Telecommunications: FCC's Oversight Efforts to Control Cross-Subsidization
RCED-93-34
Published: Feb 03, 1993. Publicly Released: Feb 26, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed the Federal Communications Commission's (FCC) implementation of: (1) recommendations for increased on-site audits of carriers' cost allocations; and (2) accounting safeguards established to protect ratepayers from cross-subsidization, including carriers' cost allocations audits, FCC audit reviews, and the Automated Reporting Management Information System.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may wish to consider authorizing additional permanent positions for auditors and the appropriate travel funds, recognizing that the funds expended would have little or no impact on the federal budget. |
Closed – Implemented
|
Congress provided the funding to permit FCC to hire additional auditors. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Communications Commission | The Chairman, FCC, should continue to pursue the Commission's quest for additional resources to improve assurance that cross-subsidization is not taking place. |
Closed – Implemented
FCC hired 10 additional auditors in July and August 1994.
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Topics
Accounting proceduresAppropriated fundsAuditing standardsAuditorsCost accounting standards compliancePersonnel managementRegulatory agenciesSubsidiesTelecommunicationsTelephone services