The FCC’s Wireline Competition Bureau has issued a significant reminder for schools and libraries participating in the Emergency Connectivity Fund (ECF): failure to respond to audit requests can result in recovery of funding, even when the applicant later attempts to submit documentation on appeal.
In DA 26-472, released May 12, 2026, the Bureau denied a request for review and waiver filed by Colegio Paraiso Infantil in Puerto Rico and directed USAC to continue recovery of ECF support for 11 connected devices totaling $4,399.45. The Bureau found that the applicant failed to respond to repeated audit requests and therefore violated 47 CFR § 54.1714, which subjects ECF participants to audits, and 47 CFR § 54.1715(c), which requires participants to produce records upon request.
What happened
USAC disbursed ECF funding on July 8, 2022, for 11 connected devices. Beginning in December 2022, the auditor requested an asset inventory, an auditee survey, and other supporting records needed to test compliance with ECF rules. According to the Order, the auditor made multiple attempts to obtain the records by email and telephone in both English and Spanish. FCC staff also intervened, including outreach from the FCC Managing Director and later Commission staff, and USAC ultimately issued a jeopardy letter on March 12, 2024 warning that recovery would follow if the school did not respond within seven days. After no response was received, USAC initiated recovery on June 21, 2024. The applicant later appealed, but the first appeal included no supporting documentation, a later appeal was misfiled with USAC instead of the FCC, and the records were not substantively provided until mid-2025, long after the original audit requests.
Why the FCC denied relief
The Bureau concluded that the applicant’s failure to respond prevented the auditor from obtaining sufficient and appropriate evidence required under Government Auditing Standards to determine compliance. The Order emphasizes that timely cooperation with audits is a core program responsibility and that non-response itself is a serious violation. The applicant argued that it had experienced email security issues and had not seen the latest USAC dismissal, but the Bureau found that explanation insufficient to establish the special circumstances required for a waiver. The FCC also expressed concern that documents first produced roughly 18 months after the original request may have been created after the fact, making their reliability questionable.
Why this matters for applicants
This decision is notable because the funding amount was relatively small, yet the FCC still upheld recovery based on audit non-cooperation rather than on a substantive finding that the devices were ineligible. The case reinforces that audit compliance is not procedural housekeeping; it is a condition of continued funding support. The Order also shows that later attempts to cure the problem on appeal may not succeed where the applicant ignored repeated requests over an extended period. In other words, applicants should not assume they can wait until an appeal to assemble records that should have been available during the audit itself.
Applicants audit warnings
Applicants should be reminded not to do the following:
- Do not ignore emails, calls, or follow-up notices from auditors, USAC, or FCC staff.
- Do not assume that a small funding amount will reduce enforcement risk.
- Do not wait until appeal to locate or create asset inventories, surveys, or other required support.
- Do not rely on email issues, staff turnover, or internal communication gaps as a defense if no backup monitoring process exists.
- Do not submit records so late that their reliability can reasonably be questioned.
- Do not overlook the requirement to maintain and produce documentation promptly when requested.
Practical steps to reduce audit risk
School and library applicants should maintain current contact information, designate backup recipients for ECF and E-Rate communications and centralize audit-related document retention. Asset inventories, loan records, usage support, procurement records, and program correspondence should be organized so they can be produced quickly and consistently if an auditor requests them. This Order is a strong compliance reminder that audit responsiveness is just as important as initial application accuracy. When an audit request arrives, the safest course is immediate acknowledgment, documented follow-up, and timely production of complete records.
To view the full FCC Decision, Click Here
