August 1998 Announcements

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

Sprint "Form 471 Worksheet" Is Example of Service Provider Action

Sprint Corporation recently informed its local (not long distance) telecommunications services customers of a special form it will require schools and libraries to complete in order to process their E-rate discounts. The form, which Sprint is calling a Form 471 Worksheet, is adapted from the SLC’s Optional Prediscount Cost Calculation Grid, and includes additional data Sprint has advised customers that it needs for its own billing procedures. Sprint has informed its customers that completion of this form is essential for both 1998 and 1999 discounts, and has promised assistance to any applicant who needs help completing the form.

The Sprint worksheet does not replace FCC Form 471 or any other required form. (Please keep in mind that the SLC’s Prediscount Cost Calculation Grid is OPTIONAL.) For Sprint customers, Sprint’s modified worksheet IS a substitute for the Optional Prediscount Cost Calculation Grid. When the application window opens for the next funding year, the SLC will accept the Sprint Form 471 Worksheet as a supplement to Sprint customers’ FCC Form 471 applications and as an attachment for Form 471, Block 5, Item 17 covering Sprint services.

In addition, the SLC’s own procedures (forthcoming soon) for applicant reimbursements in the 1998 program year will recommend, but not require, that applicants complete an Optional Prediscount Cost Calculation Grid to submit to their service providers. Sprint has noted that its customers should use Sprint’s Form 471 Worksheet for this purpose.

The SLC supports efforts by service providers to proactively plan for implementation of the E-rate, and we certainly encourage applicants to begin consulting with their service providers now so that their discounts will be implemented efficiently once the SLC issues funding commitments. In addition, we urge service providers to inform the SLC of any supplemental E-rate procedures and documents they develop, so that SLC can capably answer applicant questions that may arise. Finally, we ask service providers to be certain that their customer service and marketing staffs are prepared to help applicants complete any additional paperwork service providers may deem necessary for processing of discounts.

As summer winds down, the Schools and Libraries Corporation is working diligently toward completing the last stages of the E-rate application and funding process for this challenging first program year. What follows is a brief report on our progress to date as well as a "heads up" on next steps for applicants and service providers. For all who managed to squeeze in some well-deserved vacation time, welcome back—and for those whose summer included interaction with our staff on the application review and program planning fronts, many thanks for your cooperation and support.

Data Entry Virtually Complete
Data entry for the more than 30,000 Forms 471 we received within the window is nearing completion. Close to 90% of the applications have been entered into our data system—many after fairly extensive problem resolution with applicants. The remaining applications are in the final stages of problem resolution. If you have been contacted for additional information by our customer service staff in Iowa or Kansas, and have not yet responded, please do so immediately.

Program Integrity Process on Schedule
Following data entry, applications are subject to checks by our Program Integrity Assurance (PIA) team to be certain that FCC rules are being followed. These reviews are proceeding in a timely fashion, with approximately half of the reviews complete. While all applications are reviewed, not every application requires contact by our PIA staff. Our thanks to those applicants who have responded quickly and effectively to PIA requests.

Funding Commitment Letters
We are still aiming to issue funding commitment letters early this fall. Although developments over the past several months—particularly changes in the FCC rules of priority and the extensive review of our program controls—have slowed the process somewhat, we are determined to commit E-rate funds to eligible applicants for eligible services as quickly as possible.

Form 486
As you know, your next step after receiving your funding commitment is to submit a Form 486, which lets SLC know you have begun receiving services and that we can authorize payment to your vendors for those services. For existing services, you will need to submit your Form 486 within five days of funding commitment; for new services, the 486 is due within five days of start of services. You'll also use Form 486 to inform us that you are due a reimbursement for discounts on approved services for which you have already paid in full (see Reimbursements, below). The Form 486 is now being reviewed by the FCC. A final draft version of the form will be available for your information on the web site within the next several weeks.

Technology Plans
The Form 486 will ask you to certify that you have an approved technology plan and to name your technology plan approver. If you do not yet have an approved plan, you should make every effort to secure approval from your state education agency, your state library, or another third-party approver, such as a private school association, certified by the SLC. For more information about technology plan approval, please call the SLC Client Service Bureau at 888-203-8100.

Reimbursements
Like many applicants, you may be approved for discounts on services you are already receiving or have received and for which you have paid in full. The Universal Service Fund will work through your service providers to reimburse you for these discounts. To receive reimbursement, you will file a special Applicant Invoice to SLC; we will review and approve it for payment via your service provider in the form of a check or a credit. A draft of the Applicant Invoice will be available on the www.sl.universalservice.org Web Site within the next several weeks.

Vendor Invoicing
Once you have submitted your Form 486, vendors can begin invoicing SLC for your discounts. Vendors may submit invoices on paper or electronically. A draft of the Service Provider Invoice will also be available on the www.sl.universalservice.org Web Site within the next several weeks.

Program Year Two
We are still aiming to open the application window for the second program year this October. We are currently putting into place improvements suggested by applicants and service providers like you, to whom we are very grateful for thoughtful guidance and feedback.

SLC Staffing
As he announced last week, founding CEO Ira Fishman will step down as of August 28 for personal and family reasons. Chief Operating Officer Kate Moore will take over as acting CEO. The rest of the SLC staff will remain on hand to bring this first program year to a successful conclusion and ramp up for year two.

As we move ahead with processing Form 471 applications, the Schools and Libraries Corp. (SLC) will need to contact applicants over the coming weeks regarding their applications. If you will be away from your normal modes of contact during some or all of the summer, PLEASE use the new Summer Contact Information data base to let SLC know how to find you. (Applicants without Web access can call 888-203-8100 to report their summer contact information.)

Dear School, Library, and Telecommunications Leader:

On August 28, I will leave my position as CEO of the Schools and Libraries Corporation. Over the past five years, I have committed myself to helping create and launch the E-rate as well as a number of other public policy initiatives. Unfortunately, I no longer can fulfill both this commitment and my commitments to my wife and children. For too long, I have asked them to take a back seat.

It has been tremendously rewarding both professionally and personally to work with you. Together, we have persevered through thick and thin in this great venture to bring technology to all of our nation’s schools and libraries. You have been patient and willing to offer support, suggestions, constructive criticism, and assistance.

E-rate is one of the most challenging start-up operations one can imagine. Without your help, we would never have made it. I wish I could have done my job better so that you would have seen smoother, faster operations. But we have learned together, and I appreciate your teaching me.

As I leave, I can confidently tell you that virtually all of the pieces for this year and next year are in place. We still face challenges in finishing the processing of applications and in finalizing our computer systems. But together we have met every challenge to date, and we will meet these as well.

More importantly, I can tell you that the E-rate is being left in superior hands. Kate Moore, our Chief Operating Officer, will become Acting CEO. Over the past nine months, Kate has tackled all of the difficult operations issues and knows the E-rate inside-out. As the former Chief Financial Officer of the United Way of America, who arrived in the aftermath of its financial difficulties, she has the skills and vision to successfully carry out the E-rate mission. And, of course, Debra Kriete, Mickey Revenaugh, Tom Carroll, and their teams will continue to provide an unsurpassed level of support, service, and commitment. I know that all of you who have dealt with them share the firm conclusion that the SLC staff is an extraordinary group of people.

I will miss the E-rate, SLC, and you a great deal—more than I can ever come close to expressing. I hope that we will stay in touch. It has been an honor to serve you.

Sincerely,
Ira Fishman