Schools and Libraries

Returning Funds to USAC

Funds that are disbursed by USAC in error must be returned to USAC.

Schools and Libraries Program support pays for discounts on eligible services after those services are delivered to the applicant. Funds that are disbursed in error must be returned to USAC.

  • If USAC discovers through an audit or other means that funds have been disbursed in error, USAC will initiate a process to recover the funds.
  • If an applicant or service provider discovers that funds have been disbursed in error, the applicant or service provider should return those funds to USAC.

The following list includes some, but not all, of the situations where funds should be returned to USAC:

  • The amount requested on a Form 472 (BEAR Form) or Form 474 (SPI Form) was too large due to a typographical error
  • The applicant returned to the service provider one or more pieces of equipment for which an invoice was sent to USAC
  • The amount requested on a BEAR Form or SPI Form was not supported by customer bills (bills issued by the service provider to the applicant)

    Example: An applicant invoiced USAC on a BEAR Form for the total commitment amount for a Funding Request Number (FRN), even though the cost of the services actually delivered was less than the total approved pre-discount amount. The applicant must return to USAC the difference between the invoiced amount and the discount amount of services actually provided. (Invoices should be submitted only for the discount amount of delivered eligible services.)
  • The applicant or service provider invoiced USAC before the eligible products and/or services were shipped or delivered

NOTE: If an applicant or service provider discovers that funds were disbursed in error but that products and/or services remain to be delivered on the FRN, the funds disbursed in error should still be returned to USAC. The applicant or service provider should not wait until the preparation of the next invoice to true up the amount requested from USAC.

To return funds to USAC, send a letter to USAC explaining the situation. Be sure to include the following:

  1. The reason that funds were disbursed in error, if known
  2. The Form 471 application number(s) associated with the funds being returned
  3. The Funding Request Numbers (FRNs) associated with the funds being returned. If more than one FRN is affected, the amount being returned for each FRN should be shown next to that FRN.
  4. The name, title, and telephone number of the person who can answer questions about the funds being returned
  5. A check payable to USAC for the total amount being returned

If you are mailing your check and letter to USAC, use the following address:

Universal Service Administrative Company
1259 Paysphere Circle
Chicago, IL 60674

If you are sending your check and letter to USAC via an overnight delivery service, use the following address:

USAC Lockbox 1259
540 West Madison, 4th Floor
Chicago, IL 60661
Phone: 1-312-904-4200


Last modified on 2/26/2008