[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: 7CFR1767.29]

[Page 884-887]
 
                          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. 1767.29  Customer service and informational expenses.

    The customer service and informational expense accounts identified 
in this section shall be used by all RUS borrowers.

               Customer Service and Informational Expenses

                               (Operation)

907  Supervision
908  Customer Assistance Expenses
909  Informational and Instructional Advertising Expenses
910  Miscellaneous Customer Service and Informational Expenses

               Customer Service and Informational Expenses

                               (Operation)

                            907  Supervision

    This account shall include the cost of labor, employee pensions and 
benefits, social security and other payroll taxes, injuries and damages, 
and expenses incurred in the general direction and supervision of 
customer service activities, the object of which is to encourage safe, 
efficient, and economical use of the utility's service. Direct 
supervision of a specific activity within customer service and 
informational expense classification shall be charged to the account 
wherein the costs of such activity are included. (See Sec. 1767.17(a).)

                    908  Customer Assistance Expenses

    This account shall include the cost of labor, employee pensions and 
benefits, social security and other payroll taxes, injuries and damages, 
materials used, and expenses incurred in providing instructions or 
assistance to customers, the object of which is to encourage safe, 
efficient, and economical use of the utility's service.

                                  Items

Labor:

    1. Direct supervision of department.
    2. Processing customer inquiries relating to the proper use of 
electric equipment, the replacement of such equipment, and information 
related to such equipment.
    3. Advice directed to customers as to how they may achieve the most 
efficient and safest use of electric equipment.
    4. Demonstrations, exhibits, lectures, and other programs designed 
to instruct customers in the safe, economical, or efficient use of 
electric service, and/or oriented toward conservation of energy.
    5. Engineering and technical advice to customers, the object of 
which is to promote safe, efficient, and economical use of the utility's 
service.

Taxes:

    1. Federal and state unemployment.
    2. F.I.C.A.
    Employee Pensions and Benefits: The portion of employee pensions and 
benefits specifically identifiable with employees' labor

[[Page 885]]

costs charged herein or, in the absence of specific employee 
identification, the portion of employee pensions and benefits, allocated 
on the more equitable basis of either direct labor dollars or direct 
labor hours, applicable to the labor items detailed above, including:
    1. Accruals for or payments to pension funds or to insurance 
companies for pension purposes.
    2. Group and life insurance premiums (credit dividends received).
    3. Payments for medical and hospital services and expenses of 
employees when not the result of occupational injuries.
    4. Payments for accident, sickness, hospital, and death benefits or 
insurance.
    5. Payments to employees incapacitated for service or on leave of 
absence beyond periods normally allowed when not the result of 
occupational injuries or in excess of statutory awards.
    6. Expenses in connection with educational and recreational 
activities for the benefit of employees.

Insurance:

    1. Premiums payable to insurance companies for protection against 
claims from injuries and damages by employees or others, such as public 
liability, property damages, casualty, employee liability, etc., and 
amounts credited to Account 228.2, Accumulated Provision for Injuries 
and Damage, for similar protection.
    2. Losses not covered by insurance or reserve accruals on account of 
injuries or deaths to employees or others and damages to the property of 
others.
    3. Fees and expenses of claim investigators.
    4. Payment of awards to claimants for court costs and attorneys' 
services.
    5. Medical and hospital service and expenses for employees as the 
result of occupational injuries or resulting from claims of others.
    6. Compensation payments under workmen's compensation laws.
    7. Compensation paid while incapacitated as the result of 
occupational injuries. (See Account 924, Note A.)
    8. Cost of safety, accident prevention, and similar educational 
activities.

Materials and Expenses:

    1. Supplies and expenses pertaining to demonstrations, exhibits, 
lectures, and other programs.
    2. Loss in value on equipment and appliances used for customer 
assistance programs.
    3. Office supplies and expenses.
    4. Transportation, meals, and incidental expenses.

    Note: Do not include in this account expenses that are provided for 
elsewhere, such as Accounts 416, Costs and Expenses of Merchandising, 
Jobbing, and Contract Work; 587, Customer Installations Expenses; and 
912, Demonstrating and Selling Expenses.

        909  Informational and Instructional Advertising Expenses

    This account shall include the cost of labor, employee pensions and 
benefits, social security and other payroll taxes, injuries and damages, 
materials used, and expenses incurred in activities which primarily 
convey information as to what the utility urges or suggests customers 
should do in utilizing electric service to protect health and safety, to 
encourage environmental protection, to utilize their electric equipment 
safely and economically, or to conserve electric energy.

                                  Items

Labor:

    1. Direct supervision of information activities.
    2. Preparing informational materials for newspapers, periodicals, 
and billboards and preparing and conducting informational motion 
pictures, radio and television programs.
    3. Preparing informational booklets and bulletins used in direct 
mailings.
    4. Preparing informational window and other displays.
    5. Employing agencies, selecting media, and conducting negotiations 
in connection with the placement and subject matter of information 
programs.

Taxes:

    1. Federal and state unemployment.
    2. F.I.C.A.
    Employee Pensions and Benefits: The portion of employee pensions and 
benefits specifically identifiable with employees' labor costs charged 
herein or, in the absence of specific employee identification, the 
portion of employee pensions and benefits, allocated on the more 
equitable basis of either direct labor dollars or direct labor hours, 
applicable to the labor items detailed above, including:
    1. Accruals for or payments to pension funds or to insurance 
companies for pension purposes.
    2. Group and life insurance premiums (credit dividends received).
    3. Payments for medical and hospital services and expenses of 
employees when not the result of occupational injuries.
    4. Payments for accident, sickness, hospital, and death benefits or 
insurance.
    5. Payments to employees incapacitated for service or on leave of 
absence beyond periods normally allowed when not the result of 
occupational injuries or in excess of statutory awards.
    6. Expenses in connection with educational and recreational 
activities for the benefit of employees.


[[Page 886]]


Insurance:

    1. Premiums payable to insurance companies for protection against 
claims from injuries and damages by employees or others, such as public 
liability, property damages, casualty, employee liability, etc., and 
amounts credited to Account 228.2, Accumulated Provision for Injuries 
and Damage, for similar protection.
    2. Losses not covered by insurance or reserve accruals on account of 
injuries or deaths to employees or others and damages to the property of 
others.
    3. Fees and expenses of claim investigators.
    4. Payment of awards to claimants for court costs and attorneys' 
services.
    5. Medical and hospital service and expenses for employees as the 
result of occupational injuries or resulting from claims of others.
    6. Compensation payments under workmen's compensation laws.
    7. Compensation paid while incapacitated as the result of 
occupational injuries. (See Account 924, Note A.)
    8. Cost of safety, accident prevention, and similar educational 
activities.

Materials and Expenses:

    1. Use of newspapers, periodicals, billboards, and radio for 
informational purposes.
    2. Postage on direct mailings to customers exclusive of postage 
related to billings.
    3. Printing of informational booklets, dodgers, and bulletins.
    4. Supplies and expenses in preparing informational materials by the 
utility.
    5. Office supplies and expenses.

    Note A: Exclude from this account and charge to Account 930.2, 
Miscellaneous General Expenses, the cost of publication of stockholder 
reports, dividend notices, bond redemption notices, financial 
statements, and other notices of a general corporate character. Also 
exclude all expenses of a promotional, institutional, goodwill, or 
political nature, which are includible in such accounts as 913, 
Advertising Expenses; 930.1, General Advertising Expenses; and 426.4, 
Expenditures for Certain Civic, Political and Related Activities.
    Note B: Entries relating to informational advertising included in 
this account shall contain or refer to supporting documents which 
identify the specific advertising message. If references are used, 
copies of the advertising message shall be readily available.

     910  Miscellaneous Customer Service and Informational Expenses

    This account shall include the cost of labor, employee pensions and 
benefits, social security and other payroll taxes, injuries and damages, 
property insurance, property taxes, materials used, and expenses 
incurred in connection with customer service and informational 
activities which are not includible in other customer information 
expense accounts.

                                  Items

Labor:

    1. General clerical and stenographic work not assigned to specific 
customer service and informational programs.
    2. Miscellaneous labor.

Taxes:

    1. Federal and state unemployment.
    2. F.I.C.A.
    3. Property.
    Employee Pensions and Benefits: The portion of employee pensions and 
benefits specifically identifiable with employees' labor costs charged 
herein or, in the absence of specific employee identification, the 
portion of employee pensions and benefits, allocated on the more 
equitable basis of either direct labor dollars or direct labor hours, 
applicable to the labor items detailed above, including:
    1. Accruals for or payments to pension funds or to insurance 
companies for pension purposes.
    2. Group and life insurance premiums (credit dividends received).
    3. Payments for medical and hospital services and expenses of 
employees when not the result of occupational injuries.
    4. Payments for accident, sickness, hospital, and death benefits or 
insurance.
    5. Payments to employees incapacitated for service or on leave of 
absence beyond periods normally allowed when not the result of 
occupational injuries or in excess of statutory awards.
    6. Expenses in connection with educational and recreational 
activities for the benefit of employees.

Insurance:

    1. Premiums payable to insurance companies for fire, storm, 
burglary, boiler explosion, lightning, fidelity, riot, and similar 
insurance.
    2. Amounts credited to Account 228.1, Accumulated Provision for 
Property Insurance, for similar protection.
    3. Special costs incurred in procuring insurance.
    4. Insurance inspection service.
    5. Insurance counsel, brokerage fees, and expenses.
    6. Premiums payable to insurance companies for protection against 
claims from injuries and damages by employees or others, such as public 
liability, property damages, casualty, employee liability, etc., and 
amounts credited to Account 228.2, Accumulated Provision for Injuries 
and Damage, for similar protection.
    7. Losses not covered by insurance or reserve accruals on account of 
injuries or

[[Page 887]]

deaths to employees or others and damages to the property of others.
    8. Fees and expenses of claim investigators.
    9. Payment of awards to claimants for court costs and attorneys' 
services.
    10. Medical and hospital service and expenses for employees as the 
result of occupational injuries or resulting from claims of others.
    11. Compensation payments under workmen's compensation laws.
    12. Compensation paid while incapacitated as the result of 
occupational injuries. (See Account 924, Note A.)
    13. Cost of safety, accident prevention, and similar educational 
activities.

Materials and Expenses:

    1. Communication service.
    2. Printing, postage, and office supplies expenses.

[58 FR 59825, Nov. 10, 1993, as amended at 62 FR 42313, Aug. 6, 1997]