The Universal Service Fund (USF) does not have formal policies and procedures in place to manage delinquencies. USF records showed that amounts owed to the Fund from universal service levy have increased from $81.7 million as at April 2012 to $117.8 million as at March 2015.
This represents a 44 per cent increase over the period. Nonetheless, during the same period, universal service levy collection increased by 48 per cent; with actual collections including both bad debt recoveries and amounts owed from previous years.
We observed that the delinquency levels (that is, amounts owing to USF in excess of 120 days past the due date) have been increasing steadily over the period moving from $24.8 million in April 2012 to $68.8 million as at March 2015; an increase of 178.1%. This delinquency level of $68.8 million as at March 2015 represents 58.4 per cent of the total owed to USF for universal service levy.
We found no evidence that the USF issued demand notices to the delinquent carriers to settle the amounts.
Whilst USF informed us that up to September 2015, they have collected $52.5 million of the delinquent amounts reported at March 2015, they have not implemented formal policies and procedures to govern the process.
Permanent Secretary (current): Carol Palmer
Permanent Secretary (at breach): Hillary Alexander
Breach Category: Resource Management
Breach Type: Slow Revenue Collections
Year Reported: 2015
Last Assessed: July 13, 2016
The USF should ensure that a structured delinquency management system is put in place. This should form part of an entity-wide integrated risk management framework that would also incorporate the risk of revenue loss.
JAMP received letter dated February 12, 2018, referencing letters to (name of carrier redacted) sent on December 12, 2017 and January 19, 2018. advising that a 5-day deadline (January 26) had passed and of failure to remit levy.
“Our records reflect that 72% of our receivables is now past due, of which 43.77% or $108,210,997.33 is currently 60 days and over.
“We hereby formally demand that you remit to the USF the outstanding $108,210,997.33 by Monday, February 19, 2018; failing which, this matter will be addressed directly to the Office of Utilities Regulation for their intervention, without any further notice to you”.
JAMP has written to the Ministry/USF asking for additional support beyond one letter.
No Calls To Action are currently associated with this breach.
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