In USAC's continuing efforts to ensure carriers are successful at implementing FCC rules and program requirements, we have put together a list of some of the problem areas identified during audits and Payment Quality Assurance (PQA) reviews.
For more information about the audit process, review the BCAP page of our website, which includes a checklist for carriers of documentation to maintain for audit purposes. Using all of this information will help to expedite the audit process and should reduce or eliminate audit findings in the future. Also, please visit our 2015 & 2016 Lifeline Orders page to stay informed about Lifeline Program rule changes.
For each common audit finding, we have outlined a description of the finding, and some ways to prevent a finding like this in the future. We've also, where possible, provided some examples.
Lifeline Program non-compliance is most often caused by an inadequate knowledge or familiarity of program rules. In addition, carrier's internal procedures are often insufficient to support program compliance.
Lifeline carriers must report the correct number of subscribers on the Form 555 based on adequate documentation which must be retained to support the number of subscribers reported.
Every effort should be made to implement an adequate system for collecting, reporting, and monitoring data to report the correct number of subscribers on the Form 555 as required by the rules. See Recordkeeping Requirements (Section 54.416(b)).
***Best Practice Tool - Carriers can report their recertification results using this template as a data collection tool during their audit.
The carrier did not accurately report the number of subscribers who de-enrolled from Lifeline prior to the ETC’s attempt to recertify continued eligibility either directly, through the use of a third-party administrator (such as USAC), by a state administrator, or by access to a state eligibility database.
The number reported should include all subscribers who are de-enrolled for any reason, including those subscribers that discontinued Lifeline service with the ETC by their own initiative and also those the ETC de-enrolled from Lifeline, e.g. for non-usage, including those subscribers who were re-enrolled at a later time. If no subscribers were de-enrolled from Lifeline prior to the recertification attempt, the ETC should enter zero in Block D.
The carrier did not report the correct number of Lifeline subscribers the ETC contacted directly to obtain recertification of eligibility.
If the eligibility of any subscriber was reviewed and confirmed by the ETC’s access to a state or federal database, those subscriber would be recorded in blocks K/L.
If the eligibility of any subscriber was performed by a state agency, 3rd party administrator or USAC, those subscribers would be recorded in blocks K/L.
If the eligibility of any subscriber was performed by the ETC’s direct contact (i.e. mailing letters and recertification form), those subscribers would be recorded in blocks F thru J.
Similarly, if an ETC elects USAC to conduct recertification on its behalf, but then recertifies any subscribers directly during the established recertification period, those subscribers should be recorded in Block F through J as appropriate and not in Blocks K and L.
The carrier did not report the correct number of Lifeline subscribers that responded to the ETC’s request to recertify their eligibility for Lifeline.
This number should be equal to the number in Block F (if every subscriber contacted responded) or less the number reported in Block F (if not every subscriber contacted responded). Enter zero (0) if the ETC relied solely on methods other than direct contact with subscribers (e.g., consulting a state database or relying on a Lifeline administrator) to recertify eligibility, or if no subscriber responded.
Please remember Block A is a subset of Block G. Blocks G and H should equal to Block F.
Lifeline carriers must maintain records to document compliance with all FCC and state requirements governing the Lifeline and Tribal Link Up programs, and carriers must provide documentation to the FCC or administrator upon request. Note that the FCC recently revised eligibility documentation rules. For more information on these changes, please visit our 2015 Lifeline Order web page.
The carrier did not obtain or maintain the subscriber's certification/recertification documentation.
The initial certification documentation, as well as recertification documentation, for all subscribers, should be retained for as long as the subscriber receives a Lifeline Program benefit from the carrier, plus three full calendar years after the subscriber discontinues their Lifeline Program service. See Recordkeeping Requirements (Section 54.417) and Subscriber Eligibility Determination and Certification (Section 54.410(d)(2)).
The carrier did not collect and record the last four digits of the subscriber's Social Security Number and/or the subscriber's date of birth.
Every effort should be made to implement sufficient procedures and processes to collect and retain adequate records to document the collection of all subscriber information required by the rules. See Recordkeeping Requirements (Section 54.417) and (Section 54.410(d)(2)) Eligibility Certifications.
Carriers omitted qualification criteria or included ineligible qualification criteria on eligibility documents and Lifeline Program publicity materials. See Eligibility Certification (Section 54.409).
The carrier's certification forms used the incorrect Federal Poverty Guideline year or dollar amount to determine household incomes at or below 135% of the federal poverty level.
Policies and procedures must be in place to ensure subscriber certification forms are updated to adhere to the subscriber qualification criteria established by the rules. Federal Poverty Guidelines (FPG) are released annually by the Department of Health and Human Services. Each year, USAC provides an updated FPG breakdown on our website. See Consumer Qualification for Lifeline (Section 54.409(1)).
The carrier's Lifeline Program advertising materials, subscriber certification documentation, or subscriber recertification documentation included ineligible qualification criteria or excluded eligible qualification criteria.
Outreach and marketing materials should be reviewed periodically to make sure they contain all the required qualification criteria as set out in the rules. See Consumer Qualification for Lifeline (Section 54.409).
Carriers must obtain continued eligibility certifications from subscribers once in the calendar year. Recertification is complete when a carrier has de-enrolled all non-responding and ineligible subscribers by December 31 of each year, and when all necessary updates to NLAD have been made within one business day of de-enrollment. Recertification is considered incomplete until the carrier has de-enrolled all non-responding or ineligible subscribers and updated NLAD accordingly.
The carrier's recertification requests that were sent to its subscribers were dated June 7 and stated that the subscribers must respond to the recertification requests by July 10 to continue receiving the Lifeline-supported service, which was more than 30 days after the date of the recertification requests.
Policies and procedures must be in place to (1) inform subscribers using clear, easily understood language, that failure to respond to the recertification request within 30 days of the date of the request will trigger de-enrollment from the Lifeline Program and (2) de-enroll non-responding subscribers within five business days of expiration of the 30-day deadline.
Subscribers failed to respond to their carrier within their thirty-day recertification window, but were not de-enrolled from NLAD within five business days thereafter.
The recertification process must be completed by December 31 each year; this includes making any necessary updates to NLAD within one business day thereafter. Subscribers are allowed 30 days to respond to the carrier's recertification attempt(s). If the subscriber does not respond within 30 days or responds they are ineligible by the end of the 30 day period, he or she must be de-enrolled from the Lifeline Program, as well as from NLAD within five business days. See Annual Eligibility Re-Certification Process (Section 54.410(f)) and Carrier Obligation to Offer Lifeline (Section 54.405(4)).
The carrier did not use a required state eligibility database to confirm the continued eligibility of subscribers.
Carriers should review their state-mandated requirements in addition to requirements established by the FCC. In this instance, the carrier was required by the state to confirm Lifeline Program subscribers' continued eligibility via the state's eligibility database. Policies and procedures must be in place to ensure they confirm all subscribers' continued eligibility through the state eligibility database for those subscribers who qualify for Lifeline Program support based on qualifying programs included in the database.
Lifeline Program carriers are required to include the appropriate disclosures on all of its advertising materials describing the service and publicize the availability of Lifeline service in a manner reasonably designed to reach those likely to qualify for the service.
Carrier did not include the appropriate disclosures on its advertising materials.
Outreach and marketing materials should be reviewed periodically to ensure they contain all the required language and disclosure contained in the rules. For the purposes of this section, the term "materials describing the service" includes all print, audio, video, and web materials used to describe or enroll in the Lifeline service offering, including application and certification forms (Section 54.405(c), FCC 12-11, Paragraph 275).
The carrier used a social media web page as their sole form of Lifeline Program advertising outreach.
Carriers are reminded that the Internet should not be relied on as a sole or primary means of Lifeline Program advertisements. The FCC has not directed specific outreach procedures, but carriers should supplement online-only advertising by using in-store print media, direct mail, event marketing, or other methods that reach potential subscribers in their service area. See 2004 Lifeline Order for FCC outreach guidelines.
Lifeline Program rules provide a list of certifications and disclosures. Carriers must include these required disclosures on subscriber certification and re-certification forms.
The carrier did not include all required disclosures on their subscriber certification forms.
Carriers must implement policies and procedures to ensure their forms adhere to the disclosure requirements established by the program rules, including obtaining all of the required certifications from subscribers. For example, certification forms must remind subscribers that only one Lifeline Program service is available per household. See Subscriber Eligibility Determination and Certification (Section 54.410(d)(1)).