Free Money, Git Yer Free Money

Seems like the FCC has a little bit of ’splaining to do. They sort of, ummm…, paid the US telcos a little too much money from the Universal Service Fund (USF). We reported on some shenanigans at the FCC a while ago and it seems it continues to provide more entertainment value. It appears that they have given out $970M more than they should have.

The reasons

The auditor reviewing the situation gave a number of great reasons that every telecom executive should memorize:

  • Inadequate documentation,
  • poor auditing processes,
  • weak internal controls,
  • disregard of FCC rules, and
  • poor monitoring or reporting systems.

Now by using these excuses selectively you should be able to defer all sorts of criticism.

Who you gonna call?

The organization that oversees the USF is the Universal Service Administrative Co. (USAC). It was, according to the auditors, responsible for just 0.1% of the erroneous overpayments. Not an easy task to define that percentage so precisely when you have nearly a billion dollars sloshing around the place with no one looking at the bank account. USAC you might want to change your tagline from “Helping Keep America Connected” to “Helping Keep America Connected—Just Not With Your Money

Read more press info here.

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