[Federal Register Volume 63, Number 144 (Tuesday, July 28, 1998)]
[Rules and Regulations]
[Page 40169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20073]



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  Federal Register / Vol. 63, No. 144 / Tuesday, July 28, 1998 / Rules 
and Regulations  

[[Page 40169]]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1773

RIN 0572-AA93


Policy on Audits of RUS Borrowers; Correction

AGENCY: Rural Utilities Service, USDA.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to the final regulation 
which was published Friday, July 17, 1998 (63 FR 38720). The regulation 
relates to audit regulations necessitated by the Single Audit Act 
Amendments of 1996 and by Office of Management and Budget (OMB) 
Circular A-133, Audits of States, Local Governments, and Non-Profit 
Organizations effective for audits of fiscal years beginning after June 
30, 1996. The rule clarifies the peer review requirements in the 
interim final rule for certified public accountants (CPA) performing 
audits of RUS borrowers, adopts individual management letters for 
electric and telecommunications borrowers, and revises the language of 
the auditor's report and management letter to conform with technical 
guidance provided by the American Institute of Certified Public 
Accountants (AICPA).

EFFECTIVE DATE: July 28, 1998.

FOR FURTHER INFORMATION CONTACT: Mr. Richard Annan, Chief, Technical 
Accounting and Auditing Staff, Program Accounting Services Division, 
Rural Utilities Service, Stop 1523, room 2221, South Building, U.S. 
Department of Agriculture, 1400 Independence Avenue, SW, Washington, DC 
20250-1523, telephone number (202) 720-5227.

SUPPLEMENTARY INFORMATION:

Background

    The final regulation that is the subject of these corrections 
implements the changes required by the Single Audit Act Amendments of 
1996 (Act). The Act promotes sound financial management with respect to 
Federal awards administered by non-Federal entities, established 
uniform requirements for audits of Federal awards, promote the 
efficient and effective us of audit resources, and reduce the burden on 
State and local governments, Indian tribes, and non-profit 
organizations. Also this rule clarifies the peer review requirements in 
the interim final rule for CPA performing audits of RUS borrowers, 
adopts individual management letters for electric and 
telecommunications borrowers, and revises the language of the auditor's 
report and management letter to conform with technical guidance by the 
AICPA.

Need for Correction

    As published, the final rule contains information that may be 
misleading and is in need of modification.

Correction of Publication

    Accordingly, the publication on July 17, 1998, of the final rule, 
which was the subject of FR Doc. 98-18758, is corrected as follows:


Sec. 1773.33  [Corrected]

    1. On page 38723, in the second column, in Sec. 1773.33, paragraph 
(e)(1)(ii)(C), the word ``plant'' should be removed and the word 
``borrower'' is added in its place.

Appendix A to Part 1773--[Corrected]

    2. Exhibit 4--SAMPLE FINANCIAL STATEMENTS. The exhibit 4, Center 
Telephone Company Balance Sheets-December 31, 19X9 and 19X8 Assets 
(Notes 1 and 2), published at Appendix A to Part 1773, beginning on 
page 38725 through page 38727 is replaced with exhibit 4, Center County 
Electric Cooperative Balance Sheets-December 31, 19X9 and 19X8 Assets 
(Notes 1 and 2), which was inadvertently published at Appendix B to 
Part 1773.

Appendix B to Part 1773--[Corrected]

    3. Exhibit 4--SAMPLE FINANCIAL STATEMENTS. The exhibit 4, Center 
County Electric Cooperative Balance Sheets-December 31, 19X9 and 19X8 
Assets (Notes 1 and 2), published at Appendix B to Part 1773, beginning 
on page 38729 to 38733 is replaced with exhibit 4, Center Telephone 
Company Balance Sheets-December 31, 19X9 and 19X8 Assets (Notes 1 and 
2), which was inadvertently published at Appendix A to Part 1773.

    Dated: July 22, 1998.
Wally Beyer,
Administrator, RUS.
[FR Doc. 98-20073 Filed 7-27-98; 8:45 am]
BILLING CODE 3410-15-P