Federal and state regulators have increased their scrutiny over the financial and support data used for settlements and other compensation.  More specifically, in 2008 the FCC's Office of Inspector General (OIG) conducted some 400 audits of companies benefitting from the High Cost Program of the Universal Service Fund.  Based on recent comments made by FCC Chairman Kevin Martin, we are convinced that these audits will continue for a number of years. 

The OIG auditors are governed by the United States Government Accountability Office Government Auditing Standards manual; also know as the Yellow Book.  In addition to insuring that data is accurately reported, auditors review internal controls, record retention, transactions with affiliates, and advertising of required services.

JSI can help you prepare for an audit by reviewing your company's regulatory processes, as well as discussing the typical items that generally are reviewed in an audit.   A thorough understanding of the following is the best preparation for an audit:

• Definition of an Attestation Audit and Attestation Standards
• Typical Documents Requested
• Expected Internal Controls
• Affiliate Transaction Rules
• Continuing Property Records
• Cost Allocation Requirements
• Government Auditing Standards and American Institute of Certified Public Accountants (AICPA)Compliance
• Record Retention Rules
• Compliance with FCC Code of Federal Regulations Title 47
• Management Assertion Letter Requirements
• Field Visits
• Proprietary Information
• Examples of Audit Findings

For more information, contact Steve Meltzer (smeltzer@jsitel.com) or Brian Sullivan (bsullivan@jsitel.com) at 301-459-7590.