Federal Communications Commission

Fiscal Year 2009 Summary of Performance and Financial Results

Message from Our Chairman

1

Body Copy Iam pleased to introduce the Federal Communications 

Commission’s first Summary of Performance and Financial Results. This report is intended for a general audience of consumers, businesses and other stakeholders. My 

goal in publishing this summary is to increase our agency’s 

accountability by making financial and performance information more transparent and accessible to all citizens.

With each passing day, communications devices and networks become more essential to the fabric of the daily lives 

of all Americans. They are how we receive news, information, 

and entertainment; how we stay in touch with our friends 

and family; how we work at and run our businesses, large 

and small; how we communicate and coordinate in times of 

emergency; and how we—and people across the globe—learn 

about government and express our points of view.

Our nation is at a crossroads. We face a number of tremendous 

challenges: our economy, education, health care, and energy, 

to name a few. If we can harness the power of communications to confront these 

challenges, we will have chosen the right course, and we will make a real positive 

difference in the lives of our children and future generations.

As the country’s expert agency on communications, it is the FCC’s job to pursue this 

vision of a more connected America, focusing on the following goals:

z promoting universal broadband that’s robust, affordable and open;

z pursuing policies that promote job creation, competition, innovation and 

investment;

z protecting and empowering consumers and families; 

z helping deliver public safety communications networks with the best technology to serve our firefighters, police officers, and other first responders; 

z advancing a vibrant media landscape, in these challenging times, that serves 

the public interest in the 21st century; and

z seizing the opportunity for the United States to lead the world in mobile 

communications.

This report contains a summary of the progress the FCC made during Fiscal Year 

2009 in meeting the key challenges facing the agency, and an assessment of the 

financial management of the FCC. I am pleased to note that for the fourth consecutive year, the FCC obtained an unqualified or “clean” audit opinion on its financial 

statements. A more detailed view of the Commission’s financial statements can 

be found in the FY 2009 Agency Financial Report, located at www.fcc.gov/omd/

strategicplan. This is also the location of the FY 2009 Annual Performance Report 

that contains a comprehensive assessment of the FCC’s accomplishments 

for the fiscal year. 

Julius Genachowski

Chairman

February 2010

Julius Genachowski

Chairman

Fiscal Year 2009

Summary of Performance and Financial Results 1
Federal Communications Commission

Message from Our Chairman

2

Overview of the 

Federal Communications Commission

The Federal Communications Commission (FCC or Commission) has chosen 

to produce this Summary of Performance and Financial Information to provide a citizen-friendly document summarizing the FCC’s financial status and 

performance for Fiscal Year 2009 (October 1, 2008 through September 30, 2009). 

We do this because members of the public, particularly our key constituencies, are 

stakeholders in the work and the results of our agency. Our goal is to increase the 

transparency and accessibility of the FCC and increase the accountability of the 

Commission to you, the citizens of the United States.

This Summary document may lead you to seek additional information concerning the 

FCC’s finances and performance. The Commission has published its Agency Financial 

Report and its Annual Performance Report for FY 2009. Both of these reports are available online on the Commission web site at http://www.fcc.gov/omd/strategicplan. 

Many people who watch television or listen to radio recognize that the FCC is part 

of their lives due to the Commission’s role in regulating interstate communications. What people may not realize is the extent to which every area of their life is 

intertwined with the communications technologies the FCC regulates. For example, 

because almost all electrical and electronic equipment emits radio frequencies, 

FCC rules protect you when:

z your child plays with a radio-controlled airplane;

z your teenager upstairs sends their homework assignment to the printer 

downstairs via your new wireless home network;

z your toll fee is automatically deducted from the transponder on your 

windshield without your having to stop at the booth;

z you swipe your credit card at the gasoline pump;

z you push the button on your garage door opener;

z you heat your breakfast waffle in the microwave;

z the cashier at the coffee shop rings up your favorite morning drink using an 

electronic cash register and inventory control system;

z the local video store contacts its remote, central computer network to find out 

if you have enough bonus points to qualify for a free rental;

z you lock your car with your remote entry system; and

z you activate your home alarm system before going to bed.

These are just a few of the thousands of ways in which the vital work of the FCC 

helps facilitate both personal freedom and the public good. Perhaps no one example 

better illustrates the breadth and importance of the FCC’s role in modern America 

than September 11, 2001, when all Americans were reminded of the importance of 

reliable, easily available, and interoperable communications—both for emergency 

personnel responding to a tragedy, and individuals checking on family and friends. 

The FCC-regulated communications industries are a vital component in Americans’ 

daily lives.
Fiscal Year 2009

Summary of Performance and Financial Results 3

The FCC is an independent regulatory agency of the United States Government. 

The Commission was established by the Communications Act of 1934 and is 

charged with regulating interstate and international communications by radio, 

television, wire, satellite, and cable. The Commission also regulates telecommunications services for hearing-impaired and speech-impaired individuals, as set forth 

in Title IV of the Americans with Disabilities Act (ADA). The Commission’s headquarters is located in Washington, D.C., with three regional offices, sixteen district 

offices, and nine resident agent offices across the Nation. 

Five commissioners direct the work of the FCC. All are appointed by the President and 

confirmed by the Senate for five-year terms, except when filling the unexpired term 

of a previous Commissioner. Only three Commissioners can be of the same political 

party at any given time and none can have a financial interest in any company or entity that has a significant interest in activities regulated by the Commission.

The President designates one of the Commissioners to serve as Chairman. 

The Chairman and the Commissioners at the end of FY 2009 were:

z Chairman Julius Genachowski;

z Commissioner Michael J. Copps;

z Commissioner Robert M. McDowell;

z Commissioner Mignon Clyburn; and

z Commissioner Meredith Attwell Baker.

About the FCC

Pictured from left to right are Commissioner Clyburn, Commissioner Copps, 

Chairman Genachowski, Commissioner McDowell, and Commissioner Baker.
4 Federal Communications Commission

As specified in the Communications Act, the Commission’s 

mission is to “make available, so far as possible, to all the people of the United States, without discrimination on the basis of 

race, color, religion, national origin, or sex, rapid, efficient, 

Nation-wide, and world-wide wire and radio communication 

service with adequate facilities at reasonable charges.” 1 In 

addition, the Communications Act provides that the Commission was created “for the purpose of the national defense” 

and “for the purpose of promoting safety of life and property 

through the use of wire and radio communication.”2

Mission

1 47 U.S.C. § 151.

2 Id.
Fiscal Year 2009

Summary of Performance and Financial Results 5

Organizational Structure

The FCC Chairman leads the Commission as the head of the agency. The FCC is 

organized by function. There are seven Bureaus and ten Offices. The Bureaus and 

the Office of Engineering and Technology process applications for licenses to operate 

facilities and provide communications services in specific locations and on specific 

radio frequencies, analyze complaints from citizens and other licensees, conduct 

investigations, develop and implement regulatory programs, and participate in hearings. Generally, the Offices provide specialized support services. Bureaus and Offices 

regularly join forces and share expertise in addressing FCC-related issues.

The Bureaus

z The Consumer and Governmental Affairs Bureau develops and implements the FCC’s consumer policies, including disability access. The Bureau 

serves as the public face of the Commission through outreach and education, 

as well as through the Consumer Center, which is responsible for responding 

to consumer inquiries and complaints. The Bureau also maintains collaborative partnerships with state, local, and tribal governments in such critical 

areas as emergency preparedness and implementation of new technologies.

z The Enforcement Bureau enforces the Communications Act and the FCC’s 

rules. The Enforcement Bureau protects consumers, fosters efficient use of 

the spectrum, furthers public safety, and promotes competition.

z The International Bureau administers the FCC’s international telecommunications and satellite programs and policies, including licensing and regulatory 

functions. The International Bureau also has a unique role in promoting procompetitive policies abroad, coordinating the Commission’s global spectrum 

activities, and advocating U.S. interests in international communications and 

competition. The International Bureau works to promote a high quality, reliable, globally interconnected, and interoperable communications infrastructure.

z The Media Bureau recommends, develops, and administers the policy and 

licensing programs relating to electronic media, including radio and broadcast, cable, and satellite television in the United States and its territories.

z The Public Safety and Homeland Security Bureau supports initiatives that 

strengthen public safety and emergency response capabilities to better enable 

the FCC to assist the public, law enforcement, hospitals, the communications 

industry, and all levels of government in the event of a natural disaster, pandemic, or terrorist attack.

z The Wireless Telecommunications Bureau is responsible for wireless telecommunications programs and policies in the United States, including licensing of wireless communications providers. Wireless communications services 

include cellular, paging, personal communications, and other radio services 

used by businesses and private citizens. The Bureau also conducts auctions of 

licenses for the communications spectrum.

z The Wireline Competition Bureau develops and recommends policy goals, 

objectives, programs, and plans on matters concerning wireline telecommunications. It strives to ensure choice, opportunity, and 

fairness in promoting the development and 

widespread availability of wireline 

telecommunications services. 
6 Federal Communications Commission

Organizational Structure

The Offices 

z The Office of Administrative Law Judges is composed of judges who 

preside over hearings and issue decisions on matters referred to them by the 

Commission.

z The Office of Communication Business Opportunities promotes competition and innovation in the provision and ownership of telecommunications 

services by supporting opportunities for small businesses as well as womenand minority-owned communications businesses.

z The Office of Engineering and Technology advises the Commission on 

technical and engineering matters. This Office develops and administers FCC 

decisions regarding spectrum allocations, and grants equipment authorizations and experimental licenses.

z The Office of the General Counsel serves as the Commission’s chief legal 

advisor.

z The Office of the Inspector General conducts and supervises audits and 

investigations relating to FCC programs and operations.

z The Office of Legislative Affairs serves as the liaison between the FCC and 

Congress, as well as other federal agencies.

z The Office of the Managing Director administers and manages the FCC.

z The Office of Media Relations informs the media of FCC decisions and 

serves as the FCC’s main point of contact with the media.

z The Office of Strategic Planning and Policy Analysis works with the 

Chairman, Commissioners, Bureaus, and Offices in strategic planning and 

policy development for the agency. It also provides research, advice, and 

analysis of complex, novel, and non-traditional economic and technological 

communications issues.

z The Office of Workplace Diversity ensures that the FCC provides employment opportunities for all persons regardless of race, color, sex, national 

origin, religion, age, disability, or sexual preference. 

Detailed information on specific bureau and office responsibilities can be found both 

in Title 47 of the Code of Federal Regulations and on the Commission’s website at: 

http://www.fcc.gov/. The Commission’s organizational chart is on the next page.
Fiscal Year 2009

Summary of Performance and Financial Results 7

Organizational Chart
8 Federal Communications Commission

The Commission has multiple regional and field offices and resident agent locations around the United States. The Regional and Field Offices and resident agents 

are responsible for carrying out on-scene investigations, inspections, audits, and 

subjects of complaints that are referred to them from within the Enforcement 

Bureau or by other Bureaus and Offices. These functions include immediate 

response to safety-of-life issues, interference resolution, investigation of violations 

in all communications services, surveys for compliance with FCC rules, local assistance to other agencies or countries in communications matters, and representing 

the Commission before groups and organizations. In addition, the FCC maintains 

a laboratory in Columbia, Maryland so that staff of the Office of Engineering and 

Technology can test, evaluate, and perform engineering analyses on communications equipment requiring Commission authorization for use. The FCC also has a 

facility in Gettysburg, Pennsylvania housing portions of its Wireless Telecommunications Bureau’s licensing and spectrum auctions staff, and a portion of the FCC’s 

National Call Center operated by the Consumer and Governmental Affairs Bureau. 

Below is a map of all Commission field offices and resident agent locations. 

Map of Field Offices
Fiscal Year 2009

Summary of Performance and Financial Results 9

Strategic Goals and Objectives

The Commission has identified six long-term strategic goals in its FY 2009–FY 

2014 Strategic Plan. The strategic goals serve as guidance directing the actions 

and performance of the FCC. Progress toward accomplishing these goals is measured by the progress and completion of annual performance goals during the 

fiscal year. There are external influences, including economic, legal, and organizational factors beyond the Commission’s programs and efforts that may influence whether the Commission fully meets every performance goal. Details on the 

Commission’s strategic goals, as well as the strategies and resources used to meet 

these goals, can be found in the Commission’s strategic plan at: http://www.fcc.

gov/omd/strategicplan. The FCC’s long-term strategic goals are:

BROADBAND All Americans should have affordable access to robust 

and reliable broadband products and services. Regulatory policies must promote technological neutrality, 

competition, investment, and innovation to ensure that 

broadband service providers have sufficient incentive to 

develop and offer such products and services.

COMPETITION Competition in the provision of communications services, 

both domestically and overseas, supports the Nation’s 

economy. The competitive framework for communications 

services should foster innovation and offer consumers 

reliable, meaningful choice in affordable services.

SPECTRUM Efficient and effective use of non-federal spectrum domestically and internationally promotes the growth and 

rapid deployment of innovative and efficient communications technologies and services.

MEDIA The Nation’s media regulations must promote competition and diversity and facilitate the transition to digital 

modes of delivery. 

PUBLIC SAFETY AND Communications during emergencies and crises must 

HOMELAND SECURITY be available for public safety, health, defense, and emergency personnel, as well as all consumers in need. The 

Nation’s critical communications infrastructure must be 

reliable, interoperable, redundant, and rapidly restorable. 

MODERNIZE THE FCC The Commission shall strive to be a highly productive, 

adaptive, and innovative organization that maximizes 

the benefit to stakeholders, staff, and management, 

from effective systems, processes, resources, and organizational culture.
10 Federal Communications Commission

During the previous fiscal year, the Commission made significant progress toward 

accomplishing its performance goals. Greater detail on these accomplishments is 

available in the FCC Annual Performance Report (APR) for FY 2009 which can be 

found on the Commission’s web site at http://www.fcc.gov/omd/strategicplan. Following are the Commission’s achievements in its major initiatives during the past 

fiscal year, organized by Strategic Goal.

Broadband

All Americans should have affordable access to robust and reliable broadband 

products and services. Regulatory policies must promote technological neutrality, 

competition, investment, and innovation to ensure that broadband service providers have sufficient incentive to develop and offer such products and services.

The Administration and Congress have given the FCC several new tasks to complete in an effort to make high speed broadband access to the internet available 

to all Americans. This effort is based on the belief that every American needs the 

availability of broadband to reap the benefits of the economic and social opportunities made available by internet access. The effort requires the FCC to: 

z develop a forward-looking national broadband plan to ensure that all Americans have access to broadband capability; 

z contribute to efforts of the Departments of Commerce and Agriculture to 

award $7.2 billion in grants, loans, and loan guarantees to hasten roll-out of 

the facilities needed to provide broadband and educate consumers to use this 

infrastructure; and

z collect and report far more detailed and comprehensive information on the 

status of broadband deployment, adoption, and use, including how broadband 

service in the U.S. compares to broadband service in other countries. 

Broadband is the major communications infrastructure priority of our time. Earlier generations faced, and rose to, similar challenges with railroads, highways, 

telephones, and electricity—networks that have connected Americans, served as 

a platform for commerce, and improved the quality of life for all Americans. The 

FCC’s efforts will ensure that our country has a broadband infrastructure appropriate to the challenges and opportunities of the 21st century. 

In February 2009, as part of the American Recovery and Reinvestment Act, Congress directed the FCC within one year to develop a plan that seeks to ensure that 

people of the United States have access to broadband capability. The FCC sought 

input on the development of this national broadband plan through a Notice of Inquiry (NOI) that asked questions about all aspects of broadband, including how to:

1) define broadband access and capability; 

2) establish benchmarks to measure progress toward achieving deployment to all 

people living in the United States;

3) make broadband more affordable and useful; and 

4) achieve specific policy goals including health care delivery, energy and the environment, education, civic participation, job creation and economic growth, and 

public safety. 

Performance Highlights for FY 2009
Fiscal Year 2009

Summary of Performance and Financial Results 11

Performance Highlights for FY 2009 

 Broadband continued

In developing the broadband plan, the FCC is conducting a data-driven process 

with unparalleled opportunities for public participation. On August 6th the Commission began an ongoing series of public workshops on a broad range of issues relating to broadband, holding 27 workshops in the last two months of FY 2009. The 

FCC launched a website — Broadband.Gov — that helped open up public dialogue 

around the broadband plan to more citizens and to new voices from around the 

country, including rural and inner cities, small businesses, and state and local governments. Broadband.Gov provides schedules and information about the broadband initiative and is a place for all stakeholders to provide input and comments 

on the Commission’s progress to date. 

The FCC Broadband team also introduced other new and innovative methods to 

foster public dialogue. They have helped Americans outside of Washington participate in the workshops using multimedia tools such as interactive webcasting and 

live panelist testimony via live tele-presence. The Commission also implemented 

new media applications designed to increase public participation. Blogband is the 

official blog of the national broadband plan and the FCC’s first ever blog. Stakeholders can hear from experts at the FCC and provide comments that will be 

inserted into the public record. The FCC also launched a National Broadband Plan

page on IdeaScale. This crowd-sourcing platform allows users to publicly share 

and discuss ideas, as well as vote on their favorite ideas and topics presented. 

IdeaScale has been especially useful in reaching stakeholders 

outside of Washington, DC. 

The chart below shows how broadband improves our nation and the quality of life for its citizens.
12 Federal Communications Commission

Performance Highlights for FY 2009 

 Broadband continued

The Commission also took steps during FY 2009 to promote the delivery of broadband to rural areas to provide opportunities for Americans residing and working 

in those areas. The 2008 Farm Bill required the FCC Chairman, in coordination 

with the Secretary of the Department of Agriculture, to submit a report to Congress describing a rural broadband strategy. Entitled “Bringing Broadband to Rural 

America: Report on a Rural Broadband Strategy,” the report by Acting Chairman 

Copps identified common problems affecting rural broadband, including technological challenges, lack of data, and high network costs, and offered recommendations 

to address those problems.

In October 2008, Congress enacted the Broadband Data Improvement Act (BDIA) 

to improve the quantity and quality of data the FCC collects on the deployment 

and adoption of broadband services. The BDIA requires the FCC to compile a list 

of geographical areas not served by any provider of advanced telecommunications 

capability, and, if Census Bureau data is available, determine the population, population density, and average per capita income of each unserved area. Additionally, 

the FCC must undertake a detailed international comparison of U.S. broadband 

service capability to broadband service capability in 75 communities in at least 25 

countries. In March 2009, the FCC sought comment on how it should implement 

the international comparison requirement, and staff of the FCC’s International 

Bureau is gathering broadband information from various sources.
Fiscal Year 2009

Summary of Performance and Financial Results 13

Performance Highlights for FY 2009

Competition

Competition in the provision of communications services, both domestically and 

overseas, supports the Nation’s economy. The competitive framework for communications services should foster innovation and offer consumers reliable, meaningful 

choice in affordable services.

During FY 2009, the FCC addressed the key topics of innovation, investment, 

competition, and consumers. These values lie at the core of the FCC’s mission; 

they are essential to ensuring that communications in the 21st century will serve 

as an enduring engine of economic growth for our nation and improve the lives of 

all Americans. The Wireless Innovation and Investment Notice of Inquiry adopted 

by the Commission focuses on the FCC’s particular responsibility for managing 

spectrum, a unique and scarce national resource. It recognizes the vital importance of innovators and entrepreneurs to the work of the Commission. Specifically, 

it requests inputs and ideas for how the FCC can best maximize investment and 

innovation in the mobile industry. The inquiry seeks to ascertain what actions the 

Commission currently undertakes that perhaps it might cease, and what new steps 

can be taken to fulfill strategic objectives of fostering investment and innovation 

for our country. The goal of the Wireless Competition Notice of Inquiry is to build 

a solid, analytic foundation for predictable, fact-based competition policy in the 

wireless sector. This process will continue with the other competition reports the 

agency is responsible for preparing. 

The Consumer Information and Disclosure Notice of Inquiry directs the Commission 

to assess whether consumers have adequate information to make informed buying 

decisions. Access to information in readily understandable formats is essential to 

ensure a competitive marketplace and that consumers can choose communications 

services that will meet their needs without hidden charges. 

Competition increases access to telecommunications services for all Americans, 

including persons with disabilities. During this fiscal year, the Commission released 

a Report and Order adopting a system to assign ten-digit numbers for users of 

Internet-based Telecommunications Relay Services (TRS) so that Americans with 

hearing and speech disabilities can be called in the same manner that voice telephone users are called. The Commission order also ensures that emergency calls 

placed by these users will be routed directly and automatically to appropriate 

emergency services authorities by the Internet-based TRS providers. 

Enforcement of provisions of the Communications Act and the Commission’s rules 

is essential to promoting fair competition for the benefit of all consumers. The FCC 

initiated numerous investigations into whether various entities it regulates have 

violated regulations related to the opening of markets to competition. To support 

this goal, universal service, access to communications services for people with disabilities, and consumer protection issues are high priorities. Strong enforcement of 

the Commission’s universal service rules resulted in:
14 Federal Communications Commission

Performance Highlights for FY 2009 

 Competition continued

z the assessment of forfeitures and negotiation of consent decrees totaling more than $7 million in fines or voluntary contributions to the U.S. 

Treasury. The investigations associated with these actions resulted in the 

recovery or repayment of over $20 million to the Universal Service Fund;

	 z execution of settlement agreement with AT&T, resulting in a $10.08 million voluntary contribution and compliance plan.

Enforcement action was taken against seven companies who were in violation of the 

FCC’s rules relating to operating without authority or transferring their licenses without required FCC approval. The Commission enforced its rules regarding accessible 

telecommunications products and services through issuance of forfeitures totaling 

$6,000 and consent decrees totaling $52,000 for violations of hearing aid compatibility handset, labeling and reporting requirements.

The FCC changed its rules to shorten the period of time for simple requests to move 

a person’s existing telephone number from one carrier to another. The required time 

was shortened from four days to one business day. Simple requests generally do not 

involve more than one line. The new deadline applies to requests between wireline 

carriers or between wireless providers, but also includes requests from wireline to 

wireless, wireless to wireline, wireline or wireless to VoIP, or other combinations. The 

new rules will take effect in late summer 2010 for most carriers. 

The consumer price for telephone services has remained virtually the same since July 1998 compared 

to the price of other goods and services. The chart above uses data from the Bureau of Labor Statistics to compare the Consumer Price Index (CPI) for Telephone Services with the CPI for all goods and 

services, using July 1998 price levels as the base (equal to 100). The Telephone Services included in 

this index include Local Telephone Service, Long Distance Charges, Interstate Toll Service, Intrastate 

Toll Service, and Wireless Telephone Services. In contrast to a 32.23% increase in the CPI for all goods 

and services, measured from July 1998 to September 2009, the Telephone Services price index has 

increased a mere 1.45%. 

Telephone Services and the Consumer Price Index

All Goods and Service

Telephone Services
Fiscal Year 2009

Summary of Performance and Financial Results 15

Performance Highlights for FY 2009 

Spectrum

Efficient and effective use of non-federal spectrum domestically and internationally 

promotes the growth and rapid deployment of innovative and efficient communications technologies and services.

In its continuing efforts to promote efficient use of spectrum and to extend the 

benefits of such use to the public, the FCC established rules to allow new, sophisticated wireless devices to operate in broadcast television spectrum on a secondary basis. This unused TV spectrum is now commonly referred to as television 

“white spaces”. These rules will allow for the use of new and innovative types of 

unlicensed devices in the unused spectrum to provide broadband data and other 

services for consumers and businesses. The rules represent a careful first step to 

permit the operation of unlicensed devices in the TV white spaces and include 

numerous safeguards to protect incumbent services against harmful interference. 

Spectrum is becoming a scarce commodity with the explosion of new wireless 

devices that have significantly changed our lives. Numerous safeguards have been 

established to protect television signals against interference.

The Commission adopted the Wireless Innovation and Investment Notice of Inquiry 

seeking to understand the factors that encouraged innovation and investment in wireless communications and sought to identify concrete steps the Commission can take 

to support and encourage further innovation and investment in the wireless marketplace. The FCC has also actively worked on an extensive analysis of various options 

for making Advanced Wireless Service spectrum available on terms and conditions 

that will maximize its suitability for the provision of wireless broadband service.

The Commission adopted rules for the use of distributed transmission system 

(DTS) technologies for digital television service. DTS provides broadcasters with an 

important tool for providing optimum signal coverage for their viewers. For some 

broadcasters that changed channels or transmitting locations for their digital service, DTS may offer the best option for continuing to provide over-the-air service 

to current analog viewers, as well as for reaching viewers that have historically 

been unable to receive a good signal due to terrain or other interference.

The Commission adopted a Notice of Proposed Rulemaking seeking comment on 

allocating spectrum and establishing service and technical rules for the operation 

of Medical Body Area Networks (MBAN). These could be used to create wireless 

body sensor networks around individual patients to monitor an array of physiological data, such as temperature, pulse, blood glucose level, blood pressure, respiratory function and a variety of other physiological metrics. MBAN systems would 

primarily be used in health care facilities, with the potential also of being used in 

other patient care/monitoring enviroments. 
16 Federal Communications Commission

Performance Highlights for FY 2009 

 Spectrum continued

The FCC approved new rules to provide additional spectrum for wireless medical 

devices. Significant advances in both implanted and body-worn wireless medical 

instruments are increasing the demand for spectrum and for greater flexibility in 

how such devices operate and coexist. These new medical technologies will improve 

the diagnosis and treatment of a wide variety of medical conditions and, most 

importantly, improve the quality of life for people coping with such conditions.

Interoperable communications between government entities for the common good 

has been a major issue since the tragic events of September 11, 2001. It is critical that public safety and homeland security officials at all levels of government 

have the ability to communicate seamlessly and effectively in times of crisis. FCC 

management and staff have worked to resolve this issue through workshops and 

projects involving local, tribal, state, and federal agencies. For example, Commission staff worked with the Department of Homeland Security, Office of Emergency 

Communications in its implementation of Section 302 of the Implementing Recommendations of the 9/11 Commission Act, Public Law 110-53. The legislation 

authorizes a competitive grant program to establish six pilot projects to improve 

interoperability among local, tribal, state, federal and international partners along 

and across the Canadian and Mexican borders. The Commission, in consultation 

with the Department of State, the Department of Homeland Security and the Office of Management and Budget submitted a report to Congress on the status of 

cross-border interoperability issues between the U.S. and Mexico and the U.S. and 

Canada on January 13, 2009.

The FCC focused on protecting our nation’s airwaves from unlicensed operation 

and resolving interference problems, both domestic and international. Some of the 

actions taken include:

z initiating approximately 1,150 new investigations of non-public safety 

interference complaints during FY 2009; and

z shutting down 106 pirate (unlicensed) radio stations and issued forfeitures 

totaling $109,000.
Fiscal Year 2009

Summary of Performance and Financial Results 17

Performance Highlights for FY 2009 

Media

The Nation’s media regulations must promote competition and diversity and 

facilitate the transition to digital modes of delivery.

Since June 13, 2009 — the day following the June 12th DTV Transition deadline 

mandated by Congress for full-power television stations to cease broadcasting in 

analog — all over-the-air TV broadcasts have been transmitting digital signals. 

In the months leading up to this transition, the FCC undertook an unprecedented 

agency-wide effort to facilitate this transition for the American public.

Hundreds of FCC employees were dispatched across the nation, especially to communities in 49 markets that were home to the greatest concentrations of unprepared households. FCC staff members worked with local governments and community-based organizations to get the word out on DTV preparedness and educate 

consumers on how to prepare. FCC commissioners also discussed the digital transition at events such as town hall meetings and community gatherings. In all, the FCC 

conducted over 3,900 DTV Awareness Sessions and workshops; visited over 17,000 

senior centers, community centers and other locations throughout the 50 states, 

plus the District of Columbia and Puerto Rico; attended over 5,900 events, conferences and partnership meetings; and had over 3,400 partnerships with consumer 

advocates, industry and government entities.

The Commission revamped its DTV website (www.dtv.gov) to make it more consumer friendly. The updated site helped consumers with information specific to 

their communities on a variety of topics. By entering their zip codes in a search 

box, consumers located nearby support centers, got contact information for 

local stations, and found DTV events near them. Online reception maps showed 

consumers what stations they should be able to receive at home once the transition was complete, information that proved useful in choosing and installing an 

antenna. Through the June 12, 2009 transition deadline, the www.dtv.gov website 

received over 93 million hits.

The FCC worked with over 3,400 organizations including consumer advocates, 

grass roots organizations, industry and government entities, and distributed over 

29 million pages of publications and over 165,000 DTV posters.

The FCC issued grass roots contracts establishing over 500 walk-in centers and 

thousands of DTV help clinics across the country. They offered consumers handson assistance on how to connect and operate converter boxes and help in ordering 

converter box coupons.

The Commission awarded 34 contracts for free, in-home, technical assistance for 

consumers who had trouble installing their converter boxes and adjusting their 

antennas for digital signals. Joining FCC contractors in this effort were two valuable volunteer partners—members of AmeriCorps National Civilian Community 

Corps, and fire fighters in cooperation with the International Association of Fire 

Chiefs. Installation vendors performed an estimated 286,000 successful 

installations nationwide.
18 Federal Communications Commission

Performance Highlights for FY 2009 

 Media continued

The FCC established a national DTV help line, using up to 4,000 operators at peak 

calling periods and successfully handling more than one million calls. Operators could 

troubleshoot common converter box or antenna installation problems and refer 

consumers to groups providing in-home installation if more assistance was needed. 

The Commission teamed with Consumers Union to distribute a consumer guide, 

written by CU’s Consumer Reports. It provided clear instructions and diagrams to 

help viewers prepare for the transition. “DTV Made Easy,” a 15-page booklet, could 

be downloaded from www.dtv.gov, or obtained by calling the FCC’s DTV help line. 

It was also available at DTV walk-in help centers and mobile clinics throughout 

much of the country, from in-home installation helpers, and from major retailers.

The FCC conducted three rounds of “soft tests” before the transition on June 12, 

2009. There was widespread participation by broadcasters in all three tests. The 

first, held on December 17, 2008, involved broadcasters in 42 states and the 

District of Columbia. A second nationwide test was held on January 12, 2009. Stations in 31 states participated. The third and final coordinated nationwide soft test, 

in 130 markets, was held May 21, 2009. This soft test was supplemented with a 

Among the innovative tools available on the FCC’s DTV website are reception maps to assist viewers 

in finding DTV signals in the areas where they live. By entering their address or zip code, viewers can 

access a local map, a list of digital television channels available over the air, and an assessment of 

signal strength for each station at the viewer’s location. Shown is a map and list of digital channels 

available in Washington, DC.
Fiscal Year 2009

Summary of Performance and Financial Results 19

Performance Highlights for FY 2009 

 Media continued

publicity campaign that focused on the deployment of on-the-ground assets, such 

as walk-in centers and clinics offered by grass roots and community organizations; 

local FCC outreach events; and the availability of in-home installation assistance. 

On May 21, 2009, the FCC took 55,000 calls from consumers to its 888-CALL-FCC 

National Call Center number, which is 72 percent more than the previous recordsetting day.

The FCC launched a “home stretch” communications campaign including new Public 

Service Announcements, localized media announcements and interviews, and grassroots educational literature distribution.

These efforts served to significantly reduce the number of households unprepared 

for the Digital TV transition by the time it arrived on June 12th. The Commission 

continued to provide converter box installation services through the end of August, 

and still receives thousands of calls each week concerning digital television.

To ensure a smooth transition to digital TV and to reduce consumer confusion, the 

FCC established rules to prohibit the importation of televisions without digital tuners, 

and to ensure consumers were properly warned if an older television in a retailer’s 

inventory did not contain a digital tuner. FCC field agents inspected 177 stores for 

their compliance with DTV labeling requirements for analog-only television receivers. 

Commission staff also investigated and acted against electronics manufacturers for 

violation of the DTV tuner requirements, assessing proposed forfeitures and negotiating consent degrees totaling more than $242,000. 

In anticipation of the DTV transition, the Commission adopted a Closed Captioning Order in November 2008. This item addressed the issue of the applicability of 

closed captioning requirements in the post-DTV transition broadcasting environment and discussed measures aimed at ensuring continued accessibility of programming to people who are deaf or hard of hearing.

In addition to the digital TV transition, the Commission also issued an Order and 

Further Notice of Proposed Rulemaking to improve its collection of data on minority 

and female broadcast ownership to be able to more accurately assess and effectively 

promote diversity of ownership in the broadcast industry. The Commission submitted a report to Congress pursuant to the Child Safe Viewing Act of 2007 to assess 

the extent and availability of advanced blocking technologies and the existence and 

use of parental empowerment tools to assert control over what their children view. 

The Commission also opened a Notice of Inquiry concerning Arbitron’s portable 

people meter.
20 Federal Communications Commission

Performance Highlights for FY 2009 

Public Safety and Homeland Security

Communications during emergencies and crises must be available for public safety, 

health, defense, and emergency personnel, as well as all consumers in need. The 

Nation’s critical communications infrastructure must be reliable, interoperable, 

redundant, and rapidly restorable. 

One of the FCC’s main missions is to ensure continuous operations and reconstitution of critical communications systems and services during and following 

emergencies. Among the first actions of FCC Chairman Julius Genachowski was to 

direct the Commission’s Public Safety and Homeland Security Bureau to conduct a 

30-day, top-to-bottom review of the agency’s state of readiness for major public 

emergencies. On September 8th, the results of the review were released, citing 

four key areas for improvement.

z The report emphasizes the importance of the FCC’s outreach efforts in maintaining strong partnerships with federal, state, tribal, and local governments, 

the public safety community, and communications service providers. By working closely with its partners, the FCC can identify, in advance, the communications needs of law enforcement agencies, fire departments, and hospitals 

so that when an emergency arises, key lines of communication will remain 

open or be quickly restored. 

z The report recommends measures aimed to ensure that the FCC can proactively respond to public safety communications needs and communicate accurate and timely information to the public, even if the Commission’s internal 

operations are disrupted. These measures will help make sure the American 

public and first responders can get the emergency alerts that they need, 

when they need them. 

z Another key role for the FCC is ensuring the security of the nation’s communications networks. To better fulfill that role, the Public Safety and Homeland 

Security Bureau recommended improvements in our network analysis capabilities, established a cyber security working group, and is establishing an advisory 

council to examine potential improvements for emergency communications. 

z The report outlines training programs and drills to equip FCC staff with the 

skills, tools, and information they need to respond to any emergency. This 

training will inform staff of their collective and individual roles during crisis 

situations. Staff will also learn about management software systems that provide accurate and timely information in emergencies. 

Overall, while confirming that the FCC stands ready to respond to communications 

emergencies, the report reminds us that the agency must continuously strive to 

maximize its readiness, to ensure that it is prepared to meet its vital mission in the 

digital age, and to work toward helping our country’s first responders deploy 21st 

century technologies in support of their operational requirements. The Commission 

has set an aggressive schedule to implement the report’s recommendations. 
Fiscal Year 2009

Summary of Performance and Financial Results 21

Performance Highlights for FY 2009 

 Public Safety and Homeland 

Security continued

In the event of a major disaster, the FCC and the Department of Homeland Security’s National Communications System need to have accurate information regarding 

the status of communications services in the disaster area, particularly during restoration efforts. The Commission’s Disaster Information Reporting System (DIRS) 

is a voluntary, web-based system that communications companies can use to 

report communications infrastructure status and situational awareness information 

during times of crisis. The FCC encourages all communications providers to enroll 

in DIRS to be better prepared to respond and recover in the event of a disaster. 

During the fiscal year, the Commission activated DIRS in response to Tropical 

Storm Fay, Hurricane Gustav, Hurricane Ike, and the winter storms in the Midwest. 

Service providers submitted information directly, and DIRS produced reports used 

by the Joint Telecommunications Resource Board to assess communications infrastructure damage.

Commission enforcement of its rules concerning public safety communications 

is a primary focus to ensure the safety and wellbeing of all Americans. The FCC 

conducted 789 investigations involving public safety interference, resolving these 

within 24 hours of receiving a report of the interference. Commission staff worked 

with the Federal Aviation Administration to resolve widespread interference to the 

FAA’s Terminal Doppler Radars at numerous airports across the country, generally 

caused by wireless transmitters of internet service providers. 

The Commission also adopted a Report and Order and Further Notice of Proposed 

Rulemaking addressing the 4.9 GHz band. The rules will help expand and enhance 

first responders’ deployment of broadband communication technologies across the 

nation in the 4.9 GHz band, thereby helping to stimulate the economy. The new 

rules will also better enable first responders to more easily share time-sensitive 

data and streaming video footage in emergencies or life-threatening incidents.

In June 2009, the Commission sent an outreach team to five Gulf Coast cities to 

meet with state, county and local public safety officials about public safety and 

emergency response communications issues. The team conducted site visits in 

Houston, TX; Baton Rouge, LA; Biloxi, MS; Mobile, AL; and Tallahassee, FL. Each of 

the visits included meetings with public safety officials and tours of state or county 

emergency operations centers and 911 Call Centers, as well as area hospitals. In 

September 2009, the FCC conducted a similar outreach program with officials in 

the Birmingham, AL area.

Seeking to improve the performance of emergency communications during disasters, FCC staff worked directly with local officials to gather technical data, develop 

models, and perform associated analysis to evaluate the performance of communications systems used by emergency responders during the Minneapolis bridge 

collapse. The study also examined interoperable communications between public 

safety organizations and the resiliency of the local public safety communications 

infrastructure during the crisis.
22 Federal Communications Commission

Performance Highlights for FY 2009 

 Public Safety and Homeland 

Security continued

WPS is a Federal program that authorizes cellular communications service providers to prioritize calls 

over wireless networks. Participation in the WPS program is voluntary. The FCC sets the rules and 

policies for the WPS program; the National Communications System, a part of the U.S. Department of 

Homeland Security, manages the WPS program. From July 31, 2005 to July 31, 2009, WPS subscribership increased from 12,367 to 97,771, nearly an eight-fold increase. The WPS program facilitates 

the deployment of public safety technology and increases the chances that critical users, such as first 

responders, will be able to use cell phone services in an emergency. (All years end on July 31st.)

Wireless Priority Service Subscribers
Fiscal Year 2009

Summary of Performance and Financial Results 23

Performance Highlights for FY 2009 

 Public Safety and Homeland 

Security continued

The Commission established the TSP program to support priority restoration of communications services 

that support national security and emergency preparedness (NS/EP) missions during disasters, including terrorist attacks. The National Communications System (NCS) oversees day-to-day operation of the 

TSP program. The TSP program directs telecommunications service providers (e.g., wireline and wireless phone companies) to give preferential treatment to users enrolled in the program when they need 

to add new lines or have their lines restored following a disruption of service. Any Federal, state, or local 

government entity that relies on telecommunications services to accomplish its NS/EP mission can qualify 

for TSP. Although all 911 call centers would qualify for the TSP program, only a small percentage of 911 

call centers participate. In FY 2004, the Commission began an outreach program to inform 911 administrators of the TSP program and to expedite their enrollment. At the beginning of August 2008, a total 

of 13,384 911 call center circuits were enrolled in the TSP program. At the end of July 2009, a total of 

14,297 911 call center circuits were covered by the TSP program. This amounted to a 7% increase in 

911 call center circuits enrolled in TSP. (All years end on July 31st.)

At the beginning of August 2008, state and local governments had 14,798 circuits enrolled in the TSP 

program; by the end of July 2009, a total of 22,441 state and local government circuits were covered. 

This change amounted to a 52% increase in covered state and local circuits. The TSP program increases 

the reliability of essential NS/EP communications services by minimizing out-of-service times. As a result, 

these circuits were made more reliable, thus helping to achieve the Commission’s TSP objectives.

Telecommunications Service Priority Participation
24 Federal Communications Commission

Performance Highlights for FY 2009 

Modernize the FCC

The Commission shall strive to be a highly productive, adaptive, and innovative 

organization that maximizes the benefit to stakeholders, staff, and management 

from effective systems, processes, resources, and organizational culture.

The FCC is striving to become a model for excellence in government. The American people deserve an FCC that efficiently and effectively achieves the goals that 

Congress has set out for it; encourages and facilitates participation by all stakeholders; and is data-driven in its decision-making. To help achieve these goals, 

Chairman Genachowski appointed a Special Counsel for FCC reform. Along with 

the General Counsel and Managing Director, the Special Counsel will focus on 

reform and efficiency, perform a thorough review of the FCC’s existing processes, 

and make recommendations for improvement. The reform agenda includes a 

review of the Commission’s systems and processes for data collection, analysis 

and dissemination; improvements in the FCC’s licensing, comment and complaint 

filing systems; modernizing the information infrastructure to ensure the agency 

functions effectively and efficiently; moving the Commission’s workforce forward 

by streamlining operations, greening the agency, and providing leadership development and training; improving our institutional processes by better management 

of workflow as well as reviewing our rules and policies to reduce backlogs; and 

reviewing the agency’s financial operations.

The FCC is also committed to soliciting public feedback and to upgrading its website 

—one of the main ways in which the agency interacts with the public. The Commission is focused on improving navigation, search capabilities, and the accessibility 

of information on its site. Our goal is an inclusive process through which the public 

can be involved in the work of the Commission. The Commission is also connecting to other forms of social media. At www.fcc.gov/connect, stakeholders can find 

dozens of platforms to learn about the FCC and participate in agency processes. The 

FCC has also launched an internal online forum where employees can submit their 

ideas for improvement and reform. On the site, employees are involved in hundreds 

of conversations about how to improve the agency. An external feedback forum, 

reboot.fcc.gov, is being launched in early FY 2010. Through Reboot, citizens will be 

able to learn about the progress of the FCC reform agenda and help craft its direction. You are invited to join the discussion at reboot.fcc.gov. Your suggestions, ideas 

and comments will be part of a public discussion that furthers FCC reform.
Message from Our Chairman

Fiscal Year 2009

Summary of Performance and Financial Results 25

Performance Highlights for FY 2009 

 Modernize the FCC continued

Opportunities to Engage with the FCC

Broadband.gov & OpenInternet.gov — The primary purpose of 

both sites is to create a portal for online public input, and to provide 

educating information and transparent processes for these important 

initiatives at the FCC.

Crowdsourcing Platforms — For the first time in history, the FCC 

is using crowdsourcing platforms to generate ideas and comments as 

part of its official public record—a huge step in reforming online citizen 

participation.

First FCC Blogs — The National Broadband Taskforce blog and the 

OpenInternet.gov blog have opened communication and transparency 

with the public, while allowing comments to be made on the public 

record through discussion on the blogs.

Social Media — You can now find the FCC on a variety of social networking sites including Facebook, Myspace, Youtube and Twitter — 

where the FCC has one of the largest followings in government.

FCC.gov/Live — This new section of FCC.gov is an easily accessible, 

central location to get involved in live events, such as Commission 

meetings and workshops, as they are happening.

FCC.gov/OpenMeeting — This new page has facilitated education and a more open flow of information with the public around the 

monthly Commission Meetings.

Employee Engagement — An internal version of Reboot.fcc.gov was 

launched to tap the collective and institutional knowledge of FCC 

employees and help set the reform agenda at the FCC. 
26 Federal Communications Commission

Performance Highlights for FY 2009 

 Modernize the FCC continued

To ensure that the FCC is data-driven in its decision-making, the FCC’s Office of 

Strategic Planning and Policy Analysis is conducting a top-to-bottom review of the 

FCC’s systems and processes for data collection, processing, analysis, and dissemination. As the nation’s expert agency on communications, the FCC must have 

access to, and base its decisions on, data that are robust, reliable, and relevant. 

The review will address whether any new data should be collected, whether any 

existing data reporting requirements should be streamlined or eliminated, and 

whether existing technological platforms can be modernized to make our use of 

data more effective and efficient. 

As an ancillary to the data review, the FCC is also assessing the database and 

communications infrastructure of the Commission. An initial review strongly suggests that a significant upgrade will be warranted to bring the Commission into 

the 21st century. We have already updated our Electronic Comment Filing System 

(ECFS), which allows consumers to submit, research, and print comments filed 

with the agency. The improved ECFS is easier to navigate, has greater search 

capabilities, allows the filing of comments into multiple proceedings with a single 

submission, and allows filers to learn of new comments matching criteria via RSS 

feeds, among other enhancements.

The FCC is engaged in a long-term initiative to combine the functions of our current licensing and applications systems. The purpose of this initiative is to develop 

a consolidated licensing system that is transparent, easy to use for the public and 

Commission staff, consistent with the FCC’s data driven and fact-based rulemaking 

strategies, adaptable to evolving requirements, efficient, cost-effective and green. 

As currently envisioned, this new consolidated licensing system would provide the 

public with a single portal to access all of the FCC’s licensing systems, and display 

a single user-friendly design. This includes a single, consolidated form for filing 

applications and license requests, a single sign-on, enhanced application filing 

tools, improved application filing time, reminders and notifications, and a consolidated search function. The FCC has already hosted numerous internal and external 

brainstorming sessions with specialized industry groups, customers, internal staff, 

and new FCC management. 
Message from Our Chairman

Mark Stephens

Chief Financial Officer

Message from Our 

Chief Financial Officer 

How We Managed Our Funds

I

am pleased to report that in FY 2009 the Commission’s 

independent auditors issued an unqualified opinion on each 

of the Commission’s financial statements. Furthermore, I 

am proud to say that this is the fourth straight fiscal year the 

Commission has received an unqualified opinion. Four straight 

years of unqualified opinions is the longest consecutive period 

of “clean” audit opinions that the Commission has received in 

the eleven fiscal years that its financial statements have been 

audited, dating back to FY 1999. The Commission is proud of 

the work of its staff over the past four fiscal years to obtain and 

maintain this unqualified opinion. Also, I would like to note that 

for FY 2009 the Commission’s independent auditor did not 

report any material weaknesses for the Commission or its reporting components. The Commission staff has worked diligently to 

close audit findings from previous audits by taking effective corrective actions.

Despite these successes, work remains here at the Commission. The Commission’s 

greatest challenge to continuing to improve the performance of its financial reporting process is to implement a new core financial management system. The Commission is currently relying on a core financial management system that is antiquated 

and no longer is supported by its vendor. The Commission has approached the 

replacement of its core financial management system as an opportunity to:

z deliver on its strategic goal of modernizing and continually improving the 

Commission,

z improve the efficiency and effectiveness of financial operations, and 

z replace disparate financial systems with a single integrated financial system.

During FY 2009, the Commission worked diligently on the initiation, requirements, 

design, development, and testing phases of its core financial system replacement 

project. The project is well underway but work remains. At the same time, the 

Commission is also working closely with its reporting components in their efforts to 

modernize their financial systems.

Finally, the Commission is committed to minimizing the risk of improper payments 

and to reducing improper payments to the customers and beneficiaries of its reporting components, including the Universal Service and the Telecommunications Relay 

Service Funds. The Commission has taken many positive steps in its control of these 

programs and will continue to make improvements to the management, administration and oversight of these funds.

I look forward to continuing to make every effort to strengthen the Commission’s 

and its reporting components’ internal control environments, and to improve the 

effectiveness of the Commission’s and its reporting components’ financial operations.

Mark Stephens

Chief Financial Officer

February 2010

27

Fiscal Year 2009

Summary of Performance and Financial Results
28 Federal Communications Commission

Our Financial Results

Area Accomplishment 

Stewardship The FCC worked with the Universal Service 

over Funds Administrative Company (USAC) and the Department of Justice in successfully pursuing wrongdoers 

who sought to defraud the Universal Service Fund 

(USF). In FY 2009, these efforts yielded cash recoveries of over $9 million in fraudulent disbursements. 

In addition, the defendants in these cases relinquished claims valued at over $150 million. 

The FCC also took several steps to improve the 

administration of the USF and the Telecommunications Relay Service (TRS) funds, such as performance of monthly reviews of administrative 

expenses, completion of annual fraud risk assessments, and analysis of internal controls.

Financial Systems The FCC continues to work toward improved

Modernization efficiency and effectiveness of FCC Financial Operations (FO) through consolidation of disparate financial systems and cuff records with a single integrated financial management system. We reduced 

the level of manual and duplicate data entry along 

with redundant reconciliations. In 2009, we completed initiation, requirements, and design phases 

for a new financial system scheduled to launch in 

FY 2011.

We supported FCC green initiatives, piloting workflow processes that reduce the paper chain associated with document approval and distribution. 

Procurement The FCC exceeded its goals for Small Disadvantaged Business, Small Business Women-Owned, 

and Small Disadvantaged Veteran-Owned. 

Many awards using recovery funds in support of 

the Direct TV conversion were specifically directed 

to support small businesses. 

Key FY 2009 Financial Management Accomplishments 

Read the full list of FY 2009 accomplishments: http://www.fcc.gov/Reports/fr2009.pdf#page=35. 

For the full audit report: http://www.fcc.gov/Reports/fr2009.pdf#page=39. 

For our table of management assurances:http://www.fcc.gov/Reports/fr2009.pdf#page=87.
Fiscal Year 2009

Summary of Performance and Financial Results 29

Our Financial Results

This section contains condensed financial statement information, a description of 

our major balance sheet components and our costs of operations, and budgetary 

resources. We also present the results of our performance in the area of financial 

management using established metrics. Our complete financial statements are 

available at http://www.fcc.gov/Reports/fr2009.pdf #page=59. 

FY 2009 FY 2008 Percentage 

 Change

Assets

 Fund Balance with Treasury $ 359,735 $ 444,293 -19%

 Cash and Other Monetary Assets 68,852 51,942 33%

 Investments 6,016,693 5,721,609 5%

 Accounts Receivable and 848,321 1,081,177 -22% 

 Loans Receivable, Net

 General Property & Equipment, Net 49,616 36,082 38%

 Other Assets 408,186 17,192,738 -98%

Total Assets $ 7,751,403 $ 24,527,841 -68%

Liabilities

 Accounts Payable and Other Liabilities $ 318,102 $ 395,419 -20%

 Debt 46,484 112,711 -59%

 Deferred Revenue 528,234 17,302,548 -97%

 Accrued Liabilities for Universal Service 591,512 521,319 13%

Total Liabilities $ 1,484,332 $ 18,331,997 -92%

 Unexpended Appropriations $ 44,000 $ 11,273 290%

 Cumulative Results of Operations 6,223,071 6,184,571 1%

Total Net Position $ 6,267,071 $ 6,195,844 1%

Total Liabilities and Net Position $ 7,751,403 $ 24,527,841 -68%

COST SUMMARY FY 2009 FY 2008 Percentage 

(Dollars in Thousands) Change

Gross Cost $ 8,656,695 $ 8,283,487 5%

Less: Earned Revenue 462,102 461,051 0%

Net Cost of Operations $ 8,194,593 $ 7,822,436 5%

CONDENSED BALANCE SHEET

(Dollars in Thousands)
30 Federal Communications Commission

Our Financial Results

2009 Assets by Category 

(Dollars in Millions)

Total Assets $7,751

Assets. The graph below presents the total assets of the Commission as of September 30, 2009. The large Investments balance of $6,017 million mainly results from 

carryover in the USF Schools and Libraries and Rural Healthcare programs ($5,691 

million) and carryover in the Telecommunications Relay Service program ($326 million) that have grown since the programs’ inception as a result of annual contributions that have exceeded annual distributions. The Accounts Receivable and Loans 

Receivable, Net balance of $848 million is primarily composed of USF accounts 

receivable totaling $757.3 million. The Other Assets balance includes $400.4 million 

in winning bids for auction #73 (700 MHz Band) where the corresponding licenses 

have not been granted. During FY 2009, the Commission granted $16,775 million in 

licenses for auction #73.
Fiscal Year 2009

Summary of Performance and Financial Results 31

Our Financial Results

Liabilities. The graph below presents the total liabilities of the Commission as of 

September 30, 2009. The Commission’s most significant liabilities are Deferred 

Revenue of $528 million and Accrued Liabilities for Universal Service of $592 million, 

which accounted for 75% of total liabilities as of September 30, 2009. The Deferred 

Revenue balance includes $400.4 million in winning bids for auction #73 (700 MHz 

Band) and $27.2 million for other auctions where the corresponding licenses have 

not been granted. During FY 2009, the Commission granted $16,775 million in 

licenses for auction #73. As these licenses are granted, the revenue will be recognized on the Statement of Custodial Activity by the Commission. The Accrued Liabilities for Universal Service represent the expected October (FY 2010) payments for 

the Telecommunications Relay Service Program and the Universal Service Fund High 

Cost and Low Income Programs.

2009 Liabilities by Category

(Dollars in Millions)

Total Liabilities $1,484

Net Position. As of September 30, 2009, the agency’s total net position was 

$6,267 million, consisting of Cumulative Results of Operations of $6,223 million 

and Unexpended Appropriations of $44 million.
32 Federal Communications Commission

Our Financial Results

Costs. The graphs below present the gross costs, earned revenue and corresponding net cost of the Commission for September 30, 2009. Gross cost less any offsetting revenue for each program is used to arrive at the net cost of specific program 

operations. The gross costs, earned revenue and net costs are aligned with the six 

strategic goals of the Commission: Broadband, Competition, Spectrum, Media, Public Safety and Homeland Security, and Modernize the FCC. The program costs for the 

USF, TRS and NANP are included within the Competition strategic goal. Contributions 

received for the USF and TRS programs are shown on the Statement of Changes in 

Net Position and do not directly offset the costs of these programs on the Statement 

of Net Cost.

2009 Gross Cost 

(Dollars in Millions)

Total Gross Cost $8,657

2009 Earned Revenue 

(Dollars in Millions)

Total Earned Revenue $462

2009 Net Cost

(Dollars in Millions)

Total Net Cost $8,195

*Other goals in the graph 

constitute Broadband, Public 

Safety and Homeland Security, and Modernize the FCC.
Fiscal Year 2009

Summary of Performance and Financial Results 33

Our Financial Results

Budgetary Resources: The Commission receives most of its budgetary authority 

from appropriations. Budgetary resources consist of the resources available to the 

Commission at the beginning of the year, plus appropriations, spending authority from offsetting collections, and other budgetary resources received during the 

year. The Commission had $12,494 million in budgetary resources of which $9,446 

million was incurred and $3,048 million remained unobligated. The chart below 

presents the status of budgetary resources for FY 2009.

2009 Status of Budgetary Resources

(Dollars in Millions)

Total Budgetary Resources $12,494
34 Federal Communications Commission

Financial Management Indicators 

Debt Management

Debt eligible transferred to Treasury

Funds Management

Fund Balance with Treasury (Identifies 

the difference between the fund balance 

reported in Treasury reports and the agency fund balance with Treasury recorded in 

its general ledger on a net basis)

Payment Management

Timely Vendor Payments 

Percentage Interest Penalties 

Percentage of accounts outstanding in 

current status*

Percentage of total dollars outstanding in 

current status for Centrally Billed Travel*

Percentage of total dollars outstanding in 

current status for Purchase Cards*

Percentage of travel vouchers processed 

within 10 business days 

100%

100% reconciled 

98%

.01%

95% 

100% 

100% 

95%

*The Office of Management and Budget threshold for delinquency is 61 days.

Financial Management Indicators for FY 2009
Fiscal Year 2009

Summary of Performance and Financial Results 35

Abbreviations

FCC—Federal Communications Commission

FO—Financial Operations 

FY—Fiscal Year

NANP—North American Numbering Plan

TRS—Telecommunications Relay Service 

USAC—Universal Service Administrative Company 

USF—Universal Service Fund 


Federal Communications Commission

445 12th Street SW Washington, DC 20554

Phone: 1-888-CALL-FCC (1-888-225-5322)

TTY: 1-888-TELL-FCC (1-888-835-5322)

Fax: 1-866-418-0232

www.fcc.gov