SUMMARY

Our audit report contains our unqualified opinion on the Universal Service Fund’s financial statements for the fiscal years ending June 30, 2003 and 2004. The Universal Service Fund supports telecommunications services and access, including Internet access in schools and libraries and programs to assist low-income and disabled individuals. It is administered by the Public Service Commission and funded through assessments on telecommunications providers, which totaled $25.5 million in FY 2003-04. Increasing program demand and expenditures are presenting budgetary challenges for some of the programs it supports.