Federal Communications Commission Washington, D.C. 20554 June 27, 2011 Release Date: June 27, 2011 DA 11-1121 Mr. William Hegmann, President National Exchange Carrier Association, Inc. 80 South Jefferson Road Whippany, NJ 07981 Re: Payment for Close-Out Activities of Telecommunications Relay Service Program Administration for the National Exchange Carrier Association Dear Mr. Hegmann: This letter supplements the letter from the Chief, Consumer and Governmental Affairs Bureau (CGB), Federal Communications Commission (Commission) to the President of National Exchange Carrier Association, Inc. (NECA), last signed July 14, 2003, under which the Commission and NECA agreed to extend NECA’s term as Telecommunications Relay Service (TRS) Fund administrator on a month-to- month basis.1 Effective July 1, 2011, the TRS Fund Administrator will change from NECA to Rolka Loube Saltzer Associates, LLC (RLSA). Although NECA’s service as TRS Fund administrator will conclude, the Commission recognizes that NECA is in a unique position to provide close-out work related to its period of administration, which will need to be completed after the July 1, 2011 transition date. Under this letter, effective July 1, 2011, NECA will be compensated for its completion of these administrative duties (in the nature of winding-up its administration), which include: responding in a timely manner to auditor’s requests for information, documents, notices of findings, and submission of appropriate management letters associated with the annual audit of the Commission’s consolidated financial statements that includes the TRS Fund Program; financial data required by federal statues, i.e., schedules, reports and reconciliations consistent with Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements; the transfer of TRS Fund records to RLSA and the FCC; and completion of risk assessment testing of transactions to comply with various standards and guidance contained in OMB Circular A-1232 (collectively, “close-out activities). In doing so, NECA will be compensated, for reasonable expenses incurred for the close-out activities, an amount not to exceed $60,000.3 NECA shall also provide the Commission with an itemization of monthly administrative costs, which shall consist of all expenses, and payments associated with completion of the close-out activities.4 1 See Letter from K. Dane Snowden, Chief Consumer & Governmental Affairs Bureau to Robert Anderson, President of NECA (July 11, 2003). 2 See M-11-16 Issuance of Revised Part I and II to Appendix C of Office of Management and Budget, Management’s Responsibility for Internal Control, Circular No. A-123, (Apr. 14, 2011) (available at http://www.whitehouse.gov/omb/financial_fia_improper). 3 See 47 C.F.R. §64.604(c)(iii) (H) Administrator reporting, monitoring, and filing requirements, and 47 C.F.R. § 64.901 Allocation of costs. Payment is separate and in addition to the agreement with RLSA to serve as the TRS Administrator. 4 See id. 2 Further, payment and approval of any additional TRS close-out activities beyond those described here shall be subject to written Commission approval. NECA shall indicate acceptance of this agreement by signing, dating, and returning the original of the letter to Joel Gurin, Chief, Consumer and Governmental Affairs Bureau (CGB). Thank you for your service and dedication in bringing the benefits of communications technologies and services to individuals who are deaf-blind, or who have hearing or speech disabilities throughout the Nation. For any questions concerning this letter, please contact Andrew Mulitz (Andrew.Mulitz@fcc.gov). Sincerely, Joel Gurin, Chief, Consumer and Governmental Affairs Bureau ____________________________ Date ____________ Signature Constitutes Acceptance William Hegmann, President, NECA