• Late Filed Certifications for PY4 Applications
• BEARs and Bankruptcies
• Service Provider Manual and Training

The following is a summary of the E-rate News for the Week of August 20, 2001, prepared by E-Rate Central. Official SLD news appears in the “What’s New!” section of the SLD’s Web site . Additional and archived information appears elsewhere on this Web site.

Late Filed Certifications for PY4 Applications

Over 3,000 applicants, who had filed online Form 471 applications for PY4, have received pink postcards from the SLD advising them that their applications had been dismissed because signed certifications and Item 21 attachments were postmarked after the January 18^th deadline, filed improperly, or never received. The vast majority of these dismissals were a result of the certifications being received too late.

A small, but significant, proportion of the applicants receiving these denial postcards have reported that their certifications and attachments had been submitted on time and that they have supporting documentation to prove timely receipt. Although the SLD is looking into these reports, it is important that all applicants so affected immediately file appeals with the SLD. To be timely, an appeal should be filed within 30 days of the pink card’s postmark date.

Instructions for appealing a decision can be found on the SLD Web site.

BEARs and Bankruptcies

Recent economic problems in the technology and telecommunications sectors have led to bankruptcy filings by a number of cellular, DSL, and other telecom and Internet service providers. E-rate customers, who have already paid PY3 bills in full and are now filing for BEAR reimbursements, need to take extra care to make sure that the reimbursement payments are properly received.

There are two common types of bankruptcies, Chapter 7 and Chapter 11. Any applicant, seeking reimbursement from a bankrupt supplier, needs to know which situation applies.

So far, most of the bankruptcies among E-rate suppliers (e.g., Winstar Wireless) have been Chapter 11. Under this version, the bankrupt company remains in operation. Payments — which should include E-rate reimbursements — continue to be made. In this situation, the SLD tries to get a signed agreement from the company, further confirming the company’s intention and ability to pass on E-rate discounts. Applicants, dealing with small Chapter 11 companies, which may not have come to the SLD’s attention, may want to alert the SLD by sending an e-mail to serviceprovider@universalservice.org.

Under Chapter 7, the bankrupt company is in liquidation and is operating under court receivership. The company’s ability to make payments — including E-rate reimbursements — is strictly limited. In these cases, an applicant’s only safe option is to have E-rate payments funneled through a third-party provider. The SLD will work with the applicant to find a “Good Samaritan” provider for this purpose. Because each case tends to be unique, applicants needing to use this option are instructed to call the SLD’s Client Service Bureau, 888-203-8100.

Service Provider Manual and Training

The SLD recently posted an updated, and almost complete, version of its Service Provider Manual on its Web site.

Although the Manual is designed for E-rate vendors, focusing on the supplier invoicing and reimbursement process, the program overview and list of commonly used acronyms may prove useful to applicants as well. See the SLD's Web site. As another service to suppliers, the SLD has scheduled a second E-rate Training Workshop for East Coast vendors. A West Coast workshop was held in August. This session will be held in Washington, DC, on October 11-12. Supplier registration information is available in the Service Provider section of the SLD Web site.