§  32.6720   General and administrative.

   This account shall include costs incurred in the provision of general
   and administrative services as follows:

   (a) Formulating corporate policy and in providing overall
   administration and management. Included are the pay, fees and expenses
   of boards of directors or similar policy boards and all
   board-designated officers of the company and their office staffs, e.g.,
   secretaries and staff assistants.

   (b) Developing and evaluating long-term courses of action for the
   future operations of the company. This includes performing corporate
   organization and integrated long-range planning, including management
   studies, options and contingency plans, and economic strategic
   analysis.

   (c) Providing accounting and financial services. Accounting services
   include payroll and disbursements, property accounting, capital
   recovery, regulatory accounting (revenue requirements, separations,
   settlements and corollary cost accounting), non-customer billing, tax
   accounting, internal and external auditing, capital and operating
   budget analysis and control, and general accounting (accounting
   principles and procedures and journals, ledgers, and financial
   reports). Financial services include banking operations, cash
   management, benefit investment fund management (including actuarial
   services), securities management, debt trust administration, corporate
   financial planning and analysis, and internal cashier services.

   (d) Maintaining relations with government, regulators, other companies
   and the general public. This includes:

   (1) Reviewing existing or pending legislation (see also Account 7300,
   Nonoperating income and expense, for lobbying expenses);

   (2) Preparing and presenting information for regulatory purposes,
   including tariff and service cost filings, and obtaining radio licenses
   and construction permits;

   (3) Performing public relations and non-product-related corporate image
   advertising activities;

   (4) Administering relations, including negotiating contracts, with
   telecommunications companies and other utilities, businesses, and
   industries. This excludes sales contracts (see also Account 6611,
   Product management and sales); and

   (5) Administering investor relations.

   (e) Performing personnel administration activities. This includes:

   (1) Equal Employment Opportunity and Affirmative Action Programs;

   (2) Employee data for forecasting, planning and reporting;

   (3) General employment services;

   (4) Occupational medical services;

   (5) Job analysis and salary programs;

   (6) Labor relations activities;

   (7) Personnel development and staffing services, including counseling,
   career planning, promotion and transfer programs;

   (8) Personnel policy development;

   (9) Employee communications;

   (10) Benefit administration;

   (11) Employee activity programs;

   (12) Employee safety programs; and

   (13) Nontechnical training course development and presentation.

   (f) Planning and maintaining application systems and databases for
   general purpose computers.

   (g) Providing legal services: This includes conducting and coordinating
   litigation, providing guidance on regulatory and labor matters,
   preparing, reviewing and filing patents and contracts and interpreting
   legislation. Also included are court costs, filing fees, and the costs
   of outside counsel, depositions, transcripts and witnesses.

   (h) Procuring material and supplies, including office supplies. This
   includes analyzing and evaluating suppliers' products, selecting
   appropriate suppliers, negotiating supply contracts, placing purchase
   orders, expediting and controlling orders placed for material,
   developing standards for material purchased and administering vendor or
   user claims.

   (i) Making planned search or critical investigation aimed at discovery
   of new knowledge. It also includes translating research findings into a
   plan or design for a new product or process or for a significant
   improvement to an existing product or process, whether intended for
   sale or use. This excludes making routine alterations to existing
   products, processes, and other ongoing operations even though those
   alterations may represent improvements.

   (j) Performing general administrative activities not directly charged
   to the user, and not provided in paragraphs (a) through (i) of this
   section. This includes providing general reference libraries, food
   services (e.g., cafeterias, lunch rooms and vending facilities),
   archives, general security investigation services, operating official
   private branch exchanges in the conduct of the business, and
   telecommunications and mail services. Also included are payments in
   settlement of accident and damage claims, insurance premiums for
   protection against losses and damages, direct benefit payments to or on
   behalf of retired and separated employees, accident and sickness
   disability payments, supplemental payments to employees while in
   governmental service, death payments, and other miscellaneous costs of
   a corporate nature. This account excludes the cost of office services,
   which are to be included in the accounts appropriate for the activities
   supported.

   [ 67 FR 5696 , Feb. 6, 2002]

   return arrow Back to Top