In December 2000, the Congress passed the Launching Our Communities' Access to Local Television Act of 2000 (Local TV Act or act). The act created the Local Television Loan Guarantee Program (Program) and established the Local Television Loan Guarantee Board (Board) to finance projects that will provide access to signals of local television stations to households in areas with limited or no access to such signals from a commercial satellite service or other multichannel video provider. The Board may approve loan guarantees up to 80 percent of loans totaling no more than $1.25 billion in aggregate. In November 2001, the Congress appropriated $2 million for administrative expenses to implement the Program. Section 1006 of the act requires that we perform an annual audit of the (1) administration of the provisions of the act, and (2) financial position of each applicant who receives a loan guarantee under the act, including the nature, amount, and purpose of investments made by the applicant. In October 2003, we issued our first annual report as required by the act. This second report addresses the status of the $2 million administrative appropriation and the fiscal year 2003 Working Group costs.