The annual true up is the reconciliation of the previous calendar year. USAC uses data collected on the FCC Form 499-A (Annual Telecommunications Reporting Worksheet) and compares it to the projected collected end-user revenue that was reported in the quarterly FCC Form 499-Q filings. For example, the 2013 FCC Form 499-A filing is used to reconcile calendar year 2012.
True ups are calculated using averages of the contribution and circularity factors for the year. If a company is determined to be de minimis, support mechanism charges for the reconciled year are reversed on that company's USAC invoice. If a company turns out to be non-de minimis, USAC would apply additional billings or credits, as needed, to compensate for under- or over-projections on the FCC Form 499-Q filings. Non-de minimis calculations are spread over the three monthly invoices that would appear in the quarter. Note that USAC does not back bill interest on true up adjustments from revised 499 filings. Interest will accrue on true up adjustments if they are not paid by the due date of the invoice.
FCC Form 499-A revisions are processed in the quarter after the FCC Form 499-A revision is received.
The links below show the relevant information for each year's true up.