Glossary of Terms

Terms	Program	Definitions
FCC Form 498 Delegated Users	E-Rate, Rural Health Care, High Cost, Service Providers	See Authorized Users.
FCC Form 498 General Contact	E-Rate, Rural Health Care, High Cost, Service Providers	See General Contact.
FCC Registration Number (FCC RN)	E-Rate, Rural Health Care, High Cost, Service Providers	A 10-digit number assigned by the FCC to a business or individual that registers with the commission. It is associated with an entity’s Taxpayer Identification Number (TIN) and is required before filing FCC Forms 499-A/Q. Originally called CORES ID.
Federal Communications Commission (FCC)	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	An independent agency of the U.S. government established in 1934. The FCC is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable in all U.S. states and territories. In 1997, the FCC designated USAC to be the independent not-for-profit corporation to administer the universal service fund, in accordance with its rules. The Commission oversees USAC’s administration of the USF.
Federal Financial Management Improvement Act 1996 (FFMIA)	High Cost, Service Providers	A law defining the financial operations and reporting requirements for government entities, including USAC.
Federal Generally Accepted Accounting Principles (Federal GAAP)	High Cost, Service Providers	Accounting standards issued by the Governmental Accounting Standards Board (GASB) and applicable to all U.S. government agencies. USAC, while legally organized as a not-for-profit organization, operates under the authorization and oversight of the FCC and must comply with these standards.
Freedom of Information Act (FOIA)	High Cost, Service Providers	The federal statute that requires U.S. government, state, and other public authorities to disclose previously unreleased or uncirculated information and documents upon request. As an agent of the FCC, USAC is required to respond to FOIA requests. Further information regarding FOIAs, including how to file a request, may be obtained from the FCC’s FOIA page.
General Contact	E-Rate, High Cost, Service Providers	The service provider or applicant employee responsible for filling out the FCC Form 498. The General Contact has a unique level of permission in USAC’s E-File system, with the ability to submit forms, modify data, and add or remove authorized users.
Generally Accepted Accounting Principles (GAAP)	High Cost, Service Providers	Uniform minimum standards of and guidelines for financial accounting and reporting in the U.S., issued by the Financial Accounting Standards Board (FASB).
Generally Accepted Auditing Standards (GAAS)	High Cost, Service Providers	Standards against which audits are performed for non-public companies in the U.S. GAAS are promulgated by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA).
Generally Accepted Government Auditing Standards (GAGAS)	High Cost, Service Providers	Standards for performance and financial audits of U.S. government agencies, developed by the GAO. GAGAS apply to audits of both the USF and universal support recipients.
Government Accountability Office (GAO)	E-Rate, High Cost, Service Providers	An independent, nonpartisan government agency within the legislative branch that reports on the programs and expenditures of the federal government. As the supreme audit authority of the government, it studies how taxpayer dollars are spent, evaluates program outcomes, audits expenditures, and issues legal opinions.
High Cost Program	High Cost	One of the four universal service programs administered by USAC. Through legacy (voice) and modernized (broadband) funds, High Cost aims to keep rural telecommunications rates comparable to those in more densely populated, lower-cost urban areas. High Cost is USAC’s single biggest program, disbursing about $4 billion each year.
Improper Payment	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	Any payment that should not have been made, or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. Improper payments are subject to IPIA and IPERA rules. USAC calculates estimates of improper payment rates via the PQA program and provides this information to the FCC.
Improper Payments Elimination and Recovery Act (IPERA)	High Cost, Service Providers	A law passed in 2010 to amend IPIA and enhance the federal government’s practices for measuring and recovering improper payments.
Improper Payments Information Act (IPIA)	High Cost, Service Providers	A 2002 law that requires USAC to provide the FCC with accurate, timely information about improper payments to program beneficiaries. To comply, USAC created its Payment Quality Assurance (PQA) Program, which assesses specific payments made to beneficiaries in all four programs to determine if these payments were made in accordance with FCC rules. Using results of these assessments, USAC calculates estimates of improper payment rates and provides this information to the FCC.
Incumbent Local Exchange Carrier (ILEC)	High Cost	A dominant local telecommunications company. This is typically the company that owns the local Public Switched Telephone Network (PSTN), including local loops, central offices, wire centers, and all wiring in between.
Intercarrier Compensation	High Cost	The system of regulated payments among carriers to compensate each other for the origination, transport and termination of telecommunications traffic. In 2011, the FCC adopted rules requiring incumbent carriers to reduce many of these switched access rates over a multi-year period. Carriers are allowed to recover a decreasing portion of revenue lost due to reductions in switched access rates through an “Access Recovery Charge” (ARC) on customer bills. More information is available on USAC’s ICC Recovery page.
Internet Service Provider (ISP)	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	An organization that provides services for connecting to the public internet. For the purposes of universal service support, ISPs may be referred to as service providers. See also Service Provider.
Letter of Credit (LOC)	High Cost	A bank guarantee to safeguard against carrier non-compliance with USAC program rules and deployment requirements. Carriers participating in certain modernized funds must maintain LOCs equal to at least their first year of authorized High Cost support.
Memorandum Opinion and Order (MO&O)	High Cost, Service Providers	Order issued by the FCC to deny a petition for rulemaking, modify a decision, grant or deny a petition for reconsideration, or grant or deny an application for review of a decision. A second or third Memorandum Opinion and Order (2nd MO&O/3rd MO&O) may also be issued.
Mixed Merger	High Cost	A transaction in which a carrier receiving legacy, cost-based support acquires or is acquired by a carrier receiving fixed monthly support, such as model-based funding. Carriers that have been part of a mixed merger are subject to an FCC condition that caps the operating expenses of the carriers of the combined entity that receive cost-based support in order to prevent potential cost shifting. More information is available on USAC’s Mixed Merger Requirements page.
National Average Cost Per Loop (NACPL)	High Cost	A metric, determined monthly by NECA, that is used to calculate legacy High Cost support.
National Exchange Carrier Association (NECA)	High Cost, Service Providers	A rural carrier association that collects and validates cost and revenue data for member companies, distributes revenue from access charges among pool members, and helps members file access charge tariffs with the FCC and comply with FCC rules.
National Telecommunications and Information Administration (NTIA)	High Cost, Service Providers	Part of the Department of Commerce, the NTIA sets federal telecommunications policy and provides telecommunications grants to various entities. It differs from the FCC in two key respects: 1) the FCC is an independent agency, while the NTIA falls under the executive branch; and 2) the NTIA has jurisdiction over federal government communications, while state and local government communications are within the purview of the FCC.

FCC Form 498 Delegated Users

E-Rate, Rural Health Care, High Cost, Service Providers

See Authorized Users.

FCC Form 498 General Contact

E-Rate, Rural Health Care, High Cost, Service Providers

See General Contact.

FCC Registration Number (FCC RN)

E-Rate, Rural Health Care, High Cost, Service Providers

A 10-digit number assigned by the FCC to a business or individual that registers with the commission. It is associated with an entity’s Taxpayer Identification Number (TIN) and is required before filing FCC Forms 499-A/Q. Originally called CORES ID.

Federal Communications Commission (FCC)

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

An independent agency of the U.S. government established in 1934. The FCC is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable in all U.S. states and territories. In 1997, the FCC designated USAC to be the independent not-for-profit corporation to administer the universal service fund, in accordance with its rules. The Commission oversees USAC’s administration of the USF.

Federal Financial Management Improvement Act 1996 (FFMIA)

High Cost, Service Providers

A law defining the financial operations and reporting requirements for government entities, including USAC.

Federal Generally Accepted Accounting Principles (Federal GAAP)

High Cost, Service Providers

Accounting standards issued by the Governmental Accounting Standards Board (GASB) and applicable to all U.S. government agencies. USAC, while legally organized as a not-for-profit organization, operates under the authorization and oversight of the FCC and must comply with these standards.

Freedom of Information Act (FOIA)

High Cost, Service Providers

The federal statute that requires U.S. government, state, and other public authorities to disclose previously unreleased or uncirculated information and documents upon request. As an agent of the FCC, USAC is required to respond to FOIA requests. Further information regarding FOIAs, including how to file a request, may be obtained from the FCC’s FOIA page.

General Contact

E-Rate, High Cost, Service Providers

The service provider or applicant employee responsible for filling out the FCC Form 498. The General Contact has a unique level of permission in USAC’s E-File system, with the ability to submit forms, modify data, and add or remove authorized users.

Generally Accepted Accounting Principles (GAAP)

High Cost, Service Providers

Uniform minimum standards of and guidelines for financial accounting and reporting in the U.S., issued by the Financial Accounting Standards Board (FASB).

Generally Accepted Auditing Standards (GAAS)

High Cost, Service Providers

Standards against which audits are performed for non-public companies in the U.S. GAAS are promulgated by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA).

Generally Accepted Government Auditing Standards (GAGAS)

High Cost, Service Providers

Standards for performance and financial audits of U.S. government agencies, developed by the GAO. GAGAS apply to audits of both the USF and universal support recipients.

Government Accountability Office (GAO)

E-Rate, High Cost, Service Providers

An independent, nonpartisan government agency within the legislative branch that reports on the programs and expenditures of the federal government. As the supreme audit authority of the government, it studies how taxpayer dollars are spent, evaluates program outcomes, audits expenditures, and issues legal opinions.

High Cost Program

High Cost

One of the four universal service programs administered by USAC. Through legacy (voice) and modernized (broadband) funds, High Cost aims to keep rural telecommunications rates comparable to those in more densely populated, lower-cost urban areas. High Cost is USAC’s single biggest program, disbursing about $4 billion each year.

Improper Payment

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

Any payment that should not have been made, or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. Improper payments are subject to IPIA and IPERA rules. USAC calculates estimates of improper payment rates via the PQA program and provides this information to the FCC.

Improper Payments Elimination and Recovery Act (IPERA)

High Cost, Service Providers

A law passed in 2010 to amend IPIA and enhance the federal government’s practices for measuring and recovering improper payments.

Improper Payments Information Act (IPIA)

High Cost, Service Providers

A 2002 law that requires USAC to provide the FCC with accurate, timely information about improper payments to program beneficiaries. To comply, USAC created its Payment Quality Assurance (PQA) Program, which assesses specific payments made to beneficiaries in all four programs to determine if these payments were made in accordance with FCC rules. Using results of these assessments, USAC calculates estimates of improper payment rates and provides this information to the FCC.

Incumbent Local Exchange Carrier (ILEC)

High Cost

A dominant local telecommunications company. This is typically the company that owns the local Public Switched Telephone Network (PSTN), including local loops, central offices, wire centers, and all wiring in between.

Intercarrier Compensation

High Cost

The system of regulated payments among carriers to compensate each other for the origination, transport and termination of telecommunications traffic. In 2011, the FCC adopted rules requiring incumbent carriers to reduce many of these switched access rates over a multi-year period. Carriers are allowed to recover a decreasing portion of revenue lost due to reductions in switched access rates through an “Access Recovery Charge” (ARC) on customer bills. More information is available on USAC’s ICC Recovery page.

Internet Service Provider (ISP)

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

An organization that provides services for connecting to the public internet. For the purposes of universal service support, ISPs may be referred to as service providers. See also Service Provider.

Letter of Credit (LOC)

High Cost

A bank guarantee to safeguard against carrier non-compliance with USAC program rules and deployment requirements. Carriers participating in certain modernized funds must maintain LOCs equal to at least their first year of authorized High Cost support.

Memorandum Opinion and Order (MO&O)

High Cost, Service Providers

Order issued by the FCC to deny a petition for rulemaking, modify a decision, grant or deny a petition for reconsideration, or grant or deny an application for review of a decision. A second or third Memorandum Opinion and Order (2nd MO&O/3rd MO&O) may also be issued.

Mixed Merger

High Cost

A transaction in which a carrier receiving legacy, cost-based support acquires or is acquired by a carrier receiving fixed monthly support, such as model-based funding. Carriers that have been part of a mixed merger are subject to an FCC condition that caps the operating expenses of the carriers of the combined entity that receive cost-based support in order to prevent potential cost shifting. More information is available on USAC’s Mixed Merger Requirements page.

National Average Cost Per Loop (NACPL)

High Cost

A metric, determined monthly by NECA, that is used to calculate legacy High Cost support.

National Exchange Carrier Association (NECA)

High Cost, Service Providers

A rural carrier association that collects and validates cost and revenue data for member companies, distributes revenue from access charges among pool members, and helps members file access charge tariffs with the FCC and comply with FCC rules.

National Telecommunications and Information Administration (NTIA)

High Cost, Service Providers

Part of the Department of Commerce, the NTIA sets federal telecommunications policy and provides telecommunications grants to various entities. It differs from the FCC in two key respects: 1) the FCC is an independent agency, while the NTIA falls under the executive branch; and 2) the NTIA has jurisdiction over federal government communications, while state and local government communications are within the purview of the FCC.

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