UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

Bulletin 1744-2

RD-GD-2001-38

SUBJECT: Instructions For Preparing Financial and Statistical Reports For

Telecommunications Borrowers, Form 479

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.

3/5/01

_________________________________ ________________________

Date

Roberta D. Purcell

Assistant Administrator

Telecommunications Program

Disclaimer: The contents of this guidance document does not have the force and effect 

of law and is not meant to bind the public in any way. This document is intended only 

to provide clarity to the public regarding existing requirements under the law or 

agency policies.
 Bulletin 1744-2

 Page 2

 Table of Contents

 Page No.

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
 Bulletin 1744-2

 Page 3

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.
 Bulletin 1744-2

 Page 4

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:

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 Part A Items Companies Companies

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.
 Bulletin 1744-2

 Page 5

FCC Account Numbers

 Class A Class B

 Companies Companies

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
 Bulletin 1744-2

 Page 6

FCC Account Numbers

 Class A Class B

 Companies Companies

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.
 Bulletin 1744-2

 Page 7

FCC Account Numbers

 Class A Class B

 Companies Companies

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
 Bulletin 1744-2

 Page 8

FCC Account Numbers

 Class A Class B

 Companies Companies

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.
 Bulletin 1744-2

 Page 9

FCC Account Numbers

 Class A Class B

 Companies Companies

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.
 Bulletin 1744-2

 Page 10

FCC Account Numbers

 Class A Class B

 Companies Companies

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
 Bulletin 1744-2

 Page 11

FCC Account Numbers

 Class A Class B

 Companies Companies

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.
 Bulletin 1744-2

 Page 12

 FCC Account Numbers

 Class A Class B

 Companies Companies

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:

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 Part B Items Companies Companies

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
 Bulletin 1744-2

 Page 13

Revenue.

 FCC Account Numbers

 Class A Class B

 Companies Companies

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
 Bulletin 1744-2

 Page 14

 FCC Account Numbers

 Class A Class B

 Companies Companies

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.
 Bulletin 1744-2

 Page 15

 FCC Account Numbers

 Class A Class B

 Companies Companies

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
 Bulletin 1744-2

 Page 16

 FCC Account Numbers

 Class A Class B

 Companies Companies

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.
 Bulletin 1744-2

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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:

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.
 Bulletin 1744-2

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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:

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.
 Bulletin 1744-2

 Page 19

Item

Number Part D Items

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:

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:

Line

Number Part F Items

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.
 Bulletin 1744-2

 Page 20

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:

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:

Indicate whether or not the corporation's depreciation rates are subject to

regulatory body approval.
 Bulletin 1744-2

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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.