Audit Information

Any applicant that receives $1 million or more of Hurricane Katrina-related support will undergo an audit or other investigatory review by the FCC or USAC, working in conjunction with the FCC.  Audits will seek to ensure that applicants have complied with all program rules and requirements under the temporary modifications to the Schools and Libraries support program. Audits will seek to ensure, among other things, that applicants do not obtain double recovery for damages related to telecommunications and information services equipment funded under the Schools and Libraries program.

All applicants should retain records that can be used to validate their support claims in the event of an audit, data validation, or other investigation. Applicants that incurred substantial damage should maintain all necessary documentation to verify that the support was used for the intended purpose of restoring their networks to the functional equivalent of the pre-Katrina degree of functionality. 

Applicants that are handling increased populations of evacuees should maintain all necessary documentation to verify that the entity is serving more than a de mimimis number of Hurricane Katrina victims (a 10% increase) and the entity experienced an associated increase in demand for supported services.

For example, archiving data electronically and maintaining these files will assure a more efficient audit.  Also, properly label all files and documents used to complete forms.  If using multiple internally produced reports to complete forms submitted, maintaining a reconciling schedule would also ensure a more efficient audit.  Applicants claiming Hurricane Katrina-related support should also retain copies of their eligibility certification and evidence that they selected the most cost-effective, commercially available service as required by FCC rules. Applicants should also maintain sufficient documentation to demonstrate the reasonableness of costs in light of the exigent circumstances.