Improved audit processes would improve distribution of Universal ...
Improved audit processes would improve distribution of Universal Service Fund money, the National Exchange Carrier Association said in reply comments to an October FCC inquiry into how it might strengthen USF management, administration and oversight (CD Nov 17 p6).…
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The FCC Office of Inspector General has identified “a large portion of payments … as erroneous due to documentation issues or audit disclaimers,” NECA said, citing a recent OIG report that the high-cost fund has a 23.3 percent error rate: “Reporting these as ‘erroneous’ appears to materially overstate the extent of actual incorrect or improper high cost disbursements.” In separate reply comments, the Independent Telephone & Telecommunications Alliance agreed that USF audits are in a bad state. “While some [ITTA members] identified few discrete problems, others described audits that, when held against multiple state commission audits spanning three decades … were the ‘worst … ever seen,'” ITTA said. Members had common criticisms, including auditors’ knowledge of telecom, unclear FCC document retention rules and an inefficient audit process, it said.