Universal Service Administrative Company Plans to Initiate 60 New Audits in Q3

The Universal Service Administrative Company announced plans for a significant new wave of program and contributor audits to be initiated in the third quarter of 2022. Contributors and Universal Service Fund program participants should be prepared to provide information and documentation upon request.

During its second quarter board of directors meeting, management of the Universal Service Administrative Company (USAC) announced plans to initiate an additional 60 Universal Service Fund (USF) program and contributor compliance audits in the third quarter of 2022. This represents a significant increase from the prior quarter, in which USAC announced 20 audits.

• Contributors and USF program participants are subject to document retention and production requirements and should be prepared to submit information and documentation sufficient to demonstrate compliance with applicable rules and requirements if selected for an audit.
• Selected auditees will receive an announcement letter indicating the scope and purpose of the audit and requesting information and documentation. It is imperative that auditees timely respond to these, and all subsequent requests issued by USAC in the course of the audit, in order to avoid a finding of noncompliance and potential recovery of funding, additional universal service contributions, and penalties.
• The scope and duration of an audit may vary depending on the amount of funding involved and other circumstances.

Resources

Our telecommunications, media, and technology team is available to assist companies undergoing a USAC audit. We advise clients on all aspects of universal service, including USF contributions to and distributions from the federal USF and other broadband funding programs, including E-rate; compliance, audits, and investigations; whistleblower complaints; and advocacy before the Federal Communications Commission.

In the third quarter of 2022, our telecommunications, media, and technology team will host a webinar, Working with USAC, to provide guidance on best practices for communication and coordination with USAC in the context of USF audits, appeals, investigations, and other communications.

Contacts

If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers:

Washington, DC
Tamar E. Finn
Kimberly Morning