FCC financial statements received generally good marks from an independent auditor’s report in the commission’s FY 2015 Agency Financial Report (AFR) released Thursday. Kearney & Co. found the statements “present fairly, in all material respects” the FCC’s financial position as of Sept. 30 in accordance with generally accepted accounting principles. The accounting firm did find “one repeat material weakness, originally reported in FY 2014, in internal control” regarding Universal Service Administrative Co. budgetary accounting, “one repeat significant deficiency” going back 10 years related to IT controls, and “one repeat instance of noncompliance with laws and regulations related to the requirements of the Debt Collection Improvement Act,” said FCC Inspector General David Hunt in an introductory memorandum. “The independent auditor’s opinion addresses more than $10.1 billion in revenues, more than $460 million in FCC operating expenses and more than $9.2 billion in outlays for the Universal Service Fund and Telecommunications Relay Service Fund,” said FCC Chairman Tom Wheeler in an AFR message. “Despite the positive audit opinion, the independent auditor’s report shows that work remains at the FCC to continue to improve the agency’s operations.” The $10.1 billion revenue includes: some $8.77 billion from USF, $847 million from the TRS Fund, $340 million from appropriations (regulatory fees), $106 million from auction-related appropriations, $6 million from North American Numbering Plan revenue, and $7 million from “other” sources, according to an “FCC management” overview. Wheeler highlighted FCC work on spectrum, net neutrality, transactions, Lifeline and E-rate USF support, robocalls, empowering people with disabilities, process reform, and field and IT modernization. He voiced confidence the FCC is on “sound legal footing” in net neutrality litigation and he noted the agency raised more than $40 billion in AWS-3 auction revenue. He said field activities “presented real challenges and opportunities for improvement,” given technological change since the last Enforcement Bureau field structure review and given a reduction in FCC resources. “The Commission adopted a field modernization plan that will allow our field operations to do more with less,” he said. “The resulting plan reflects the review team’s thorough, data-driven analysis and concentrates field resources where they are needed most -- areas with the greatest spectrum density. … Once implemented, this plan will save millions of dollars annually.” Wheeler also said the FCC's IT team "is on track to modernize our infrastructure, information and communications technologies," replacing costly-to-maintain legacy systems and "leveraging cloud service offerings to the fullest extent possible."

Saxon Glass Technologies asked the International Trade Commission to issue a limited exclusion order banning imports of an Apple smart watch due to trademark infringement. Saxon’s Tariff Act Section 337 complaint said the Apple Watch Sport’s Ion-X strengthened glass infringes and dilutes Saxon’s own Ionex mark. Saxon seeks a limited exclusion order and cease and desist order banning importation and sale of infringing Apple smart watches. The ITC now seeks comment by Nov. 25 on public interest issues raised by the complaint, the agency said in a notice in Tuesday's Federal Register. Apple didn't comment Wednesday.

Saxon Glass Technologies asked the International Trade Commission to issue a limited exclusion order banning imports of an Apple smart watch due to trademark infringement. Saxon’s Tariff Act Section 337 complaint said the Apple Watch Sport’s Ion-X strengthened glass infringes and dilutes Saxon’s own Ionex mark. Saxon seeks a limited exclusion order and cease and desist order banning importation and sale of infringing Apple smart watches. The ITC now seeks comment by Nov. 25 on public interest issues raised by the complaint, the agency said in a notice in Tuesday's Federal Register. Apple didn't comment Wednesday.

Saxon Glass Technologies asked the International Trade Commission to issue a limited exclusion order banning imports of an Apple smart watch due to trademark infringement. Saxon’s Tariff Act Section 337 complaint said the Apple Watch Sport’s Ion-X strengthened glass infringes and dilutes Saxon’s own Ionex mark. Saxon seeks a limited exclusion order and cease and desist order banning importation and sale of infringing Apple smart watches. The ITC now seeks comment by Nov. 25 on public interest issues raised by the complaint, the agency said in a notice in Tuesday's Federal Register. Apple didn't comment Wednesday.

Senate Commerce Committee ranking member Bill Nelson, D-Fla., invoked recent terrorist attacks in Europe and the importance of juggling spectrum for purposes of government defense with commercial use when weighing in on Mobile Now for the first time Wednesday. Commerce tentatively plans to mark up Mobile Now the second week of December, a senior GOP Commerce Committee staffer told us Wednesday.

Senate Commerce Committee ranking member Bill Nelson, D-Fla., invoked recent terrorist attacks in Europe and the importance of juggling spectrum for purposes of government defense with commercial use when weighing in on Mobile Now for the first time Wednesday. Commerce tentatively plans to mark up Mobile Now the second week of December, a senior GOP Commerce Committee staffer told us Wednesday.

With the FCC struggling to revamp rate-of-return USF, some commissioners want the agency to make sure it at least addresses a “stand-alone broadband problem” this year even if it’s not ready to adopt a broader overhaul. Commissioner Ajit Pai said he “strongly” disagreed with speculation the commission can simply take more time despite a year-end commitment. “There is no reason whatsoever why we can’t act by December 31 if our focus is on solving the stand-alone broadband problem,” he said in a speech Monday at an NTCA Telecom Executive Policy Summit. “The difficulty only arises if we decide to link solving that problem to a number of other thorny issues.”

With the FCC struggling to revamp rate-of-return USF, some commissioners want the agency to make sure it at least addresses a “stand-alone broadband problem” this year even if it’s not ready to adopt a broader overhaul. Commissioner Ajit Pai said he “strongly” disagreed with speculation the commission can simply take more time despite a year-end commitment. “There is no reason whatsoever why we can’t act by December 31 if our focus is on solving the stand-alone broadband problem,” he said in a speech Monday at an NTCA Telecom Executive Policy Summit. “The difficulty only arises if we decide to link solving that problem to a number of other thorny issues.”

The House Judiciary Committee’s priorities for legislation in its Copyright Act review remained largely undefined after the committee’s Tuesday roundtable session at the University of California, Los Angeles, participants in the session told us. The UCLA session, House Judiciary’s third roundtable since beginning its copyright “listening tour” in September, drew Los Angeles’ movie, music and TV industries and others. House Judiciary’s Monday roundtable at Santa Clara University drew a mainly tech sector crowd (see 1511100063), while a September roundtable in Nashville was exclusively pegged at music licensing issues (see 1509220055). Participants in the UCLA roundtable said they remain unsure how House Judiciary will proceed, with several saying committee members made few statements indicating their leanings.

The FCC expects “significant” broadcaster and wireless industry interest in March's incentive auction, said Howard Symons, vice chairman of the FCC's incentive auction task force, Thursday at NAB's Content and Communications World show in New York. Agency representatives have met with hundreds of broadcasters about the auction, but Symons gave no specifics on level of participation expected. "The interest is broad and deep," he said, the same as it is among carriers.