July 2001 Announcements

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

SLD has posted a corrected version of the FCC Form 486 Instructions on this web site.

On page 10 of the earlier version, paragraph two under Situation #5 stated:

The Billed Entity must complete Form 486, including the certification(s) in Item (11), and postmark the Form 486 no later than 120 days after the Service Start Date featured on the Form 486.

The paragraph has been corrected and it now reads:

The Billed Entity must complete Form 486, including the certification(s) in Item (11), and postmark the Form 486 no later than 120 days after the date of the FCDL.

The SL Forms section of this web site features the corrected version of the Instructions. Use this corrected document for assistance in completing your Form 486.

SLD has posted a set of Frequently Asked Questions (FAQs) relating to the implementation of the Children's Internet Protection Act (CIPA) as it affects the application process for E-rate discounts. These FAQs also include information about the new Form 486. This document is posted in the Reference Area of this web site.

View the FAQs relating to CIPA and Form 486.

During the first few waves in Funding Year 4, applicants and service providers may see the following message on Funding Commitment Decision Letters (FCDLs) under "Funding Commitment Decision Explanation" for some Internal Connections Funding Requests:

"Funding cap will not provide for Internal Connections less than 90% discount to be funded. Please see www.sl.universalservice.org for further details."

This message is currently incorrect. As indicated in an earlier notice on this web site, SLD has not yet determined whether funds will be available for requests for Internal Connections with approved discount percentages between 85% and 89%. No denials for such requests will be issued in the first wave(s) of Year 4 commitments. At this time SLD has, however, determined that funds will NOT be available for requests for Internal Connections with approved discount percentages below 84%.

As more applications complete the review process, we may determine that funds will not be sufficient for Internal Connections requests with approved discount percentages below 90%. At that time, we would issue such denials and post a notice to that effect on the web site.

A new version of FCC Form 486, Receipt of Service Confirmation Form, is now available in the Schools and Libraries Forms section of this web site in both a Word version and a PDF fill-in print-out version. This new version of Form 486, dated July 2001, MUST be used to inform SLD that services have begun to be delivered or, if the applicant is filing the Form 486 early, that the applicant has confirmed that services will be delivered by the date specified for early filers on the Form 486.

Certifications for the purpose of the Children’s Internet Protection Act (CIPA) are also featured on this version of the Form 486. Starting with Funding Year 4, each authority responsible for the administration of a school or library (the Administrative Authority) must certify the status of its compliance with CIPA. Certifications for schools for the purpose of CIPA may be made by the relevant school, school board, local educational agency, or other authority with responsibility for administration of the school. Certifications for libraries for the purpose of CIPA may be made by the relevant library, library board, or other authority with responsibility for administration of the library.

There are firm deadlines for submission of Form 486 beginning with Funding Year 4. In order to meet those deadlines, Billed Entities who must collect Forms 479, Certification by Administrative Authority to Billed Entity of Compliance with the Children’s Internet Protection Act, from Administrative Authorities they represent will need to do so to meet the Form 486 deadlines.

Click here for more information on the Children’s Internet Protection Act and the specific certification relating to "undertaking actions."

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Certain recipients of E-rate funding have received or may receive extensions of the implementation deadline for delivery and installation of non-recurring services (that is, FRNs that have one-time charges). Such extensions can occur for various reasons, including:

1. Funding Commitment Decision Letters (FCDLs) are issued by SLD on or after March 1 of the Funding Year for which discounts are authorized;
2. Service Provider change authorizations or service substitution authorizations are approved by SLD on or after March 1 of the Funding Year for which discounts are authorized;
3. The Service Provider is unable to complete implementation for reasons beyond the Service Provider’s control;
4. The Service Provider has been unwilling to complete installation because SLD withheld payment for those services on a properly-submitted invoice for more than 60 days after submission of the invoice.

Applicants can now use the newly-posted FRN Extension Table to determine the extended deadline for the implementation of non-recurring services and the last date for receipt by SLD of an invoice [BEAR Form (Form 472) or Service Provider Invoice Form (Form 474)] for those services. Applicants whose deadlines have been extended can locate their Funding Request Number(s) in the table and then look to the right of the FRN to find the implementation deadline for delivery and installation of non-recurring services and the last date for receipt by SLD of an invoice for those services.

If you believe that the deadlines listed for one or more of your FRNs are incorrect, or that one or more of your FRNs should appear on the table but are missing, you should file an appeal using the Appeals Procedure posted in the Reference Area of this web site.

In addition to the information required in the Appeals Procedure, your appeal letter should also include the following information:

In addition to FRNs for non-recurring services, the table features some FRNs that do not have one-time charges. Such FRNs are shown on the table if the FCDL was issued late and the applicant or Service Provider must have additional time to submit invoices. Recurring services MUST be delivered during the 12-month (July 1 – June 30) Funding Year, so the entry for such FRNs in the column headed "Last Allowable Date for Delivery and Installation for Non-Recurring Services" will be June 30 of the relevant Funding Year (or it may be blank).

Note that a valid contract is still required for services implemented under the extended deadline. If implementation will not occur until after the Contract Expiration Date on the relevant Form 471, applicants must first extend the contract and then notify SLD using a Form 500 before invoices can be processed.

FRNs appear on the table during the period before the last allowable date for SLD to receive an invoice and for 30 days after that date, at which point they are deleted.

Click here to view the FRN Extension Table. You may also access the table by going to the "Apply Online & View Forms" section of this web site and clicking on the button marked "FRN Extension Status" under the "Utilities" header.

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FCC Form 479, Certification by Administrative Authority to Billed Entity of Compliance with the Children's Internet Protection Act, is now available in the Schools and Libraries Forms section of this web site in both a Word version and a PDF fill-in print-out version.

Form 479 will be used by Administrative Authorities who are not Billed Entities. It is not required for Funding Years prior to Funding Year 4 (the Funding Year beginning July 1, 2001). Form 479 is submitted to your Billed Entity, NOT to the SLD.

Starting with Funding Year 4, each Administrative Authority must certify the status of its compliance with CIPA. Certifications for schools for the purpose of CIPA may be made by the relevant school, school board, local educational agency, or other authority with responsibility for administration of the school. Certifications for libraries for the purpose of CIPA may be made by the relevant library, library board, or other authority with responsibility for administration of the library.

• If the Administrative Authority is also the Billed Entity, the Administrative Authority certifies on the Form 486
• If the Administrative Authority is not the Billed Entity, the Administrative Authority must complete Form 479 and submit its Form 479 to the Billed Entity. The Billed Entity then certifies on Form 486 that it has collected duly completed and signed Form(s) 479. The Administrative Authority does not need to complete, and the Billed Entity does not need to collect, Forms 479 when the Billed Entity applied for Telecommunications Services only.
• Starting in Funding Year 5 (the Funding Year beginning July 1, 2002), Form 479 may also be used to provide notification to the Billed Entity of a request for waiver by the Administrative Authority if the prescribed criteria for waiver are met

There are firm deadlines for submission of Form 486 beginning with Funding Year 4. In order to meet those deadlines, Billed Entities who must collect Forms 479 will need to do so in advance of the Form 486 deadlines.

Click here for more information on the Children's Internet Protection Act and the specific certification relating to "undertaking actions."

Click Here to access Form 479

The FCC Report and Order on deadline extensions and funding priorities summarized in the posting on this web site dated 7/2/01 is available online.

Click here to view the Order in Text format.

Click here to view the Order in Word format.

On June 29, 2001, the Federal Communications Commission (FCC) released a Report and Order (FCC 01-195). Under this Order, the FCC’s rules of priority for allocating discounts on requests for Internal Connections in Funding Year 4 will not be revised.

In addition, the deadline for the implementation of non-recurring services under the schools and libraries universal service support mechanism is extended to September 30 following the June 30 close of the Funding Year. This rule change affects Funding Year 4 and later Funding Years. Further, the Order provides for an additional extension under certain circumstances.

SLD will provide a link to this Order from a subsequent "What’s New!" posting when the Order becomes available on the FCC web site.

Following is a summary of the two areas covered by the Order:

Funding priority for Internal Connections in Funding Year 4

The Commission has decided NOT to revise the current rules of priority allocations. That means that funds are first allocated to approved requests for Telecommunications Services and Internet Access and, if funds remain, to those approved Funding Request Numbers (FRNs) for Internal Connections that qualify for a 90% discount. If funds remain after funding all approved Internal Connections FRNs at 90%, Internal Connections requests at 89% are funded, and on downward through the discount percentages. An analysis of the priority allocation options that SLD earlier posted on its web site suggested that, given demand, funds in Year 4 will be sufficient for all approved FRNs for Telecommunications Services and Internet Access but may not be sufficient for all approved requests for Internal Connections at 90%. If that ultimately is the case, commitments would be made on 90% Internal Connections FRNs based on a prorated share of the total discount request.

SLD will begin Year 4 funding commitments as soon as possible. It will take some time to determine exactly how much of the approved requests for Internal Connections will be able to be funded. We will let you know as soon as we know when Year 4 commitments will begin to flow.

Extension of deadline for non-recurring services

The Report and Order also provides for a permanent extension of the Funding Year for the implementation of non-recurring services (in all service categories). The new rules are: recurring services must be delivered in the July 1 - June 30 time period; non-recurring services (FRNs with a one-time cost component) must be delivered and installed in the period July 1 through September 30 of the following year. (For example, for Year 4, recurring services must be delivered between July 1, 2001 and June 30, 2002; non-recurring services must be delivered and installed between July 1, 2001 and September 30, 2002.)

Contracts for non-recurring services may be voluntarily extended to coincide with the appropriate deadline for implementation. However, other contractual provisions may not be extended beyond the dates established by the FCC's rules without complying with the competitive bidding process. The FCC does not increase the amount recipients receive; the Order merely allows them additional time in which to complete the receipt of their non-recurring services.

The FCC also created four categories of waivers that would allow the applicant further time to implement non-recurring services. The criteria for those categories are:

1. The Funding Commitment Decision Letter is issued by the SLD on or after March 1 of the Funding Year for which discounts are authorized;

2. A Service Provider change authorization or service substitution authorization from the SLD is received on or after March 1 of the Funding Year for which discounts are authorized;

3. The Service Provider is unable to complete implementation for reasons beyond the Service Provider’s control; or

4. The Service Provider is unwilling to complete installation because funding disbursements are delayed while SLD investigates their application for program compliance.

SLD will consider whether criteria (1) and (2) have been satisfied and adjust the deadline accordingly. Recipients of non-recurring services who wish to satisfy criterion (3) must submit documentation to the SLD on or before the September 30 following the close of the Funding Year. Recipients of service who meet criterion (4) must certify to the SLD on or before September 30 following the close of the Funding Year that their Service Provider was unwilling to deliver or install non-recurring services before the expiration of the deadline because SLD had withheld payment for those services on a properly-submitted invoice for more than 60 days after the submission of the invoice.

Note that this Order extends the deadline for delivery and installation of non-recurring services for Year 2 out-of-window applications to September 30, 2002.