February 17, 1998 Minutes

Board of Director Meeting

A meeting via conference call of the Board of Directors of the Universal Service Administrative Company (USAC) was held on the above date. The meeting was called to order at 1:00 P.M. EST by Lisa Rosenblum, Chair. Edward English, Secretary and Treasurer called the roll.

Ms. Rosenblum welcomed the Board and presented the Minutes of the January 26, 1998 Board of Directors meeting. On a motion duly made and seconded, the Minutes were unanimously approved. Ms. Rosenblum then requested that Mr. Lynch report on the activities of the Budget and Finance Committee.

1. Mr. Lynch reported that the Budget and Finance Committee had reviewed the proposed 1998 budget. The consensus of the Committee was that the budget was fair and reasonable and would permit the National Exchange Carrier Association (NECA) to get the programs up and running under contract to USAC. The Board discussed proposed NECA staffing, the inclusion of consultant expenditures in the amounts for systems development and the use of the FCC-approved cost allocation manual to distribute program costs to USAC. On a motion duly made and seconded the Board unanimously adopted the following resolution:
   

   RESOLVED, that the USAC Board accepts the recommendation made by the Budget and Finance Committee to adopt a budget for USAC of $4,924,000 for calendar year 1998, as presented at its meeting of February 17, 1998.

2. Mr. English then reported that the following resolution by circulation had been passed by the Board:
   

   RESOLVED that, effective February 2, 1998, the Acting Secretary and Treasurer is delegated the authority to approve expenditures for USAC at the level designated for the CEO in the USAC Schedule of Authorizations. This delegation will remain in force until rescinded by the Board or until such time as a CEO is appointed.

3. Jim Frame, NECA, reviewed systems implementation work underway to support USAC program initiatives and addressed questions from the Board. He explained that NECA was utilizing a combination of internal and external resources to design, build and maintain the systems. He added that personnel involved in the USAC systems were also familiar with the systems developed for the Schools and Libraries Corporation. The Board accepted Mr. Frame's report and requested that they be kept updated on a regular basis with progress reports.
   

4. Ms. Rosenblum requested that Ken Levy, NECA's General Counsel, explain the latest developments concerning the GAO's inquiry into the FCC's authority to establish the Schools and Libraries Corporation and the Rural Health Care Corporation. The Board requested that materials be distributed about the GAO inquiry along with a schedule of upcoming congressional hearings on universal service. Ms. Rosenblum requested that any Board members who required further explanation contact Ken Levy or Cherie Kiser off-line.
   

5. Ms. Rosenblum provided an update on the CEO search and the procedure to be followed interviewing prospective candidates.
   

6. Ms. Rosenblum reported that a meeting had been arranged for later in the day with Chairman Kennard of the FCC. The following Board members in Washington were asked to attend: Dr. Marockie, Ms. Bryant, Ms. Gold and Mr. Lynch. The purpose of the meeting was to provide an overview of what USAC had accomplished and to discuss areas of mutual interest.
   

There being no further business to attend to, on a motion duly made and seconded, the meeting was adjourned at 1:53P.M. EST.

____________________________________
Edward R. English
Secretary

February 17, 1998
Date