Examination of the Rural Telephone Bank's Financial Statements for the Fiscal Year Ended September 30, 1979

The Rural Electrification Bank was established in 1971 to provide for financing or refinancing the construction, improvement, expansion, acquisition, and operation of telephone lines, facilities, or systems in rural areas. In fiscal year 1979, the Bank loaned $130 million to rural telephone systems. The Rural Telephone Bank's primary sources of funds are amounts borrowed from the U.S. Treasury, interest and principle collected on loans, and proceeds from the sale of stock. The Bank's financial statements present fairly its financial position as of September 30, 1979, and the results of its operations and changes in financial position for the period then ended, in conformity with generally accepted accounting principles.