Processing of Funding Requests Containing Ineligible Products and Services (The “30% Rule”)

[This document makes references to specific sections of FCC Form 471, which is posted in the SL Forms area of this web site in PDF format.]

Applicants should be sure that they include only eligible products and services in their Form 471 Block 5 funding requests. If services to be delivered include both eligible and ineligible components, applicants must subtract the ineligible costs using Item 23B and/or Item 23G of their Block 5 funding requests.

The SLD’s Program Integrity Assurance (PIA) Team reviews all Forms 471 to ensure that funds are being requested only for eligible products and services. If an applicant includes ineligible products and services in a Block 5 funding request, the entire request may be jeopardized.

The SLD has developed the “30% Rule” to more efficiently process the large number of applications under the Schools and Libraries Support Mechanism, especially because demand for funding generally exceeds the funding available.

If 30% or more of the dollar amount of the request in Form 471 Block 5 Item 23K is for ineligible services (including services for ineligible entities or uses), the PIA team will deny the entire Block 5 funding request, even if eligible components are part of the request.

If less than 30% of the dollar amount of the request in Form 471 Block 5 Item 23K is for ineligible services, the PIA team will reduce the request by the cost of the ineligible components, and the Funding Commitment Decision Letter will cite the ineligible services for which funds were not committed. If the request is reduced, applicants and service providers must ensure that the SLD is not invoiced for the ineligible items.

For assistance in determining the eligibility of products and services, please refer to the Eligible Services Framework and the Eligible Services List posted in the Reference Area of this web site.

Content Last Modified: January 8, 2003