The General Accountability Office (GAO) found systemic weaknesses...
The General Accountability Office (GAO) found systemic weaknesses in the FCC’s oversight of the E-rate program. House Commerce Committee Chmn. Barton (R-Tex.) vowed legislation that would apply “common sense to the E-rate program.” At a hearing Wed. of the…
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House Commerce Oversight & Investigations Subcommittee, the GAO said the FCC has been slow to respond to audits of E-rate recipients and has not developed useful goals and measurements for assessing the program. The GAO found the FCC couldn’t evaluate how much E-rate improved Internet public schools’ connectivity because E-rate funding isn’t separated from other state and local funding. FCC oversight of E-rate is flawed, GAO said, because the Commission mainly uses rulemakings, audits and appeals to oversee the program. FCC rulemakings, often vague, have resulted in distinctions between FCC’s rules and procedures put in place by the Universal Service Administration Co. GAO noted there was an extensive backlog of audits. In a written statement, Barton said: “Unscrupulous vendors have fleeced the program while underserved communities and telephone customers are paying the price. The FCC, these merchants and certain schools all must share in the blame for this disgrace. Now, 7 years and billions of dollars later, those in charge can’t tell us how rampant the fraud is or how they intend to stop it. Enough is enough.” Barton said E-rate reform could be part of an overall Telecom Act reform bill.