[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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Rules and Regulations
Federal Register
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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]
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