Politics and Technology

 

A $7.2-billion federal program to bring high-speed Internet service to areas without it lacks basic information and adequate safeguards to ensure that the money isn’t wasted, the LA Times recently reported.

 

GAO officials recommended that the secretaries of commerce and agriculture ensure “sufficient time” to review applications in the second funding round, develop contingency plans for oversight beyond fiscal year 2010, and develop program performance measures. The secretary of commerce should also set annual audit requirements for commercial grantees.

 

The National Telecommunications and Information Administration and Rural Utilities Service agreed with GAO’s recommendations. The agencies have had just two months to review 2,200 applications for the first round of funding alone, the report said.

 

As TMCnet’s Gary Kim (News - Alert) reported on Oct. 28, the NTIA must now disburse sums that are about 4.7 times greater than normal, while the RUS faces the task of disbursing amounts 192 times larger than normal.

 

“…Several risks remain, including a lack of funding for oversight beyond fiscal year 2010 and a lack of updated performance goals to ensure accountability for NTIA and RUS,” the GAO’s latest report said.

 

According to a summary of the GAO report, the NTIA and RUS initially proposed distributing these funds in three rounds, but recently adopted two rounds. To meet these challenges, the agencies have established a two-step application evaluation process that uses contractors or unpaid, independent experts for application reviews and plan to publish information on applicants’ proposed service areas to help ensure the eligibility of proposed projects.

 

Under Congress’ mandate, all $7.2 billion must be distributed by Sept. 30, 2010.