Audits and Reviews
Be Prepared for Audits & Reviews!
By participating in the E-Rate program, you have agreed to fully cooperate if your school, library, or consortia is selected for audit. If you properly retain your documentation, the process will go fairly smoothly for you.
The FCC & USAC/SLD are constantly performing audits and reviews to ensure that beneficiaries and service providers receiving financial support are complying with FCC rules and regulations. Many of the audit sites are randomly selected, and the selection process is designed to provide a wide variety of entities with regard to applicant size, discount percentage, and geographic location.
Selection for an audit is not necessarily an indication that USAC believes problems exist.
Beneficiary audits may be performed by USAC internal audit staff, the FCC Office of Inspector General, Inspector General, Offices of other federal agencies, or a firm under contract to USAC or the FCC.
Audits & Review Types:
Selective Review Information Request (SRIR).
This is a documentation review performed by USAC/SLD. The applicant must reply to a series of questions and provide supporting documentation.
Competitive Bidding Compliance Review.
Documentation review performed by USAC/SLD. The applicant must reply to a series of questions and provide supporting documentation regarding compliance with rules and regulations related to the competitive bidding and service provider selection process.
Payment Quality Assurance (PQA) Review.
In 2010, The FCC and USAC collaborated on the design and implementation of new assessments to satisfy the requirements of the Improper Payments and Information Act.USAC will select a sample of recent payments and verify that each payment was made correctly. USAC will notify a selected applicant that the applicant is required to provide specific documentation regarding the payment. The applicant will send this documentation, such as a bill to USAC, and USAC will then analyze the submitted information and, within 90 days, the process will conclude with a report back to the applicant.
Beneficiary and Contributor Audits (BCAP).
The primary purposes of audits are to ensure compliance with FCC rules and program requirements and to assist in the prevention and detection of waste, fraud, and abuse. When selected for an audit, the auditee’s designated contact person will be contacted by a member of the USAC Internal Audit Division. In addition, an announcement letter will be sent to the applicant, with copies sent to all affected service providers, detailing the purpose and scope of the audit, identifying the personnel who will be performing the audit, making a request for pertinent data, and stating the date upon which the data is due.