Federal

Auditors Are Critical of the FCC’s Stewardship of the E-Rate Program

March 22, 2005 2 min read
  • Save to favorites
  • Print

The Federal Communications Commission is doing a poor job of overseeing the E-rate program, the Government Accountability Office said in a report last week.

The report, “Greater Involvement Needed by FCC in the Management and Oversight of the E-rate Program,” is available from the GAO. ()

According to the congressional watchdog agency, the FCC has not devised useful performance goals and measures for the program, which provides money to schools and libraries for Internet connections and other telecommunications costs. Because the FCC did not isolate the impact of E-rate money in connecting schools, it remains unclear to what extent increases in such schools can be attributed to the federal funds, the GAO says.

The commission has shifted important responsibilities to the Universal Services Administrative Co., or USAC, a quasi-private entity that administers the program, the report notes. Combined with the FCC’s lax oversight, that move has permitted fraud and abuse to occur, the report contends.

The “education rate” program, which has channeled nearly $14 billion in aid to schools and libraries since its inception in 1997, provides eligible institutions with discounts of up to 90 percent on telecommunications services and Internet access. There have been numerous allegations of fraud, waste, and abuse by recipients and vendors.

The GAO report was released at a March 16 congressional hearing, where the FCC came under fire.

“The mismanagement of the E-rate program seems to know few bounds,” Rep. Joe L. Barton, R-Texas, the chairman of the House Energy and Commerce Committee, said at the hearing before the panel’s oversight and investigations subcommittee.

The GAO report, which led some lawmakers to question whether the FCC was the best agency to oversee the program, reviews how the structure of the E-rate program has affected its management by the FCC, looks into the development and use of performance goals and measures, and assesses the effectiveness of the current accountability measures imposed by the agency.

According to the report, the role of USAC has made it difficult for the FCC to ensure that accountability and financial requirements for the E-rate program are met.

A Move to Education Dept.?

To address those issues, the report recommends that the FCC establish E-rate performance goals and measures, examine which federal accountability requirements apply to the E-rate, and reduce the backlog of recipients’ appeals on funding decisions.

Jeffrey Carlisle, the chief of the FCC’s wireline competition bureau, defended the management of the program. He pointed out the commission has adopted new rules for the recovery of improperly disbursed funds and directed USAC to conduct extensive audits of E-rate beneficiaries.

“We believe that the current USAC structure is consistent with congressional intent and conforms to congressional guidance,” he said in a statement.

While several members of subcommittee expressed a desire to see the program continue, they questioned Mr. Carlisle on why the commission has been slow to recover misused funds, why structural and administrative changes were not made earlier, and whether the FCC is the most competent agency to oversee the E-rate.

“The only logical place it could go—and I’ll make no friends by saying this—is the U.S Department of Education,” Mr. Carlisle replied. The FCC, he said, is a relatively small agency and has done the best it could to direct the program efficiently.

Related Tags:

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Harnessing AI to Address Chronic Absenteeism in Schools
Learn how AI can help your district improve student attendance and boost academic outcomes.
Content provided by Panorama Education
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Science Webinar
Spark Minds, Reignite Students & Teachers: STEM’s Role in Supporting Presence and Engagement
Is your district struggling with chronic absenteeism? Discover how STEM can reignite students' and teachers' passion for learning.
Content provided by Project Lead The Way
Recruitment & Retention Webinar EdRecruiter 2025 Survey Results: The Outlook for Recruitment and Retention
See exclusive findings from EdWeek’s nationwide survey of K-12 job seekers and district HR professionals on recruitment, retention, and job satisfaction. 

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal How Trump Can Hobble the Education Department Without Abolishing It
There is plenty the incoming administration can do to kneecap the main federal agency responsible for K-12 schools.
9 min read
Former President Donald Trump speaks as he arrives in New York on April 15, 2024.
President-elect Donald Trump speaks as he arrives in New York on April 15, 2024. Trump pledged on the campaign trail to eliminate the U.S. Department of Education in his second term.
Jabin Botsford/The Washington Post via AP
Federal Opinion Closing the Education Department Is a Solution in Search of a Problem
There’s a bill in Congress seeking to eliminate the U.S. Department of Education. What do its supporters really want?
Jonas Zuckerman
4 min read
USA government confusion and United States politics problem and American federal legislation trouble as a national political symbol with 3D illustration elements.
iStock/Getty Images
Federal Can Immigration Agents Make Arrests and Carry Out Raids at Schools?
Current federal policy says schools are protected areas from immigration enforcement. That may soon change.
9 min read
A know-your-rights flyer rests on a table while immigration activist, Laura Mendoza, speaks to the Associated Press' reporter at The Resurrection Project offices in Chicago's Pilsen neighborhood on June 19, 2019. From Los Angeles to Atlanta, advocates and attorneys have brought civil rights workshops to schools, churches, storefronts and consulates, tailoring their efforts on what to do if U.S. Immigration and Customs Enforcement officers show up at home or on the road.
A know-your-rights flyer rests on a table while immigration activist, Laura Mendoza, speaks to the Associated Press' reporter at The Resurrection Project offices in Chicago's Pilsen neighborhood on June 19, 2019. Immigration advocates advise schools to inform families about their legal rights as uncertainty remains over how far-reaching immigration enforcement will go under a second Trump administration.
Amr Alfiky/AP
Federal Opinion 'Education Is Not Entertainment': What This Educator Wants Linda McMahon to Know
Her experience leading a pro wrestling organization could be both an asset and a liability
Robert Barnett
4 min read
A group of students reacting to a spectacle inside a ring.
Vanessa Solis/Education Week + Getty Images