• Missing FCDLs
• Additional funding potential for PY2
• SLD corrections to early Form 470 acknowledgment letters
• Obtaining Entity Numbers for the new Form 471s
• Warning: Limitations of the SLD’s Eligible Services List
• Reminder: PY1 reimbursement deadline is December 15
• Tip of the Week: Allowable Contract Dates for PY3

Missing FCDLs

The last of the major funding waves for PY2 was processed several weeks ago. All approved applicants should now have received their Funding Commitment Decisions Letters ("FCDLs"). Applicants who know they were awarded funding (because their names appeared in the SLD’s web posting of funding waves), or at least expected to be funded (because they had previously received Form 471 Receipt Acknowledgment Letters), need to track down and review their FCDLs.

Duplicates of errant FCDLs can be obtained by calling the SLD help line (888-203-8100). This process will be easier if the Form 471 Application Number, that appeared on the Receipt Acknowledgment Letter, is available.

Appeals of SLD funding decisions must be made within 30 days. This 30 days is calculated from the date the FCDL was mailed (normally the date on the letter itself) until the appeal is received by the SLD. If a duplicate FCDL is requested, the postmarked envelope should be retained until the funding decisions are reviewed. If an appeal is subsequently required, it may be necessary to argue that the appeal was made within a 30-day window beginning as of the mailing date of the duplicate FCDL.

Additional funding potential for PY2

After 20 waves of funding for PY2, the SLD has remaining uncommitted funds of approximately $300 million. Although some uncommitted funds may be held in reserve to handle appeals, the SLD is now considering how excess funds may be applied to Form 471 applications received outside the original PY2 application window that closed last April 6.

The SLD has at least two options to allocate these additional funds. It could process Form 471s on a first-come basis, beginning with applications received on April 7, and/or it could give priority to high discount applicants.

Although the SLD has given no indication of the demand for funds represented by applications it has already received outside the original window, it is not inconceivable that newly filed Form 471s might be funded. Applicants who had their original funding requests denied for procedural reasons may find it worthwhile to correct and resubmit those portions of their original applications (even if they have appealed the denials). Applications for discounts on entirely new services must comply with all Form 470 posting and contracting guidelines. New applications for PY2 funding should use the original versions of the forms (and cannot be filed online).

SLD corrections to early Form 470 acknowledgment letters

Applicants who have filed Form 470s, either online or by mail, have or will receive a Form 470 acknowledgment letter from the SLD. This letter includes both the assigned Form 470 Application Number, that will be needed for the Form 471, and the Allowable Contract Date that must be used for contracting and Form 471 submission (see Tip of the Week below).

Approximately 8,000 of the first Form 471 acknowledgment letters sent by the SLD incorrectly indicated that the Form 471 application window would close 01/08/2000. The correct date is January 19 and the SLD will be mailing correction letters shortly.

Obtaining Entity Numbers for the new Form 471s

The new Form 471 for PY3 requires Entity Numbers for all listed entities, not just billed entities. A school district with six schools, for example, previously had been assigned a Billed Entity Code; each of its schools was identified in earlier Form 471s by NCES codes (or equivalent). Beginning with PY3, the district’s Billed Entity Code becomes the district’s Entity Number, and new Entity Numbers must be obtained for all six schools.

There are two ways to obtain Entity Numbers for schools and libraries. One approach is to begin the SLD’s online Form 470 or 471 application process (whether you intend to complete the process or not). Based on the entity’s ZIP code, the SLD site provides a list of all associated entities in its database together with their Entity Numbers. The other approach is to call the SLD help line (888-203-8100). Some applicants have reported that the SLD help line personnel will give out no more than three Entity Numbers per call; this limitation is expected to be eliminated.

Warning: Limitations of the SLD’s Eligible Services List

Earlier this fall, the SLD web site was updated to include a revised Eligible Services List. The List includes a number of equipment and service items, briefly describes each, flags the eligibility of each as "Yes," "No," or "Conditional," and provides some reference citations to FCC orders and/or other sources. The new List is an improvement over the older versions, but still has serious limitations and must be used with extreme care.

Most importantly, indications of "Yes" and "No" incorrectly imply black and white distinctions on eligibility that often must be interpreted in light of other E-rate rules that the SLD assumes are known by all applicants. The only hint of this is a short introductory statement, referring to the citations, indicating that the information "is not intended to be all inclusive and other references should be considered."

One of many examples, on the new list, is the entry for an "Uninterrupted Power Supply" that is listed as an eligible item (as opposed to Power Conditioners and Surge Protectors, listed separately, which are not). The citation references are to two paragraphs of an earlier FCC Order that deal generally with E-rate support for Internal Connections but do not specifically mention UPS eligibility. What is meant by "Yes," therefore, is that a UPS is eligible if, and only if, it is used in conjunction with other eligible equipment such as servers, but not if used with ineligible equipment such as computer workstations. This distinction is logical to someone familiar with the E-rate rules, but is not immediately obvious from the information in the Eligible Services List.

Reminder: PY1 reimbursement deadline is December 15

Schools and libraries still seeking reimbursements on undiscounted bills for PY1 (including discounts based on recently extended "black hole" funding – see last two issues of our Weekly News) are reminded that BEAR forms must be received by the SLD on or before December 15, 1999.

Over the last few weeks, the SLD has been attempting to contact applicants (generally by fax) who, based on SLD records, have not submitted Form 486s for approved PY1 funding awards. (A Form 486 must be filed before an associated BEAR form can be processed.) Applicants who are contacted by the SLD, but who believe that they have filed all necessary Form 486s, may find it easiest to simply file again.

Applicants who have not filed Form 486s covering specific funding awards that are not going to utilized for PY2 (perhaps because work was delayed to PY2) are encouraged to file Form 486s to cancel unnecessary FRNs. This will assist the SLD in freeing up PY1 funds that might be carried over into subsequent program years.

Tip of the Week: Allowable Contract Dates for PY3

Before any E-rate eligible contract can be signed, the need for the service must first be listed on a Form 470 and posted on the SLD web site for 28 days. New contracts for PY3 applications must be signed before the associated Form 471 is submitted. When signing new contracts and filing Form 471s, therefore, it critical to know when the 28 days posting period is complete. The first day on which a new contract can be signed is called the "Allowable Contract Date." Here are two suggestions:

Applicants who have not yet filed a Form 470 for PY3 should do so quickly – and do it online . An online Form 470 application is considered posted on the day it is completed (although the completed signature page must subsequently be sent to the SLD). Applications that are mailed to the SLD are considered posted on the day they are data entered by the SLD, not on the day they are received. The lag for data entry could be two weeks or more. To meet the PY3 application window, the last possible day on which a Form 470 could be posted is December 21 (which allows only one day -- January 18 -- to sign all contracts and to complete and mail a Form 471 for next day delivery). Waiting until the last day is strongly discouraged.

Applicants should not rely on their own mathematical calendar skills to calculate their Allowable Contract Dates. An error of one day could invalidate an entire application. Instead, applicants should use the Allowable Contract Dates as provided by the SLD in every Form 470 receipt acknowledgment letter and as noted on every posted Form 470. Posted Form 470s can be accessed on the SLD web site. Three dates will be shown at the top of each posted Form 470: (a) the date the form was posted; (b) the Allowable Contract Date; and (c) the date the certification was signed. For Form 470s completed online, two of these three dates are available immediately; the certification dates will be shown only after the associated signature pages are received by the SLD.