E-Rate Funding Form 486 Deadline Analysis

The deadline for filing Form 486s, indicating receipt of services, is 120 days from either the date of the Funding Commitment Decision Letter ("FCDL") or from the start of service, whichever is later.

The penalty for missing a Form 486 deadline is a reduction in funding. If, for example, an applicant funded before Wave 8 does not file the associated Form 486 until December 31, the SLD will adjust the start date to 120 days prior to the postmark date (i.e., to September 2, 2004). For recurring services, this means that the SLD would reduce the funding by two months (i.e., to 10/12ths of the originally approved amount); for non-recurring services, the SLD would deny funding for any equipment installed before September.

Please note that it can take a while for the SLD to data enter forms they have received, being on this list doesn't necessarily mean that an applicant is at risk of having its funds reduced. It is also possible that funds listed represent funding which applicants shouldn't have filed a Form 486 because the funded services are not yet being received.

Important: If an applicant has decided not to use (or has decided to use less of) a service for which it has been funded, a Form 500 should be filed to cancel (or reduce) the funding. This frees up the funding and allows the SLD to commit it to other applicants for their as yet unfunded services.