Fund Administration
About Fund Administration:
- Fund Administration Overview
- Purpose of the Universal Service Fund
- How the Universal Service Fund Works
- Universal Service Fund Program Integrity
- Understanding Audits
- Training Events
Fund Administration Tools:
Important Invoicing Deadlines
Universal Service Fund (USF) invoice payments are due on a monthly basis. The balance will be delinquent if it is not paid in full by the due date. Failure to pay these invoices can result in the company being placed in "Red Light"status or having the outstanding debt transferred to the Federal Communications Commission (FCC) under the Debt Collection Improvement Act.
Delinquency Notices - Monthly
Contributing companies that have fallen behind on USF payments will receive delinquency notices from USAC reminding them of their obligation. Notices are generated monthly. A company could receive more than one notice in one month if they are more than one month behind in paying. Each notice represents one month of unpaid transactions and identifies how aged the balance has become.
Debt Collection Improvement Act (DCIA) - 90 days delinquent
The balance due on your USAC statement represents your mandatory contributions to universal service support and constitutes a debt owed to the United States as defined by 31 U.S.C § 3701 (the Debt Collection Act of 1982 and the Debt Collection Improvement Act of 1996).
If your invoice balance becomes over 90 days delinquent, USAC will transfer the balance to the FCC for further collections activity. This transfer will be identified on the USAC invoice with a line item called “DCIA Transfer.” At that time, the amount is due for payment to the FCC directly, rather than to USAC.
Once transferred to the FCC, the delinquent balance is subject to further interest and penalties.
Red Light Rule - 1 day delinquent
Additional collections and disbursements rules associated with the Debt Collection Improvement Act, codified at 47 C.F.R. Parts 0 and 1, contain specific provisions and include a rule commonly referred to as the "Red Light Rule". (See sections 1.1112, 1.1116, 1.1161, 1.1167, and 1.1910 of the FCC's rules).
With respect to the USF, when an entity's account becomes delinquent by one day, that entity, as well as any other entity with a Service Provider Identification Number (SPIN) associated through a shared taxpayer identification number (TIN), will be considered in "Red Light" status. USAC will not make any disbursements to the associated SPIN or SPINs until the delinquency has been satisfied by the entity or until arrangements for payment, satisfactory to the FCC, have been made such as entering into an approved payment plan. USAC will offset the delinquent balance with the pending disbursement.
In addition to USF debt Red Light status, USAC also will take into consideration the Red Light status of each entity at the FCC and will hold disbursements until the Red Light status is resolved at the FCC.
At the time that a disbursement is held because an entity is in Red Light status, USAC will send the entity and/or service provider an e-mail notification. If USAC uses a pending disbursement to offset a USF delinquency, USAC will notify the delinquent entity and/or service provider.
