USAC: Invoicing And Tracking Services
USAC administers the Universal Service Fund under the direction of the FCC. The fund helps communities across the USA via the E-Rate; Rural Health Care; Lifeline; and High Cost programs. As E-Rate consultants, HWC Consultants helps E-Rate program recipients reduce their telecom expenses.
Our blog today provides an outline for invoicing and tracking USAC services. USAC can process invoices from either the applicant or the service provider after the following have occurred:
USAC has issued a Funding Commitment Decision Letter (FCDL) with a positive funding commitment.
Services have started.
The applicant has submitted, and USAC has successfully processed, an FCC Form 486.
The service provider has filed an FCC Form 473 (Service Provider Annual Certification (SPAC) Form) for the relevant funding year.
There are two methods that can be used to invoice USAC. Once USAC has processed an invoice for a Funding Request Number (FRN), that method of invoicing must be used for that FRN for the remainder of the invoicing process.
Invoicing Method - BEAR
Applicants file the FCC Form 472 (Billed Entity Applicant Reimbursement (BEAR) Form) if they have paid in full for the services and want to be reimbursed for the discounted amount.
Applicants file BEAR forms online in the Schools and Libraries (E-Rate) system. Billed entities will receive payment directly to their bank account. In order to begin direct BEAR payments, the applicant must have completed an FCC Form 498 to obtain an applicant 498 ID.
Invoicing Method – SPI
Service providers file the FCC Form 474 (Service Provider Invoice (SPI) Form) if they have billed the applicant for the non-discount amount (the applicant’s share of the cost), and want to be reimbursed for the discount amount.
USAC will review the SPI Form and disburse the payment to the provider if payment is approved.
The applicant is always required to pay the non-discount portion of the costs for the services.
Follow these steps when selecting SPI invoicing:
Confirm with service providers that you would like to use SPI invoicing.
Notify the service provider when Form 486 has been filed.
Ask if there are any special forms to be completed for SPI.
If you reside in California, please note that SPI is required for Category One invoices if also participating in the CTF (California Teleconnect Fund) Program.
Invoice Filing Deadlines
Invoices must be submitted no later than 120 days after the last day to receive service or 120 days after the FCC Form 486 Notification Letter date, whichever is later.
Applicants and service providers may request and automatically receive a single one-time 120-day extension of the deadline to submit an invoice for the FCC Form 472 (BEAR Form) or FCC Form 474 (SPI Form). Invoice deadline extension requests must be submitted on or before the invoice deadline in order for the request to be considered.
USAC Communications
USAC issues a copy of the applicant’s BEAR Notification Letter to you via mail after a BEAR Form is processed. If there is a reduction or denial of the amount on the BEAR Form, you can refer to the invoice decision code(s) featured on the letter for more information.
Tracking
You are required to keep and track all invoices. Check out our blog post on document retention requirements here.
You can use the FRN Status Tool (DRT) to check the status of your reimbursements.
Notify your service provider if you are requesting SPI and they have not started disbursements after the start of the funding year.
If you need assistance with E-Rate or California Teleconnect Fund consulting, telecom optimization audits, or telecom project management, reach out to us at HWC Consultants!
