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 Federal  Communications  Commission  FCC  04-  190 
 STATEMENT  OF  COMMISSIONER  KATHLEEN  Q.  ABERNATHY 
 In  the  matter  of  Schools  and  Libraries  Universal  Service  Support  Mechanism,  CC  Docket  No.  02-  6 
 The  measures  we  adopt  in  this  item  underscore  the  Commission’s  ongoing  commitment  to  ensuring  the  integrity  and  effectiveness  of  the  schools  and  libraries  universal  service  support 
 mechanism  (E-  Rate).  I  have  been  a  stalwart  supporter  of  the  E-  Rate  program,  but  I  have  also  emphasized  the  need  to  be  steadfast  in  our  efforts  to  eliminate  waste,  fraud,  and  abuse. 


 Over  the  last  two  years,  the  Commission  has  made  a  number  of  key  improvements  to  the  E-  Rate  mechanism.  In  April  2003,  the  Commission  adopted  a  debarment  rule  to  prevent  bad  actors  from 
 receiving  continued  support,  and  we  also  implemented  other  safeguards.  And  in  May  2003,  I  organized  a  public  forum  to  learn  more  about  potential  abuses  of  the  program.  USAC  subsequently 
 established  a  task  force  devoted  to  waste,  fraud,  and  abuse.  Based  in  large  part  on  recommendations  from  public  forum  participants  and  the  task  force,  the  Commission  adopted  other 
 measures  to  improve  the  program,  including  new  rules  that  limit  the  frequency  of  discounts  for  internal  connections  and  restrict  equipment  transfers  among  schools. 


 This  Order  builds  on  these  earlier  efforts  by  strengthening  the  Commission’s  and  USAC’s  audit  programs.  By  providing  further  guidance  on  when  and  how  funds  will  be  recovered  in  the  wake  of 
 rule  violations,  by  strengthening  document-  retention  requirements,  and  by  clarifying  related  rules,  we  will  both  deter  misconduct  and  enable  more  effective  and  timely  responses  by  USAC  and  the 
 Commission.  While  these  are  important  steps,  we  must  continue  to  explore  additional  programmatic  changes;  most  notably,  I  look  forward  to  completing  our  rulemaking  regarding 
 possible  changes  in  the  discount  levels  available  to  schools  and  libraries.  Our  continuing  oversight  is  critical  to  the  E-  Rate  program’s  survival,  and  I  applaud  USAC,  our  staff,  and  my  colleagues  for 
 their  commitment  to  shoring  up  any  remaining  deficiencies. 
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