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Audit of Oklahoma broadband program for schools and hospitals finds documentation lacking

Oklahoman Published: February 9, 2014

A state audit of a program to help fund Internet access for schools, libraries and hospitals found several examples of inadequate documentation and review of applications to the $24 million fund.

Reimbursements from the Oklahoma Universal Service Fund’s special universal services program have tripled in the last five years, mostly from companies providing broadband Internet for telemedicine to not-for-profit healthcare providers. Money for the fund comes from fees added to telephone customer bills.

“If funding resources are not used in an appropriate manner, the availability of funds to other entities may be reduced or an increase in fees may be assessed on telecommunication service users,” said the review by State Auditor and Inspector Gary Jones.

The audit was requested by the Oklahoma Corporation Commission, which operates the public utility division that administers the fund. Brandy Wreath, the division’s director, said staff agreed with the auditor’s findings and had already begun making changes.

“It took 10 years to break, and we can’t fix it overnight,” said Wreath, who took over the division in 2012. “The audit report validated what we had found. It made us feel good we were on the right track, and it made us feel good we were going to have support to continue fixing the things that we were already on top of.”

Documentation lacking

The audit said the public utility division increased accountability and reduced risk by hiring additional staff and taking a closer look at applications from healthcare applicants. A review of the files showed 5 percent didn’t have adequate supporting documentation to ensure eligibility.

Wreath said the public utility division had concerns not-for-profit healthcare providers were being sold too much bandwidth for their telemedicine needs.

The division’s review of 407 healthcare providers last year led to 90 telemedicine lines not being recertified. Another 144 lines were approved with reduced bandwidth, while 173 were recertified at the same level of service.

The audit said there was not a complete list of schools and libraries receiving special universal services from the Oklahoma Universal Service Fund. Wreath said a new third-party fund manager has been hired and will be responsible for collecting that information for inclusion in a new case management and document processing system called Iron Data.

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by Paul Monies
Energy Reporter
Paul Monies is an energy reporter for The Oklahoman. He has worked at newspapers in Texas and Missouri and most recently was a data journalist for USA Today in the Washington D.C. area. Monies also spent nine years as a business reporter and...
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