Section 54.516 - [Effective on an indefinitely defined date ] 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. Subject to paragraph (e) of this section, schools, libraries, and consortia shall maintain asset and inventory records 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. Where necessary for compliance with Federal or State privacy laws, E-Rate participants may produce records regarding students, school staff, and library patrons in an anonymized or deidentified format. When requested by the Administrator or the Commission, as part of an audit or investigation, schools, libraries, and consortia must seek consent to provide personally identifiable information from a student who has reach age of majority, the relevant parent/guardian of a minor student, or the school staff member or library patron prior to disclosure.(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.(e)Asset and service inventory requirements -(1)Schools. Schools, school districts, and consortia including any of these entities, shall keep asset and service inventories as follows: (i) For equipment purchased as components of supported category two services, the asset inventory must be sufficient to verify the actual location of such equipment.(ii) For equipment needed to make wireless service for school buses functional, the asset inventory must be sufficient to verify the actual location of such equipment.(iii) For each Wi-Fi hotspot provided to an individual student or school staff member, the asset and service inventory must identify:(A) The equipment make/model;(B) The equipment serial number;(C) The full name of the person to whom the equipment was provided;(D) The dates the equipment was loaned out and returned, or the date the school was notified that the equipment was missing, lost, or damaged; and(2)Libraries. Libraries, library systems, and consortia including any of these entities, shall keep asset and service inventories as follows:(i) For equipment purchased as components of supported category two services, the asset inventory must be sufficient to verify the actual location of such equipment.(ii) For each Wi-Fi hotspot provided to an individual library patron, the asset and service inventory must identify:(A) The equipment make/model;(B) The equipment serial number;(C) The dates the equipment was loaned out and returned, or the date the library was notified that the equipment was missing, lost, or damaged; and(f)Acceptable use policies. Schools, school districts, libraries, library systems, and consortia including any of these entities that receive support for the off-premises use of Wi-Fi hotspots and/or services, shall maintain, provide notice, and, where necessary, update an acceptable use policy that clearly states that the off-premises use of the Wi-Fi hotspot and/or service is primarily for educational purposes as defined in § 54.500 and that the Wi-Fi hotspot and/or service is for use by students, school staff members, and/or library patrons who need it.(g)Data usage reports. Service providers shall provide reports regarding Wi-Fi hotspot data usage for off-premises use to applicants, and applicants shall make such reports available to 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 upon request. Data usage reports must be in machine-readable digital format so that information lines can be read and sorted, clearly identifying the lines that are not being used across billing periods and the lines that have been terminated pursuant to § 54.502(e)(5) .79 FR 49203, Aug. 19, 2014 89 FR 67325, effective date to be determined