[Federal Register Volume 77, Number 233 (Tuesday, December 4, 2012)]
[Rules and Regulations]
[Pages 71711-71712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29150]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 0 and 54

[CC Docket 96-45; FCC 12-131]


Commission's Rules Regarding the Office of Managing Director and 
the Office of Inspector General

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) amends its rules to reassign to the Office of Managing 
Director (OMD) certain audit activities formerly assigned to the Office 
of Inspector General (OIG). The activities concern oversight of the 
annual audit of the Universal Service Administrative Corporation (USAC) 
required by the Commission's rules. In addition, the Commission 
delegates of authority to OMD, in consultation with the Office of 
General Counsel, to issue subpoenas concerning matters within its 
jurisdiction.

DATES: Effective December 4, 2012.

FOR FURTHER INFORMATION CONTACT: Office of Managing Director, Financial 
Operations: call Thomas Buckley at (202) 418-0725.

SUPPLEMENTARY INFORMATION: This is a summary of the Part 54 Audit 
Authority Transition Order released on October 19, 2012. The Part 54 
Audit Authority Transition Order and related Commission documents may 
be purchased from the Commission's duplicating contractor, Best Copy 
and Printing, Inc. (BCPI), 445 12th Street SW., Room CY-B402, 
Washington, DC 20554, telephone 202-488-5300, fax 202-488-5563, or you 
may contact BCPI at its Web site: http://www.BCPIWEB.com. When ordering 
documents from BCPI, please provide the appropriate FCC document 
number, for example FCC 12-131. The Part 54 Audit Authority Transition 
Order is also available on the Internet at the Commission's Electronic 
Filing System Web Page at: http://fjallfoss.fcc.gov/edocs_public/.
    1. Section 54.717 of the Commission's rules requires the USAC ``to 
obtain and pay for an annual audit conducted by an independent auditor 
to examine its operations and books of account to determine, among 
other things, whether * * * [USAC] is properly administering the 
universal service support mechanisms to prevent fraud, waste, and 
abuse.'' Since 2006, OIG has been the staff unit responsible for 
overseeing the conduct of the part 54 audit. The purpose of this annual 
audit has been to oversee the operations of the Universal Service 
Administrator and to safeguard the Universal Service Fund from 
potential waste, fraud, and abuse.
    2. The Commission amends section 54.717 of its rules to substitute 
OMD as the staff unit responsible for overseeing the part 54 USAC 
audit. In 2010, OMD instructed USAC that OIG would no longer directly 
conduct or oversee the universal service fund beneficiary and 
contributor audit plan (BCAP), an audit separate from the part 54 USAC 
audit. This change was in furtherance of OIG's understanding of its 
responsibilities consistent with the Inspector General Act of 1978, as 
amended (IG Act). As a result, OMD assumed from OIG the responsibility 
for directing and overseeing USAC's implementation of the BCAP program. 
Consistent with OIG's request that the part 54 audit function be 
transferred back to an appropriate Bureau or Office, and because the 
Commission finds that OMD now oversees the universal service fund BCAP 
audits and has in place the resources and expertise needed to oversee 
the part 54 audit as well, the Commission transfers part 54 oversight 
authority to OMD.
    3. Given this augmentation of OMD's role in audit oversight, the 
Commission also finds it appropriate to delegate limited authority to 
OMD, upon receiving approval from the Office of General Counsel, to 
issue subpoenas that directly relate to OMD'S oversight of audits of 
the USF programs and OMD's review and evaluation of the interstate 
telecommunications relay services fund, the North American numbering 
plan, regulatory fee collection, FCC operating expenses, and debt 
collection. By granting OMD with this specific, limited and discreet 
subpoena authority, the Commission will ensure that OMD has the 
necessary tools to obtain all relevant documentation in a timely manner 
to complete audit findings and implement corrective actions for all of 
these programs. Absent this delegation, there is the potential that an 
audited entity in a particular FCC program may resist providing 
essential data to OMD to confirm that entity is operating consistent 
with program rules. Providing OMD with this specific, limited and 
discreet subpoena authority, therefore strengthens OMD's ability to 
effectively review and evaluate the aforementioned FCC programs in a

[[Page 71712]]

timely manner and further protect these programs against waste, fraud, 
and abuse.
    4. The rule amendments adopted in this Order involve rules of 
agency organization, procedure, or practice. The notice and comment and 
effective date provisions of the Administrative Procedure Act are 
therefore inapplicable.
    5. Accordingly, it is ordered, that pursuant to sections 4(i), 
4(j), 5(c), 303(r), 47 U.S.C. 154(i), 154(j), 155(c), 303(r) of the 
Communications Act of 1934, as amended, 47 CFR part 54 is amended, as 
set forth below, effective upon publication in the Federal Register.

List of Subjects

47 CFR Part 0

    Classified information, Freedom of information, Government 
publications, Reporting and recordkeeping requirements.

47 CFR Part 54

    Communications common carriers, Health facilities, Reporting and 
recordkeeping requirements.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 0 and 54 as follows:

PART 0--COMMISSION ORGANIZATION

0
1. The authority citation for part 0 continues to read as follows:

    Authority: Secs. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155, 
225, unless otherwise noted.


0
2. Amend Sec.  0.231 by adding paragraph (l) to read as follows:


Sec.  0.231  Authority delegated

* * * * *
    (l) Subpoena authority. The Managing Director is delegated 
authority to issue subpoenas for the Office of Managing Director's 
oversight of audits of the USF programs and the Office of Managing 
Director's review and evaluation of the interstate telecommunications 
relay services fund, the North American numbering plan, regulatory fee 
collection, FCC operating expenses, and debt collection. Before issuing 
a subpoena, the Office of Managing Director shall obtain the approval 
of the Office of General Counsel.

PART 54--UNIVERSAL SERVICE

0
3. The authority citation for part 54 is revised to read as follows:

    Authority:  Secs. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155.


Sec.  54.717  [Amended]

0
4. In Sec.  54.717 remove the words ``Office of Inspector General'' and 
add in their place, the words ``Office of Managing Director'' and 
remove the words ``Inspector General'' and add in their place, the 
words ``Managing Director'' each place it appears.

[FR Doc. 2012-29150 Filed 12-3-12; 8:45 am]
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