GAO Asks FCC to Set Performance Goals for E-Rate Program
The FCC lacks performance goals for the universal service program’s E-Rate program, and its performance measures are “inadequate,” the Government Accountability Office said in a report released Monday. A “significant amount” of the $2 billion in annual funding isn’t disbursed, the GAO said, putting the figure at about 25 percent of the money for 1998 to 2006. Though the FCC has made improvements recently, they aren’t enough, GAO said. It asked the commission to send Congress a report with “strategic vision” for the program that would identify whether legislative or regulatory changes are needed.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
GAO said it had previously identified the low disbursement rate as an “area of concern,” and the FCC has taken steps to fix the problem. But in this audit, GAO said, “we found that the disbursement rate has not increased … in light of the nation’s current fiscal constraints, it is appropriate to make the most effective possible use of available E-rate funding.”
To address the problem, the GAO asked the FCC to provide information in its performance plan on how much money hasn’t been given out and why, and say what the commission has done to reduce the amounts. Without performance goals, the GAO said, the commission is “limited in its ability to efficiently identify and address problems with the E-rate program, and better target funding to highest-priority areas.”
The commission agrees it’s “vital” for all universal service programs to have goals set out, acting Chairman Michael Copps said in a letter responding to the report. When the agency started carrying out the program, it adopted a policy putting a higher priority on funding telecommunications and Internet access than on internal connections, Copps said. The commission also decided that schools with a high poverty rates and in rural areas would get extra money.
Since nearly all schools and libraries now have Internet access, the E-Rate program is meeting the goals set when the program started, Copps said. The commission “disagrees with the report’s suggestion that the E-Rate program may no longer serve an existing need.” With the rapid pace of technology changes, some obsolete services may need to be upgraded, he said. “The E-rate program will be an essential component, I am sure, of a national broadband strategy,” he said. “Schools will need E-rate funding for both the initial implementation of high-speed broadband access, as well as for the ongoing costs to maintain and continuously improve their networks.”
The GAO said about 63 percent of the 150,000 eligible schools and libraries take part in the program. About 83 percent of public schools and 13 percent of private schools participate in the program. Some institutions not taking part told the GAO the main reason they didn’t apply was the complexity of program requirements. Some funding is denied because applicants made mistakes on their applications. Recent changes allow applicants to fix clerical errors.
Copps said the commission is studying the E-Rate application process and agrees with GAO that reducing the burden on applicants is important. The Universal Service Administrative Co. said it recently set up a program providing outreach and help with applications to encourage eligible institutions that haven’t taken part to start, said Mel Blackwell, vice president of the company’s Schools and Libraries Division, in response to the audit. But the company said applicants’ wish for a streamlined application process is “not within USAC’s administrative authority to implement.”
Complicating funds disbursement are federal Anti- Deficiency Act rules. They prevent committing money in excess of the program’s cap, though actual disbursements will be less than the amount committed, Copps said. USAC and the FCC have set policies “to help applicants better utilize their funding in a timely manner,” he said. But the commission doesn’t believe it should reduce the time that applicants have to complete projects, because most schools can do wiring and equipment installations only when they're closed during the summer.
The FCC recently sought suggestions for short-term and long-term goals for the E-Rate program, Copps said. Once the goals are developed, the commission will “revise its policies as necessary to achieve them.” Copps also said the commission has “taken action to address gaps between committed funding and disbursed funding” but would welcome “specific suggestions GAO may have.”