Fund Administration
About Fund Administration:
- Fund Adminstration Overview
- How the Universal Service Fund Works
- Purpose of the Universal Service Fund
- Understanding Audits
Fund Administration Tools:
Invoice and Billing Procedures
USAC uses information from the Telecommunications Reporting Worksheet (Form 499) to assess the Universal Service Fund (USF) contribution obligation of telecommunications carriers in the form of a monthly invoice.
USAC uses data submitted on the Quarterly Telecommunications Worksheet (Form 499-Q) by telecommunications companies to determine their monthly USF contribution obligation. Obligations are assessed based on a company's projected collected end-user interstate and international revenues. The quarterly projected collected revenue on the Form 499-Q is entered into an FCC-determined contribution calculation using FCC-established contribution and circularity factors to arrive at the monthly obligation. The calculation is shown below:
- Projected collected interstate + Projected collected international = Revenue base
- Revenue base x FCC Contribution factor = Unadjusted Contribution
- Unadjusted Contribution x FCC Circularity factor = Circularity Deduction
- Unadjusted Contribution - Circularity Deduction = Total Quarterly Contributions
- Total Quarterly Contributions ÷ 3 = Monthly obligation
In addition to monthly charges associated with the current quarter's revenue calculations, USAC invoices may also include adjustments or credits for prior period revisions and true ups. USAC-accepted revisions to revenue periods that have already been used for billing result in a recalculation of the initial obligation. With the exception of the annual true ups, which use an average of the year's factors, Form 499 revisions will effect a calculation using the same factors in place at the time of the original calculation and USAC will apply credits or adjustments to the invoice to recognize an initial over or under-reporting, respectively.
USAC invoices also reflect payments and disbursement netting and include transactions such as late payment fees, late filing fees, and those related to DCIA and bankruptcy.
USAC invoices are generated monthly with a due date of the 15th. If the 15th is a weekend or holiday, then the payment due date is moved to the prior business day.
