SUMMARY

We provided an unmodified opinion on the Universal Service Fund’s (USF) financial statements for FY 2013-14 and FY 2012-13, and we reported a material weakness in the Public Service Commission’s internal control over financial reporting. The USF is funded by assessments on telecommunications providers that are typically recovered from consumers. In FY 2013-14, the USF provided $39.6 million for 13 programs operated by four state agencies, including all state aid to public library systems.