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The following comes from the FCC, by way of the AFCN.org list... -ac

-------------------------------------------------
Andy Carvin
Program Director
EDC Center for Media & Community
acarvin @ edc . org
http://www.digitaldividenetwork.org
http://www.edwebproject.org/andy/blog/
-------------------------------------------------
----- Forwarded by Andy Carvin/EDC on 08/05/04 09:58 AM -----


"Robert Cannon" <cannon@cybertelecom.org>
Sent by: Members-bounces@afcn.org
08/05/04 09:44 AM
Please respond to The AFCN member list

        To:     The AFCN member list <Members@afcn.org>
        cc:
        Subject:        [AFCN Members] FCC Adopts Further Measures to
Safeguard ERate


FOR IMMEDIATE RELEASE:  NEWS MEDIA CONTACT:
August 4, 2004                   Diane L. Griffin at (202) 418-7294
                                                 Email:
Diane.Griffin@fcc.gov


FCC ADOPTS FURTHER MEASURES TO SAFEGUARD THE E-RATE PROGRAM

Action to Protect Against Waste, Fraud and Abuse in the Administration
of the
Schools and Libraries Universal Service Support Mechanism

                 Washington, DC ? The Federal Communications Commission
(FCC) today
adopted measures that resolve a number of issues that have arisen from
audit activities conducted as part of ongoing oversight of the schools
and libraries support mechanism (also known as the ?E-rate? program),
and address programmatic concerns raised by its Office of Inspector
General.  The Order does the following:

?                sets forth a framework regarding what amounts should be
recovered by
the Universal Service Administrative Company (USAC) and the Commission
when funds have been disbursed in violation of specific statutory
provisions and Commission rules;

?                announces that USAC and the Commission will conduct
audits or other
investigations relating to use of E-rate funds within five years of
receipt of supported services;

?                eliminates the current option to offset amounts disbursed
in
violation of the statute or a rule against other funding commitments;

?                extends the red light rule previously adopted pursuant to
the Debt
Collection Improvement Act (DCIA) to bar beneficiaries or service
providers from receiving additional benefits under the schools and
libraries program if they have failed to satisfy any outstanding
obligation to repay monies into the fund;

?                requires beneficiaries and service providers to maintain
all
documents necessary to demonstrate compliance with program
requirements for five years, which will enhance the Commission?s
ability to conduct all necessary oversight and provide a stronger
enforcement tool for detecting statutory and rule violations;

?                requires applicants to develop a technology plan
consistent with the
U.S. Department of Education and USAC guidelines for technology plan
content;

?                amends and strengthens the Commission?s certification
requirements
for E-rate applicants and service providers to enhance oversight and
enforcement activities;

?                directs USAC to submit a plan for timely audit
resolution; and

?                directs USAC to submit, annually, a list of its
administrative
procedures for potential codification to enhance the Commission's
ability to limit waste, fraud and abuse.

The schools and libraries program enables qualified applicants to
receive discounts on eligible telecommunications services, Internet
access, and internal connections.  Since the program?s inception in
1997, schools and libraries across the United States have received
over $11 billion in funding commitments.  Today, in large part due to
this program, 99% of public schools and 92% of public school
classrooms are connected to the Internet.

- FCC -


Docket No.: CC 02-6

Action by the Commission, August 4, 2004, by Fifth Report and Order
and Order (FCC 04-190).  Chairman Powell, Commissioners Abernathy,
Copps, and Adelstein with Commissioner Martin approving in part and
dissenting in part.  Separate statements issued by Chairman Powell,
Commissioners Abernathy, Copps, Martin and Adelstein.

Wireline Competition Bureau Staff Contact:  Greg Lipscomb at
202-418-8200.

         ||
   \     @@==+   Leashes!
    ======       We Don't Need No Stinkin' Leashes!
    ||  ||                  -Pancho Villa
  Washington Internet Project
     www.cybertelecom.org

Peace can only last where human rights are respected, where the people
are fed, and where individuals and nations are free.
The Dalai Lama

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