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)RU966,ZHREWDLQHGDOLVWRIXQDIILOLDWHGHQWLWLHVDQGVHOHFWHGDUDQGRPVDPSOHRIWHQ DJUHHPHQWV:HFRPSDUHGWKHUDWHVWHUPVDQGFRQGLWLRQVRIIHUHGWR966,WRWKRVHRIIHUHGWR WKHXQDIILOLDWHGFRPSDQLHVDQGQRWHGQRGLIIHUHQFHV  :HUHTXHVWHGDOLVWRIHDFKRFFXUUHQFHRIDQRQDIILOLDWHG&/(&UHTXHVWWRRSWLQWRDQ LQWHUFRQQHFWLRQDJUHHPHQWWKH,/(&KDVZLWK966,0DQDJHPHQWLQGLFDWHGWKDWWKHUHZHUH 40 $SSHQGL[)  38%/,&9(56,21± 5('$&7(' QRRFFXUUHQFHVRIDQRQDIILOLDWHG&/(&UHTXHVWLQJWRRSWLQWRDQLQWHUFRQQHFWLRQDJUHHPHQW WKDWDQ,/(&KDGZLWK966,  :HLQTXLUHGRIPDQDJHPHQWDQGPDQDJHPHQWLQGLFDWHGWKDWWKH,/(&VGLGQRWSURYLVLRQ 81(VWR966, 41 42 43 Susan C. Browning 1310 N. Courthouse Road Executive Director 4 th Floor Affiliate Interest Compliance Arlington, VA 22201 Tel: 703 974- 6417 Fax: 703 974- 0706 / 0780 Susan. C. Browning@ verizon. com June 8, 2001 Joint Federal/ State Oversight Team For the Biennial Audit Required under Section 272 c/ o J. Paretti and PricewaterhouseCoopers 1301 Avenue of the Americas New York, New York 10019 On March 12, 2001, in accordance with the March 1, 2001 version of the General Standard Procedures for Biennial Audits Required under Section 272 , I provided a memo indicating corrective actions Verizon took between July 1 and September 30, 2000 for the former GTE affiliates. In the last month Verizon confirmed a similar matter requiring correction. The details are attached. Susan Browning Executive Director — Affiliate Interest Compliance cc: J. Ward G. Asch J. 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