§ 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]

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