On March 8, 2006 USAC asked the FCC for formal guidance on when to recover funds in situations that were not specifically covered in previous FCC Orders.  The FCC released a memorandum to USAC today which further clarifies that there are now certain cases when USAC is allowed to recover funds and other circumstances that facts might warrant recovery, but USAC will have to delve deeper into the specific issues.

On March 8, 2006 USAC asked the FCC for formal guidance on when to recover funds in situations that were not specifically covered in previous FCC Orders.  The FCC released a memorandum to USAC today which further clarifies that there are now certain cases when USAC is allowed to recover funds and other circumstances that facts might warrant recovery, but USAC will have to delve deeper into the specific issues.

The FCC and USAC have stepped up their oversight and are continuing to conduct audits to program beneficiaries and another round of audits has already begun.  Based on the August 2008 USAC Semi-Annual Audit Recovery Report, close to 500 applicants have been audited and USAC has received approximately $16 million and another $68 million is in various stages of recovery or being appealed.  Both applicants and service providers may be held responsible for recovery of disbursed funds depending on who USAC believes is at fault and it is incumbent upon all stakeholders to understand program rules and regulations.  

FCC Audit Recovery Memo