Appeals & Audits

USAC and the FCC are committed to safeguarding the integrity and ensuring effective stewardship of the High Cost program through careful oversight.

Carriers that receive High Cost support are subject to USAC audits, including financial audits of carriers in legacy funds, to enforce compliance with program rules, prevent misuse of public funds and investigate any instances of potential waste, fraud or abuse.

USAC audits fall into several categories:

• Payment Quality Assurance (PQA) assessments to determine if payments were made in accordance with FCC rules and calculate estimated rates of improper payments
• Beneficiary and Contributor Audit Program (BCAP) audits to ensure carrier compliance with FCC rules and program requirements, including rules that:
  • prohibit use of High Cost support for costs or expenses unrelated to program purposes
  • require adequate, accurate documentation and classification of expenses, assets and liabilities
  • require proper classification/separation of regulated and non-regulated activities
• Supply Chain Audit Program (SCAP) assessments to evaluate carrier compliance with rules prohibiting the use of USF support to purchase, rent, lease, obtain or maintain any equipment or services produced or provided by any company designated by the FCC as posing a national security threat to the integrity of communications networks or the communications supply chain

To file an appeal of a USAC decision, click here.