Applicant HelpCenter

30% Rule

Applicants can only request eligible services or products or their applications will be reduced by the ineligible portions.  However, if 30% or more of an FRN is for an ineligible service or product the entire funding request will get denied.  It is important to carefully review funding requests for ineligible services so they do not fall subject to this regulation.

ACD - Allowable Contract Date

The Allowable Contract Date is the earliest date on which an applicant can select and enter into a contract for services pursuant to the posting of a Form 470. The Allowable Contract Date is assigned by the SLD once the form is posted to its website and marks the end of the mandatory 28-day posting period.

Appeal

A decision made by USAC can be appealed to request further review of the decision or its surrounding circumstances. Appeals for procedural errors made by USAC can be first made to USAC and then escalated to the FCC if the applicant is not satisfied with the decision on appeal. Appeals in which a waiver of established E-rate rules is requested can be made directly to the FCC.

BEAR - Billed Entity Applicant Reimbursement Form

See Form 472.

BEN - Billed Entity Number

The Billed Entity Number is a unique number assigned to each applicant organization that pays bills and invoices to the service provider. An Entity Number is assigned to each eligible location and Non-Instructional Facility (NIF) within the organization.

CAD - Contract Award Date

The date the contract between the applicant and service provider is fully executed. If both the service provider and applicant date the contract, the latter of the two dates should be indicated on the Form 471.

CAL - Commitment Adjustment Letter

A CAL is issued to notify the applicant and service provider that a commitment adjustment (COMAD) has been made.

CED - Contract Expiration Date

The date the contract between the applicant and service provider expires. In the event of a contract that features renewals or extensions, the current expiration date of the contract should be indicated on the Form 471, not the last possible expiration date of the contract.

CIPA - Children's Internet Protection Act

CIPA is the law that mandates Internet Safety policy and filtering requirements for applicants. Applicants that receive E-rate discounts for services other than Basic Telephone Service must comply with the law's requirements.

COMAD - Commitment Adjustment

A COMAD is a correction to a funding commitment made by USAC in which the amount of funding committed is being reduced. This can occur in the event of an error on the part of USAC is discovered, or if a commitment was made to an applicant that was based on inaccurate information. In instances where funding has been disbursed on a funding commitment, and some or all of that funding must be recovered, a Demand Letter is issued outlining the amount of funding that must be returned to the program.

CSB - Client Service Bureau

The CSB is a department within the SLD that assists E-rate stakeholders with problems or questions. The telephone number to reach the CSB is 1-888-203-8100.

ESL - Eligible Services List

The ESL is a document produced by USAC and approved by the FCC that outlines the types of services and products that are eligible for E-rate discounts in the indicated Funding Year. 

FCC - Federal Communications Commission

The Federal Communications Commission is a US government agency that is responsible for many aspects affecting daily life of US citizens. It was established by the Communications Act of 1934 and is responsible for regulating interstate and international communications by radio, television, wire, satellite, and cable. The FCC's jurisdiction also includes oversight of the E-rate program.

The FCC establishes the rules and policies of the program. These are published in the Code of Federal Regulations (or CFR) and witihin various Orders issued by the FCC.

FCDL - Funding Commitment Decision Letter

A letter issued to the applicant by the E-rate program administrator indicating its decision about the applicant's Form 471 Discount Funding Requests.

Form 470

Description of Services Requested and Certification Form

A Form 470 is an applicant form that identifies the "Description of Services Requested and Certification Form" and must be filed to seek competitive bids for products and services for E-Rate discounts. The 470 Form may be filed at any time during the year and must be posted on the SLD web site for at least 28 days prior to filing a Form 471.  New certification language states that applicants will certify that "support under this support mechanism is conditional upon the schools and libraries securing access to all of the resources, including computers, training, software, maintenance, internal connections, and electrical connections necessary to use the services purchased effectively". In addition, the applicant certifies that "all bids submitted will be carefully considered and the bid selected will be for the most cost-effective service or equipment offering, with price being the primary factor, and will be the most cost-effective means of meeting educational needs and technology plan goals."

Form 471

Services Ordered and Certification Form 

A Form 471, or the "Services Ordered and Certification Form," must be filed by schools, libraries or their consortia to request discounts on eligible services. The Form 471 must be filed after a Form 470 has been posted on the SLD website for at least 28 days and a contract with a service provider has been signed. 

Form 472 - Billed Entity Applicant Reimbursement Form

The Form 472, or Billed Entity Applicant Reimbursement Form, is completed by E-rate applicants to request reimbursement of approved, eligible expenses paid by the applicant. The service provider must also sign the form to indicate that it has provided, billed, and was paid by the applicant for approved, eligible services.

Form 486

Receipt of Service Confirmation Form

The main purpose of the Form 486 is to notify USAC that services have begun on an approved funding commitment. The form is also where an applicant makes certifications related to their CIPA compliance and technology plan approval.

A Form 486 is an applicant form that cannot be filed until receipt of a Funding Commitment Decision Letter from the SLD.  The SLD cannot process a payment related to a Funding Request Number (FRN) unless a properly completed Form 486 has been submitted by the applicant and processed by the SLD for that FRN. 

A Form 486 must be postmarked within 120 days after services have started or 120 days of the Funding Commitment Decision Letter, whichever is later. If the Form 486 is delayed, it may jeopardize some of the applicant’s approved discounts. 

Form 500

Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation

A Form 500 is filed by an applicant if it wants to do any of the following:

• Adjust the Funding Year service start date reported on a previously filed Form 486
• Adjust the Contract Expiration Date listed on the Form 471 application for the funding year. (This is often necessary when the applicant qualifies for additional time in which to complete a project because of a delayed funding commitment letter or a successful appeal.)
• To cancel a Funding Request Number (FRN)
• To reduce a Funding Request Number (FRN)

FRN - Funding Request Number

The Funding Request Number is a number assigned to each request for funding made by applicants. This identifier is unique to all other funding requests and is used to track the funding request on all E-rate forms and correspondence. A funding request is also commonly called an FRN.

GAO - Government Accountability Office

The U.S. Government Accountability Office (GAO) is known as "the investigative arm of Congress" and "the congressional watchdog." GAO supports the Congress in meeting its constitutional responsibilities and helps improve the performance and accountability of the federal government for the benefit of the American people.

LOA - Letter of Agency

A Letter of Agency authorizes a non-school employee or official to represent the applicant organization. This authorization is generally for either a Consultant to file forms or communicate with the SLD on the applicant's behalf. It can also be an authorization for a consortium leader to apply for E-rate fuding on behalf of its memebers.

LOI - Letter of Intent

A document sometimes generated by an applicant to signify its intent to award a contract with a selected service provider, pending School Board approval.

NOI - Notice of Inquiry

A public notice issued by the FCC soliciting comments on potential program changes.

OIG - Office of Inspector General

The Office of Inspector General is a group within the FCC that is responsible for overseeing audits and investigations of E-rate applicants.

OMB - Office of Management and Budget

The OMB is a component of the Executive Office of the President of The United States and provides approval of the forms used in the E-rate program.

RIDF - Return of Improperly Disbursed Funds

A Recovery of Improperly Disbursed Funds is an attempt by USAC to collect E-rate discounts that were disbursed in error.

SED - Service End Date

The date on which services will end for a funding commitment. A Service End Date is indicated on the Form 471 where the applicant is receiving services on a month-to-month or tarriffed basis and does not have a contract that covers the service.

Selective Review

A Selective Review is an examination of an Applicant's activities leading up to the submission of their Form 471 applications. This includes Technology Planning, Form 470/Competitive Bidding Process, Service Provider Selection, Contracting, Discount Rate Calculation, Budgeting, and Funding Requests. Not all applicants undergo a Selective Review each year.

SLD - Schools and Libraries Division

The Schools and Libraries Division is a part of USAC that is responsible for the day-to-day administration of the E-rate program.

USAC and the SLD are authorized to establish procedures to implement the rules and policies enacted by the FCC and the Congress. Each year USAC sends a compendium of these procedures to the FCC for approval.

SPAC - Service Provider Annual Certification

Each service provider that wishes to participate in the E-rate program must complete the Form 473 - Service Provider Annual Certification Form. On this form the service provider makes various certifications as to its commitment to comply with E-rate rules and regulations that apply to service providers. This form must be completed and on file with the SLD before any disbursements will be authorized for Funding Commitments featuring that service provider.

SPI - Service Provider Invoice

See Form 474.

SPIN - Service Provider Identification Number

A unique identifier assigned to any service provider that wishes to provide services for discounts to E-rate applicants. The service provider's name and SPIN appear together on all forms and letters submitted to the program administrator to ensure that the correct service provider is referenced.

SRIR - Selective Review Information Request

A Selective Review Information Request (SRIR) is the request sent to applicants when targeted for Selective Review. See Selective Review.

SSD - Service Start Date

The date on which approved E-rate services will begin or have begun for a Funding Commitment.

Telecommunications Act of 1996

The Telecommunications Act of 1996 directed the FCC to "take the steps necessary to establish support mechanisms to ensure delivery of affordable telecommunications service to all Americans, including … schools and libraries…" This laid the foundation for the creation of the E-rate program.

Two-in-Five Rule

* Applies to the Internal Connections category only *

The Two-in-Five Rule states that an entity can only apply for and receive E-rate funding for internal connections two out of every five funding years. This rule does not include any priority one services (telecommunications and internet access) or any basic maintenance funding requests. The rule was initiated in Funding Year 2005 and applies to any funding year proceeding.

Entities applying for internal connections will need to carefully plan ahead regarding future internal connections projects. For any internal connections projects planned to be completed throughout a period of several funding years, an entity may want to combine the projects into one funding year’s requests, in order to avoid missing out on any E-rate funding for those projects.

Also, it is important to be specific when filing the E-rate application form 471. If an approved funding request for internal connections is cancelled (via Form 500),without any products/services ever being delivered, then that request will not count as one of the two years for the site or sites included in that particular funding request. Because of this option to cancel, it is in the best interest of the applicant to break out all internal connection funding requests by site on their form 471 application. This will allow for an applicant to cancel an internal connections project at a specific site if needed. (Also, note that if a funding request is denied, then the sites associated with this request will not be docked for using one of their two out of five years).

Because of the Two-in-Five Rule, adjustments may have to be made by applicants looking to apply for internal connections each year, but this rule may also allow for additional funding to become available for internal connection requests. With this rule in place, it is likely to see less funds for internal connections requested in future funding years. This will possibly allow future discount rates, at which USAC funds internal connections, to drop lower than the average for a funding year. In turn, this may allow entities, which have not been able to receive internal connections because of a lower discount rate, to obtain funding for internal connections. 

The Two-in-Five Rule is also known as the "Two out of Five Rule" or the "2/5 Rule"

USAC - Universal Service Administrative Company

 The Universal Service Administrative Company is a non-for-profit business entity that administers the Universal Service Fund programs. The E-rate program is among these.