Examination of the Rural Telephone Bank's Financial Statements for the 15-Month Period Ended September 30, 1976
FOD-77-02: Published: May 12, 1977. Publicly Released: May 12, 1977.
- Full Report:
The financial statements of the Rural Telephone Bank (RTB) present fairly its financial position as of September 30, 1976, the results of its operations, and the changes in its financial position for the 15-month period then ended. Investigation of the Bank included examinations of the statement of income, expenses, and patronage capital; the statement of changes in financial position; and the statement of patronage capital and reserve for contingencies.
The RTB 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. The Governor of RTB is authorized to make loans, in conformance with policies approved by the board of directors, to corporations and public bodies which have received a Rural Electrification Administration (REA) loan or loan commitment or have been certified by the Administrator of REA to be eligible for a loan or loan commitment. As of September 30, 1976, total loan commitments of $763,476,823 had been approved, and advances of $405,137,101 had been made to borrowers against these commitments. During the 15-month period the sale of the debentures to the Secretary of the Treasury provided $68,663,000; class A stock sales to the U.S. Government amounted to $37,500,000; and interest earned came to $27,975,349. The cumulative debenture borrowings from the Secretary of the Treasury came to $200,733,000 at various interest rates. (Author/SC)