Returning Funds to USAC

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

• If USAC discovers through an audit or other means that funds were disbursed in error, USAC initiates the process to recover the funds.
• If an applicant or service provider conducts an internal review and discovers that funds were disbursed by USAC in error, the applicant or service provider must return the funds to USAC.

Below are examples of when funds must be returned to USAC. This list is not exhaustive:

• The amount requested on the FCC Form 472, Billed Entity Applicant Reimbursement (BEAR) Form or FCC Form 474, Service Provider Invoice (SPI) Form was too high due to a typographical error.
• The applicant or service provider invoiced USAC for one or more pieces of equipment that were later returned to the service provider.
• The amount requested on the BEAR Form or the SPI Form was not supported by the amount(s) on the customer bills (bills issued by the service provider to the applicant).
• The applicant or the service provider invoiced USAC before the eligible equipment and services were shipped or delivered (unless the terms of the contract specifically included this payment provision, and the applicant was billed).
• USAC disbursed funds to a consortium including a recipient of service that is not eligible to receive equipment and services.
• The E-Rate program disbursement check was not cashed within the appropriate time frame.

For more information on returning funds to USAC , including the process for returning funds, visit the How to Pay page of the USAC website.