§  64.1320   Payphone call tracking system audits.

   (a) Unless it has entered into an alternative compensation arrangement
   pursuant to §  64.1310(a) that relieves it of its §  64.1310(a)(1)
   tracking system obligation, each Completing Carrier must undergo an
   audit of its §  64.1310(a)(1) tracking system by an independent third
   party auditor whose responsibility shall be, using audit methods
   approved by the American Institute for Certified Public Accountants, to
   determine whether the call tracking system accurately tracks payphone
   calls to completion.

   (b) By the effective date of these rules, each Completing Carrier in
   paragraph (a) of this section must file an audit report from the
   auditor (the "System Audit Report") regarding the Completing Carrier's
   compliance with §  64.1310(a)(1) as of the date of the audit:

   (1) With the Commission's Secretary in CC Docket No. 96-128;

   (2) With each payphone service provider for which it completes calls
   and a Completing Carrier may comply with this paragraph's requirement
   to file copies of the System Audit Report with each payphone service
   provider by posting the System Audit Report on its website or a
   clearinghouse website; and

   (3) With each facilities-based long distance carrier from which it
   receives payphone calls.

   (c) The Completing Carrier must comply with, and the third-party
   auditor must verify, the Completing Carrier's compliance with the
   following factors in establishing a call tracking system pursuant to
   §  64.1310(a)(1):

   (1) Whether the Completing Carrier's procedures accurately track calls
   to completion;

   (2) Whether the Completing Carrier has a person or persons responsible
   for tracking, compensating, and resolving disputes concerning payphone
   completed calls;

   (3) Whether the Completing Carrier has effective data monitoring
   procedures;

   (4) Whether the Completing Carrier adheres to established protocols to
   ensure that any software, personnel or any other network changes do not
   adversely affect its payphone call tracking ability;

   (5) Whether the Completing Carrier has created a compensable payphone
   call file by matching call detail records against payphone identifiers;

   (6) Whether the Completing Carrier has procedures to incorporate call
   data into required reports;

   (7) Whether the Completing Carrier has implemented procedures and
   controls needed to resolve payphone compensation disputes;

   (8) Whether the independent third-party auditor can test all critical
   controls and procedures to verify that errors are insubstantial; and

   (9) Whether the Completing Carriers has in place adequate and effective
   business rules for implementing and paying payphone compensation,
   including rules used to:

   (i) Identify calls originated from payphones;

   (ii) Identify compensable payphone calls;

   (iii) Identify incomplete or otherwise noncompensable calls; and

   (iv) Determine the identities of the payphone service providers to
   which the Completing Carrier owes compensation.

   (d) Consistent with standards established by the American Institute of
   Certified Public Accountants for attestation engagements, the System
   Audit Report shall consist of:

   (1) The Completing Carrier's representation concerning its compliance;
   and

   (2) The independent auditor's opinion concerning the Completing
   Carrier's representation of compliance. The Completing Carrier's
   representation must disclose

   (i) Its criteria for identifying calls originating from payphones;

   (ii) Its criteria for identifying compensable payphone calls;

   (iii) Its criteria for identifying incomplete or otherwise
   noncompensable calls;

   (iv) Its criteria used to determine the identities of the payphone
   service providers to which the completing carrier owes compensation;

   (v) The identity of any clearinghouses the Completing Carrier uses; and

   (vi) The types of information that the Completing Carrier needs from
   the payphone service providers in order to compensate them.

   (e) At the time of filing of a System Audit Report with the Commission,
   the Completing Carrier shall file with the Commission's Secretary, the
   payphone service providers and the facilities-based long distance
   carriers identified in paragraph (b) of this section, a statement that
   includes the name of the Completing Carrier, and the name, address and
   phone number for the person or persons responsible for handling the
   Completing Carrier's payphone compensation and for resolving disputes
   with payphone service providers over compensation, and this statement
   shall be updated within 60 days of any changes of such persons. If a
   Completing Carrier chooses to notify payphone service providers of this
   statement and its System Audit Report by posting these two documents on
   its website or a clearinghouse website, then this statement shall
   include the web address for these two documents.

   (f) One year after the filing of the System Audit Report, and annually
   thereafter, the Completing Carrier shall engage an independent
   third-party auditor to:

   (1) Verify that no material changes have occurred concerning the
   Completing Carrier's compliance with the criteria of the prior year's
   System Audit Report; or

   (2) If a material change has occurred concerning the Completing
   Carrier's compliance with the prior year's System Audit Report, verify
   that the material changes do not affect compliance with the audit
   criteria set forth in paragraph (c) of this section. The Completing
   Carrier must fully disclose any material changes concerning its call
   tracking system in its representation to the auditor. The Completing
   Carrier shall file and provide copies of all System Audit Reports
   pursuant to the procedures set forth in paragraph (b) of this section.

   (g) Subject to protections safeguarding the auditor's and the
   Completing Carrier's confidential and proprietary information, the
   Completing Carrier shall provide, upon request, to the payphone service
   provider for inspection any documents, including working papers,
   underlying the System Audit Report.

   [ 68 FR 62756 , Nov. 6, 2003, as amended at  70 FR 723 , Jan. 5, 2005]

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