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Introduction

In the Schools and Libraries Fifth Order1 the Federal Communications Commission (FCC or the Commission) directed the Universal Service Administrative Company (USAC) “to submit to the Commission [. . .] a list summarizing all current USAC administrative procedures identifying, where appropriate, the specific rule(s) or statutory requirements that such procedures further, and those procedures that serve to protect the Universal Service Fund (USF) against waste, fraud and abuse.”2

Listed below are administrative procedures that are currently used to reach Schools and Libraries program funding decisions that are not explicitly stated or codified in a Commission rule or regulation. The procedures are listed by USAC’s operational activity category.

Background

The Commission has designated USAC as the permanent administrator of the federal universal service programs.3 Administration of the Schools and Libraries program is the responsibility of USAC and its Schools and Libraries Division (SLD)4 under the oversight of the Schools and Libraries Committee5 of the USAC Board of Directors. The Commission tasked the USAC Schools and Libraries Committee with making the following types of decisions in accordance with Commission rules and oversight:

(ii) development of applications and associated instructions as needed for the schools and libraries mechanism; (iii) administration of the application process, including activities to ensure compliance with FCC rules and regulations; (iv) the performance of outreach and education functions; and (v) development and implementation of other distinctive functions.6

USAC is responsible for “administering the universal service support mechanisms in an efficient, effective, and competitively neutral manner.”7 USAC is further required to take “administrative action intended to prevent waste, fraud, and abuse.”8 Thus, in order to administer the support

mechanisms effectively and efficiently, Commission rules indicate that USAC must design and implement operating procedures. Such procedures designed by USAC have been in place since the inception of the Schools and Libraries program. The Commission has recognized that it has “vested in the Schools and Libraries Committee and SLD the responsibility for administering the application process for the universal service support mechanism for eligible schools and libraries.”9 Pursuant to this responsibility, USAC reviews all applications and invoices according to detailed Program Integrity Assurance (PIA) review and other applicable procedures to ensure that USAC’s decisions are in compliance with Commission regulations, orders, appeal decisions, and guidance. PIA procedures are reviewed and updated annually (and also as needed), with Wireline Competition Bureau (WCB) oversight and guidance. Any party aggrieved by a USAC action can appeal that action to USAC or to the Commission.10