5718 Federal Register / Vol. 69, No. 25 / Friday, February 6, 2004 / Rules and Regulations 

§ 27.1135 Protection of non-Federal 

Government Meteorological-Satellite 

operations. 

AWS licensees operating fixed 

stations in the 1710–1755 MHz band, if 

notified that such stations are causing 

interference to meteorological-satellite 

earth receivers operating in the 

Meteorological-Satellite Service in the 

1675–1710 MHz band, shall be required 

to modify the stations’ location and/or 

technical parameters as necessary to 

eliminate the interference.

[FR Doc. 04–1835 Filed 2–5–04; 8:45 am] 

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 54 and 64 

[CC Docket Nos. 96–45 and 03–123; FCC 

03–232] 

Application of Federal Accounting and 

Auditing Standards to the Universal 

Service Fund and Telecommunications 

Relay Services Fund

AGENCY: Federal Communications 

Commission.

ACTION: Final rule.

SUMMARY: In this document, the 

Commission amends its rules governing 

certain financial reporting and auditing 

requirements applicable to the 

Universal Service Fund and the 

Telecommunications Relay Services 

Fund to ensure that the Commission can 

maintain its obligations under federal 

financial management and reporting 

statutes and directives of the Office of 

Management and Budget. The 

Commission also clarifies its rules 

regarding compensation limitations for 

employees of the Universal Service 

Administrative Company.

DATES: Effective March 8, 2004.

FOR FURTHER INFORMATION CONTACT: Cara 

Voth, Attorney, Telecommunications 

Access Policy Division, Wireline 

Competition Bureau, (202) 418–7400.

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Order in 

CC Docket Nos. 96–45 and 03–123, FCC 

03–232 released on October 3, 2003. The 

full text of this document is available for 

public inspection during regular 

business hours in the FCC Reference 

Center, Room CY–A257, 445 Twelfth 

Street, SW., Washington, DC 20554. 

I. Introduction 

1. By this Order, we amend our rules 

governing certain financial reporting 

and auditing requirements applicable to 

the Universal Service Fund and the 

Telecommunications Relay Services 

(TRS) Fund (collectively referred to as 

the Funds) to ensure that the 

Commission can maintain its 

obligations under federal financial 

management and reporting statutes and 

directives of the Office of Management 

and Budget (OMB). Specifically, we will 

require the administrators of the Funds 

(hereafter ‘‘Administrators’’) to prepare 

financial statements for the Funds 

consistent with generally accepted 

accounting principles for federal 

agencies (Federal GAAP) and to keep 

the Funds in accordance with the 

United States Government Standard 

General Ledger (USGSGL). We will also 

require the Administrators to conduct 

audits of the Funds pursuant to 

generally accepted government auditing 

standards (GAGAS). Further, because 

the Funds are agency programs included 

on the Commission’s annual financial 

statement, the Funds may be subject to 

a number of federal financial and 

reporting statutes. We revise our rules to 

reflect this, and to note that, where 

appropriate under relevant law, the 

Funds may be subject to similar statutes 

that are enacted in the future. We also 

clarify our rules regarding compensation 

limitations for employees of the 

Universal Service Administrative 

Company (USAC). 

II. Discussion 

2. The Universal Service Fund and 

the TRS Fund are components of the 

Commission’s annual financial 

statements. In preparing these financial 

statements, the Commission is required 

to follow Federal GAAP and maintain 

its accounts according to the USGSGL 

pursuant to the Federal Financial 

Management Improvement Act of 1996 

(FFMIA). Because the OMB has 

concluded that all components included 

on agency financial statements must 

comply with Federal GAAP, we direct 

the Administrators of the Universal 

Service Fund and the TRS Fund to 

prepare financial statements for those 

funds consistent with Federal GAAP 

and to keep any related accounts in 

accordance with the USGSGL as of 

October 1, 2004. Similarly, as discussed 

more specifically below, because audits 

of the Commission’s financial 

statements are conducted according to 

GAGAS, we direct the Administrators to 

conduct certain audits of the Universal 

Service Fund and the TRS Fund 

according to GAGAS.

3. The modifications we make to our 

rules regarding audits are intended to 

reflect the distinction between audits of 

the Funds and audits of the 

Administrators of the Funds. When the 

Administrators of the Universal Service 

Fund or TRS Fund, or any independent 

auditors hired by such Administrators, 

conduct audits of the beneficiaries of 

the Universal Service Fund, 

contributors to the Universal Service 

Fund or TRS Fund, or any providers of 

service under the universal service 

support mechanisms and the TRS 

program, such audits shall be conducted 

in accordance with GAGAS. For 

example, audits conducted of 

beneficiaries of the schools and libraries 

support mechanism pursuant to 

§ 54.516 of the Commission’s rules must 

follow GAGAS. In contrast, audits 

conducted of the Administrators may be 

conducted according to generally 

accepted auditing standards (GAAS). 

For example, the required audit of the 

Universal Service Fund Administrator 

pursuant to § 54.717 of the 

Commission’s rules may continue to be 

conducted according to GAAS. 

Similarly, any audit of the TRS Fund 

Administrator may be conducted 

pursuant to GAAS. Because the TRS 

Fund will be audited as a component of 

the Commission’s financial statements, 

we find that the yearly audit of the TRS 

Fund pursuant to § 64.604(c)(5)(iii)(D) is 

no longer necessary, and we delete 

§ 64.604(c)(5)(iii)(D) from the 

Commission’s rules. 

4. Because the Funds are components 

of the Commission’s financial 

statements, the Administrators, in their 

capacity as administrators of the Funds, 

may also need to comply with relevant 

provisions of certain federal financial 

management and reporting statutes and 

rules. We therefore amend our rules to 

reflect the fact that the Funds are also 

subject to certain existing legal 

requirements, e.g., the Debt Collection 

Improvement Act of 1996 and relevant 

portions of the Federal Financial 

Management Improvement Act of 1996. 

As appropriate under federal law, the 

Commission will also apply relevant 

provisions of similar federal laws that 

may be enacted in the future. 

5. Finally, we take this opportunity to 

clarify our rules by adding a note to 

§ 54.715(b) of the Commission’s rules. 

Section 54.715(b) provides that the 

annual rate of pay for officers and 

employees of the Administrator of the 

universal service support mechanisms 

may not ‘‘exceed the annual rate of basic 

pay for level I of the Executive 

schedule.’’ The note we add clarifies 

that the compensation to be included 

when calculating whether an 

employee’s rate of pay exceeds Level I 

of the Executive Schedule does not 

include life insurance benefits, 

retirement benefits (including payments 

to 401(k) plans), health insurance 

benefits, or other similar benefits,

Federal Register / Vol. 69, No. 25 / Friday, February 6, 2004 / Rules and Regulations 5719

provided that any such benefits are 

reasonably comparable to benefits that 

are provided to employees of the federal 

government. To the extent any of these 

clarifications require adjustments to 

benefits that are currently provided to 

employees of the Administrator, they 

shall be applied prospectively. 

6. We understand that the 

Administrators will need time to update 

accounting systems and train 

accountants, auditors and other relevant 

employees in order to comply with the 

rule changes adopted herein. To ensure 

adequate time for implementation of 

these new rules, the Administrators will 

have until October 1, 2004, to update 

their financial accounting and audit 

procedures for financial reporting for 

fiscal year 2005. These rules will go into 

effect March 8, 2004. We find for good 

cause that these rule changes may be 

adopted without affording prior notice 

and an opportunity for public comment 

because, for the most part, the rules 

merely reflect existing legal 

requirements. Other parts of the rule 

amendments are exempt from the notice 

and comment requirements of the 

Administrative Procedure Act because 

they concern interpretations of existing 

rules. The Commission will send a copy 

of this Order in a report to be sent to 

Congress pursuant to the Congressional 

Review Act. In addition, the 

Commission will send a copy of the 

Order to the Chief Counsel for Advocacy 

of the Small Business Administration. A 

copy of the Order will also be published 

in the Federal Register. 

III. Ordering Clauses 

7. Pursuant to sections 4(i), 225, 254, 

and 303(r) of the Communications Act 

of 1934, as amended, 47 U.S.C. 154(i), 

225, 254, and 303(r), parts 54 and 64 of 

the Commission’s rules are amended, as 

set forth, effective March 8, 2004.

List of Subjects 

47 CFR Part 54 

Reporting and recordkeeping 

requirements, Telecommunications, 

Telephone. 

47 CFR Part 64 

Communications common carriers, 

Individuals with disabilities, Reporting 

and recordkeeping requirements, 

Telecommunications, Telephone.

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary.

For the reasons discussed in the 

preamble, the Federal Communications 

Commission amends 47 CFR parts 54 

and 64 as follows:

PART 54—UNIVERSAL SERVICE 

1. The authority citation for part 54 

continues to read as follows:

Authority: 47 U.S.C. 1, 4(i), 201, 205, 214 

and 254 unless otherwise noted.

2. Amend § 54.702 by adding 

paragraph (n) to read as follows:

§ 54.702 Administrator’s functions and 

responsibilities.

* * * * *

(n) The Administrator shall account 

for the financial transactions of the 

Universal Service Fund in accordance 

with generally accepted accounting 

principles for federal agencies and 

maintain the accounts of the Universal 

Service Fund in accordance with the 

United States Government Standard 

General Ledger. When the 

Administrator, or any independent 

auditor hired by the Administrator, 

conducts audits of the beneficiaries of 

the Universal Service Fund, 

contributors to the Universal Service 

Fund, or any other providers of services 

under the universal service support 

mechanisms, such audits shall be 

conducted in accordance with generally 

accepted government auditing 

standards. In administering the 

Universal Service Fund, the 

Administrator shall also comply with all 

relevant and applicable federal financial 

management and reporting statutes.

3. Amend § 54.715 by adding a note 

to paragraph (b) to read as follows:

§ 54.715 Administrative expenses of the 

Administrator.

* * * * *

(b) * * *

Note to paragraph (b): The compensation 

to be included when calculating whether an 

employee’s rate of pay exceeds Level I of the 

Executive Schedule does not include life 

insurance benefits, retirement benefits 

(including payments to 401(k) plans), health 

insurance benefits, or other similar benefits, 

provided that any such benefits are 

reasonably comparable to benefits that are 

provided to employees of the federal 

government.

* * * * *

PART 64—MISCELLANEOUS RULES 

RELATING TO COMMON CARRIERS 

4. The authority citation for part 64 

continues to read as

follows:

Authority: 47 U.S.C. 154, 254(k); secs, 

403(b)(2)(B), (C), Public Law 104–104, 110 

Stat. 56. Interpret or apply 47 U.S.C. 201, 

218, 225, 226, 228, and 254(k) unless 

otherwise noted.

5. In § 64.604, remove and reserve 

paragraph (c)(5)(iii)(D) and revise 

paragraph (c)(5)(iii)(H) to read as 

follows:

§ 64.604 Mandatory minimum standards.

* * * * *

(c) * * * 

(5) * * * 

(iii)* * * 

(H) Administrator reporting, 

monitoring, and filing requirements. 

The administrator shall perform all 

filing and reporting functions required 

in paragraphs (c)(5)(iii)(A) through 

(c)(5)(iii)(J) of this section. TRS payment 

formulas and revenue requirements 

shall be filed with the Commission on 

May 1 of each year, to be effective the 

following July 1. The administrator shall 

report annually to the Commission an 

itemization of monthly administrative 

costs which shall consist of all 

expenses, receipts, and payments 

associated with the administration of 

the TRS Fund. The administrator is 

required to keep the TRS Fund separate 

from all other funds administered by the 

administrator, shall file a cost allocation 

manual (CAM) and shall provide the 

Commission full access to all data 

collected pursuant to the administration 

of the TRS Fund. The administrator 

shall account for the financial 

transactions of the TRS Fund in 

accordance with generally accepted 

accounting principles for federal 

agencies and maintain the accounts of 

the TRS Fund in accordance with the 

United States Government Standard 

General Ledger. When the 

administrator, or any independent 

auditor hired by the administrator, 

conducts audits of providers of services 

under the TRS program or contributors 

to the TRS Fund, such audits shall be 

conducted in accordance with generally 

accepted government auditing 

standards. In administering the TRS 

Fund, the administrator shall also 

comply with all relevant and applicable 

federal financial management and 

reporting statutes. The administrator 

shall establish a non-paid voluntary 

advisory committee of persons from the 

hearing and speech disability 

community, TRS users (voice and text 

telephone), interstate service providers, 

state representatives, and TRS 

providers, which will meet at 

reasonable intervals (at least semiannually) in order to monitor TRS cost 

recovery matters. Each group shall 

select its own representative to the 

committee. The administrator’s annual

5720 Federal Register / Vol. 69, No. 25 / Friday, February 6, 2004 / Rules and Regulations 

report shall include a discussion of the 

advisory committee deliberations.

* * * * *

[FR Doc. 04–2531 Filed 2–5–04; 8:45 am] 

BILLING CODE 6712–01–P

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric 

Administration

50 CFR Part 216

[Docket No. 031112277–4018–02; 

I.D.080603B]

RIN 0648–AR70

Taking and Importing Marine 

Mammals; Taking Marine Mammals 

Incidental to Space Vehicle and Test 

Flight Activities From Vandenberg Air 

Force Base (VAFB), CA

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce.

ACTION: Final rule.

SUMMARY: NMFS, upon application from 

the U.S. Air Force (USAF), is issuing 

regulations to govern the unintentional 

takings of small numbers of marine 

mammals incidental to space vehicle 

and test flight activities from 

Vandenberg Air Force Base, CA (VAFB) 

over a 5-year period. Issuance of 

regulations is required by the Marine 

Mammal Protection Act (MMPA) when 

the Secretary of Commerce (Secretary), 

after notice and opportunity for 

comment, finds, as here, that such takes 

will have a negligible impact on the 

species or stocks of marine mammals 

and will not have an unmitigable 

adverse impact on their availability for 

subsistence uses. These regulations 

prescribe methods of taking and other 

means of effecting the least practicable 

adverse impact on marine mammal 

species and their habitat, and on the 

availability of the species for 

subsistence uses.

DATES: Effective from February 6, 2004, 

through February 6, 2009.

ADDRESSES: A copy of the USAF 

application, which contains a list of the 

references used in this document, may 

be obtained by writing to P. Michael 

Payne, Chief, Marine Mammal 

Conservation Division, Office of 

Protected Resources, National Marine 

Fisheries Service, 1315 East-West 

Highway, Silver Spring, MD 20910–

3226 or by telephoning the contact 

listed here (see FOR FURTHER

INFORMATION CONTACT). NMFS’

Administrative Record for this action 

will be maintained at the above address. 

Copies of letters and documents are 

available from this address.

FOR FURTHER INFORMATION CONTACT:

Kimberly Skrupky (301) 713–2322, ext. 

163.

SUPPLEMENTARY INFORMATION:

Background

Section 101(a)(5)(A) of the Marine 

Mammal Protection Act (MMPA) (16 

U.S.C. 1361 et seq.) directs the Secretary 

of Commerce (Secretary) to allow, upon 

request, the incidental, but not 

intentional taking of small numbers of 

marine mammals by U.S. citizens who 

engage in a specified activity (other than 

commercial fishing) within a specified 

geographical region if certain findings 

are made and regulations are issued.

Permission may be granted for periods 

of 5 years or less if the Secretary finds 

that the total taking will have a 

negligible impact on the species or 

stock(s) of affected marine mammals, 

and will not have an unmitigable 

adverse impact on the availability of the 

species or stock(s) for subsistence uses, 

and if regulations are prescribed setting 

forth the permissible methods of taking 

and the requirements pertaining to the 

monitoring and reporting of such taking. 

NMFS has defined ‘‘negligible impact’’

in 50 CFR 216.103 as:

an impact resulting from the specified 

activity that cannot be reasonably expected 

to, and is not reasonably likely to, adversely 

affect the species or stock through effects on 

annual rates of recruitment or survival.

Under section 18(A), the MMPA 

defines ‘‘harassment’’ as:

any act of pursuit, torment, or annoyance 

which (i) has the potential to injure a marine 

mammal or marine mammal stock in the wild 

[Level A harassment]; or (ii) has the potential 

to disturb a marine mammal or marine 

mammal stock in the wild by causing 

disruption of behavioral patterns, including, 

but not limited to, migration, breathing, 

nursing, breeding, feeding, or sheltering 

[Level B harassment].

Summary of Request

On September 2, 2003, NMFS 

received an application from the USAF 

requesting authorization under section 

101(a)(5)(A) of the MMPA to harass 

small numbers of marine mammals 

incidental to space vehicle and test 

flight activities conducted by the USAF 

on Vandenberg. These regulations will 

allow NMFS to issue annual Letters of 

Authorization (LOAs) to the USAF. The 

current regulations and LOA expired on 

December 31, 2003. A detailed 

description of the operations is 

contained in the USAF application 

(USAF, 2003) which is available upon 

request (see ADDRESSES).

Description of the Specified Activity

VAFB is the main west coast launch 

facility for placing commercial, 

government, and military satellites into 

polar orbit on expendable (i.e. not 

reusable) launch vehicles, and for 

testing and evaluation of 

intercontinental ballistic missiles 

(ICBM) and sub-orbital target and 

interceptor missiles. In addition to 

space vehicle and missile launches, 

there are security and search and rescue 

helicopter operations, as well as test and 

evaluation flights of fixed-wing air craft. 

The USAF expects to launch a total of 

30 rockets and missiles from VAFB.

Currently five space launch vehicle 

programs use VAFB to launch satellites 

into polar orbit: Atlas IIAS, Delta II, 

Minotaur, Taurus, and Titan (II and IV). 

Two new programs, the Evolved 

Expendable Launch Vehicle (EELV) and 

Space X, are scheduled to make their 

inaugural launches at VAFB in 2004. 

The EELV will use a Boeing Delta IV 

vehicle and a Lockheed-Martin Atlas V. 

Eventually, these vehicles will replace 

many of the other programs such as 

Atlas II and Titan, but initially there 

will be an overlap in the launches of 

each program. The Space X is a 

commercial program which will launch 

small payloads into low earth orbit. 

There is also a variety of small missiles, 

several types of interceptor and target 

vehicles, and fixed-wing aircrafts that 

are launched from VAFB.

Atlas IIAS

The Atlas IIAS is launched from 

Space Launch Complex (SLC) 3E on 

south VAFB, approximately 9.9 km (6.2 

mi) from the Rocky Point harbor seal 

haul-out area and 11.1 km (6.9 mi) from 

the Spur Road haul-out site. The Atlas 

IIAS is a medium-sized (up to 48m, 

157.5 ft, tall) launch vehicle with 

approximately 724,800 lbs of thrust. 

Two Atlas IIAS launch vehicles have 

been launched from SLC 3E (the Atlas 

IIAS AC–141 Terra launched on 18 

December 1999 and the Atlas IIAS 

MLV–10 launched on 8 September 

2001).

The received sound level at south 

VAFB from the Atlas IIAS launches was 

relatively quiet, due to the great amount 

of attenuation from the 9.9 km (6.2 mi) 

distance between the measurement site 

and SLC–3E. Measurements at the south 

VAFB haul-out site were similar to 

those measured at the north base Spur 

Road monitoring site, but slightly 

higher. The A-weighted sound exposure 

levels (ASEL), measured at the south 

haul-out site for the two launches, were 

87.3 and 88.5 dB, the unweighted SELs 

were measured at 124.2 and 118.0 dB