Postal Services Act 2011

39 USP accounting conditions

(1) OFCOM may impose a USP accounting condition on a universal service provider.

(2) A USP accounting condition is a condition requiring the provider to do one or more of the following—

(a) to maintain a separation for accounting purposes between such different matters as OFCOM may direct for such purposes as they may direct,

(b) to comply with rules made by OFCOM in relation to those matters about the identification of costs and cost orientation,

(c) to comply with rules made by OFCOM about the use of cost accounting systems in relation to those matters, and

(d) to secure that its compliance with those systems is audited annually by a qualified independent auditor.

(3) An obligation within subsection (2)(a)—

(a) may require the separation to be maintained in relation to different services, facilities or products or in relation to services, facilities or products provided in different areas, and

(b) may impose requirements about the accounting methods to be used in maintaining the separation.

(4) An obligation within subsection (2)(b) or (c)—

(a) may include conditions requiring the application of presumptions in the fixing and determination of costs and charges for any purpose, and

(b) may require the universal service provider concerned to publish such accounts and other information relating to anything required to be done as a result of those provisions as OFCOM consider appropriate.

(5) An obligation within subsection (2)(d) may require the universal service provider concerned to meet the costs of the audit.

(6) If a USP accounting condition imposes rules on a universal service provider about the use of cost accounting systems, OFCOM may secure that the condition also imposes an obligation on the provider to make arrangements for a description to be made available to the public of the cost accounting system used.

(7) If OFCOM impose an obligation under subsection (6), the description of information to be made available must include details of—

(a) the main categories under which costs are brought into account for the purposes of that system, and

(b) the rules applied for the purposes of that system with respect to the allocation of costs.

(8) In this section “qualified independent auditor” means a person who—

(a) is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006, and

(b) if the appointment were an appointment as a statutory auditor, would not be prohibited from acting by section 1214 of that Act (independence requirement).