SUMMARY

We provided an unqualified opinion on the financial statements for FY 2011-12 and FY 2010-11. The USF is funded by assessments on telecommunications providers that are typically recovered from consumers. In FY 2011-12, the USF provided $40.5 million for 13 programs operated by 4 state agencies, including all state aid to public library systems. We estimated that at least $4.3 million in a DOA appropriation represented excess administrative services fees charged to the USF.