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

Our comments on specific aspects of the

internal control over financial reporting,

compliance with specific RUS loan and

security instrument provisions, and other

additional matters as required by § 1773.33

are presented below.

Comments on Certain Specific Aspects of the

Internal Control Over Financial Reporting

We noted no matters regarding Center

County Telecommunications Systems, Inc.’s

internal control over financial reporting and

its operation that we consider to be a material

weakness as previously defined with respect

to:

—The accounting procedures and records

[list other comments];

—The process for accumulating and

recording labor, material, and overhead

costs, and the distribution of these costs to

construction, retirement, and maintenance

or other expense accounts [list other

comments]; and

—The materials control [list other

comments].

Comments on Compliance With Specific RUS

Loan and Security Instrument Provisions

At your request, we have performed the

procedures enumerated below with respect to

compliance with certain provisions of laws,

regulations, contracts, and grants. The

procedures we performed are summarized as

follows:

—Procedures performed with respect to the

requirement for a borrower to obtain

written approval of the mortgagee to enter

into any contract, agreement or lease

between the borrower and an affiliate of

Center County Telecommunications

Systems, Inc. for the year ended December

31, 20X1:

1. Obtained and read a borrower-prepared

schedule of new written contracts,

agreements or leases entered into during the

year between the borrower and an affiliate as

defined in § 1773.33(e)(2)(i).

2. Reviewed Board of Director minutes to

ascertain whether board-approved written

contracts are included in the borrowerprepared schedule.

3. Noted the existence of written RUS [and

other mortgagee] approval of each contract

listed by the borrower.

—Procedure performed with respect to the

requirement to submit RUS Form 479 to

the RUS:

1. Agreed amounts reported in Form 479 to

Center County Telecommunications Systems,

Inc.’s records.

The results of our tests indicate that, with

respect to the items tested, Center County

Telecommunications Systems, Inc. complied,

except as noted below, in all material

respects, with the specific RUS loan and

security instrument provisions referred to

below. The specific provisions tested, as well

as any exceptions noted, include the

requirements that:

—The borrower has obtained written

approval of the RUS [and other mortgagees]

to enter into any contract agreement or

lease with an affiliate as defined in

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

—The borrower has submitted its Form 479

to the RUS and the Form 479, Financial

and Statistical Report, as of December 31,

20X1, represented by the borrower as

having been submitted to RUS is in

agreement with the Center County

Telecommunications Systems, Inc.’s

audited records in all material respects [list

all exceptions] [or if the audit year end is

other than December 31], appears

reasonable based upon the audit

procedures performed [list all exceptions].

Comments on Other Additional Matters

In connection with our audit of the

financial statements of Center County

Telecommunications Systems, Inc., nothing

came to our attention that caused us to

believe that Center County

Telecommunications Systems, Inc. failed to

comply with respect to:

—The reconciliation of continuing property

records to the controlling general ledger

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

[list all exceptions];

—The clearing of the construction accounts

and the accrual of depreciation on

completed construction addressed at

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

—The retirement of plant addressed at

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

—The approval of the sale, lease, or transfer

of capital assets and disposition of

proceeds for the sale of lease of plant,

material, or scrap addressed at

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

—The disclosure of material related party

transactions, in accordance with Statement

of Financial Accounting Standards No. 57,

Related Party Transactions, for the year

ended December 31, 20X1, in the financial

statements referenced in the first paragraph

of this report addressed at § 1773.33(f) [list

all exceptions]; and

—The detailed schedule of investments.

Our audit was made for the purpose of

forming an opinion on the basic financial

statements taken as a whole. The detailed

schedule of investments required by

§ 1773.33(i) and provided below is presented

for purposes of additional analysis and is not

a required part of the basic financial

statements. This information has been

subjected to the auditing procedures applied

in our audit of the basic financial statements

and, in our opinion, is fairly stated in all

material respects in relation to the basic

financial statements taken as a whole.

[The detailed schedule of investments would

be included here. The total of the investment

in each company reported must agree with

the detail investment subsidiary account(s).]

This report is intended solely for the

information and use of the board of directors,

management, and the RUS and supplemental

lenders and is not intended to be and should

not be used by anyone other than these

specified parties. However, this report is a

matter of public record and its distribution is

not limited.

Certified Public Accountants

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

BILLING CODE 3410–15–P

DEPARTMENT OF ENERGY

Office of Energy Efficiency and

Renewable Energy

10 CFR Part 431

RIN 1904–AB06

Energy Efficiency Program for

Commercial and Industrial Equipment:

Efficiency Standards for Commercial

Heating, Air Conditioning and Water

Heating Equipment

AGENCY: Department of Energy (DOE).

ACTION: Final rule; completion of

regulatory review.

SUMMARY: On January 12, 2001, DOE

published in the Federal Register the

final rule entitled ‘‘Energy Efficiency

Program for Commercial and Industrial

Equipment: Efficiency Standards for

Commercial Heating, Air Conditioning

and Water Heating Equipment’’ (66 FR

3336). In accordance with the

memorandum of January 20, 2001, from

the Assistant to the President and Chief

of Staff, entitled ‘‘Regulatory Review

Plan,’’ published in the Federal Register

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

temporarily delayed for 60 days the

effective date of that rule (66 FR 8745,

February 2, 2001). DOE has now

completed its review of that regulation,

and does not intend to initiate any

further rulemaking action to modify its

provisions.

DATES: The effective date of the rule

amending 10 CFR part 431 published at

66 FR 3336, January 12, 2001, and

delayed at 66 FR 8745, February 2,

2001, is confirmed as April 13, 2001.

FOR FURTHER INFORMATION CONTACT: Jill

Holtzman, Office of General Counsel,

(202) 586–3410,

jill.holtzman@hq.doe.gov or Lawrence

R. Oliver, Office of the General Counsel,

(202) 586–9521,

lawrence.oliver@hq.doe.gov or Cyrus

Nasseri, Office of Energy Efficiency and

Renewable Energy, (202) 586–9138,

cyrus.nasseri@ee.doe.gov.

Issued in Washington, DC on May 14,

2001.

Spencer Abraham,

Secretary of Energy.

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

BILLING CODE 6450–01–P