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USAC Releases 2008 Annual Report

March 31, 2009

USAC released its annual report to the Federal Communications Commission and Congress which details their activities, expenses and spotlights various performance measures.  The E-rate program is one of four Universal Service Programs USAC administers and here are some highlights:

  • USAC expenses continue to climb; however, the expense rate is at a 2.4% of USF disbursements which is lower than many of the largest charitable organizations, foundations, and other federal agencies;
  • The cost of the FCC OIG audit program in 2006 was at $6 million and climbed to $19.9 million in 2007 and now at $91.7 million in 2008.  This covers all four USF programs;
  • USAC has hired 11 auditing firms to audit USF program beneficiaries through the FCC OIG audit program;
  • 4,064 service providers participated in the E-rate program in 2008.  (Funds For Learning conducted a more detailed analysis of the service provider landscape which can be viewed here);
  • On average, USAC is processing E-rate payments in ten days or less;
  • USAC is processing E-rate appeals between 80 and 120 days.

The full report can be viewed here.