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USAC’s error costs Clintonville schools $69,000

Organization issued district larger rebate than intended

By Erik Buchinger


An error made three years ago will cost the Clintonville Public School District nearly $70,000.

Each year, school districts may request funds from the Universal Service Administrative Company. The USAC is a nonprofit corporation designated by the Federal Communications Commission as the administrator of the Universal Service Fund, a system of telecommunications subsidies and fees.

In 2016, Clintonville was awarded $69,648.97 to use for various technology items.

In the fall of 2018, the district received a letter from the USAC it may be subject to a recall of funds.

“The funds in question were originally requested and received in 2016, and they have now been recalled in reimbursement due to ineligible services and/or purchases,” Superintendent David Dyb said at an April 22 Clintonville School Board meeting.

The USAC requested the district submit additional documentation to support the purchases.

“Even after submitting that information in January, the USAC determined that a commitment adjustment was being required of the district before any future fund requests would be released,” Dyb said.

No current administrative staff was involved in the original request for these funds in question in 2016.

“The folks didn’t catch it, and the USAC folks didn’t catch it at the time,” Business Manager Holly Burr said. “Basically, we got a bigger rebate in 2016 than what we were entitled to.”

Dyb said the district will have to reach out to USAC soon.

“The earnest part of this is we need to connect with them prior to April 28 so this year’s funding is not put in jeopardy,” Dyb said. “That was their threat.”

Burr said the district appealed the decision after receiving the initial letter in the fall without success.

She and Dyb recommended paying the money back.

Burr said the USAC changed its system, which was a confusing adjustment.

“There was a new formula made about four or five years ago, and this was about two years old at the time,” Burr said. “It’s very very unfortunate that it happened, but near as we can tell it was just a mistake in the calculating.”

Board member Mark Zachow asked Burr if it appeared to be an honest mistake.

“I think it was a misunderstanding of how the rules were going to work,” Burr said. “As part of this process at my previous district, we had the same questions. The formulas were very unclear.

“[The website] is not user friendly, so I think it was an honest mistake. The fact the mistake was made here on layman’s terms was one thing, but the USAC also made a mistake because they should have never awarded that money, but they have no ears for that.”

The money will come out of the district’s fund balance.

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