The number of commitment letters issued in Wave 12 is, by far, the smallest number since FY 2004 funding began. This is not unusual at this point in the funding cycle as the SLD's efforts become focused on more complex applications and/or those involving Selective Reviews. (One of our applicants just received follow up questions on a Selective Review response that had been submitted last May.) For the next couple of months, we expect the SLD to continue a pattern of bi-weekly funding waves, but we don't expect to see a spike in the number of commitments per wave until the threshold for Internal Connections funding drops below 81% (hopefully within the month).

(1) FCC Chairman Michael Powell announced that he will be leaving the Commission in March. Mr. Powell has been a Commissioner since 1998, and served as Chairman during President Bush's first term. We would expect the announcement of a new Chairman appointee within the next month or two.

(2) The FCC consolidated and ruled on 47 requests by various service providers to relieve them of COMAD repayment responsibilities. COMAD, which stands for "Commitment Adjustment," is a process under which funds disbursed in violation of E-rate rules can be recovered. Until an FCC Order last summer (see Fourth Order), funds were generally recovered through service providers who, in turn, were left to their own devices to seek repayments from applicants. Under new rules resulting from the Order, USAC is to seek recovery directly from the responsible parties (applicants or service providers). Consequently, in last week's decision, the FCC remanded all 47 cases back to USAC to determine responsibility for the violations.

(3) Last October, Sprint and BellSouth filed a joint petition for reconsideration of two E-rate rules (see Sprint Petition). The most significant issue for applicants involves a FCC conclusion that if an applicant has not paid its non-discounted share of charges within 90 days of delivery of services, that the applicant should be deemed in violation of the E-rate rules and that any associated funds disbursed should be recovered. The petition argues that the 90 day window "...is arbitrary and capricious; fails to reflect common billing practices in the E-rate market, and USAC's payment track record; and has excessively harsh consequences..." The FCC established a pleading cycle on this petition requiring comments by February 16 and reply comments by March 3 (see DA 05-103).

(4) In December, Connect2 - the original poster child for waste, fraud, and abuse - filed five petitions on SLD decisions concerning the recovery of E-rate funds over and above Connect2's previous criminal settlement with the Department of Justice. The FCC established a pleading cycle on this petition requiring comments by February 22 and reply comments by March 9 (see DA 05-146).

• Copy of the bill for the specific FRN
• Copy of the district's payment for their portion of the bill
• Copy of the inventory for the site of the specific FRN
• How has your FRN been used?
• Questions about a couple of other FRNs and other sites (which weren't included in the initial request)
• Electronic version of long range tech plan
• Copy of letter approving long range tech plan
• Questions about which doors have locks – storage areas, wiring closets, and classrooms – and questions about air conditioning in wiring closets
• Proof of adequate staff development. How is staff development delivered? Who does staff development?
• A checklist of what is installed on new hardware.
• Who determines which hardware is purchased? How can you show that?
• Proof of adequate technical support
• Who does the E-rate applications?
• Who decides on what is requested?
• Who chooses vendors?
• How are vendors selected?
• Proof of additional bids
• Questions about satisfaction with vendors
• Do you use the SLD web site and WebEx training sessions?
• Do you file 472's or does the vendor file 474? Why?
• Do you use a consultant? Why or why not?
• Where are your records for the last 5 years? (Are they color coded?)
• Questions about how E-rate money been used since the beginning of the program
• Questions regarding moving and labeling equipment with the corresponding FRN
• How has the program helped? What would you change?
• Information on the number of networked computers in the district
• Pictures taken of everything identified as being connected with E-rate
• Request to speak with a classroom teacher and/or media specialist
• Proof of instructional use of Internet. Asked for a specific example of how the Internet has improved student achievement. Asked about the computer programs or Web sites being used