The FCC Office of Inspector General (OIG) in its recently released semi-annual report to Congress states that they "continue to be concerned about fraud, waste and abuse….and while the Commission has taken steps to address programmatic weaknesses, more work remains to be done." To deal with their concerns the OIG's office will conduct "a statistically valid sample of audits" to ensure that E-rate beneficiaries are compliant and seek recovery of funds where appropriate.
In addition to the audits they are preparing to conduct, the OIG is currently working with KPMG to finish the 100 beneficiary audits which were started last year. A list and status of the audits can be found in the report.
The full report is available at https://transition.fcc.gov/oig/SAR33_4-28-05.pdf