Federal Communications Commission DA 08-2374
Before the
Federal Communications Commission
Washington, DC  20554
In the Matter of )
)
Request for Review of the )
Decision of the )
Universal Service Administrator by )
)
United Talmudical Academy ) File No. SLD-148011
Brooklyn, New York )
)
Schools and Libraries Universal Service ) CC Docket No. 02-6
Support Mechanism )
ORDER
Adopted:  October 30, 2008 Released:  October 30, 2008
By the Acting Chief, Telecommunications Access Policy Division, Wireline Competition Bureau:
I. INTRODUCTION
1. In this Order, we grant an appeal filed by United Talmudical Academy (UTA) of a decision 
of the Universal Service Administrative Company (USAC) seeking to recover funding disbursed to UTA 
in Funding Year 1999 under the schools and libraries universal service support mechanism (also known 
as the E-rate program) on the grounds that UTA did not pay the non-discounted portion of the E-rate 
services it purchased.1  Based on the record before us, it appears that this matter can be resolved through 
USACs review of additional documentation UTA provided to the Commission in its appeal, which it had 
not previously provided to USAC.  Therefore, we remand the underlying application associated with this 
appeal to USAC for further action consistent with this Order.  In doing so, we direct USAC to review this 
matter within 60 calendar days from the release date of this Order in light of this additional information 
provided to the Commission on appeal.  To ensure that the underlying matter is resolved expeditiously, if 
USAC finds that UTA has documentation demonstrating its timely payment of the non-discounted portion 
of the purchase price of the services at issue, then USAC shall immediately suspend its recovery actions 
against UTA with respect to this application.
II. BACKGROUND
2. Under the E-rate program, eligible schools, libraries, and consortia that include eligible 
schools and libraries may apply for discounts for eligible telecommunications services, Internet access, 
and internal connections.2 To ensure that applicants are able to use the discounted services effectively, 
and thereby minimize waste, Commission rules require that applicants who receive E-rate discounts pay 
the full non-discounted portion of the services or products purchased with E-rate discounts.3 In the 
  
1 Letter from Shiya Dresdner, United Talmudical Academy, to Office of the Secretary, Federal Communications 
Commission, CC Docket No. 02-6 (filed Aug. 13, 2007) (Request for Review); see also Letter from Arthur Jacknis, 
Communication Data and Security, Inc., to Office of the Secretary, Federal Communications Commission, CC 
Docket Nos. 96-45, 02-6 (filed Jan. 8, 2007).  Section 54.719(c) of the Commissions rules provides that any person 
aggrieved by an action taken by a division of USAC may seek review from the Commission.  47 C.F.R.  54.719(c).
2 47 C.F.R.  54.501-503.
3 47 C.F.R.  54.523.
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Universal Service First Report and Order, the Commission determined that requiring schools and 
libraries to pay a share of the costs encourages them to avoid unnecessary and wasteful expenditures 
because they will be unlikely to commit their own funds for purchases that they cannot use effectively.4
3. In Funding Year 1999, USAC granted UTA a 90 percent E-rate discount on $1,238,562 in 
purchases from Communications Data & Security, Inc. as part of UTAs FCC Form 471 for Application 
No. 148011 for Funding Year 1999.5 In 2004, an audit report conducted by the Commissions Office of 
Inspector General, however, found that UTA had not timely paid its 10 percent share of the price of the E-
rate services purchased as part of the 118 funding requests that constitute UTAs FCC Form 471 for 
Application No. 148011.6 In response to this audit report, USAC sought to recover $943,300 in 
disbursements made to UTA for 67 of these funding requests through its commitment adjustment 
procedures.7 UTA appealed USACs recovery efforts, claiming that it had paid its entire share for all its 
funding requests by the time of the audit, consistent with E-rate program rules.8 In its review of the 
documentation that UTA provided as part of its appeal, USAC, however, found insufficient evidence of 
timely payment for three of the funding requests contained in the application, for which UTA owed 
approximately $7,300.9 Therefore, USAC denied UTAs appeal that it had paid its non-discounted share 
of the purchase price for the services listed in the application.10 UTA then appealed to the Commission 
and provided additional documentation, which it had not previously provided to USAC, to support its 
claim that it paid all of the funding requests at issue in the application on a timely basis.11
III. DISCUSSION 
4. We grant UTAs appeal.  Based on the foregoing, it appears that this matter can be resolved 
through USACs review of all the documentation that UTA has submitted to USAC and to the 
Commission concerning the funding requests at issue as part of UTAs FCC Form 471 for Application 
No. 148011 for Funding Year 1999.  We find that directing USAC to consider UTAs additional 
documentation in reviewing UTAs application for funding will not reduce or eliminate any review 
procedures or program requirements that applicants must comply with to receive funding, or otherwise 
result in waste, fraud or abuse, or a failure to adhere to core program requirements.  Therefore, we direct 
USAC to review this matter within 60 calendar days of the release date of this Order in light of the 
additional information provided to the Commission in UTAs appeal.  If USAC finds that UTA has 
documented its timely payment of its share of the purchase price of all of the funding requests at issue 
consistent with E-rate program rules, then USAC shall immediately suspend its recovery actions against 
UTA with respect to this application.  Our direction provided herein is limited to the issue of determining 
whether UTA paid its non-discounted share of the purchase price for UTAs FCC Form 471 for 
Application No. 148011 for Funding Year 1999.  If there are other issues with this application that would 
  
4 Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 
9036, para. 493 (1997) (subsequent history omitted) (Universal Service First Report and Order). 
5 See Letter from USAC, Schools and Libraries Division, to Mozes Greenfeld, United Talmudical Academy (dated 
Nov. 16, 1999).
6 See Memo from Office of Inspector General, Federal Communications Commission, to Chairman, Federal 
Communications Commission (dated Jun. 7, 2004).
7 See Request for Review at 3.
8 Id. at 2-8.
9 See Letter from USAC, Schools and Libraries Division, to Moses Greenfeld, United Talmudical Academy at 2 
(dated July 5, 2007).
10 See id.
11 See Request for Review at Exhibits F-K.
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result in a commitment adjustment or request for further information, we direct USAC to act accordingly 
and expeditiously.  In remanding this application to USAC, we make no finding as to the ultimate 
eligibility of the services or the petitioners application.12 We remind USAC of its obligation to 
independently determine whether the disbursement of universal service funds would be consistent with 
program requirements, Commission rules and orders, or applicable statutes and to decline to disburse 
funds where this standard is not met.  
5. We stress that the Commission is committed to guarding against waste, fraud, and abuse, and 
ensuring that funds disbursed through the E-rate program are used for appropriate purposes.13 Although 
we grant the request for review addressed here, this action does not affect the authority of the 
Commission or USAC to conduct audits or investigations to determine compliance with the E-rate 
program rules and requirements.  Because audits or investigations may provide information showing that 
a beneficiary or service provider failed to comply with the statute or the Commissions rules, such 
proceedings can reveal instances in which universal service funds were improperly disbursed or in a 
manner inconsistent with the statute or the Commissions rules.  To the extent the Commission finds that 
funds were not used properly, the Commission will require USAC to recover such funds through its 
normal processes.  We emphasize that the Commission retains the discretion to evaluate the uses of 
monies disbursed through the E-rate program and to determine on a case-by-case basis that waste, fraud, 
or abuse of program funds occurred and that recovery is warranted.  The Commission remains committed 
to ensuring the integrity of the program and will continue to aggressively pursue instances of waste, fraud, 
or abuse under the Commissions procedures and in cooperation with law enforcement agencies. 
IV. ORDERING CLAUSES
6. ACCORDINGLY, IT IS ORDERED, pursuant to authority contained in sections 1-4 and 254 
of the Communications Act, as amended, 47 U.S.C.  151-154 and 254, and pursuant to authority 
delegated under sections 0.91, 0.291, and 54.722(a) of the Commissions rules, 47 C.F.R.  0.91, 0.291,  
and 54.722(a), that United Talmudical Academys Request for Review IS GRANTED and its application  
REMANDED to USAC for further consideration in accordance with the terms of this Order. 
7. IT IS FURTHER ORDERED, pursuant to authority contained in sections 1-4 and 254 of the 
Communications Act, as amended, 47 U.S.C.  151-154 and 254, and pursuant to authority delegated 
under sections 0.91, 0.291, and 54.722(a) of the Commissions rules, 47 C.F.R.  0.91, 0.291, and 
54.722(a), that the Universal Service Administrative Company SHALL COMPLETE its review of the 
above captioned application no later than 60 calendar days from release of this Order and, if warranted, 
suspend its recovery of the disbursed E-rate universal service funding in accordance with the terms 
expressed herein.
  
12 Additionally, nothing in this order is intended: (1) to authorize or require payment of any claim that previously 
may have been released by a service provider or applicant, including in a civil settlement or plea agreement with the 
United States; or (2) to authorize or require payment to any person or entity that has been debarred from 
participation in the E-rate program.
13 See Request for Review of the Decision of the Universal Service Administrator by Bishop Perry Middle School, 
Schools and Libraries Universal Service Support Mechanism, File Nos. SLD-487170, et al., CC Docket No. 02-6, 
Order, 21 FCC Rcd 5316 (2006).
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8. IT IS FURTHER ORDERED that, pursuant to authority delegated under sections 0.91, 0.291 
and 1.102 of the Commissions rules, 47 C.F.R.  0.91, 0.291, and 1.102, this Order SHALL BE 
EFFECTIVE upon release.
FEDERAL COMMUNICATIONS COMMISSION
Jennifer K. McKee
Acting Chief
Telecommunications Access Policy Division 
Wireline Competition Bureau