§ 54.516   Auditing and inspections.

   (a)  Recordkeeping requirements—(1) Schools, libraries, and consortia.
   Schools, libraries, and any consortium that includes schools or libraries
   shall retain all documents related to the application for, receipt, and
   delivery of supported services for at least 10 years after the latter of the
   last day of the applicable funding year or the service delivery deadline for
   the funding request. Any other document that demonstrates compliance with
   the statutory or regulatory requirements for the schools and libraries
   mechanism shall be retained as well. Schools, libraries, and consortia shall
   maintain asset and inventory records of equipment purchased as components of
   supported category two services sufficient to verify the actual location of
   such equipment for a period of 10 years after purchase.

   (2) Service providers. Service providers shall retain documents related to
   the delivery of supported services for at least 10 years after the latter of
   the last day of the applicable funding year or the service delivery deadline
   for the funding request. Any other document that demonstrates compliance
   with the statutory or regulatory requirements for the schools and libraries
   mechanism shall be retained as well.

   (b)  Production of records. Schools, libraries, consortia, and service
   providers shall produce such records at the request of any representative
   (including any auditor) appointed by a state education department, the
   Administrator,  the  FCC,  or  any local, state or federal agency with
   jurisdiction over the entity.

   (c) Audits. Schools, libraries, consortia, and service providers shall be
   subject to audits and other investigations to evaluate their compliance with
   the statutory and regulatory requirements for the schools and libraries
   universal service support mechanism, including those requirements pertaining
   to what services and products are purchased, what services and products are
   delivered, and how services and products are being used. Schools, libraries,
   and consortia receiving discounted services must provide consent before a
   service provider releases confidential information to the auditor, reviewer,
   or other representative.

   (d) Inspections. Schools, libraries, consortia and service providers shall
   permit any representative (including any auditor) appointed by a state
   education department, the Administrator, the Commission or any local, state
   or federal agency with jurisdiction over the entity to enter their premises
   to conduct E-rate compliance inspections.

   [ 79 FR 49203 , Aug. 19, 2014]

   Effective Date Note: At  79 FR 49203 , Aug. 19, 2014, § 54.516 was revised.
   Paragraphs (a) through (c) contain information collection and recordkeeping
   requirements and will not become effective until approval has been given by
   the Office of Management and Budget.

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