FCC Releases Audit Plan For Certain Lifeline Service Providers

On April 2, 2014, the Federal Communications Commission's (FCC) Wireline Competition Bureau released the Lifeline Biennial Audit Plan, which establishes a uniform set of audit procedures by which certain Lifeline service providers must be reviewed.

The audit requirements apply to eligible telecommunications carriers (ETC) that provide Lifeline services and receive at least $5 million annually from the low-income program. The FCC made clear that the $5 million dollar threshold is to be determined on a holding company basis, aggregating all operating companies and affiliates. Each ETC that meets this requirement must hire an independent audit firm to perform an audit of the ETC's compliance with Lifeline's rules once every two years. The audit must follow the guidelines put forth in the Biennial Audit Plan.