Returning Funds to USAC
Funds that are disbursed by USAC in error must be returned to USAC.
Funds may need to be returned to USAC as a result of a commitment adjustment or a recovery of improperly disbursed funds or when a service provider or applicant discovers they made an error on the BEAR or SPI.
If USAC discovers through an audit or other means that funds have been disbursed by USAC in error, USAC will initiate a process to recover the funds.
If an applicant or service provider has conducted their own internal review and has discovered that funds have been disbursed by USAC in error, the applicant or service provider must return the funds to USAC.
Following are examples of when funds must be returned to USAC. This list is not exhaustive:
- The amount requested on the FCC Form 472, Billed Entity Applicant Reimbursement (BEAR) Form or the FCC Form 474, Service Provider Invoice (SPI) Form was too high due to a typographical error.
- The applicant or service provider invoiced USAC for one or more pieces of equipment that were later returned to the service provider.
- The amount requested on the BEAR or the SPI was not supported by the amount(s) on the customer bills (bills issued by the service provider to the applicant).
- The applicant or the service provider invoiced USAC before the eligible products/services were shipped or delivered (unless the terms of the contract specifically included this payment provision and the applicant was billed).
- USAC disbursed funds to a consortium that featured an entity which was not eligible to receive products/services.
- The E-rate Program disbursement check was not cashed within the appropriate time frame.
For more information on returning funds to USAC and the process for returning funds, visit the Service Provider & Applicant Payments page of the USAC website.