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3 <br />Action Audits, LLC <br />Orange County, NC-0276, NC-0256 <br />Review of Time Warner Cable <br />FCC 1240 Rate Filing <br />for 2001 <br />February 7, 2001 <br />REPORT <br />TO: John Link, county manager <br />FROM: Robert Sepe, Action Audits <br />RE: Review of Time Warner Cable's FCC 1240 123 5 and 1205 rate Slip s <br />The consultant bas reviewed Time Warner Cable's FCC 1240, 1235 and 1205 filings, and <br />supporting documentation furnished by the cable operator, and have conducted fact-finding <br />discussions with the cable operator and Federal Communications Commission representatives and <br />documents. The values stated in the filing are the responsibility of the cable operator's <br />management. . <br />Supplied data were reviewed to determine whether the operator calculated "updated" rates <br />consistent with the procedures prescribed by the FCC in accordance with the 13th Order on <br />Reconsideration, the Time Warner Social Contract, and the Telecommunications Act of 1996. <br />Original computations were performed and compared with information provided by Time Warner <br />Cable. The consultant believes that the data submitted by the cable operator is free of material <br />misstatements, and the accompanying report provides a reasonable basis for the following <br />recommendation. <br />Action Audits, LLC Franchise Fee U-Tax Auditin & Telecommunication Administration <br />101 Pocono Lane, Cary, North Carolina 27513-5316 Voice # 919.467.5392 Fax # 919.460.6568