June 1999 Announcements

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

Year Two Funding Commitments and Beyond

Once again, the Schools and Libraries Division of USAC is gearing up to issue Funding Commitment Decisions Letters to its applicants. If you have applied for the second year of E-rate discounts, tune into the special SLD program available online via streaming video which focuses on the upoming funding commitments process. The webcast and guidance about the tools you need to access the program are available at http://www.doe.state.in.us/media/video/guide.html.

Learn when to expect your Funding Commitment Decisions Letter and the next steps you must take to take advantage of your discount.

The Program provides:

• A schedule of Year 2 Funding Commitment Decisions Letters;

• Step-by-step advice on how to file a clean Form 486;

• News and updates from Years 1 and 2

Did you get a Year One funding commitment for an internal connections project or other installation--but you need more time to complete the work?  In its Tenth Order on Reconsideration, the FCC established a "grace period" to allow you to use your Year One E-rate discounts for non-recurring costs through September 30, 1999.  (The deadline for using your Year One E-rate discounts on recurring costs, such as monthly telephone or Internet access service, is June 30, 1999.)

The grace period can be used only for costs listed as "one-time" on your Year One Form 471 (Block 5/Items 15-16, Column 8) and approved as such for funding.  These are known as non-recurring costs, and typically involve implementation of internal connections projects or installation of high-speed telecommunications lines, for example.  Services must be delivered by September 30, 1999.

If the customer pays the full amount of these services, a Billed Entity Applicant Reimbursement (BEAR) form should be used to request reimbursement.  It must be filed with the SLD by December 15, 1999.   Similarly, Service Providers who bill the discounted amount are urged to submit their invoices to the SLD by no later than December 15, 1999.

Those entities intending to use the grace period are urged to undertake immediately these steps:

1. Extend your contract(s) as soon as possible with the relevant service provider(s) through September 30, 1999, or whichever date earlier will allow you to complete your installation.

2. As soon as possible, file Form 486 listing the affected FRNs (only those with one-time, non-recurring costs) and providing the correct service start date and new contract expiration date.  Do note on Form 486 if you plan to use the BEAR Form for this service.

3. When SLD processes and approves your Form 486, we will notify your service provider(s), as per usual Form 486 notification procedures.

4. Be sure to complete all work by September 30, 1999.

If you have questions, please contact our toll-free help line at (888) 203-8100.

Please note that the call-in number for the weekly Wednesday Service Provider Call has changed to (847) 413-2931, passcode # 1390177.  

The SLD invites service providers and vendors to join this regularly scheduled conference call to learn about and discuss billing issues, invoicing procedures, and other important aspects of the E-Rate program. Participants may ask questions of SLD staff and and share solutions with each other. The call occurs each Wednesday from 1:00 p.m. to 3:00 p.m. Eastern Time.

The Schools and Libraries Division (SLD) will make funding commitments for Year Two discounts to applicants very soon. The funding Commitment Decisions Letters (FCDL) will be issued in waves each Friday and posted the following Monday on this Web Site throughout the summer until all letters are out. Service providers may begin providing discounted bills after funding commitments have been issued and after an applicant has filed a Form 486. The SLD will work with service providers and applicants regarding necessary reimbursements in cases where funding commitments arrive after the service start date. Watch our Web Site for more information soon.

The Schools and Libraries Division is now launching a new feature for the 1999-2000 program year: a Receipt Acknowledgement Letter for each Form 471 applicant, confirming that your application has been received and entered into our data system. The first of these letters is going out in the next few days.  Click here for more information about and samples of the Receipt Acknowledgement Letter.

Assuring effective stewardship of the E-rate by guarding against misuse or waste of E-rate funds is a priority shared by USAC, the Schools and Libraries Division, the FCC, applicants, service providers, and the public. To that end, the SLD is launching a Program Integrity Alert Hotline to formalize the confidential communications process that allows applicants, service providers, and others to alert us—anonymously, if desired—to instances where E-rate funds are being misapplied or where potential program rule violations may exist.

Each call to the Program Integrity Alert Hotline will be handled by specially trained staff, and each tip will be investigated carefully. If our investigation clearly confirms a program rule violation that is indicative of waste, fraud, or abuse, we will take immediate corrective steps, including but not limited to rescinding funding commitments and returning funds to the program. Other steps may be undertaken such as referral of matters to criminal and other law enforcement agencies.

Because the SLD will treat each call to the Program Integrity Alert Hotline as a serious and urgent matter requiring our attention, we caution you to use the hotline ONLY to report potential instances of waste, fraud, or abuse of program rules. Calls or questions that can properly be handled by our regular toll-free help line staff should NOT be placed to this hotline number and will not be handled there.

Here’s how the Program Integrity Alert hotline will work:

1. If you want to report what you believe is a misuse of program funds or a violation of program rules, call 888-203-8100 and tell the operator, "This is a Code Nine call."

2. You will be connected immediately to specially trained staff who will record your report. This staff person will ask you a series of questions in order to obtain as much information about the situation as possible, so the investigation can proceed efficiently. Your call will not be recorded, but the hotline staff person will take notes.

3. If you choose to remain anonymous, you may do so. If you opt to identify yourself so that our investigators can contact you for additional information, we will make every effort to maintain your confidentiality as the investigation proceeds.

4. After your call is complete, the report of your call will be turned over to specially trained Program Integrity Assurance (PIA) staff for assessment and investigation.

5. SLD management will make the final determination of action needed on each case, in consultation with counsel and the Federal Communications Commission as appropriate.

The Program Integrity Alert hotline for reporting potential waste, fraud, and abuse of the E-rate program will be available beginning the first week of June, 1999.