The Federal Communications Commission needs to improve performance management and strengthen oversight of a program meant to extend the quantity and quality of telecommunications services available in urban areas to rural or other high cost areas, GAO has said.
It said the "high-cost" program’s structure has resulted in the inconsistent distribution of financial support to telecom carriers and availability of services across rural America.
While the program provides support to carriers in all states, small carriers receive more support than large carriers, leading to varying levels of support among carriers serving similar rural areas, according to GAO-08-633.
It said the program fosters competition by supporting both incumbents and competitors and that there is a clearly established purpose for the program.
However, GAO said it could not identify any performance goals or measures established by the FCC.
While the agency has begun preliminary efforts to address these shortcomings, the efforts do not align with practices that GAO has identified as useful for developing successful performance goals and measures.
For example, the FCC has not created performance goals and measures for intermediate and multiyear periods, according to the report.
It said the internal control mechanisms that exist for the program are limited and have weaknesses that make it difficult to assess the risk of non-compliance with program rules and ensure cost-effective use of program funds.
For example, internal control mechanisms consist of carrier certification that funds will be used consistent with program rules, carrier audits and carrier data validation.
However, GAO said the carrier certification process is inconsistent, audits have been limited in number and findings, and carrier data validation focuses primarily on completeness rather than accuracy – all of which could lead to excessive program spending.
