• PY3 funding nears completion
• Warning: PY2 BEARs due by November 20
• New procedures to collect E-rate funds disbursed in error
• Easy Form 470 procedures for basic telephone services
• NYS training sessions and training materials

PY3 Funding Nears Completion

The weekly funding waves for PY3 are almost complete. Generally, only the more problematic applications remain to be addressed. We expect no more than 1-2 additional small- or medium-sized funding waves, probably followed by a few still smaller funding "ripples."

Wave Twenty-six of Funding Commitment Decisions Letters ("FCDLs") for program year three ("PY3") will be mailed on Friday, October 27. Funding awards announced in this Wave total only $27 million and include just $326 thousand for NYS applicants. The funding threshold for internal connection services remains at 82%.

Cumulatively, through Wave Twenty-six, the SLD has awarded funding on over 26,000 applications totaling $2.075 billion in discounts. This includes $259 million for NYS applicants, roughly one-eighth of the national total.

Warning: PY2 BEARs due by November 20

The SLD reminded applicants again this week that BEARs (Form 472s) for PY2 reimbursement payments should be submitted by November 20, 2000. SLD processing of BEARs (and supplier invoices) is subject to an absolute (albeit undisclosed) payment deadline. While the SLD promises to make every attempt to process PY2 BEARs or invoices as received, it will not promise that they will be paid if they are received after the November 20 deadline. Remember also that a Form 486 must be filed before any associated BEAR can be processed.

Presumably, alternative deadlines will be announced for applicants still awaiting FCDLs for successful PY2 appeals and for out-of-the-window applications that have not yet been funded.

New Procedures to Collect E-rate Funds Disbursed in Error

In a decision that hopefully will not apply to many applicants, the FCC established procedures to recapture any funds deemed, after the fact, to have been awarded and/or paid erroneously. The decision stems from specific PY1 funding errors, but is intended to apply to similar situations that might be uncovered in the future. To read the decisions, see FCC Document No. 00-350.

Since all E-rate funds are disbursed through suppliers, not directly to applicants, the procedures deal with the recapturing funds through the same channel. Under the plan, service providers would have the option of (1) paying back the erroneously distributed amounts in cash, (2) offsetting the amount from future awards, or (3) a combination of the first two options. The decision notes that, where appropriate and not otherwise provided by law, a service provider may recover erroneously provided discounts from the schools or libraries involved.

Easy Form 470 Procedures for Basic Telephone Services

Applicants who have not yet filed a Form 470 for the PY4 application cycle are encouraged to do so now. Detailed filing instructions and tips are available on the SLD Web site, in the Form 470 Tips section of the E-Rate Central Web site, and in the training material referenced below.

Although we strongly recommend that most applicants file Form 470s requesting a broad range of telecommunications, Internet, and internal connection services, some smaller applicants may choose to file only for basic telephone service. Filing only for basic service simplifies the E-rate application process (including the elimination of the need for an approved technology plan), but the following two warnings must be stressed:

1. "Basic" telephone service is really basic. It includes only regular local and long distance service, often referred to as "POTS," plain old telephone service. Specifically, it does NOT include services such as Centrex and high speed data lines (e.g., T-1).

2. Applicants filing Form 470s for basic telephone service cannot file subsequent Form 471s requesting discounts for other new services without first re-filing Form 470s for those services.

With these warnings in mind, the following is a list of the minimum requirements needed to complete a Form 470 for basic telephone services ONLY:

Mail the completed Form 470 to the address shown on the last page. The Form 470 can also be filed electronically on the SLD Web site using the same guidelines. (Note: When filing electronically, an applicant must print the certification (two pages), sign it, and mail it to the SLD.)

NYS Training Sessions and Training Materials

In preparation for the PY4 application cycle, E-Rate Central has been conducting half-day E-rate training sessions throughout New York State. During October, workshops for schools and libraries, sponsored by the NYS Education Department, were held in New York City and across upper New York State from Albany to Buffalo. Two more sessions, one for applicants and one for vendors, will be held in New York City on November 10. Registration information for this last session can be found on our Web site.

For the benefit of applicants who were unable to attend any of these training sessions, copies of the PowerPoint slides used are posted on the E-Rate Central Web site. Click here to view this slide presentation.