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 <subject>Telecommunication</subject>
 <subject>Eligibility determinations</subject>
 <subject>Internal controls</subject>
 <subject>Performance measures</subject>
 <subject>Libraries</subject>
 <subject>Public schools</subject>
 <subject>Funds management</subject>
 <subject>Information technology</subject>
 <subject>Aid for education</subject>
 <identifier>FCC E-Rate Program</identifier>
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<titleInfo>
 <title>Schools and Libraries Program: Application and Invoice</title>
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<abstract>The Telecommunications Act of 1996 expanded the concept of universal
telephone service to include telecommunication support services for
eligible schools and libraries. Under this program, called the &quot;e-rate
program,&quot; schools and libraries can apply for discounts on
telecommunications services, Internet access, and internal connections.
GAO found that the Universal Service Administrative Company&apos;s (USAC)
Schools and Libraries Division (SLD) committed over $3.7 billion to
applicants during the 1998 and 1999 program years. However, a
significant amount of these funds has not yet been paid out, even though
the deadlines for applicants and vendors to use the funds has been
extended more than once. In addition, more funding would be available
for eligible requests if SLD&apos;s review procedures were more effective at
identifying and denying ineligible requests. Despite procedures
requiring reviewers to deny funding for ineligible items and to confirm
that conditionally eligible services are being used according to program
rules, GAO identified millions of dollars in funds incorrectly committed
to ineligible products and services. Finally, SLD&apos;s practice of
approving most vendors&apos; invoices without reviewing how and where the
committed funds are actually being spent leaves the program vulnerable
to further funding errors and potential abuse.</abstract>
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<note>Letter Report</note>
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<subject>
 <topic>Telecommunication</topic>
 <topic>Eligibility determinations</topic>
 <topic>Internal controls</topic>
 <topic>Performance measures</topic>
 <topic>Libraries</topic>
 <topic>Public schools</topic>
 <topic>Funds management</topic>
 <topic>Information technology</topic>
 <topic>Aid for education</topic>
 <topic>FCC E-Rate Program</topic>
 <topic>Universal Service Fund</topic>
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  <partNumber>Title 20 Section 8801</partNumber>
  <partNumber>Title 20 Section 9122</partNumber>
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 <identifier type="USC citation">20 U.S.C. 8801</identifier>
 <identifier type="USC citation">20 U.S.C. 9122</identifier>
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  <partNumber>Title 47 Section 254</partNumber>
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 <identifier type="USC citation">47 U.S.C. 254</identifier>
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  <title>United States House Report 504 (105th Congress)</title>
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 <identifier type="congressional report citation">H. Rept. 105-504</identifier>
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