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Third Quarter 2018 USAC Cost Projections

On May 2, 2018, the Universal Service Administrative Company (USAC) released their Quarterly Report with projections for the third quarter of 2018. The third quarter of the schools and libraries budget is $26.52 million which continues to be nearly half of the overall USAC budget for the quarter, which is $52.39 million. This figure also includes the High Cost, Low Income and Rural Healthcare Program.
Each year USAC conducts Payment Quality Assurance (PQA) audits from program beneficiaries to determine the accuracy of program disbursements. The current continues to show the schools and libraries improper payment rate for 2016 as 4.34%. The improper payment rate has gone down each year since 2014. In 2014 the improper payment rate was reported as 6.31% and in 2015 5.70%. Testing of payments for 2017 began in late fourth quarter 2017 with estimated completion during early fourth quarter of 2018.
As of March 31, 2018, here are the numbers of potentially fundable applications, post E-rate Modernization Order;
  • 45 FY 2015 potentially fundable applications, down 3 from last quarterly report;
  • 171 FY 2016 potentially fundable applications, down 282 from last quarterly report;
  • 479 FY 2017 potentially fundable applications, down 669 from last quarterly report
The Third Quarter 2018 USAC Report can be viewed here.
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