SUMMARY

We issued two audit reports and provided unqualified auditor’s opinions on the financial
statements for FY 2004-05, FY 2003-04, and FY 2002-03. 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 $28.3 million in FY 2004-05 and $25.5 million in FY 2003-04. Increasing program
demand and expenditures are presenting budgetary challenges for some of the programs it
supports.