PUBLIC NOTICE![](media/image1.png){width="0.6541666666666667in"
height="0.6604166666666667in"}

FEDERAL COMMUNICATIONS COMMISSION

445 12th Street, S.W.

WASHINGTON, D.C. 20554

News media information 202/418-0500 Fax-On-Demand 202/418-2830 TTY
202/418-0484 Internet: http://www.fcc.gov ftp.fcc.gov

**DA 99-2282**

**Corrections to Audit Reports of Bell Operating Companies' Continuing
Property Records**

**CC Docket No. 99-117, ASD File No. 99-22**

**Released: 10/22/99**

On March 12, 1999, the Commission adopted orders releasing audit reports
on the Continuing Property Records (CPR) of the various Bell Operating
Companies\' (BOCs') hard-wired central office equipment (COE).[^1] The
audit reports were the result of audits performed by Commission auditors
to determine whether the records of the various BOCs were being
maintained in compliance with the Commission's rules and to verify that
property recorded in the accounts represented equipment used and useful
for the provision of telecommunications services. On April 7, 1999, the
Commission released a Notice of Inquiry (NOI) seeking comments on issues
arising out of these audit reports.[^2] As part of the NOI proceeding,
the Accounting Safeguards Division (ASD) of the Common Carrier Bureau
(CCB) reexamined the numbers and statistical calculations contained in
the reports. ASD found a substantial processing error in the US West
Communications, Inc. (US West) report and a minor processing error in
the Southwestern Bell Telephone Company (SWBT) report.[^3] No errors
were found in the audit reports of the other carriers. By this Public
Notice, we are informing the public of the errors found by ASD and
making corrected audit reports available for both US West and SWBT.

Regarding the US West report, a portion of the audit data was
inadvertently left out of the statistical calculations. Including the
omitted data in the statistical calculations increases the projected
cost of hard-wired COE not found by more than \$125 million and results
in minor changes to the projected number of incorrect CPR records. The
specific changes resulting from this correction are identified in a
separate index attached to the corrected US WEST report.

Regarding the SWBT report, a portion of the audit data was included in
the wrong stratum in making the statistical calculations. Correcting
this error decreases the projected cost of hard-wired COE not found by
less than \$.1 million and results in minor changes in the projected
number of incorrect CPR records. The specific changes resulting from
this correction are identified in a separate index attached to the
corrected SWBT report.

The corrected versions of the US West and SWBT reports are available on
the FCC's internet site at CCB-ASD On-line Documents or
([http://www.fcc.gov\\ccb\\asd\\audits](http://www.fcc.gov/ccb/asd/audits))
or can be obtained in hard copy from the International Transcription
Service (ITS), 1231 20th Street, N.W. Washington, D.C. 20036. For
further information, contact Hugh Boyle, Chief, Audits Branch, ASD, at
(202) 418-0820.

[^1]: ^?^ *See In the Matter of Continuing Property Records Audit,
    Orders*, ASD File No. 99-22, FCC 99-29 (Southwestern Bell), FCC
    99-30 (US West), FCC 99-31 (Pacific Bell and Nevada Bell), FCC 99-32
    (Bell Atlantic North), FCC 99-33 (Bell Atlantic South), FCC 99-34
    (BellSouth), and FCC 99-35 (Ameritech) (rel. Mar. 12, 1999).

[^2]: ^?^ *In re* Ameritech Corporation Telephone Operating Companies,
    *et. al*., Continuing Property Records Audit, *Notice of Inquiry*,
    CC Docket No. 99-117, ASD File No. 99-22, FCC 99-69 (rel. April 7,
    1999).

[^3]: ^?^ Before the final audit reports were released, each company was
    provided with a copy of a draft audit report and sample observation
    data necessary to confirm the statistical calculations and
    inferences in the report. We note that the carriers did not address
    the errors that were found in ASD's reexamination.