Line 12b. OTHER INVESTMENTS - NON RURAL DEVELOPMENT:**

Insert the sum of the balances in 1402.1 1402.1

accounts for Other Investments, 1402.11 1402.11

Sinking and Other Fund Accounts. 1402.2 1402.2

Include any advances to non- 1402.3 1402.3

affiliated companies not subject to 1407 1407

current settlement. DO NOT include 1408 1408

Other Investments for Rural

Development. Rural Development

investments are to be included on

line 12a above.

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 13. NON-REGULATED INVESTMENTS:**

Insert the sum of accounts covering 1406.1 1406.1

non-regulated investments. DO NOT 1406.2 1406.2

include non-regulated investments in 1406.3 1406.3

Rural Development. Rural Development

Investments are to be included on

lines 11 or 12 above.

**Line 14. OTHER NONCURRENT ASSETS:**

Insert the sum of other noncurrent 1410 1410

assets accounts.

**Line 15. DEFERRED CHARGES:**

Insert the sum of deferred charges. 1438 1438

1439 1439

**Line 16. JURISDICTIONAL DIFFERENCES:**

Insert the sum of accounts related 1500 1500

to jurisdictional differences.

**Line 17. TOTAL NONCURRENT ASSETS:**

Insert the sum of lines 11 thru 16.

**Line 18. TELECOMMUNICATIONS PLANT IN SERVICE:**

Insert the sum of the balances shown on 2001.1 2001.1

the books representing the cost of 2001.2 2001.2

telecommunications plant, such as land,

buildings, central office equipment,

outside plant, station equipment, furniture

and office equipment, and vehicles and other

work equipment used to provide service.

**Line 19. PROPERTY HELD FOR FUTURE USE:**

Insert the amount of the accounts containing 2002 2002

the original cost of the property acquired

to be used in telecommunications service

within two years.

**Line 20. PLANT UNDER CONSTRUCTION:**

Insert the sum of the balances in 2003.1 2003.1

accounts for construction projects 2003.2 2003.2

in progress. 2003.3 2003.3

2004.1 2004.1

2004.2 2004.2

2004.3 2004.3

**Line 21. PLANT ADJUSTMENTS, NONOPERATING PLANT, AND GOODWILL:**

Insert the sum of the accounts 2005 2005

covering plant adjustments, 2006 2006

nonoperating plant, and goodwill. 2007 2007

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 22. LESS ACCUMULATED DEPRECIATION:**

Insert the sum of the balances in 3100 3410 3100 3400

accounts for accumulated 3100X 3420 3100X 3500

depreciation and amortization. 3200 3500 3200 3600

3300 3600 3300

**Line 23. NET PLANT:**

Insert the sum of Lines 18 thru 21 less

line 22.

**Line 24. TOTAL ASSETS:**

Insert the sum of Lines 10, 17, and 23.

**LIABILITIES AND STOCKHOLDERS\' EQUITY:**

**Line 25. ACCOUNTS PAYABLE:**

Insert the sum of the balances in 4010.11 4010.11

accounts headed the same as or 4010.21 4010.21

similar to Accounts Payable to 4010.22 4010.22

Affiliated Companies and Other 4010.23 4010.23

Accounts Payable, including 4010.24 4010.24

liabilities for excise tax and 4010.25 4010.25

traffic settlements.

**Line 26. NOTES PAYABLE:**

Insert the sum of the balances in 4020.1 4020.1

accounts headed the same as or 4020.2 4020.2

similar to Notes Payable to Affiliated

and Nonaffiliated Companies which

represent obligations payable within

1 year from date issued or assumed.

**Line 27. ADVANCE BILLINGS AND PAYMENTS:**

Insert the amounts of advance billing 4030 4030

creditable to revenue accounts in

future months as well as advance

payments made by prospective customers.

**Line 28. CUSTOMER DEPOSITS:**

Insert the amounts of cash deposited 4040 4040

with the company by customers as

security for payment for service.

**Line 29. CURRENT MATURITIES LONG-TERM DEBT:**

Insert the sum of current maturities 4050 4050

due RUS, RTB, FFB, and Others.

**Line 30. CURRENT MATURITIES LONG TERM DEBT - RURAL DEVELOPMENT LOAN:**

Insert the sum of current maturities due

RUS on Rural Development loans recorded

on line 40 below.

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 31. CURRENT MATURITIES-CAPITAL LEASES:**

Insert the current portion of obligations 4060 4060

applicable to property obtained under

capital leases.

**Line 32. INCOME TAXES ACCRUED:**

Insert the sum of the balances in 4070.1 4070.1

accounts for Federal and State 4070.2 4070.2

income taxes accrued.

**Line 33. OTHER TAXES ACCRUED:**

Insert the sum of the balances in 4080.1 4080.1

accounts for property, gross 4080.2 4080.2

receipts, franchise, capital stock, 4080.3 4080.3

social security, and unemployment 4080.4 4080.4

taxes accrued. 4080.5 4080.5

**Line 34. OTHER CURRENT LIABILITIES:**

Insert the sum of the balances in 4100 4100

all other current liabilities 4110 4110

accounts such as other current 4120 4120

liabilities not provided for 4120.1 4120.1

elsewhere, including dividends 4120.2 4120.2

payable. 4120.3 4120.3

4130 4130

4130.1 4130.1

4130.2 4130.2

**Line 35. TOTAL CURRENT LIABILITIES:**

Insert the sum of lines 25 thru 34.

**Line 36. FUNDED DEBT - RUS NOTES:**

Insert the sum of the net balances 4210.12 4210.12

in accounts covering interest and 4210.17 4210.17

principal owed RUS. (Also include 4210.18 4210.18

loans made or guaranteed by RUS for 4210.20 4210.20

CATV projects.)

**Line 37. FUNDED DEBT - RTB NOTES:**

Insert the sum of the net balances 4210.13 4210.13

in accounts covering interest and 4210.21 4210.21

principal owed RTB.

**Line 38. FUNDED DEBT - FFB NOTES:**

Insert the sum of the net balances 4210.14 4210.14

in accounts covering interest and 4210.22 4210.22

principal owed FFB.

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 39. FUNDED DEBT - OTHER:**

Insert the sum of balances in all 4210.11 4210.11

accounts covering long-term debt to 4210.15 4210.15

other than RUS, RTB, FFB, such as 4210.16 4210.16

for other public improvements, notes 4210.19 4210.19

and certificates of indebtedness 4210.23 4210.23

including amounts owed to affiliated 4210.24 4210.24

companies, CoBank, ACB, or Rural

Telephone Finance Cooperative, and

other obligations maturing more than

1 year from the date of issuance or

assumption.

**Line 40. FUNDED DEBT - RURAL DEVELOPMENT LOAN**

Insert the amount of the balances in 4210.25 4210.25

accounts covering long-term USDA 4210.26 4210.26

financed Rural Economic Development loans.

**Line 41. PREMIUM (DISCOUNT) ON LONG-TERM DEBT:**

Insert the net amount of accounts for 4220 4220

premium and discount on long-term debt. 4230 4230

**Line 42. REACQUIRED DEBT:**

Insert the amount of debt reacquired 4240 4240

prior to maturity that has not been

retired.

**Line 43. OBLIGATIONS UNDER CAPITAL LEASE:**

Insert the noncurrent portion of 4250 4250

obligations applicable to property

obtained under capital lease.

**Line 44. ADVANCES FROM AFFILIATED COMPANIES:**

Insert the amount of advances from 4260 4260

affiliated companies not subject to

current settlement.

**Line 45. OTHER LONG-TERM DEBT:**

Insert the amount of long-term debt 4270.1 4270.1

not provided for elsewhere. 4270.2 4270.2

4270.3 4270.3

**Line 46. TOTAL LONG-TERM DEBT:**

Insert the total of lines 36 thru 45.

**Line 47. OTHER LONG-TERM LIABILITIES:**

Insert the amounts accrued to provide 4310 4310

such items as unfunded pensions, death 4320 4320

benefits, deferred compensation costs, 4330 4330

and other long-term liabilities not 4340 4340

provided for elsewhere 4350 4350

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 48. OTHER DEFERRED CREDITS:**

Insert the amount of all deferred 4360 4360

credits not provided for elsewhere.

**Line 49. OTHER JURISDICTIONAL DIFFERENCES:**

Reflects the cumulative impact on 4370 4370

liabilities and deferred credits of

jurisdictional ratemaking practices

which vary from those of the FCC.

**Line 50. TOTAL OTHER LIABILITIES AND DEFERRED CHARGES:**

Insert the sum of lines 47, 48, and 49.

**Line 51. CAPITAL STOCK OUTSTANDING AND SUBSCRIBED:**

Insert the amount received for capital 4510 4510

stock issued and outstanding. 4540.11 4540.11

4540.31 4540.31

**Line 52. ADDITIONAL PAID-IN-CAPITAL:**

4520 4520

**Line 53. TREASURY STOCK:**

Insert the cost of capital stock which 4530 4530

has been issued and reacquired, but

not retired or resold.

**Line 54. MEMBERSHIPS AND CAPITAL CERTIFICATES**:

4540.12 4540.12

4540.13 4540.13

4540.21 4540.21

4540.22 4540.22

4540.23 4540.23

4540.32 4540.32

4540.33 4540.33

**Line 55. OTHER CAPITAL**:

4540.41 4540.41

**Line 56. PATRONAGE CAPITAL CREDITS:**

4550.4 4550.4

4550.5 4550.5

4550.6 4550.6

**Line 57. RETAINED EARNINGS OR MARGINS:**

Insert the undistributed balance of 4550.1 4550.1

retained earnings or margins derived 4550.2 4550.2

from operations of the company and 4550.3 4550.3

from all other transactions not

includable in other equity accounts.

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 58. TOTAL EQUITY:**

Insert the sum of lines 51 thru 57.

**Line 59. TOTAL LIABILITIES AND EQUITY:**

Insert the sum of lines 35, 46, 50, and 58.

**[PART B: STATEMENTS OF INCOME AND RETAINED EARNINGS OR
MARGINS]{.underline}:**

In Part B, Statements of Income and Retained Earnings or Margins,
complete columns (a), (b), and (c); column (a) may be omitted if
reporting on an annual basis only.

For borrowers submitting this report on a quarterly basis, include in
column (a) the operating statistics for the previous three months. For
borrowers submitting a semi-annual report, include in column (a) the
operating statistics for the previous six months.

For the March 31 report, under quarterly reporting, and the June 30
report, under semi-annual reporting, the amounts in column (b) should be
identical to those reported in column (a).

For the June 30, September 30, and December 31 reports, under

quarterly reporting, and the December 31 report under semi-annual
reporting, the amounts shown in column (b) should equal the sum of the
amounts reported on the respective lines in column (a) of the current
report and column (b) of the previous report.

**FCC Account Numbers**

**Line Class A Class B**

**[Number]{.underline} [Part B Items]{.underline}
[Companies]{.underline} [Companies]{.underline}**

**Line 1. LOCAL NETWORK SERVICE REVENUES**:

Insert the sum of the amounts in 5001 5000

accounts covering the following: 5002

Basic Area Revenue, Optional 5003

Extended Area Service, Cellular 5004

Mobile Telephone, Other Mobile 5010

Services Revenue, Public Telephone 5040

Revenue, Local Private Line, 5050

Customer Premises Revenue, Other 5060

Local Revenue, and Other Local 5069

Exchange Revenue Settlements.

**Line 2. NETWORK ACCESS REVENUES**:

Insert the sum of the amounts in 5080 5080

accounts covering the following: 5081 5081

Network Access Revenue (End User 5082 5082

Revenue, Switched Access Revenue, 5083 5083

Special Access Revenue, and State 5084 5084

Access Revenue), State End User

Revenue, State Switched Access

Revenue, and State Special Access

Revenue.

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 3. LONG DISTANCE NETWORK SERVICES REVENUES:**

Insert the total of the amounts in 5110 5124 5100

accounts related to long distance 5111 5125

network service. 5112 5126

5120 5128

5121 5129

5122 5160

5123 5169

**Line 4. CARRIER BILLING AND COLLECTION REVENUES:**

Insert the amounts for Carrier 5270

Billing and Collection Revenue. For

Class B companies, insert only that

portion of account 5200 that is for

Carrier Billing and Collection.

**Line 5. MISCELLANEOUS REVENUES:**

Insert the sum of the amounts in 5230 5263 5200

accounts related to miscellaneous 5240 5264

revenue, excluding Carrier Billing 5250 5269

and Collection Revenue. For Class B 5261

Companies, include amounts in 5262

account 5200 except for those amounts

associated with Carrier Billing and

Collection Revenue.

**Line 6. UNCOLLECTIBLE REVENUES**:

Insert the amount in the account 5301 5300

under this or similar heading. 5302

**Line 7. NET OPERATING REVENUES**:

Insert the sum of Lines 1 thru 5,

less Line 6.

**Line 8. PLANT SPECIFIC OPERATIONS EXPENSE**:

Insert the sum of the amounts in 6112 6232 6110

accounts 6110 thru 6410 or 6112 thru 6113 6311 6120

6441, as appropriate. 6114 6341 6210

6115 6351 6220

6116 6362 6230

6121 6411 6310

6122 6421 6410

6123 6422

6124 6423

6211 6424

6212 6425

6215 6426

6220 6431

6231 6441

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 9. PLANT NONSPECIFIC OPERATIONS EXPENSE (EXCL. DEPR. & AMORT.):**

Insert the sum of the amounts in the 6511 6533 6510

listed accounts, less depreciation 6512 6534 6530

and amortization. 6531 6535 6540

6532 6540

**Line 10. DEPRECIATION EXPENSE:**

Insert the amounts for depreciation 6561 6560

expenses. Class B companies should 6562

also report amortization expenses on

this line.

**Line 11. AMORTIZATION EXPENSE**:

For Class A companies, insert the 6563

amount in accounts for amortization 6564

expenses. 6565

**Line 12. CUSTOMER OPERATIONS EXPENSE**:

Insert the sum of the amounts in 6611 6621 6610

expense accounts covering the listed 6612 6622 6620

accounts. 6613 6623

**Line 13. CORPORATE OPERATIONS EXPENSE**:

Insert the sum of the amounts in 6711 6725 6710

accounts covering the following: 6712 6726 6720

General Office Salaries and 6721 6727 6790

Expenses, Accounting, Treasury, 6722 6728

Legal Services, and Other General 6723 6790

Office Expense. 6724

**Line 14. TOTAL OPERATING EXPENSES**:

Insert the sum of lines 8 thru 13.

**Line 15. OPERATING INCOME OR MARGINS**:

Insert the result of line 7 less 14.

**Line 16. OTHER OPERATING INCOME AND EXPENSE**:

If a deficit, show in parentheses. 7110 7150 7100

7130 7160

7140

**Line 17. STATE AND LOCAL TAXES:**

Insert the amount of state and local 7230 7200.3

income taxes for the current period.

**Line 18. FEDERAL INCOME TAXES:**

Insert the amount of Federal Income 7220 7200.2

Taxes for the current period.

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 19. OTHER TAXES:**

Insert the amount for all other 7210 7200.1

taxes applicable to related 7240 7200.41

operations. 7250 7200.42

7200.5

**Line 20. TOTAL OPERATING TAXES**:

Insert the sum of lines 17 thru 19.

**Line 21. NET OPERATING INCOME OR MARGINS**:

Insert the sum of lines 15 and 16, less

line 20.

**Line 22. INTEREST ON FUNDED DEBT:**

Insert the current accruals of 7510 7500

interest on all classes of debt the

principal of which is includable in

Account 4210.

**Line 23. INTEREST EXPENSE-CAPITAL LEASE**:

Insert the interest portion of each 7520 include on

capital lease payment. line 22

**Line 24. OTHER INTEREST EXPENSES:**

Insert the sum of the listed 7530 include on

accounts. 7540 line 22

**Line 25. ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION:**

Insert the amounts for the allowance 7340 7300.4

for funds used during construction.

**Line 26. TOTAL FIXED CHARGES:**

Insert the sum of lines 22, 23, 24 less

line 25.

**Line 27. NONOPERATING NET INCOME:**

If a deficit, show in parentheses. 7310 7350 7300.1 7300.5

7320 7360 7300.2 7300.6

7330 7370 7300.3 7300.7

Line 27 should be shown net of 7410 7400

nonoperating taxes, the sum of the 7420

amounts in the accounts covering 7430

taxes arising from activities which 7440

are not part of the central 7450

operations of the company.

**Line 28. EXTRAORDINARY ITEMS:**

Insert the sum of the amounts in 7610 7600

accounts covering extraordinary and 7620

delayed items. If a deficit, show 7630

in parentheses. 7640

**FCC Account Numbers**

**Class A Class B**

**[Companies]{.underline} [Companies]{.underline}**

**Line 29. JURISDICTIONAL DIFFERENCES**:

If a deficit, show in parentheses. 7910 7910

**Line 30. NONREGULATED NET INCOME**:

If a deficit, show in parentheses. 7990 7990

Account 7990 should be shown net of 5280 5280

nonregulated expenses.

**Line 31. TOTAL NET INCOME OR MARGINS:**

Insert the sum of lines 21, 27, 28,

29 and 30, less line 26.

**Line 32. TOTAL TAXES BASED ON INCOME:**

Insert the sum of the amounts in 7210 7420 7200.1 7400.2

accounts covering taxes based on 7220 7430 7200.2 7400.3

income. 7230 7450 7200.3 7400.5

7250 7630 7200.5 7600.3

7410 7640 7400.1 7600.4

**Line 33. RETAINED EARNINGS OR MARGINS - BEGINNING OF YEAR:**

Insert the balances, as of January 1, in the accounts covering
unappropriated retained earnings or margins. If a deficit, show in
parentheses.

**Line 34. MISCELLANEOUS CREDITS - YEAR-TO-DATE:**

Insert the sum of the amounts covering credit to retained earnings or
margins not provided elsewhere.

**Line 35. DIVIDENDS DECLARED - COMMON:**

Insert the total amount of dividends declared on common stock from
January 1 to the end of the period being reported.

**Line 36. DIVIDENDS DECLARED - PREFERRED**:

Insert the total amount of dividends declared on preferred stock from

January 1 to the end of the period being reported.

**Line 37. OTHER DEBITS YEAR-TO-DATE**:

Insert the total amount of other debits charged to retained earnings or
margins since January 1.

**Line 38. TRANSFERS TO PATRONAGE CAPITAL**:

Insert the total amount of margins transferred during the current year
to Patronage Capital Assignable or Assigned.

**Line 39. RETAINED EARNINGS OR MARGINS END OF PERIOD**:

Insert the total of Lines 31, 33, and 34 less Lines 35, 36, 37, and 38.

**Line 40. PATRONAGE CAPITAL BEGINNING OF YEAR:**

Insert the balances, as of January 1, in the accounts covering patronage
capital.

**Line 41. TRANSFERS TO PATRONAGE CAPITAL**

Insert the total amount of margins transferred during the current year
to Patronage Assignable or Assigned.

**Line 42. PATRONAGE CAPITAL CREDITS RETIRED**:

Insert the total amount of capital credits retired from January 1 to the
end of the period being reported. Include both general retirements and
those made in individual cases, such as estate settlements. (Entries on
this line should only be made by cooperatives.)

**Line 43. PATRONAGE CAPITAL END OF THE YEAR**:

Insert the total of Lines 40 and 41, less Line 42.

**Line 44. ANNUAL DEBT SERVICE PAYMENTS**:

Insert the sum of total annual debt service payments (principal and
interest billed) made on long term debt from January 1 to the end of the
reporting period.

**Line 45. CASH RATIO**:

Insert the sum of Lines 14 and 20 less Lines 10 and 11, divided by Line
7.

**Line 46. OPERATING ACCRUAL RATIO**:

Insert the sum of Lines 14, 20, and 26 divided by Line 7.

**Line 47. TIER**:

Insert the sum of Lines 31 and 26, divided by Line 26.

**Line 48. DSCR:**

Insert the sum of Lines 31, 26, 10, and 11, divided by Line 44.

**[PART C. SUBSCRIBER (ACCESS LINE) AND ROUTE MILE DATA]{.underline}:**

Part C is divided into three sections:

1\. Rates, 2. Subscribers (Access Lines), and 3. Route Miles with
subheadings over columns for local rates, subscriber data, and route
mileage information. Each column has been lettered, i.e., (a), (b), (c),
etc\..., for reference purposes. When using the electronic form exchange
data may be entered continuously up to the maximum number of lines
provided. Continuation sheets will be generated as needed when printing.
Regardless of the number of exchanges the totals for all exchanges will
be shown on the Total line on page 3. The information to be included in
Part C should be that shown in the records of the borrower at the end of
the period.

**EXCHANGE:**

Insert the name of each exchange. Use abbreviations where necessary. Do
not use exchange dial prefix.

**Column 1(a). B-1, Rates**:

Insert, by exchange, the average local service rate for one-party
business subscribers.

**Column 1(b). R-1, Rates**:

Insert, by exchange, the average local service rate for one-party
residential subscribers.

**Subscriber (Access Line) Data**:

Subscriber is defined by RUS to mean the same as Access Line. Access
Line means a transmission path between user terminal equipment and a
switching center that is used for local exchange service. This
definition should be used for reporting the following subscriber data.

**Column 2(a). BUSINESS**:

Insert, by exchange, the number of business subscribers. PBX trunks and
Key lines should also be included here.

**Column 2(b). RESIDENTIAL**:

Insert, by exchange, the number of residence subscribers.

**Column 2(c). TOTAL**

Insert, by exchange, the total number of subscribers (sum of columns
2(a) and 2(b)). If applicable, insert the total number of mobile
wireless subscribers served on the line which has the words Mobile
Wireless entered in place of an exchange name. Include mobile
subscribers served by cellular, PCS, or any other means in this figure;
do not include any fixed wireless subscribers.

**Column 3(a). ROUTE MILES, TOTAL (INCLUDING FIBER)**

Insert the total number of route miles (to the nearest mile) of
operating plant facilities including drop wire in the exchange. One
route mile may consist of:

1\. One mile of roadway with any combination of outside plant

facilities on any number of rights-of-way.

2\. One mile of a cross country route with any combination of

outside plant facilities.

3\. One mile of point-to-point microwave or radio link.

4\. One mile of plant on either side of a limited access highway

or natural barrier, such as a navigable waterway.

5.  One mile of joint use line where the borrower either owns the

> facility or leases space.

**Column 3(b). ROUTE MILES, FIBER**

Insert the total number of route miles (to the nearest mile) in the
exchange served by fiber facilities. This figure is included in the
total route mile figure in column 3(a).

**PLEASE NOTE**: A line has also been provided for recording total route
miles of line OUTSIDE exchange areas. These miles will be included in
the TOTAL for the system.

**[PART D. SYSTEM DATA]{.underline}**:

All items of Part D are to be reported on a system basis and are to
include only those persons employed by or facilities owned by the system
as of the reporting date.

**Item**

**[Number]{.underline} [Part D Items]{.underline}**

**Item 1. NO. PLANT EMPLOYEES**:

Insert the number of plant employees on the payroll at the end of the
period. Include here all plant department employees and supervisors.

**Item 2. NO. OTHER EMPLOYEES**:

Insert the number of other (non-plant) employees on the payroll at the
end of the period. Include here all general office, accounting,
commercial, and traffic department employees.

**Item 3. SQUARE MILES SERVED**:

Insert the total number of square miles served by the system. Include
the system\'s entire certificated or authorized service area whether or
not subscribers are served in all parts of the area.

**Item 4. ACCESS LINES PER SQUARE MILE**:

Insert the number of access lines per square mile served (Part C,

Line 2(c)TOTAL divided by Part D, Item 3).

**Item 5. SUBSCRIBERS PER ROUTE MILE**:

Insert the number of subscribers per route mile (Part C, Line 2(c)TOTAL
divided by Part C, Line 3(a)TOTAL).

**[PART E. TOLL DATA]{.underline}**:

**Line 1** Check the appropriate type of interstate and intrastate toll

settlements, either average or cost basis, which are presently

in effect for the company.

**[PART F. FUNDS INVESTED IN PLANT DURING YEAR]{.underline}**:

**Line**

**[Number]{.underline}** **[Part F Items]{.underline}**

**Line 1. RUS, RTB, AND FFB LOAN FUNDS EXPENDED**:

Insert the total amount of RUS, RTB, and FFB loan funds expended during
the year.

**Line 2. OTHER LONG-TERM LOAN FUNDS EXPENDED**:

Insert the total amount of all other long-term loan funds expended
during the year.

**Line 3. FUNDS EXPENDED UNDER RUS INTERIM APPROVAL**:

Insert the amount of funds (short-term borrowings and general funds)
that were expended during the year in accordance with RUS approval for
interim financing. Any amount reimbursed with RUS, RTB, or FFB loan
funds later in the same year should be shown on Line 1 instead of this
line.

**Line 4. OTHER SHORT-TERM LOAN FUNDS EXPENDED**:

Insert the amount of short-term loan funds expended during the year,
excluding any such amount that was expended in accordance with RUS
approved interim financing.

**Line 5. GENERAL FUNDS EXPENDED (OTHER THAN INTERIM)**:

Insert the amount of general funds expended during the year, excluding
any such amount that was expended in accordance with RUS approved
interim financing.

**Line 6. SALVAGED MATERIALS**:

Insert the book value of salvaged materials used as plant but returned
to stock during the year.

**Line 7. CONTRIBUTION IN AID TO CONSTRUCTION**:

Insert the amounts recorded for contributions to telecommunications
plant received during the year.

**Line 8. GROSS ADDITIONS TO TELECOMMUNICATIONS PLANT**:

Insert the sum of Lines 1 through 7.

**[PART G. INVESTMENTS IN AFFILIATED COMPANIES]{.underline}**:

The data requested in columns (b) through (f) should be reported on a
summary basis. Line 1 asks for investment data for Rural Development
investments while Line 2 asks for similar data for Nonrural Development
investments.

**Column (b) Investment This Year** - Under column (b), list the amount
invested in each class of investment shown in column (a) during the
current year.

**Column (c) Income or Loss This Year** - This column should include all
income earned or losses incurred for each class of investment during the
current year.

**Column (d) Cumulative Investment to Date** - For the class of
investments listed in column (a), the cumulative investment to date
should include the total amount of funds actually invested from the date
of the original investment to the end of the current reporting period.

**Column (e) Cumulative Income or Loss to Date** - This column should
contain the cumulative total of income earned or losses incurred for
each class of investment from the date of the original investment to the
end of the current reporting period.

**Column (f) Current Balance** - List the equity value of each class of
investment at the end of the reporting period in this column. The equity
value should be equal to the sum of the values in columns (d) and (e).

**[PART H. CURRENT DEPRECIATION RATES]{.underline}**:

Indicate whether or not the corporation\'s depreciation rates are
subject to regulatory body approval.

**Depreciation Rates**: If corporation\'s depreciation rates are subject
to regulatory body approval, insert the approved rate (expressed as a
percentage shown to two decimal places; e.g. 7.50) used for each
equipment category which applies to system (please indicate NA if your
system does not have plant in a specific category). If your system has
more than one depreciation rate for a specific category, provide an
average rate weighted in proportion to plant value. In addition, if your
system includes service areas in more than one State, provide a weighted
average of the depreciation rates used for a given category of plant
regardless of the State. Only one rate should be reported for each plant
category regardless of the number of States in which you provide
service.

If corporation\'s depreciation rates are not subject to regulatory body
approval, insert the actual annual depreciation rate (expressed as a
percentage shown to two decimal places; e.g. 7.50) used for each
equipment category which applies to your system (please indicate NA if
your system does not have plant in a specific category). If your system
has more than one depreciation rate for a specific category, provide an
average rate weighted in proportion to plant value. In addition, if your
system includes service areas in more than one state, provide a weighted
average of the depreciation rates used for a given category of plant
regardless of the state. Only one rate should be reported for each plant
category regardless of the number of states in which you provide
service.