[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1767.13]

[Page 769-770]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1767--ACCOUNTING REQUIREMENTS FOR RUS ELECTRIC BORROWERS--Table of Contents
 
                  Subpart B--Uniform System of Accounts
 
Sec. 1767.13  Departures from the prescribed RUS Uniform System of Accounts.

    (a) No departures are to be made to the prescribed RUS USoA without 
the prior written approval of RUS. RUS grants a departure to any 
borrower electing to delay implementation of the functional (activity-
based) accounting requirements of this part through December 31, 1997. 
Requests for departures from the RUS USoA shall be addressed, in 
writing, to the Director, Program Accounting Services Division (PASD).
    (b) RUS borrowers subject to the jurisdiction of a state regulatory 
authority with jurisdiction over rates and/or accounting for electric 
utilities will not:
    (1) Request approval of such authority to use accounting 
methodologies and principles that depart from the provisions herein; or
    (2) File with such authority, any documents or information, 
including without limitation, any filings associated with the borrower's 
rates, based upon accounting methods and principles inconsistent with 
the provisions of this part.
    (c) If any state regulatory authority with jurisdiction over an RUS 
borrower prescribes accounting methods or principles for the borrower 
that are inconsistent with the provisions of this part, the borrower 
must immediately notify the Director, BAD, and provide such documents, 
information, and reports as RUS may request to evaluate the impact that 
such accounting methods or principles may have on the interests of RUS.
    (1) If RUS determines that the accounting methods and principles do 
not adversely impact RUS interests, RUS will permit the borrower to use 
the accounting methods and principles as prescribed by the state 
regulatory authority to comply with the provisions of the RUS loan 
documents.
    (2) If RUS determines that the accounting methods and principles may 
adversely impact RUS's interests, RUS may require that, for the purposes 
of complying with provisions of RUS loan documents, including, without 
limitation, those provisions relating to financial coverage standards 
(e.g. ``TIER''), the borrower continue to maintain books, records, and 
accounts in accordance with this subpart.
    (i) RUS may, however, approve requests by the borrower to maintain 
such additional books, records, and accounts as necessary to comply with 
the requirements of the state regulatory authority.
    (ii) Such approval will not waive, modify or amend the requirements 
of the RUS loan documents or of this subpart.
    (d) RUS borrowers will not implement the provisions of Statement of 
Financial Accounting Standards (SFAS) No. 71, Accounting for the Effects 
of Certain Types of Regulation, SFAS No. 90, Regulated Enterprises--
Accounting for Abandonments and Disallowances of Plant Costs, SFAS No. 
92, Regulated Enterprises--Accounting for Phase-in Plans, without the 
prior written approval of RUS except as provided for in paragraphs 
(d)(1) through (d)(5) of this section. Requests for approval shall be 
addressed, in writing, to the Director, PASD. The specific deferrals set 
forth in paragraphs (d)(1) through (d)(5) of this section may be 
implemented without the prior written

[[Page 770]]

approval of RUS provided that the deferrals comply with Statement No. 71 
and that the RUS borrowers implementing such deferrals continue to meet 
the requirements set forth in Statement No. 71 for doing so:
    (1) The deferral and amortization of prior service pension costs 
(See Sec. 1767.41, Interpretation No. 606, Pension Costs), remapping 
expenses (See Sec. 1767.41, Interpretation No. 613, Mapping Costs), and 
preliminary survey and investigation charges (See Sec. 1767.17, 
Interpretation No. 111, Engineering Contracts for System Planning);
    (2) The deferral of any current period expense or expenses, on a 
cumulative basis for the fiscal year, only if a borrower would have met 
each of its financial tests or coverage ratios that it has covenanted 
with RUS to meet for that fiscal year, had the deferral not been made;
    (3) The deferral of any cost that will be fully amortized within the 
next 12 succeeding months;
    (4) The accelerated amortization of any previously deferred expense; 
and
    (5) The deferral of revenues coincident with a moratorium imposed by 
the National Rural Electric Cooperative Association on its Retirement 
and Security Program, provided, however, that the deferral is for the 
sole purpose of offsetting future pension costs.
    (e) RUS will consider approval of specific departures from this part 
upon submission of:
    (1) A detailed description of the proposed departure;
    (2) The specific accounting journal entries that will be used 
including the account number and title, and the dollar amounts where 
appropriate;
    (3) The total dollar amount of the departure and the impact on 
margins during the time period of the departure; and
    (4) Any additional information RUS may deem necessary to adequately 
evaluate the borrower's request.
    (f) RUS will, within 90 days of final receipt of this information, 
render a decision on the borrower's request for a departure from the 
prescribed RUS USoA.
    (1) If, due to extenuating circumstances, RUS is unable to reach a 
decision within the required time period, RUS will notify the borrower 
of the delay within this same 90-day period, and provide a projected 
decision date.
    (2) The requested departure from the prescribed RUS USoA must not be 
implemented until final approval is granted by RUS.

[58 FR 59825, Nov. 10, 1993, as amended at 60 FR 55429, Nov. 1, 1995; 62 
FR 42289, Aug. 6, 1997]