USAC’s Schools and Libraries Division hosts monthly conference calls, providing information and guidance for service providers participating in the E-rate program. The monthly call for June was held on the 1st. Here is a brief synopsis of the call.

Note: The below information is not the official minutes from the call, but simply notes from a call participant. The official minutes for the June 1st call, as well as call minutes from previous months, can be found here.

Funding Waves

Since the April call, USAC approved six funding waves for FY09 and FY10. For FY2009, USAC is denying Priority 2 funding requests at 76% and below and funding approved requests at 77% and above. The funding threshold is likely to remain at this level for the duration of the FY09 requests.

At the time of the call, USAC issued FY09 wave 86 on 05/29 for $2.7M.

For Funding Year 2010, USAC is currently denying Priority 2 funding requests at 79% and below and approving requests at 81% and above. There has still not been a decision for P2 requests at the 80% level.

For Funding Year 2010, USAC issued waves 50 on 05/16 for $22M, and 51 on 06/01 for $12.9M.

FY2011 Forms 471 Moving to “In-Window”

Applicants that submitted the Forms 471 on or before March 24, 11:59 EDT, but did not certify the form were granted an extension to certify the form. The forms that were certified between the close of the window and May 17, 11:59 EDT, will be changed to certified in-window.

June Webinar on Red Light

USAC will host a webinar regarding the “Red Light” system in June. Applicants and service providers should continue to check the USAC website for the exact time and date.

Stakeholders can currently review its status by going to http://www.fcc.gov/redlight and entering their FCC Registration Number and PIN.

FY2011 Application Review and Funding Commitments

USAC is currently working with the FCC to establish a start date for funding waves for FY2011.

Other

Service Providers can receive electronic notifications on six correspondence pieces from USAC. These items are:

  • Form 471 Receipt Acknowledgement Letter
  • Funding Commitment Decision Letter (FCDL)
  • Revised Funding Commitment Decision Letter (RFCDL)
  • Form 486 Notification
  • Form 500 Notification
  • Invoice Status Reports

To opt-in to the electronic notifications, or for questions regarding the notifications, service providers should call the Client Service Bureau at 1-888-203-8100

There will also be three new fields on the FCDL and RFCDL containing consultant information if applicable.

Question and Answer

Q. Does advertising in yearbooks, posters, banners, giving to project graduation, to Schools in small rural areas who participate in E-Rate violate the gift giving rule or is this a separate issue?

A. Service Providers can participate in these type of fundraising activities as long as they do not interfere with the competitive bidding process.

Q. When working with an applicant on a project that includes multiple vendors (for example Priority 1 and Priority 2 services or even more than one Priority 2 vendors) is it okay for the applicant to file separate [471’s]for each service provider?

A. Applicants need to submit an FRN for each separate SPIN referenced. USAC will only pay on the invoices associated with SPINs listed in the individual FRNs.

Q. Can a Service Provider at the request of a Applicant invoice the non-discounted portion prior to the start date as listed on the contract? For example, service start date is July 1st, Applicant has requested an invoice dated June 1st as they wish to make payment in June.

A. Yes, this is permissible, but invoices must be dated within the funding year for recurring services.

Q. Does the date of the Service Provider invoice and the date of Payment by the Applicant effect eligibility of the application?

A. While it does not affect the eligibility of the application, applicants must pay the service provider bill within 90 days of issuance.

Q. Can an Applicant on a multi-year contract pay and be invoiced by the Service Provider their multi-year non-discounted portion in advance of the service start date?

A. This isn’t against the rules, but would be a risky decision for applicants.

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Let Funds For Learning be your E-rate guide in 2011. Continue to check www.fundsforlearning.com for the latest updates and E-rate news.

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