FCC Updates USAC on E-Rate Reserve Fund Practices for Potential Disbursements
The FCC told the Universal Service Administrative Co. to reserve 100 percent of the E-rate funds it needs to cover three categories of potential funding disbursements: "(1) pending applications; (2) funding that has been committed but not yet disbursed; and…
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(3) appeals pending with USAC and the Commission." Noting USAC had been reserving some funds for older appeals on an ad hoc basis despite a 2014 FCC letter's guidance, the commission said it sought to clarify various instructions to "provide a clearer and more consistent E-rate fund reserve practice for USAC" to implement. "The direction to reserve 100 percent for the above-referenced categories alters the 2014 Letter guidance that generally instructed USAC to not reserve funds for pending applications that are older than three years and pending appeals," said FCC Managing Director Mark Stephens in a letter to USAC listed in Tuesday's Daily Digest. "We know that not all funding applications are granted, not all committed funds are disbursed and not all pending appeals are granted. However, we have determined that a 100 percent reserve rate is the most consistent and transparent way for USAC to track needed funds and provides certainty that there is available funding for disbursements." Stephens gave other guidance details, including on "carry forward procedures" for the accounting of unused funds. USAC didn't comment.