********************************************************    
                                         NOTICE
    ********************************************************
                                
                This document was converted from
           WordPerfect or Word to ASCII Text format.
                                
   Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
             will not show up in this text version.
                                
All text attributes such as bold, italic, underlining, etc. from the
    original document will not show up in this text version.
                                
        Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
           will not be preserved in the text version.
                                
        If you need the complete document, download the
  WordPerfect version or Adobe Acrobat version, if available.
                                
*****************************************************************
                           Before the
               Federal Communications Commission
                     Washington, D.C. 20554
                                
                       In the Matter of)
                               )
                   Request for Review of the)
                        Decision of the)
              Universal Service Administrator by)
                               )
    Caddo Independent School District 5)File No. SLD-118160
                       Caddo, Oklahoma )
                               )
       Federal-State Joint Board on) CC Docket No.  96-45
                       Universal Service)
                               )
  Changes to the Board of Directors of the)CC Docket No. 97-21
          National Exchange Carrier Association, Inc.)
                                
                             ORDER

Adopted:  December 13, 2000             Released:  December 14, 2000

By the Accounting Policy Division, Common Carrier Bureau:

1.     The Accounting Policy Division has under consideration a Letter of Appeal filed by
Caddo Independent School District 5 (Caddo), Caddo, Oklahoma, on May 1, 2000, pursuant to
section 54.719(c) of the Commission's rules.  Caddo seeks review of a decision of the Schools
and Libraries Division (SLD) of the Universal Service Administrative Company, denying in part
Caddo's request for funding of internal connection services.  For the reasons discussed below, we
grant the appeal in part and remand to SLD.
2.     Caddo requests review of a decision by SLD to reduce the amount of Caddo's funding
request because SLD concluded that components of the request included support for an ineligible
Wide Area Network (WAN).  As in Terral School District 3, SLD denied support for certain
components despite their integration with routers deemed eligible for support by SLD. 
Consistent with Terral School District 3, and in the absence of an explanation by SLD of the
basis for its decision, we conclude that the record does not support SLD's finding of ineligibility.
Accordingly, we shall remand to SLD for further consideration.
3.     ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under sections
0.91, 0.291, and 54.722(a) of the Commission's rules, 47 C.F.R.  0.91, 0.291, and 54.722(a),
that the appeal filed by the Caddo Independent School District 5, Caddo, Oklahoma, on May 1,
2000 IS GRANTED to the extent provided herein.  We direct the Schools and Libraries Division
to review  Caddo's funding application and, if warranted, to issue a revised Funding
Commitment Decision Letter in accordance with the above-stated decision.

                    FEDERAL COMMUNICATIONS COMMISSION
                    
                    Mark G. Seifert
                    Deputy Chief, Accounting Policy Division
                    Common Carrier Bureau