GAO called on the FCC chair, Kevin Martin, to clearly define the specific long-term and short-term goals of the program and develop quantifiable measures that can be used by Congress and the FCC in determining program success.
It also called on the agency to identify areas of risk in its internal control environment and implement mechanisms to help ensure compliance with program rules and produce cost-effective use of program funds, in order to support performance-based management.
The FCC said in response that it would issue a "notice of inquiry" to seek information on ways to strengthen its management and oversight.
It also cited existing efforts to strengthen the management and oversight of the program as well as to restrain spending growth.
For example, it cited inspector general audits, new document retention requirements, and an agreement with the Universal Service Administrative Company, which the FCC relies on to implement the program along with state regulatory commissions. The agreement calls for USAC to collect and report performance data on a quarterly basis.
GAO said that was a step in the right direction but not enough to address program shortcomings.
