EE-RM-STD-00-100 COMMENT 27

Federal Register I VoL 66, No. 98 I Monday, May 21, 2001/Rules and Regulations 27853 

Our comments on specific aspects of the 

internal control over financial reporting, 

compliance with specific RUS loan and 

security instrument provisions, and other 

additional matters as required by § 1773.33 are presented below. 

Comments on Certain Specific Aspects of the 

Internal Control Over Financial Reporting 

We noted no matters regarding Center 

County Telecommunications Systems, Inc.'s 

internal control over financial reporting and 

its operation that we consider to be a material 

weakness as previously defined with respect 

to: 

-The accounting procedures and records 

[list other comments]; 

-The process for accumulating and 

recording labor, material, and overhead 

costs, and the distribution of these costs to 

construction, retirement, and maintenance 

or other expense accounts [list other 

comments]; and 

-The materials control [list other 

comments]. 

Comments on Compliance With Specific RUS 

Loan and Security Instrument Provisions 

At your request, we have performed the 

procedures enumerated below with respect to 

compliance with certain provisions of laws, 

regulations, contracts, and grants. The 

procedures we performed are summarized as follows: 

-Procedures performed with respect to the 

requirement for a borrower to obtain 

written approval of the mortgagee to enter 

into any contract, agreement or lease 

between the borrower and an affiliate of 

Center County Telecommunications 

Systems, Inc. for the year ended December 

31,20X1: 

1. Obtained and read a borrower-prepared 

schedule of new written contracts, 

agreements or leases entered into during the 

year between the borrower and an affiliate as defined in § 1773.33(e)(2)(i). 

2. Reviewed Board of Director minutes to 

ascertain whether board-approved written 

contracts are included in the borrowerprepared schedule. 

3. Noted the existence of written RUS [and 

other mortgagee] approval of each contract 

listed by the borrower. 

-Procedure performed with respect to the 

requirement to submit RUS Form 479 to 

the RUS: 

1. Agreed amounts reported in Form 479 to 

Center County Telecommunications Systems, 

Inc.'s records. 

The results of our tests indicate that, with 

respect to the items tested, Center County 

Telecommunications Systems, Inc. complied, 

except as noted below, in all material 

respects, with the specific RUS loan and 

security instrument provisions referred to 

below. The specific provisions tested, as well as any exceptions noted, include the 

requirements that: 

-The borrower has obtained written 

approval of the RUS [and other mortgagees] 

to enter into any contract agreement or 

lease with an affiliate as defined in 

§ 1773.33(e)(2)(i) [list all exceptions]; and 

-The borrower has submitted its Form 479 

to the RUS and the Form 479, Financial 

and Statistical Report, as of December 31, 

20X1, represented by the borrower as 

having been submitted to RUS is in 

agreement with the Center County 

Telecommunications Systems, Inc.'s 

audited records in all material respects [list 

all exceptions] [or if the audit year end is 

other than December 31], appears 

reasonable based upon the audit 

procedures performed [list all exceptions]. 

Comments on Other Additional Matters 

In connection with our audit of the 

financial statements of Center County 

Telecommunications Systems, Inc., nothing 

carrie to our attention that caused us to 

believe that Center County 

Telecommunications Systems, Inc. failed to 

comply with respect to: 

-The reconciliation of continuing property 

records to the controlling general ledger 

plant accounts addressed at § 1773.33(c)(1) 

[list all exceptions]; 

-The clearing of the construction accounts 

and the accrual of depreciation on 

completed construction addressed at 

§ 1773.33(c)(2) [list all exceptions]; 

-The retirement of plant addressed at 

§ 1773.33(c)(3) and (4) [list all exceptions]; 

-The approval of the sale, lease, or transfer 

of capital assets and disposition of 

proceeds for the sale of lease of plant, 

material, or scrap addressed at 

§ 1773.33(c)(5) [list all exceptions]; 

-The disclosure of material related party 

transactions, in accordance with Statement 

of Financial Accounting Standards No. 57, 

Related Party Transactions, for the year 

ended December 31, 20Xl, in the financial 

statements referenced in the first paragraph 

of this report addressed at § 1773.33(fj [list 

all exceptions]; and 

-The detailed schedule of investments. 

Our audit was made for the purpose of 

forming an opinion on the basic financial 

statements taken as a whole. The detailed 

schedule of investments required by 

§ 1773.33(i) and provided below is presented 

for purposes of additional analysis and is not 

a required part of the basic financial 

statements. This information has been 

subjected to the auditing procedures applied 

in our audit of the basic financial statements 

and, in our opinion, is fairly stated in all 

material respects in relation to the basic 

financial statements taken as a whole. 

[The detailed schedule of investments would 

be included here. The total of the investment 

in each company reported must agree with 

the detail investment subsidiary account(s).] 

This report is intended solely for the 

information and use of the board of directors, 

management, and the RUS and supplemental 

lenders and is not intended to be and should 

not be used by anyone other than these 

specified parties. However, this report is a 

matter of public record and its distribution is 

not limited. 

Certified Public Accountants 

[FR Doc. 01-12127 Filed 5-18-01; 8:45 am] 

BILLING CODE 341G-15-P 

DEPARTMENT OF ENERGY 

Office of Energy Efficiency and 

Renewable Energy 

10 CFR Part 431 

RIN 1904-AB06 

Energy Efficiency Program for 

Commercial and Industrial Equipment: 

Efficiency Standards for Commercial 

Heating, Air Conditioning and Water 

Heating Equipment 

AGENCY: Department of Energy (DOE). 

ACTION: Final rule; completion of 

regulatory review. 

SUMMARY: On January 12, 2001, DOE 

published in the Federal Register the 

final rule entitled "Energy Efficiency 

Program for Commercial and Industrial 

Equipment: Efficiency Standards for 

Commercial Heating, Air Conditioning 

and Water Heating Equipment" (66 FR 

3336). In accordance with the 

memorandum ofJanuary 20, 2001, from 

the Assistant to the President and Chief 

of Staff, entitled "Regulatory Review 

Plan," published in the Federal Register 

on January 24, 2001 (66 FR 7702), DOE 

temporarily delayed for 60 days the 

effective date ofthat rule (66 FR 8745, 

February 2, 2001). DOE has now 

completed its review of that regulation, 

and does not intend to initiate any 

further rulemaking action to modify its 

provisions. 

DATES: The effective date of the rule 

amending 10 CFR part 431 published at 

66 FR 3336, January 12, 2001, and 

delayed at 66 FR 8745, February 2, 

2001, is confirmed as April 13, 2001. 

FOR FURTHER INFORMATION CONTACT: Jill 

Holtzman, Office of General Counsel, 

(202) 586-3410, 

jill.holtzman@hq.doe.govor Lawrence 

R. Oliver, Office of the General Counsel, 

(202) 586-9521, 

lawrence.oliver®hq.doe.gov or Cyrus 

Nasseri, Office of Energy Efficiency and 

Renewable Energy, (202) 586-9138, 

cyrus.nasseri@ee.doe.gov. 

Issued in Washington, DC on May 14, 

2001. 

Spencer Abraham, 

Secretary of Energy. 

[FR Doc. 01-12686 Filed 5-18-01; 8:45 am] 

BILLING CODE 645G-01-P