878 Federal Register / Vol. 63, No. 4 / Wednesday, January 7, 1998 / Notices
FEDERAL COMMUNICATIONS
COMMISSION
Notice of Public Information
Collection(s) Submitted to OMB for
Review and Approval
December 30, 1997.
SUMMARY: The Federal Communications
Commission, as part of its continuing
effort to reduce paperwork burden
invites the general public and other
Federal agencies to take this
opportunity to comment on the
following information collection(s), as
required by the Paperwork Reduction
Act of 1995, Public Law 104–13. An
agency may not conduct or sponsor a
collection of information unless it
displays a currently valid control
number. No person shall be subject to
any penalty for failing to comply with
a collection of information subject to the
Paperwork Reduction Act (PRA) that
does not display a valid control number.
Comments are requested concerning (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
burden estimate; (c) ways to enhance
the quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology.
DATES: Written comments should be
submitted on or before February 6, 1998.
If you anticipate that you will be
submitting comments, but find it
difficult to do so within the period of
time allowed by this notice, you should
advise the contact listed below as soon
as possible.
ADDRESSES: Direct all comments to Judy
Boley, Federal Communications
Commission, Room 234, 1919 M St.,
N.W., Washington, DC 20554 or via
internet to jboley@fcc.gov.
FOR FURTHER INFORMATION CONTACT: For
additional information or copies of the
information collection(s), contact Judy
Boley at 202–418–0214 or via internet at
jboley@fcc.gov.
SUPPLEMENTARY INFORMATION:
OMB Control No.: 3060–0678.
Title: Commission’s Rules and
Regulations for Satellite Application
and Licensing Procedures.
Form No.: FCC Form 312.
Type of Review: Revision of a
currently approved collection.
Respondents: Businesses or other for
profit; not-for-profit institutions; federal
government.
Number of Respondents: 1,310.
Estimated Time Per Response: 2
hours.
Frequency of Response: On occasion
reporting requirement; third party
disclosure requirement.
Cost to Respondents: $8,963,447.
Total Annual Burden: 2,620 hours.
Needs and Uses: Rules, policies and
form changes have been adopted to
implement the World Trade
Organization (WTO) Basic
Telecommunications Agreement. The
proposals permit non-U.S. licensed
satellite services to be considered in the
United States. Non-U.S. licensed
entities would be permitted to file
Letters of Intent for satellite space
stations. Modifications to FCC Form 312
have been adopted to incorporate
questions for non-U.S. licensed entities
and to correct omissions on previous
versions.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98–275 Filed 1–6–98; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Rescission of the Statement of Policy
Providing Guidance on External
Auditing Procedures for State
Nonmember Banks
AGENCY: Federal Deposit Insurance
Corporation (FDIC or Corporation).
ACTION: Rescission of statement of
policy.
SUMMARY: As part of the FDIC’s
systematic review of its regulations and
written policies under Section 303(a) of
the Riegle Community Development and
Regulatory Improvement Act of 1994
(CDRI), the FDIC is rescinding its
outdated Statement of Policy Providing
Guidance on External Auditing
Procedures for State Nonmember Banks
(Policy Statement).
EFFECTIVE DATE: The Policy Statement is
rescinded effective December 31, 1997.
FOR FURTHER INFORMATION CONTACT:
Doris L. Marsh, Examination Specialist,
Division of Supervision, (202) 898–
8905, or Sandy Comenetz, Counsel,
Legal Division, (202) 898–3582, FDIC,
550 17th Street, N.W., Washington, DC
20429.
SUPPLEMENTARY INFORMATION: The FDIC
is conducting a systematic review of its
regulations and written policies. Section
303(a) of the CDRI (12 U.S.C. 4803(a))
requires each federal banking agency to
streamline and modify its regulations
and written policies in order to improve
efficiency, reduce unnecessary costs,
and eliminate unwarranted constraints
on credit availability. Section 303(a)
also requires each federal agency to
remove inconsistencies and outmoded
and duplicative requirements from its
regulations and written policies.
As part of this review, the FDIC has
determined that its Statement of Policy
Providing Guidance on External
Auditing Procedures for State
Nonmember Banks (Policy Statement) is
obsolete. The Policy Statement was first
adopted by the FDIC Board of Directors
on January 16, 1990, and published on
January 22, 1990 (55 FR 2142).
The Policy Statement strongly
encourages all FDIC-supervised banks to
have a financial statement audit as their
external auditing program. Nevertheless,
the Policy Statement recognizes that the
board of directors or audit committee at
some institutions may determine that a
financial statement audit does not best
meet the institution’s needs for an
external auditing program. It
recommended as an alternative to an
audit for banks not subject to the audit
requirement in Section 36 of the Federal
Deposit Insurance Act (FDI Act) that the
board of directors or audit committee
consider having certain specified
auditing procedures performed by an
independent public accountant as its
external auditing program. However, the
FDIC has now determined that the
specific procedures recommended in
the Policy Statement to be performed by
an external auditor no longer constitute
an acceptable alternative to a financial
statement audit nor is the performance
of these procedures the best method for
meeting the FDIC’s supervisory
objectives with respect to external
auditing work. The FDIC believes that
its safety and soundness goals would be
better satisfied by emphasizing internal
control over financial reporting in
external auditing programs.
In addition, the American Institute of
Certified Public Accountants (AICPA),
which establishes standards for auditing
and other professional services rendered
by certified public accountants, issued
its Statement on Standards for
Attestation Engagements No. 4,
‘‘Agreed-Upon Procedures
Engagements,’’ in 1995. Under this
revised standard, an independent public
accountant may perform an attestation
engagement only if the accountant is
attesting to a management assertion
‘‘that is capable of evaluation against
reasonable criteria that either have been
established by a recognized body’’ or ‘‘is
FEDERAL COMMUNICATIONS
COMMISSION
Notice of Public Information
Collection(s) Submitted to OMB for
Review and Approval
December 30, 1997.
SUMMARY: The Federal Communications
Commission, as part of its continuing
effort to reduce paperwork burden
invites the general public and other
Federal agencies to take this
opportunity to comment on the
following information collection(s), as
required by the Paperwork Reduction
Act of 1995, Public Law 104–13. An
agency may not conduct or sponsor a
collection of information unless it
displays a currently valid control
number. No person shall be subject to
any penalty for failing to comply with
a collection of information subject to the
Paperwork Reduction Act (PRA) that
does not display a valid control number.
Comments are requested concerning (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
burden estimate; (c) ways to enhance
the quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology.
DATES: Written comments should be
submitted on or before February 6, 1998.
If you anticipate that you will be
submitting comments, but find it
difficult to do so within the period of
time allowed by this notice, you should
advise the contact listed below as soon
as possible.
ADDRESSES: Direct all comments to Judy
Boley, Federal Communications
Commission, Room 234, 1919 M St.,
N.W., Washington, DC 20554 or via
internet to jboley@fcc.gov.
FOR FURTHER INFORMATION CONTACT: For
additional information or copies of the
information collection(s), contact Judy
Boley at 202–418–0214 or via internet at
jboley@fcc.gov.
SUPPLEMENTARY INFORMATION:
OMB Control No.: 3060–0678.
Title: Commission’s Rules and
Regulations for Satellite Application
and Licensing Procedures.
Form No.: FCC Form 312.
Type of Review: Revision of a
currently approved collection.
Respondents: Businesses or other for
profit; not-for-profit institutions; federal
government.
Number of Respondents: 1,310.
Estimated Time Per Response: 2
hours.
Frequency of Response: On occasion
reporting requirement; third party
disclosure requirement.
Cost to Respondents: $8,963,447.
Total Annual Burden: 2,620 hours.
Needs and Uses: Rules, policies and
form changes have been adopted to
implement the World Trade
Organization (WTO) Basic
Telecommunications Agreement. The
proposals permit non-U.S. licensed
satellite services to be considered in the
United States. Non-U.S. licensed
entities would be permitted to file
Letters of Intent for satellite space
stations. Modifications to FCC Form 312
have been adopted to incorporate
questions for non-U.S. licensed entities
and to correct omissions on previous
versions.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98–275 Filed 1–6–98; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Rescission of the Statement of Policy
Providing Guidance on External
Auditing Procedures for State
Nonmember Banks
AGENCY: Federal Deposit Insurance
Corporation (FDIC or Corporation).
ACTION: Rescission of statement of
policy.
SUMMARY: As part of the FDIC’s
systematic review of its regulations and
written policies under Section 303(a) of
the Riegle Community Development and
Regulatory Improvement Act of 1994
(CDRI), the FDIC is rescinding its
outdated Statement of Policy Providing
Guidance on External Auditing
Procedures for State Nonmember Banks
(Policy Statement).
EFFECTIVE DATE: The Policy Statement is
rescinded effective December 31, 1997.
FOR FURTHER INFORMATION CONTACT:
Doris L. Marsh, Examination Specialist,
Division of Supervision, (202) 898–
8905, or Sandy Comenetz, Counsel,
Legal Division, (202) 898–3582, FDIC,
550 17th Street, N.W., Washington, DC
20429.
SUPPLEMENTARY INFORMATION: The FDIC
is conducting a systematic review of its
regulations and written policies. Section
303(a) of the CDRI (12 U.S.C. 4803(a))
requires each federal banking agency to
streamline and modify its regulations
and written policies in order to improve
efficiency, reduce unnecessary costs,
and eliminate unwarranted constraints
on credit availability. Section 303(a)
also requires each federal agency to
remove inconsistencies and outmoded
and duplicative requirements from its
regulations and written policies.
As part of this review, the FDIC has
determined that its Statement of Policy
Providing Guidance on External
Auditing Procedures for State
Nonmember Banks (Policy Statement) is
obsolete. The Policy Statement was first
adopted by the FDIC Board of Directors
on January 16, 1990, and published on
January 22, 1990 (55 FR 2142).
The Policy Statement strongly
encourages all FDIC-supervised banks to
have a financial statement audit as their
external auditing program. Nevertheless,
the Policy Statement recognizes that the
board of directors or audit committee at
some institutions may determine that a
financial statement audit does not best
meet the institution’s needs for an
external auditing program. It
recommended as an alternative to an
audit for banks not subject to the audit
requirement in Section 36 of the Federal
Deposit Insurance Act (FDI Act) that the
board of directors or audit committee
consider having certain specified
auditing procedures performed by an
independent public accountant as its
external auditing program. However, the
FDIC has now determined that the
specific procedures recommended in
the Policy Statement to be performed by
an external auditor no longer constitute
an acceptable alternative to a financial
statement audit nor is the performance
of these procedures the best method for
meeting the FDIC’s supervisory
objectives with respect to external
auditing work. The FDIC believes that
its safety and soundness goals would be
better satisfied by emphasizing internal
control over financial reporting in
external auditing programs.
In addition, the American Institute of
Certified Public Accountants (AICPA),
which establishes standards for auditing
and other professional services rendered
by certified public accountants, issued
its Statement on Standards for
Attestation Engagements No. 4,
‘‘Agreed-Upon Procedures
Engagements,’’ in 1995. Under this
revised standard, an independent public
accountant may perform an attestation
engagement only if the accountant is
attesting to a management assertion
‘‘that is capable of evaluation against
reasonable criteria that either have been
established by a recognized body’’ or ‘‘is
879Federal Register / Vol. 63, No. 4 / Wednesday, January 7, 1998 / Notices
capable of reasonably consistent
estimation or measurement using such
criteria.’’ Since no part of the Policy
Statement requires a management
assertion, and there are no reasonable
criteria against which to evaluate the
results of any of the specified auditing
procedures that an independent public
accountant would perform, the Policy
Statement is unworkable under the
AICPA’s current professional standards.
Accordingly, the FDIC is rescinding the
Policy Statement.
Expected Proposal
For many years, the FDIC examination
staff has been reviewing the internal
auditing and external auditing programs
of institutions because these programs
enhance the ability of an institution to
detect and correct any potentially
serious problems that may exist. On
November 16, 1988, the FDIC Board of
Directors adopted its Policy Statement
Regarding Independent External
Auditing Programs of State Nonmember
Banks (published on November 28, 1988
(53 FR 47871), and amended on June 24,
1996, (61 FR 32438)), in which the FDIC
strongly encourages each state
nonmember bank to adopt an adequate
external auditing program. The policy
statement states that any institution
which has an annual audit of its
financial statements by an independent
public accountant will be considered to
have an adequate external auditing
program. However, it also provided
certain acceptable alternatives,
including a report on the balance sheet
or an analysis of internal control, that an
institution might choose should its
board of directors determine that an
annual audit by an independent public
accountant does not best suit its needs.
This policy statement remains
outstanding.
For some time, the staffs of the other
banking agencies have also encouraged
each of their supervised institutions to
adopt an appropriate annual external
auditing program. Earlier this year, FDIC
staff and the staffs of these agencies
began preparing a proposed uniform
interagency policy statement on external
auditing programs for banks and thrifts.
This proposal, which is expected to be
published for notice and comment by
the Federal Financial Institutions
Examination Council (FFIEC), will
encourage each institution to adopt an
external auditing program that includes
an annual audit of its financial
statements by an independent public
accountant. If an institution’s board of
directors or audit committee determines
that an audit does not best meet the
institution’s needs, the proposal is
expected to provide two acceptable
alternatives to an audit for banks not
subject to the audit requirement in
Section 36 of the Federal Deposit
Insurance Act (FDI Act). The
alternatives consist of a report on the
institution’s balance sheet or an
attestation report on internal control
over specified schedules of its
regulatory reports. Each should be
performed by an independent public
accountant.
Report on the Balance Sheet Audit.
As one alternative to a financial
statement audit, the proposal will
suggest that an institution’s board of
directors or its audit committee consider
engaging an independent public
accountant to examine the assets,
liabilities, and equity of the institution
under generally accepted auditing
standards (GAAS) and to opine on the
fairness of the presentation on the
balance sheet. In these circumstances,
the accountant would not be expected to
provide an opinion on the fairness of
the presentation of the institution’s
income statement, statement of changes
in equity capital, or statement of cash
flows.
Attestation Report on Internal Control
Assertion. As the other alternative, the
proposal will recommend that an
institution’s board or audit committee
consider engaging an independent
public accountant to provide a report
attesting to management’s assertion
concerning the effectiveness of internal
control over financial reporting on
certain schedules of its regulatory
reports, particularly those relating to
loans and securities. Under this
alternative, management initially would
have to review its internal control over
the preparation of these schedules and
document this review. Management
would then provide a written assertion
to the independent public accountant
stating whether it believes its internal
control in this area is effective. The
independent public accountant would
examine management’s assertion and
provide an appropriate attestation
report.
This alternative would not provide
assurance that the specific dollar
amounts reported on the regulatory
report are accurate. However, it would
provide reasonable assurance about the
reliability of management’s assertion
concerning the establishment of an
internal control structure and
procedures over financial reporting on
the specified report schedules and
whether that control is effective.
Interim Recommendation
The FDIC suggests that, until a new
policy statement regarding an annual
external auditing program is adopted,
any institution which does not have an
annual audit of its financial statements
by an independent public accountant
should consider having one of the
alternatives described above performed
by an independent public accountant as
its external auditing program.
Nevertheless, the FDIC understands
that some states have adopted the
procedures from the obsolete Policy
Statement on External Auditing
Procedures for State Nonmember Banks
as the state-required external auditing
program. Until a new policy statement
is effective, if an institution does not
have an audit of its financial statements
and is based in a state that has a state-
required external auditing program (e.g.,
a directors’ examination), the institution
would not normally be expected to
incur the cost of one of the alternatives
in addition to its state-required program.
For the above reasons, the Policy Statement
is rescinded.
By order of the Board of Directors.
Dated at Washington, D.C., this 23rd day of
December, 1997.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 98–347 Filed 1–6–98; 8:45 am]
BILLING CODE 6714–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Agency for Health Care Policy and
Research
Nominations for Members of the U.S.
Preventive Services Task Force
The Agency for Health Care Policy
and Research (AHCPR) is reconvening
the U.S. Preventive Services Task Force
(the Task Force) and inviting
nominations of qualified individuals to
serve as members.
Background
Under Title IX of the Public Health
Service Act, AHCPR is charged with
enhancing the quality, appropriateness,
and effectiveness of health care services
and access to such services. AHCPR
accomplishes these goals through
scientific research and through
promotion of improvements in clinical
practice, including prevention of
diseases and other health conditions,
and improvements in the organization,
financing, and delivery of health care
services (42 U.S.C. 299–299c–6).
U.S. Preventive Services Task Force
The U.S. Preventive Task Force (the
Task Force) is an expert panel, first
established in 1984 under the auspices
capable of reasonably consistent
estimation or measurement using such
criteria.’’ Since no part of the Policy
Statement requires a management
assertion, and there are no reasonable
criteria against which to evaluate the
results of any of the specified auditing
procedures that an independent public
accountant would perform, the Policy
Statement is unworkable under the
AICPA’s current professional standards.
Accordingly, the FDIC is rescinding the
Policy Statement.
Expected Proposal
For many years, the FDIC examination
staff has been reviewing the internal
auditing and external auditing programs
of institutions because these programs
enhance the ability of an institution to
detect and correct any potentially
serious problems that may exist. On
November 16, 1988, the FDIC Board of
Directors adopted its Policy Statement
Regarding Independent External
Auditing Programs of State Nonmember
Banks (published on November 28, 1988
(53 FR 47871), and amended on June 24,
1996, (61 FR 32438)), in which the FDIC
strongly encourages each state
nonmember bank to adopt an adequate
external auditing program. The policy
statement states that any institution
which has an annual audit of its
financial statements by an independent
public accountant will be considered to
have an adequate external auditing
program. However, it also provided
certain acceptable alternatives,
including a report on the balance sheet
or an analysis of internal control, that an
institution might choose should its
board of directors determine that an
annual audit by an independent public
accountant does not best suit its needs.
This policy statement remains
outstanding.
For some time, the staffs of the other
banking agencies have also encouraged
each of their supervised institutions to
adopt an appropriate annual external
auditing program. Earlier this year, FDIC
staff and the staffs of these agencies
began preparing a proposed uniform
interagency policy statement on external
auditing programs for banks and thrifts.
This proposal, which is expected to be
published for notice and comment by
the Federal Financial Institutions
Examination Council (FFIEC), will
encourage each institution to adopt an
external auditing program that includes
an annual audit of its financial
statements by an independent public
accountant. If an institution’s board of
directors or audit committee determines
that an audit does not best meet the
institution’s needs, the proposal is
expected to provide two acceptable
alternatives to an audit for banks not
subject to the audit requirement in
Section 36 of the Federal Deposit
Insurance Act (FDI Act). The
alternatives consist of a report on the
institution’s balance sheet or an
attestation report on internal control
over specified schedules of its
regulatory reports. Each should be
performed by an independent public
accountant.
Report on the Balance Sheet Audit.
As one alternative to a financial
statement audit, the proposal will
suggest that an institution’s board of
directors or its audit committee consider
engaging an independent public
accountant to examine the assets,
liabilities, and equity of the institution
under generally accepted auditing
standards (GAAS) and to opine on the
fairness of the presentation on the
balance sheet. In these circumstances,
the accountant would not be expected to
provide an opinion on the fairness of
the presentation of the institution’s
income statement, statement of changes
in equity capital, or statement of cash
flows.
Attestation Report on Internal Control
Assertion. As the other alternative, the
proposal will recommend that an
institution’s board or audit committee
consider engaging an independent
public accountant to provide a report
attesting to management’s assertion
concerning the effectiveness of internal
control over financial reporting on
certain schedules of its regulatory
reports, particularly those relating to
loans and securities. Under this
alternative, management initially would
have to review its internal control over
the preparation of these schedules and
document this review. Management
would then provide a written assertion
to the independent public accountant
stating whether it believes its internal
control in this area is effective. The
independent public accountant would
examine management’s assertion and
provide an appropriate attestation
report.
This alternative would not provide
assurance that the specific dollar
amounts reported on the regulatory
report are accurate. However, it would
provide reasonable assurance about the
reliability of management’s assertion
concerning the establishment of an
internal control structure and
procedures over financial reporting on
the specified report schedules and
whether that control is effective.
Interim Recommendation
The FDIC suggests that, until a new
policy statement regarding an annual
external auditing program is adopted,
any institution which does not have an
annual audit of its financial statements
by an independent public accountant
should consider having one of the
alternatives described above performed
by an independent public accountant as
its external auditing program.
Nevertheless, the FDIC understands
that some states have adopted the
procedures from the obsolete Policy
Statement on External Auditing
Procedures for State Nonmember Banks
as the state-required external auditing
program. Until a new policy statement
is effective, if an institution does not
have an audit of its financial statements
and is based in a state that has a state-
required external auditing program (e.g.,
a directors’ examination), the institution
would not normally be expected to
incur the cost of one of the alternatives
in addition to its state-required program.
For the above reasons, the Policy Statement
is rescinded.
By order of the Board of Directors.
Dated at Washington, D.C., this 23rd day of
December, 1997.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 98–347 Filed 1–6–98; 8:45 am]
BILLING CODE 6714–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Agency for Health Care Policy and
Research
Nominations for Members of the U.S.
Preventive Services Task Force
The Agency for Health Care Policy
and Research (AHCPR) is reconvening
the U.S. Preventive Services Task Force
(the Task Force) and inviting
nominations of qualified individuals to
serve as members.
Background
Under Title IX of the Public Health
Service Act, AHCPR is charged with
enhancing the quality, appropriateness,
and effectiveness of health care services
and access to such services. AHCPR
accomplishes these goals through
scientific research and through
promotion of improvements in clinical
practice, including prevention of
diseases and other health conditions,
and improvements in the organization,
financing, and delivery of health care
services (42 U.S.C. 299–299c–6).
U.S. Preventive Services Task Force
The U.S. Preventive Task Force (the
Task Force) is an expert panel, first
established in 1984 under the auspices