Sec.  54.516   Auditing.

   (a) Recordkeeping requirements —(1) Schools and libraries. Schools and
   libraries  shall  retain all documents related to the application for,
   receipt, and delivery of discounted telecommunications and other supported
   services for at least 5 years after the last day of service delivered in a
   particular Funding Year. Any other document that demonstrates compliance
   with the statutory or regulatory requirements for the schools and libraries
   mechanism shall be retained as well. Schools and libraries shall maintain
   asset  and  inventory  records of equipment purchased as components of
   supported internal connections services sufficient to verify the actual
   location of such equipment for a period of five years after purchase.

   (2) Service providers. Service providers shall retain documents related to
   the delivery of discounted telecommunications and other supported services
   for  at least 5 years after the last day of the delivery of discounted
   services. 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, 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, 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 and
   libraries  receiving discounted services must provide consent before a
   service provider releases confidential information to the auditor, reviewer,
   or other representative.

   [ 69 FR 55111 , Sept. 13, 2004]