On November 15, 2016, the FCC released the annual Agency Financial Reports to the Office of Management & Budget, Government Accounting Office and Congress and identified key risks associated with Universal Service which includes E-rate program. Over the last year, the FCC and USAC "…implemented new processes and controls related to the previously identified material weakness from FY 2015 related to USF budgetary accounting in the Schools and Libraries…" and these are the key audit risks identified by the FCC OIG:
- Service providers continue to bill the Fund for ineligible services and facilities
- Service providers overcharge for eligible services, including charging schools more than the lowest corresponding price
- Inadequate documentary support for schools and libraries’ discount rate
- Inadequate documentation to substantiate compliance with competitive bidding rules when contracting for services
- Contingent fee arrangements on consultant contract
The FCC Report can be viewed here.
