SUMMARY

We provided an unmodified opinion on the financial statements for FY 2015-16 and FY 2014-15. The USF is funded by assessments on telecommunications providers that are typically recovered from consumers. In FY 2015-16, the USF expended $39.6 million to support 14 programs operated by four state agencies. The Public Service Commission (PSC) is responsible for establishing policies and procedures and for financial reporting for the USF. We make recommendations for the PSC to improve its financial reporting process and to establish a policy related to the minimum fund balance of the USF.