7 CFR § 1770.13 - Accounting requirements.

---
identifier: "/us/cfr/t7/s1770.13"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1770.13 - Accounting requirements."
title_number: 7
title_name: "Agriculture"
section_number: "1770.13"
section_name: "Accounting requirements."
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1770"
part_name: "ACCOUNTING REQUIREMENTS FOR RUS TELECOMMUNICATIONS BORROWERS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 901  7 U.S.C. 1921  Pub. L. 103-354, 108 Stat. 3178 (7 U.S.C. 6941 )."
regulatory_source: "55 FR 3388, Feb. 1, 1990, unless otherwise noted."
cfr_part: "1770"
---


# 1770.13 Accounting requirements.

(a) Each borrower shall maintain its books of accounts on the accrual basis of accounting. All transactions shall be recorded in the period in which they occur and reconciled monthly. The books of accounts shall be closed at the end of each fiscal year and financial statements shall be prepared for the period and audited in accordance with the provisions of 7 CFR part 1773.

(b) All books of accounts, records, and memoranda shall be maintained in such a manner as to fully support the journal entries to which they relate. The books and records referred to herein shall include records of a nontechnical nature such as minute books, stock and membership records, reports, correspondence, and memoranda.

(c) Interpretations of Federal or State requirements shall be referred to the applicable commission exercising jurisdiction over the borrower.

(d) Interpretations of RUS accounting requirements shall be referred to the Assistant Administrator, Program Accounting and Regulatory Analysis, Rural Utilities Service.

[55 FR 3388, Feb. 1, 1990, as amended at 70 FR 25756, May 16, 2005; 88 FR 7562, Feb. 6, 2023]