Summary of Order

Applicants affected by Hurricane Katrina are eligible to participate in a special application window that will provide additional funds to certain schools and libraries through the end of Funding Year 2005. Schools and libraries directly affected by Hurricane Katrina are eligible for a 90% discount on Internal Connections requests for Funding Years 2005 and 2006. Schools and libraries “directly affected” by Hurricane Katrina are defined as both located in counties and parishes eligible for FEMA individual disaster assistance and having incurred substantial damage as a result of Hurricane Katrina.

For those schools and libraries, the “2-in-5” rule for Internal Connections starts in Funding Year 2006 instead of Funding Year 2005. Applicants that are directly affected are given broad latitude in changing the specific services already approved for the current Funding Year. Finally, additional funds are also available to those schools and libraries that have experienced a substantial increase in the population they serve due to Hurricane Katrina.

Audit Information

To safeguard the USF from potential program violations, all beneficiaries and service providers receiving these monies are subject to potential audit and those that receive more than $1 million will automatically be audited by the Administrator to ensure the funds are used for their intended purposes. All eligible telecommunications carriers, service providers, or beneficiaries requesting support under these temporary rules shall be subject to audit or investigation by the FCC’s Office of Inspector General (“OIG”), or other authorized federal or state governmental agency and, upon request, must make available any documentation and records necessary to verify compliance with these rules.