PSC did not establish written program policies for administering the CARES Act funds. In addition, PSC did not establish comprehensive written program policies for administering the ARPA funds.
For the CARES Act-funded program, PSC required telecommunication providers to request reimbursement for project costs and submit supporting documents, such as invoices and receipts. Almost all of the 384 supporting documents that PSC reviewed did not indicate the amounts providers had actually paid to construct the projects. PSC did not document its efforts to verify that providers had constructed the broadband infrastructure for which the providers were reimbursed.
For the ARPA-funded program, the guidance of PSC’s commissioners to their staff for reviewing the grant applications did not consistently adhere to the application instructions. For example, the commissioners instructed their staff not to consider 23 grant applications for “middle-mile” projects, which require additional infrastructure to connect businesses and residences to broadband service. The instructions did not indicate that such projects would not be considered.
PSC should improve its administration of broadband expansion grant programs, including by establishing comprehensive written program policies and improving how it reviews and awards grants, reimburses telecommunication providers, and oversees the programs. Taking these actions will help PSC improve its administration of the ongoing program supported by ARPA funds, as well as the ongoing State Broadband Expansion Grant Program and any additional funds PSC may receive through the federal Infrastructure Investment and Jobs Act.
