• PY2-PY4 status update
• New E-rate Benefits Statements
• SPIN changes
• OGS Web site update
• Consortium letters of agency

PY2-PY4 Status Update

PY2

The first batch of Funding Commitment Decisions Letters (“FCDLs”) for pending out-of-the window PY2 applications are expected to be mailed this month, hopefully within the next week or two.  We understand that a number of these applications have already been reviewed, but suspect that the issuance of FCDLs is being delayed by the need to adhere to a first-come, first serve sequencing scheme (with special preference for first-time needy applicants).

PY3

The last regular wave of FCDLs for PY3 was mailed December 1.  Cumulatively, through Wave Twenty-nine, the SLD awarded funding on over 26,325 applications totaling $2.096 billion in discounts.  This includes $268 million for NYS applicants.  Additional FCDLs, perhaps amounting to about $50 million, are expected to be mailed as the processing on the remaining applications is completed.  Last week, the SLD began mailing its first group of Administrator’s decision letters on PY3 funding appeals.

PY4

As of last week, the SLD had received approximately 14,000 Form 470s (out of an expected 30,000) and 1,000 Form 471s for PY4 funding. Receipt Acknowledgment Letters (“RALs”) for early Form 471s will begin to be mailed next week.

New E-rate Benefits Statements

This week, the SLD began mailing a new report to applicants detailing E-rate invoices that had recently been authorized for payment.  The first report will span the five-month period July 1 through November 30, and will cover PY2 and PY3 (and, in a few cases, PY1) funding.   Quarterly reports are planned in the future.

Reports will be addressed to the person who signed the applicant’s Form 471, using the Block 1 address.  Assuming this practice is maintained in the future, applicants may want to rethink their choice of the authorized person signing their Form 471.

While we have not yet seen a copy of the new Benefits Statement, we expect it to show both approved BEAR reimbursement payments (summarizing the information previously made available in individual BEAR approval letters) and service provider invoices (for discounts on vendor bills).  The list of authorized BEAR payments should provide an excellent checklist of received, or at least soon-to-be-received, reimbursement checks.  The list of authorized service provider invoices will give applicants a chance to determine if they are actually getting direct vendor discounts for services received.  Hopefully, the report will include procedures to deal with apparent invoicing discrepancies.  This topic will be covered in more detail in future News of the Week issues.

SPIN Changes

A formal decision from the FCC on new rules under which applicants can change suppliers without losing previously committed funding is expected shortly.  At present, the SLD is processing Change of SPIN requests under previous rules that limit changes to situations involving: (a) bankruptcies; (b) failures to participate in the E-rate program; or (c) clearly documented breaches of contract.  Recently, the FCC remanded a few Change of SPIN requests back to the SLD for consideration under an earlier FCC decision last spring (known as “Copan”) that provided further flexibility.

Applicants, who have been awaiting further clarification before filing Change of SPIN requests, are encouraged to file requests now.  Although these requests may eventually have to be modified to conform with new FCC rules, we believe that is prudent to have an initial request on file in the event the FCC’s decision applies retroactively only to pending requests.  It is particularly important to file for SPIN changes on PY2 funding that, at some date in the not too distant future, may otherwise be cancelled for lack of use.

SPIN changes can be requested in a simple letter to the SLD detailing reasons for the change, referencing the appropriate Form 471 application number and funding request number (FRN), and indicating both the old and new SPINs.  The letter should be addressed to:

OGS Web Site Update

New York State applicants planning or considering the use of master State contracts for their PY4 Form 471 applications should review the recently updated instructions and E-rate eligible contract lists on the OGS Web site.  The new instructions provide a good summary of E-rate procedures for: (a) the timing and documentation of vendor selection when using OGS contracts as standing bids; (b) the filing for certain services provided under tariff or month-to-month billing arrangements; and (c), in the case of some State contracts, the reliance on previously filed Statewide Form 470s.

For E-rate purposes here is the best point of entry into the OGS Web site. 

Consortium Letters of Agency

The SLD reminded participants this week that it is a violation of program rules to file a Form 470 (or any E-rate form) without the express authorization of the named entity.  Specifically, during the week, the SLD invalidated five Form 470s that, we suspect, had been filed by vendors without applicant consent.

A broader problem, that came to light during the PY3 application review process and is expected to become an even larger issue in PY4, is the filing of consortium applications on behalf of a broad list of entities, many of whom may not have (formally) agreed to participate in the joint service.  In such cases, the SLD has been known to deny funding for the entire consortium.

A related issue is the responsibility of the consortium leader to certify in an application that all included entities have met program requirements. A good discussion of both issues can be found in the SLD’s frequently asked questions list. Specifically, the SLD states:

The clear lesson here is for all consortium leaders (including New York BOCES or RICs) to obtain letters of agency (“LOAs’) from all member entities. The LOA signed by each entity should explicitly authorize the consortium leader to file E-rate applications on the entity’s behalf and should certify that the entity has met its responsibilities under the program rules.

The following is an example of detailed language in a LOA for a school district participating in a BOCES-led consortium.  Each LOA should be addressed to the BOCES and signed by an authorized person in the member district.  Note that the language largely tracks the certifications required in most E-rate forms.

Sample language:

This is to confirm our participation in the [name of BOCES] E-rate Consortium and its procurement of [list services].  I hereby authorize [name of BOCES] to submit FCC Form 470, FCC Form 471, and other E-rate forms to the Schools and Library Division on behalf of the undersigned school district.

I understand that in submitting these forms on our behalf, you are making certifications for our school district.  By signing this letter of agency, I make the following certifications:

1. I certify that the schools in our district are all schools under the statutory definitions of elementary and secondary schools found in the Elementary and Secondary Education Act of 1956, do not operate as for-profit businesses, and do not have endowments exceeding $50 million.

2. I certify that the schools in our district have secured access to all of the resources, including computers, training, software, maintenance, and electrical connections necessary to make effective use of the services purchased as well as to pay the discounted charges for eligible services.

3. I certify that the schools in our district are all covered, or will be covered at the time funding is granted, by E-rate approved technology plans (unless discounts are only being requested for basic local and long distance telephone service).

4. I certify that the services that our school district purchases at E-rate discounts (as described in the law 47 U.S.C. Sec. 254) will be used solely for educational purposes and will not be sold, resold, or transferred in consideration for money or any other thing of value.

5. I certify that the entities eligible for support that I am representing have complied with all applicable and state and local laws regarding procurement of services for which support is being sought.

6. I certify that our school district has complied with all E-rate program rules and I acknowledge that failure to do so may result in denial of discount funding and/or cancellation of funding commitments.

7. I understand that the discount level used for shared services is conditional, for future years, upon ensuring that the most disadvantaged schools and libraries that are treated as sharing in the service, receive an appropriate share of the benefits from those services.

8. I certify that I am authorized to sign this letter of agency and, to the best of my knowledge, information, and belief, all information provided to [name of BOCES] for E-rate submission is true.

I understand that persons willfully make false statements on E-rate forms or through this letter of agency can be punished by fine or forfeiture under the Communications Act, 47 U.S.C. Secs. 502, 503(b), or fine or imprisonment under Title 18 of the United States Code, 18 U.S.C. Sec. 1001.