→ (1) Administers rural electrification program responsibilities that relate to power supply borrowers, and serves as the primary point of contact between RUS and all such borrowers;

(2) Receives, evaluates, and processes insured and guaranteed loan applications and other requests for financial assistance from power supply borrow

ers;

(3) Develops and administers engineering and construction functions related to planning, design, construction, operation, and maintenance for power supply borrowers;

(4) Maintains a continuing financial and management overview of power supply borrowers to ensure that their operations are consistent with sound fiscal policies and procedures, loan security, and with RUS loan contracts, mortgages and regulatory requirements. Initiates operations and management studies or other forms of corrective action as necessary;

(5) Provide guidance to borrowers on supplemental power resources; load and energy management; and the environmental aspects of the design, construction and operations of their systems;

(6) Works to ensure accountability of loan and other financial transactions; and

(7) Supplements efforts of the Equal Opportunity and Civil Rights Staff to ensure borrower compliance with civil rights requirements.

(d) Electric Staff Division. This division administers certain engineering and operating activities relating to the rural electric program. The division:

(1) Is responsible for engineering aspects of RUS's standards, specifications and other requirements with respect to design, construction, and technical operation and maintenance of power-plant, distribution, and transmission systems and facilities, including load management, energy conservation and communications;

(2) Develops engineering practices, policies, standards, and guidelines for the Agency relating to electric borrowers' systems; conducts analysis and provides guidance on matters relating to fuels for electric generating stations; analyzes the effects of environmental laws and regulations on RUS-financed electric systems; and develops

related policies and procedures for the Agency;

(3) Develops criteria, procedures and analyses for improvement of the operating performance of electric borrow

ers;

(4) Develops procedures, criteria and techniques for forecasting borrowers' power requirements; and develops and maintains expertise in matters relating to retail and wholesale rates;

(5) Develops policies and procedures for adherence to environmental laws and regulations, and reviews borrowers' environmental studies;

(6) Maintains and publishes a continuing updated list of materials compatible with current RUS standards;

(7) From time to time provides consultation with borrowers regarding engineering matters;

(8) Provides assistance to the other electric offices and, as appropriate, to borrowers; and

(9) Maintains liaison with other Government agencies, utilities, industry officials and professional organizations on the above matters.

§ 1700.5 Rural telephone program.

(a) The Assistant AdministratorTelephone directs and coordinates the rural telephone program of the Agency, participating with the Administrator and Deputy Administrator-Program Operations and other officials in planning and formulating the programs and activities of the Agency.

(b) Regional Offices. (1) The two regional offices are the primary points of contact between RUS and all telephone system borrowers. Each office administers the rural telephone program for an assigned geographical area with assistance of field representatives 10cated in areas assigned to them.

(2) The regional offices are composed of the following states and territories: (1) Eastern Region. Alabama, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, Virgin Islands, West Virginia, and Wisconsin; and

(ii) Western Region. Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming and present and former Pacific Trust Territories along with the Northern Mariana Islands and Guam.

(3) The regional offices have the following responsibilities with respect to loan feasibility and security and accomplishment of the purposes of the RE Act:

(i) Provide guidance to applicants and borrowers on Agency and Rural Telephone Bank loan policies and procedures, and make recommendations to the Administrator on applications for loans or guarantees. If delegated the authority by the Administrator, Area Directors may approve certain loans, lien accommodations and other actions;

(ii) Review and analyze borrowers' toll revenue settlements and local service rates for adequacy to meet loan service payments and other expenses;

(iii) Assure that telephone systems and facilities are designed and constructed in accordance with the terms of the loan and the Agency's regulations. They review, analyze and approve borrowers' engineering plans and specifications; engineering, equipment and construction contracts; and borrowers' payments to engineers and contractors. They work with the borrowers to assure that completed construction meets RUS standards for quality of service and loan security; and

(iv) Provide information to borrowers regarding management and technical operations and practices with respect to the feasibility and security of the Government's loans and achievement of RE Act purposes.

(c) Telecommunications Standards Division. This division administers engineering staff activities related to the design, construction, and technical operation and maintenance of rural telephone systems and facilities. The division:

(1) Develops Agency engineering practices, policies, guidelines and technical data relating to telephone borrowers' systems;

(2) Evaluates the application of new communications network technology to rural telephone systems;

(3) Develops standards, policies, and procedures in connection with con struction activities financed by the rural telephone program;

(4) Provides advice and assistance to the regional offices and, as requested,| to borrowers on the above functions and responsibilities; and

(5) Maintains liaison with other government agencies, utilities, industry officials, and professional organizations on the above matters.

(d) Rural Telephone Bank Management Staff. This staff performs the following functions:

(1) Prepares analyses and makes recommendations to the Assistant Governor of the RTB on RTB issues;

(2) Performs the calculations needed to determine the cost of money rate to RTB borrowers;

(3) Prepares the minutes of RTB board meetings;

(4) Develops practices and procedures for determining toll forecasts for the telephone regional offices, and develops the toll forecasts for borrowers with complicated settlement arrangements;

(a) The Assistant AdministratorEconomic Development and Technical Services directs and coordinates the rural economic development and technical services programs of the Agency. participating with the Administrator and Deputy Administrator-Program Operations and other officials in planning and formulating the programs and activities of the Agency. Two staffs and one division report to this Assistant Administrator.

(b) Rural Development Assistance Staff. This staff performs the following func tions:

(1) Administers the Agency's rural economic development and job creation programs;

(2) Formulates and develops regulations, procedures, directives, and bul

letins concerning the execution of Agency rural economic development activities;

(3) In coordination with Agency personnel, provides guidance to borrowers on Agency rural economic development policies and procedures, and makes recommendations to the Administrator on borrowers' applications for rural economic development financial assistance;

(4) Provides economic and community development technical assistance to borrowers; and

(5) Advises Agency personnel on rural economic development matters.

(c) Program Support Staff. This staff has the following responsibilities:

(1) Prepares special and ongoing analyses regarding the operations of the Agency's loan, loan-guarantee, and grant programs, and supervises special projects as assigned;

(2) Develops and maintains Agency regulations and bulletins on pre-and post-loan policies and procedures, and provides advice and assistance to Agency staff and others regarding the achievement of program policies;

(3) Coordinates with corresponding program staffs regarding the implementation of program-wide policies;

(4) Coordinates joint program initiatives;

(5) Provides coordination and assistance on management development of RUS and borrower personnel, as assigned; and collaborates with borrowers' organizations and professional groups in management development;

(6) Develops and maintains a variety of loan fund control ledgers for electric and telephone program lending authorities; and

(7) Keeps abreast of external developments by state, local and Federal regulatory and legislative bodies relating to RUS programs.

(d) Borrower Accounting Division. This division ensures that accounting policies, systems and procedures with respect to borrowers' accounting operations meet regulatory, U.S. Department of Agriculture, General Accounting Office, Office of Management and Budget and Treasury Department requirements. The division:

administrative problems involving accounting interpretations and analysis, including the development and presentation of data to agency staff, regulatory bodies, and other agencies;

(2) Examines borrowers' records and operations and reviews expenditures of loan and other funds deposited in the RUS Construction Fund Account to determine that funds are expended in conformity with the RE Act. Reviews borrowers' plant accounting system and procedures to determine compliance with RUS regulations;

(3) Approves Certified Public Accountants to perform audits for borrowers and reviews their reports to determine conformance with acceptable accounting practices, procedures and standards;

(4) Develops proposed standards and procedures for Agency examination programs and evaluates adequacy and effectiveness of the review procedures;

§ 1700.8 Office of Assistant Administrator-Management.

The Assistant Administrator-Man

general administrative activities of the agency, participates with the Administrator and Deputy Administrators and other officials in planning and formulating the programs and activities of the agency. The Office of Budget and four other divisions are directed and coordinated by the Assistant Administrator-Management.

(a) The Office of Budget administers the budgetary and financial management program of the Agency. The office:

(1) Determines the annual funding needs for current and multi-year forecasts, participating with the Administrator in presenting and supporting the Agency's budget and program plans; and

(2) Administers budget execution, apportionment, allotment and use and control of all Agency funds.

(b) The Personnel Management Division administers the personnel program of the Agency, covering both headquarters and field personnel. The division.

(1) Administers the provisions of the Classification Act, to achieve uniform application of position classification principles and standards to all RUS positions; conducts organization studies and develops recommendations for changes; develops and administers the Agency's personnel management evaluation activities;

(2) Administers the employment program for the Agency, including staffing, recruitment, placement and separation; administers the Agency's merit promotion program; maintains liaison with the National Finance Center on personnel data processing activities including payroll;

(3) Administers Agency responsibilities for employee relations including: grievances and appeals, performance appraisals, performance recognition system, conflict of interest, awards, benefits, and leave;

(4) Directs, coordinates, and evaluates a program of employee training to achieve the maximum utilization of skills and abilities of personnel; conducts training sessions; plans and directs conferences; prepares training budget; approves training requests; and coordinates an information program for foreign visitors;

(5) Provides advice and assistance to Agency officials and employees to ensure sound and effective administra tion of the Agency's personnel program;

(6) Maintains working relations and liaison on personnel management matters with the staff and other agencies of the Department and other government agencies; and

(7) Participates with the Adminis trator, in conjunction with the Equal Opportunity and Civil Rights Staff, in the implementation and enforcement of USDA equal employment oppor tunity programs (see §1700.2(c) (2)); coordinates equal employment opportunity complaint system with the Department; develops and administers the Agency's Federal Equal Opportunity Recruitment Program.

(c) The Administrative Services Division administers a wide array of management services. The division administers:

(1) General services involving contracting and procurement, space management, property and supplies management, records management and communications;

(2) The Agency's rulemaking and regulatory review activities, coordinating with the Office of the Federal Register, the Office of the General Counsel, and the Office of Management and Budget; and

(3) The Agency's publications issuance system and the forms and report program.

(d) The Automated Information Systems Division analyzes the application of data processing to RUS program activities, including feasibility studies of the costs and benefits of automated data processing. The division:

(1) Establishes standards and procedures for developing, maintaining and using the Agency's major automated systems covering borrower information, loan accounting and special management programs; performs systems analyses, development, and programming; and ensures data security;

(2) Operates the data processing equipment of the Agency, including the conversion of data from source documents and the preparation of statements, reports, analyses, and other in

formation, and provides training and assistance to users; and

(3) Collects and analyzes financial, operating, and other statistical data obtained from borrowers and other sources, and prepares reports on the progress and status of the programs of RUS and the RTB.

(e) The Financial Operations Division administers the fiscal accounting program of the agency and the RTB. The division:

(1) Develops, recommends and implements accounting policies, systems, and procedures regarding the Agency's and RTB's operations;

(2) Maintains accounts to provide control over and accountability for all funds, assets, liabilities, income and expenses of the Agency and the RTB; and prepares reports required by RUS, RTB, the U.S. Department of Agriculture, and other government agencies;

(3) Examines and certifies for payment, vouchers and invoices covering administrative expenses and loan fund advances of the Agency and the RTB;

(4) Reviews, examines and processes monthly billings and debt service payments for RUS and RTB loans;

(5) Reviews, examines and processes loan fund advances, billings, debt service payments and all other accounting related activities connected with Federal Financial Bank loans to RUS borrowers; and

(6) Maintains custody of the original copies of notes and mortgages and certain loan collateral.

$1700.9 Information, legislation, policy and management analysis.

The Deputy Administrator-Management and Policy Support, directs two separate staffs of the Agency dealing with public information and legislation, and policy and management analysis.

(a) The Legislative and Public Affairs Staff performs the following functions: (1) Analyzes the policy, programs and procedural implications of Federal and State legislation affecting RUS programs; prepares special reports for the Administrator on legislative affairs; and responds to inquiries from Congress and others concerning RUS programs;

(2) Maintains liaison with the Department's legislative staff and with congressional offices;

(3) Manages the information activities of the Agency to provide borrowers and the public with timely information concerning the operations, status, progress and accomplishments of the rural electrification, rural telephone and rural development programs;

(4) Evaluates the public information activities of the Agency and advises on actions that will improve public understanding and acceptance of Agency functions; and

(5) Administers the public information provisions of 5 U.S.C. 551 et seq., the Administrative Procedure Act.

(b) The Policy and Management Analysis Staff performs the following functions:

(1) Coordinates the development and monitors the implementation of the Agency's long-term program and management plans, ensuring that these plans are up to date at all times;

(2) Ensures that these long-term plans include quality-improvement, efficiency, and cost saving initiatives;

(3) Ensures that audit resolutions are incorporated in the Agency's strategic planning and other processes for establishing goals and objectives; and

(4) Initiates and coordinates management productivity programs of the Agency.

§§ 1700.10-1700.19 [Reserved]

Subpart B-Programs

§ 1700.20 Insured electric loans pursuant to section 305 of the Rural Electrification Act, as amended. (a) General. These loans are made from the Rural Electrification and Telephone Revolving Fund for purposes authorized by section 4 of the RE Act. The standard interest rate on these loans is 5 percent, but a rate as low as 2 percent is authorized by section 305(b) of the RE Act if a borrower:

(1) Has experienced extreme financial hardship; or

(2) Cannot, in accordance with generally accepted management and accounting principles and without charging rates to its customers or subscribers so high as to create a substantial