In its quarterly report to the Federal Communications Commission, the Universal Service Administrative Company (USAC) has reported that approximately $900 million is currently available in unused funds from funding years 2001 through 2006. Based on the FCC's Third Report and Order, the FCC can direct USAC to apply unused funds increase the amount of available funding for a funding year.

USAC reported the breakdown of unused funds by year as follows:

  • FY 2001 - $50 million
  • FY 2002 - $50 million
  • FY 2003 - $200  million
  • FY 2004 - $250 million
  • FY 2005 - $200  million
  • FY 2006 - $150 million

USAC continues to reduce potentially fundable applications from previous years. As of September 30, 2008:

  • USAC does not have any potentially fundable applications from FY 1998 to FY 2000
  • USAC has 2 potentially fundable applications from FY 2001,  
  • USAC has 2 potentially fundable applications from FY 2002,
  • USAC has 7 potentially fundable applications from FY 2003,
  • USAC has 59 potentially fundable applications from FY 2004,
  • USAC has 83 potentially fundable applications from FY 2005,
  • USAC has 181  potentially fundable applications from FY 2006,
  • USAC has 417 potentially fundable applications from FY 2007
  • USAC has 8,752 potentially fundable applications from FY 2008

In response to an FCC Office of Inspector General Report released last fall, USAC reported to the FCC that they continue to strengthen their processes, systems and procedures to prevent and reduce the improper payments as defined by the statute.  USAC has dedicated more resources for oversight, training and improving their information technology tools for data gathering. In fact, they have further reported, they have hired an auditing firm to evaluate their current controls and procedures.  USAC will also look for further ways to validate CIPA compliance.