Schools and Libraries

Beneficiary Audits - Auditors' Observations - Round 4

Following is a list of the most common auditors’ observations from the 100 audits conducted for Funding Years 2002 and 2003:


Competitive bidding

  • Copies of contracts could not be provided upon request.
  • No documentation of compliance with competitive bidding requirements.
  • Contracts were signed before the allowable contract date.

Entity eligibility

  • Entities receiving services were not listed on the FCC Form 471, Description of Services Ordered and Certification Form.
  • Entities receiving services were not eligible under Schools and Libraries Program (Program) rules.

Incomplete invoice documentation

  • Customer bills contained insufficient detail to determine service eligibility.
  • Customer bills did not support the requested reimbursement amount.
  • Customer bills could not be provided upon request.
  • Applicants did not reconcile customer bills to the FCC Form 472, Billed Entity Applicant Reimbursement (BEAR) forms.

Payments

  • Service providers had not remitted BEAR payments to the applicant.
  • Applicant had not paid the service provider in full before BEAR invoices were submitted.
  • The non-discount portion of the cost of services provided was not paid.
  • The applicant paid its bill late.

Equipment and services

  • Eligible equipment could not be identified because fixed asset details were insufficient to identify specific equipment.
  • The capability and cost of equipment was far in excess of what would be considered appropriate for the facility.
  • Services were ineligible.
  • Services were not functioning.
  • Services were not being used for eligible purposes.
  • The applicant was unable to make effective use of the discounted services.
  • Services were not delivered.
  • Equipment was not installed.

Technology plans

  • The approval letter could not be provided upon request.
  • Implementation of the technology plan was not being monitored.
  • No budget could be provided to support the plan.

Other issues which are not Program violations but indicate poor controls

  • Lack of sufficient document retention.
  • Equipment was left in an unsecured area.
  • The applicant paid the service provider more than the non-discount amount.
  • Applicants did not complete FCC Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form.

Last modified on 2/21/2008