Audit Report Finds IdeaTek Telcom Failed To Comply With Kansas Universal Service Fund Assessment & Contribution Rules
June 12, 2025 – The Kansas Universal Service Fund (KUSF) administrator has filed a report that completes its audit of IdeaTek Telcom, LLC (IdeaTek) for Fiscal Year 27 (FY27) (March 2023 – February 2024). The audit report finds that IdeaTek failed to comply with certain KUSF assessment and contribution rules. The Kansas Corporation Commission (KCC or Commission) docket number for the proceeding is 25-WLDT-100-KSF.
IdeaTek was selected to undergo a KUSF audit covering the company’s revenue reporting processes and monthly KUSF assessment payments during FY27.[1] VantagePoint Solutions, Inc. (Vantage Point or VPS), the KUSF administrator that performed the audit, issued 17 data requests to IdeaTek during the course of the audit.
IdeaTek provides VoIP and broadband services in Kansas. It is authorized to provide local exchange and exchange access services[2] and resold interexchange services[3] pursuant to Certificates of Convenience and Authority issued by the Kansas Corporation Commission (KCC or Commission). IdeaTek also has been designated as an Eligible Telecommunications Carrier (ETC) in certain areas of Kansas where it receives Connect America Fund (CAF) Phase II support and Rural Digital Opportunity Fund (RDOF) Phase I support. As a provider of VoIP service, IdeaTek uses the “safe harbor” methodology for determining its allocation of interstate and intrastate revenues for purposes of contributing to the KUSF and federal USF.
On June 11, 2025, Vantage Point submitted a final report for its KUSF audit of IdeaTek.[4] Vantage Point identified four findings resulting from the IdeaTek’s non-compliance with the KCC’s KUSF assessment and contribution requirements. In general, non-compliance included over-reporting and over-paying the KUSF assessment, under-reporting and under-paying the KUSF assessment, over-collecting the KUSF surcharge, over-collecting its KUSF assessment, and under-reporting its revenue. The four findings of non-compliance resulted in “a net impact to the KUSF of a decrease of $93,175.23.” Vantage Point identified four audit findings that cover IdeaTek’s non-compliance with the KCC’s KUSF assessment and contribution requirements. A summary of each audit finding is below:
Audit Finding No. 1
Standard – Non-voice service revenues will not be included in carriers’ retail revenues.
Finding – IdeaTek reported and collected the KUSF surcharge on the following non assessable revenues: Alarm Lines, Fax Lines, EFax, EFax Service + ATA, MessageView (SMS Services), Mid America Computer Corp, Subscriber Line Charge, Subscriber Multi-Line Charge, PRI (Phone equipment), Elan & Eline Services, Intrastate Private Line Data Circuits revenue, and Interstate Private Line Data Circuit revenue. This resulted in the Company over-reporting and over-paying the KUSF assessment, and over-collecting the KUSF surcharge by $135,387.73
Audit Finding No. 2
Standard – Companies are required to report their intrastate retail revenues, including non-recurring and miscellaneous revenues, to the KUSF.
Finding – IdeaTek did not report the following assessable revenues to the KUSF: Late Fees, Compliance Fees, Regulatory Fees, and Manual Billing Processing Fees. This resulted in the Company under-reporting and under-paying the KUSF assessment by $34,038.71.
Audit Finding No. 3
Standard – Any telecommunications carrier, telecommunications public utility, wireless telecommunications service provider or provider of interconnected VoIP service which contributes to the KUSF may collect from customers an amount equal to such carrier’s, utility’s, or provider’s contribution, but such carrier, provider or utility may collect a lesser amount from its customer.
Finding – IdeaTek over-collected the KUSF surcharge from customers in some months to recover under-collection of the KUSF surcharge in other months. This resulted in the Company over-collecting its KUSF assessment by $88,408.01.
Audit Finding No. 4
Standard – Include only intrastate retail revenue that was not collected from customers and was actually written-off by the company during this revenue data month reported.
Finding – IdeaTek included assessable and non-assessable revenues in its write-offs that were reported on its monthly carrier remittance worksheets (CRWs). This resulted in the Company under-reporting its revenue and under-paying it KUSF assessment by $8,173.79.
Vantage Point has recommended that IdeaTek take the following eight specific remedial actions, within 60 days of a KCC order adopting the audit report, to correct the non-compliance with KUSF rules:
File audit True-ups for FYs 26, 27, and 28 to include the assessable revenues in Finding No. 2 and exclude the revenues in Finding No. 1;
Issue one-time billing credits to its customers, on a pro-rata basis, for a total amount of $223,795.74;
Provide VPS with ten (10) customer bills verifying that the refund process has been completed;
Update its billing system to exclude surcharge collection from revenues in Finding No. 1, include revenues in Finding No. 2, and to cease over-collecting the KUSF surcharge to recover the under-collection of the KUSF surcharge;
Update its KUSF reporting procedures system to exclude reporting of revenues in Finding No. 1, include revenues in Finding No. 2, and to exclude non-assessable revenues from its uncollectible revenues that are reported on the monthly CRWs;
Updated its billing system to cease over-collecting the KUSF surcharge to recover the under-collection of the KUSF surcharge;
Updated its reporting procedures to omit non-assessable revenues from its uncollectibles that are reported on the monthly CRW; and
File an affidavit, signed by an officer of the Company, attesting that the Company has implemented the corrective actions, and providing the date on which the corrective actions were implemented.
[1] Order To Kansas Universal Service Fund Administrator To Commence Audit Of IdeaTek Telcom, LLC And Order Setting Procedural Schedule, Docket No. 25-WLDT-100-KSF (Aug. 6, 2024).
[2] Application of Wildflower Telecommunications, LLC for a Certificate of Convenience and Authority to Provide Local Exchange and Exchange Access Service within the State of Kansas, Docket No. 06-WLDT-1005-COC (May 1, 2006).
[3] Application of Wildflower Telecommunications, LLC for an Amendment to its Certificate of Convenience and Authority to Include Authority to Provide Interexchange Carrier Services, Docket No. 08-WLDT-1077-COC (Oct. 14, 2008).
[4] Audit of IdeaTek Telcom, LLC. by the Kansas Universal Service Fund (KUSF) Administrator Pursuant to K.S.A. 66-2010(b) for KUSF Operating Year 27, Fiscal Year March 2023 – February 2024, Docket No. 25-WLDT-100-KSF, Vantage Point Solutions, Inc. Audit Report for IdeaTek Telcom, LLC (June 11, 2025).
