December 2000 Announcements

Please click on the topic below to view the most recent announcements:

On October 31, 2000, in a response to concerns raised by schools and libraries that they would not be able to complete installation of NON-RECURRING services by September 30, 2000, through no fault of their own, the FCC extended the deadline for using E-rate funds until September 30, 2001, under certain circumstances.

The circumstances that allow for the extension are for those applicants:

1. whose Year Two funding commitment decision letters (FCDLs) were issued by SLD on or after April 4, 2000, or
2. who received service provider change authorizations or service substitution authorizations from SLD on or after April 4, 2000, or
3. whose service providers were unable to complete implementation due to events beyond the service provider's control PROVIDED the applicant submitted to SLD documentation about the delay prior to September 30, 2000, or
4. who certify to SLD that their service providers were unwilling to deliver or install non-recurring services before September 30, 2000, because USAC had withheld payment for those services on a properly submitted invoice for more than 60 days after submission of the invoice PROVIDED the applicant makes such certification to SLD by December 31, 2000.

In addition, the FCC Order recognizes that there may be other situations beyond those it specifically enumerates in which an applicant through no fault of its own was unable to complete installation by September 30, 2000, and authorizes SLD to address such situations consistent with the reasoning set forth in the Order. The SLD will review any requests for extensions based on this more general allowance and approve them only if they describe circumstances truly beyond the applicant's and service provider's ability to control. Since the FCC Order clearly intends that these extensions be requested and resolved quickly, SLD will apply the December 31, 2000, deadline to any requests citing this more general allowance.

For categories 1 and 2 (post April 4, 2000 FCDLs and service provider change/service substitution authorizations), SLD will identify all qualifying Funding Request Numbers (FRNs) with remaining undisbursed funds and post the list of such FRNs with the new deadline of September 30, 2001, for receipt of non-recurring services on its web site. The posting will also feature the new invoicing deadline for these FRNs of December 29, 2001.

For category 3 (delay due to events beyond the service provider's control), SLD will consider the following as meeting that criterion:

• Acts of God such as fire, flood and other natural disasters
• Strikes and labor disputes
• Unavailability of materials available from only one source and that source is independent of the service provider
• Order of any court or other action of any competent jurisdiction.

The following circumstances will not be deemed as meeting the criterion:

• Staff shortages
• Required material(s) available at an increased price
• Required material(s) not available from usual sources but available from other sources
• Material(s) not available but similar, suitable equipment is available (substitution request required)
• Applicant will not sign requested change order
• Condition of the service has changed and the applicant will not accept a price increase.

Certification Requirements for Special Circumstances (Categories 3 and 4)

The deadline to submit notice about a delay in work due to events beyond the service provider's control has passed. SLD will review any requests it has received and communicate with applicants to obtain the following information if necessary. Applicants have until December 31, 2000, to submit certifications about delays in work attributable to the unwillingness of a service provider to continue after the failure of USAC to pay invoices within 60 days. Applicants submitting such certifications should provide the following information:

1. Applicant Name
2. Applicant Contact Name
3. Applicant Contact Title
4. Applicant Contact Phone
5. Applicant Contact Fax
6. BEN#
7. 471#
8. FRN# (s)
9. Service Provider Name
10. SPIN#
11. Service Provider Contact Name
12. Service Provider Contact Title
13. Service Provider Contact Phone
14. Service Provider Contact Fax
15. Specifics based on circumstances claimed:

a) Circumstances beyond the service provider control -- Provide complete description of circumstances
b) USAC non payment:


(1) Provide date FCC Form 474 submitted to SLD
(2) Provide copy of FCC Form 474 which was not paid

16. The signature, printed name and title of the person authorized to file this certification on behalf of the applicant.

The certification should be sent to:

Schools and Libraries Division
Attention: Year Two Extension Certification
Box 125 - Correspondence Unit
80 South Jefferson Road
Whippany, New Jersey 07981

With the information provided by the applicant, the SLD will review the circumstance and communicate with the applicant for further documentation, if required. Written notification of the disposition of the request for extension will be sent to the applicant and service provider. FRNs approved for extension will be added to the web site notice of extended FRNs and the new deadline for receipt of non-recurring services and for SLD receipt of invoices will be featured.

Extend Your Contract Expiration Date, If Necessary

If you qualify for an extension but indicated on your Form 471 a contract expiration date prior to the date you now expect your service provider to complete work, you will have to notify SLD of an extension of the contract expiration date in order for SLD to be able to pay invoices for these services. SLD cannot pay invoices for services received after the contract expiration date. If applicable state and local procurement rules permit an extension and your service provider is agreeable, you should negotiate a contract extension and notify SLD of that extension by submission of an FCC Form 500. You may get copies of the Form and its instructions on the SLD web site or by contacting the Client Service Bureau at 888-203-8100.

Deadline for Receipt of Invoices for Services Provided During the Extension Period

The SLD will consider invoices for payment on Year 2 funding commitments for non-recurring services for which the FCC has granted an extension if they are received by December 29, 2001, (that is, 90 days after the new deadline of September 30, 2001, for receipt of services), but applicants and service providers are encouraged to complete such work as soon as possible and to submit invoices for payment as soon after the work is completed as possible.

PLEASE NOTE that the extensions apply only to non-recurring services. Recurring services must have been received between July 1, 1999, and June 30, 2000. SLD will not pay invoices for Year 2 funding commitments for recurring services received after June 30, 2000.

Two reference documents were added to the Reference Area of the web site on December 22: Tips for Completing Your Form 471 and Pitfalls to Avoid in FIling Form 471.

The SLD has posted a number of new and revised guidance documents on the Reference Area of this web site. In addition to the new documents announced in previous What's New postings, the following documents have been posted to the Reference Area:

• Alternative Discount Mechanisms Fact Sheet provides guidance on using federally-approved alternative measures of poverty to assist in the calculation of a school's E-rate discount.
• State Replacement Contracts outlines the procedures for filling out the Form 471 if a service is to be provided under a state Master Contract which expires before the end of the Funding Year for which you are applying for discounts.
• SPIN Changes Guidance clarifies eligible SPIN changes in light of new guidance from the FCC, including a broader application of the Copan criteria.
• SPIN Correction Guidance details the process for making a SPIN correction using the Receipt Acknowledgment Letter.
• Links to updated information are also being highlighted for several steps in the How to Apply: Step-by-Step guidance.

Please continue to check the Reference Area for additional postings of new and revised guidance materials.

The Eligible Services List in the Reference Area of this web site has been revised slightly.

An entry for 911/E911 Trunks and Lines has been added in Telecommunications Services to clarify that, since these are not used for instruction, they are ineligible. Video components on the most recently posted List were shown as ineligible under Distance Learning in Telecommunications Services. Those references have been deleted, and video components are shown as eligible under Internal Connections (provided they are not end-user equipment). Finally, the entry for Basic Telephone Service in Telecommunications Services has been revised to clarify that this term includes Cellular/Personal Communications Services.

The "Paragraph Cite" column has been eliminated in order to provide a streamlined presentation. That information is important in reaching decisions on eligibility, but the key information for applicants and service providers is the decision on eligibility itself.

The Eligible Services List is saved as a PDF file that may be downloaded and viewed using Adobe Acrobat, version 4.0 or higher. Click here to view the Eligible Services List, or go to the Eligible Services List in the Reference Area of this web site.

If you need assistance viewing or downloading PDF files, see the PDF Help document in the Reference Area of this web site.

The Schools and Libraries Client Service Bureau will be closed on Monday, December 25 and Tuesday, December 26, 2000 in observance of Christmas. The Client Service Bureau will resume normal operations on Wednesday, December 27, 2000 at 8:00 a.m. EST.

The Schools and Libraries Client Service Bureau will be closed on Monday, January 1, 2001 in observance of New Year's Day. The Client Service Bureau will resume normal operations on Tuesday, January 2, 2001 at 8:00 a.m. EST.

Two new items have been added to the reference area of this web site that merit review by applicants and service providers as applicants prepare to submit Forms 471 for Year 4.

"Eligibility of Service Requests" cautions applicants not to include the costs of ineligible services in the prediscount cost for which they seek discounts. It explains how SLD will treat Funding Request Numbers (FRNs) that do request funds for ineligible services.

"Service Categories: SLD Adjustment Process" cautions against including requests for internal connections components in FRNs that are categorized as Telecommunications Services or Internet Access (Priority 1 FRNs). It explains the treatment of Year 4 requests which mix Priority 1 and Priority 2 services in a single Block 5 request.

Click here to view Eligibility of Service Requests.

Click here to view Service Categories: SLD Adjustment Process.

The day is fast approaching for applicants to file their Form(s) 470 in a timely manner. A timely-filed Form 470 must be posted to the SLD web site for 28 days and still allow the filing of a Form 471 within the filing window which closes January 18, 2001. Form 471 materials supporting a Form 471 request must also be received or postmarked by January 18, 2001.

Manual filers were advised in an earlier web site notice that, if they submitted their paper Form(s) 470 after December 14, they were at risk for missing the posting date described above. Form(s) 470 can still be submitted manually, but they must be received by SLD in Kansas, processed, and data-entered successfully to the SLD web site before the required 28-day waiting period can even begin.

Applicants who have not already submitted their Form(s) 470 are therefore very strongly encouraged to file online.

William Kennard, Chairman of the Federal Communications Commission (FCC) has approved six individuals to three-year terms to the Board of Directors of the Schools & Libraries (USAC). USAC administers the Universal Service Fund (USF), which provides communities across the country with access to affordable telecommunications services. USAC is a private, not-for-profit company directed by the FCC to administer the USF. USAC administers the four universal service programs (the High Cost Program, Low Income Program, Rural Health Care Program, and the Schools and Libraries Program).

The approvals are a result of a November 6, 2000 FCC public notice soliciting nominations to fill the vacancies that would be created when the terms of six current members expire on December 31, 2000. The USAC Board represent the diverse stakeholders that participate in the universal service programs. The terms are staggered and six expire each year.

The six nominations approved by the chairman of the FCC and the stakeholder group represented are:

1. Kevin Hess, Vice-president, TDS TELECOM - Incumbent local exchange carriers (other than Bell Operating Companies) with annual operating revenues in excess of $40 million (re-appointed),
2. Joel Lubin, Vice-president, AT&T - Interexchange carriers with more than $3 billion in annual operating revenues,
3. Allan T. Thoms, Chairman, Iowa Utilities Board - State telecommunications regulators (re-appointed),
4. Dr. Jay Sanders, President & CEO, Global Telemedicine Group -Rural health care provider that are eligible to receive support (re-appointed),
5. Rev. William F. Davis, Assistant Secretary for Catholic Schools and Public Policy, United States Catholic Conference- Schools that are eligible to receive support, and
6. Robert Rivera, Spectrum Communications, Inc. and MeshworX, Inc. - Information Service Providers.

Program participants are reminded that it is a violation of FCC rules and SLD Form instructions for a Form 470 to be filed without the express authorization of the named entity. For this reason, SLD has removed certain Year 4 Forms 470 from the web site in instances where the SLD has evidence that such Forms were not authorized. Some Forms 470 were taken down on December 7, 2000. The SLD will also deny Funding Requests that cite those Forms 470. Should it come to the attention of SLD that other Forms 470 were filed without the express authorization of the named entity, those Forms will also be removed.

Schools and libraries are reminded to read the Forms and instructions carefully and call the Client Service Bureau at 888-203-8100 if they have questions.

View List of Deleted Year 4 Forms 470

To provide recipients of E-rate funds information about disbursements to their service providers, a new Schools and Libraries report reflecting invoice payment authorization activity will be mailed starting December 6.

Billed entities for which invoices have been authorized for payment during the period July 1 through November 30, 2000 will receive the report. It will identify the amounts authorized for payment during this five-month period, whether for Funding Year 3, or Year 2, or in some cases, Year 1. The report will cover payments authorized through Form 472 (the BEAR Form) and through Form 474, the Service Provider Invoice Form.

This report provides billed entities the opportunity to affirm that the payments authorized to vendors are consistent with the discounts or reimbursements such entities have received or can shortly expect. The report will be sent to the billed entity address as featured on Block 1 of the Form 471, and addressed to the person who signed the form.

In the future, this report will be produced and distributed each quarter, reflecting the payment authorization activity for the previous three months.