Earlier this year the Universal Service Administrative Company, which is a division of the FCC, told the district that it believed the commissions gift rule had been violated, according to regulatory documents filed with the FCC. Essentially, the USAC found the district accepted 15 free residential internet accounts as a part of its contract with the districts then-internet provider, Knology of Kansas, the find more information documents say. Accepting the free accounts an estimated value of $17,400 violates an E-rate program that helps schools afford internet access. E-Rate is the commonly used name for the Schools and Libraries Program of the Universal Service Fund, which is administered by the USAC. The program helps schools in obtaining affordable internet access, among other things. The USAC argued that the free accounts may have affected the districts decision to select Knology as its internet provider. The finding means the district may be forced to repay $500,000 in already-received federal funds, and it could prevent the schools from receiving an additional $340,000. Both the school district and Knology appealed the findings, arguing that the free accounts were offered as a part of Knologys regular commercial offerings made over the course of many years and did not influence decision-makers in the district, the documents state. In addition, Knologys appeal argued that the company did not unduly influence the bidding process because it was either the lone bidder or lowest bidder for each bid that it was awarded. In a written statement Friday, district spokeswoman Julie Boyle said the district approved a five-year contract with Knology in 2011 and the company was the only bidder for the fair and open bidding process. Not all of the 15 accounts offered were put to use, Boyle said.
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