ARCHIVED - Telecom Decision CRTC 2002-35

Telecom Decision CRTC 2002-35

Ottawa, 31 May 2002

Changes to the annual contribution reporting requirements

Reference: 8638-C12-45/00

Summary

In this decision, the Commission simplifies the annual contribution reporting requirements for those telecommunications service providers with less than $10 million of total operating revenues on their annual financial statements. The Commission also determines that telecommunications service providers that have unaudited financial statements must provide an affidavit signed by two company officers attesting to the accuracy of the statements.

Background

1.

In Changes to the contribution regime, Decision CRTC 2000-745, 30 November 2000 (Decision 2000-745), the Commission required that all telecommunications service providers (TSPs) file an annual contribution report detailing their previous year's contribution-eligible revenues along with supporting documentation.

2.

The Commission also determined that all TSPs, or groups of related TSPs, would be required to contribute to the national contribution fund, if their annual Canadian telecommunications service revenues (CTSR) were equal to or greater than $10 million.

3.

The annual contribution reports serve to determine whether a TSP will be required to contribute to the national contribution fund, and ensure that those TSPs that are required to contribute, are calculating contribution-eligible revenues correctly. This information is also used in the calculation of the annual revenue-percentage charge, in accordance with Decision 2000-745.

4.

The annual contribution reporting requirements include:

• an annual reporting form, which provides company/contact information and a detailed calculation of contribution-eligible revenues;

• an inter-carrier payment form, which itemizes the inter-carrier expense deductions;

• a non-contribution-eligible revenues form, which itemizes the non-contribution-eligible revenues deduction;

• a copy of the financial statements that support the annual reporting form; and

• a compliance statement from the external auditors or an affidavit signed by an officer of the company attesting to the accuracy of the information provided.

Annual contribution reports

5.

During its review of the annual contribution reports, the Commission found that many of the TSPs with total operating revenues below $10 million either did not complete all of the required forms or did not complete the forms correctly.

6.

These incomplete or incorrect filings represent an administrative burden for both the TSPs involved and Commission staff, as Commission staff had to contact the TSPs to identify the errors and explain how the reporting should be done.

7.

The Commission considers that simplified annual contribution reporting requirements for those TSPs with less than $10 million in total operating revenues would reduce the administrative burden associated with more extensive filings, without having a detrimental impact on the operation of the national contribution fund.

8.

In particular, the Commission finds that, for those TSPs with total operating revenues of less than $10 million, a review of the annual financial statements would be sufficient to allow Commission staff to determine whether or not a TSP is required to contribute or whether further information is required from the TSP in order to make such a determination.

9.

While completion of Areas A, B and C of the annual reporting form continues to be essential for TSP identification purposes, the Commission does not consider that those TSPs with less than $10 million of total operating revenues should be required to complete Area D (calculation of contribution-eligible revenues) of the annual reporting form, the inter-carrier payment form or the non-contribution-eligible revenues form.

10.

The Commission considers, however, that it is not appropriate to extend these simplified requirements to TSPs that are part of a group of related TSPs with combined total operating revenues equal to or greater than $10 million, as the information contained in Area D of the annual reporting form is necessary to determine whether or not these TSPs are required to contribute to the national contribution fund.

11.

The Commission will require all TSPs with unaudited financial statements, regardless of the level of its total operating revenues, to provide an affidavit, attesting to the accuracy of the information provided, signed by two officers of the company, with one of the officers being the company's chief financial officer.

Commission determinations

12.

In light of the above, the Commission modifies, effective as of the date of this decision, the annual contribution reporting requirements outlined in Decision 2000-745, as follows:

13.

All other reporting requirements remain unchanged.

Secretary General