Introduction
The E-Rate Central News for the Week is prepared by E-Rate Central. E-Rate Central specializes in providing consulting, compliance, and forms processing services to E-rate applicants. To learn more about our services, please contact us by phone (516) 801-7804 or by e-mail. Additional E-rate information is located on the E-Rate Central Web site.
Wave 22 Funding for FY 2002
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Wave 22 of Funding Year 2002 will be released on Monday, February 10, 2003. Total funding in this Wave is approximately $37 million for 120 applications. The cumulative total for FY 2002 is now $1.75 billion for over 28,380 applications.
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| Internal Connection funding is still being provided only for applicants at the 90% discount rate. No Internal Connection funding is available below 80%. The availability of Internal Connection funding for applicants receiving discounts in the 80-89% range cannot yet be projected, but requests for funding in this range are currently being reviewed by the SLD.
As reported two weeks ago, the SLD has established an internal goal of completing the review of all these remaining FY 2002 applications by March 10. The goal, however, was set with a major disclaimer - it applies only to applications under the SLD's control. We believe this excludes applications worth at least $400 million involving ongoing investigations of fraud or other major program violations. Additionally, since the validity of these funding requests cannot be determined at this time, funding decisions affecting applicants in the 80-89% discount rate band may also be delayed.
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As one result of continued concern with program rule violations, the SLD has updated its Web site notice on an applicant's obligation to the pay non-discount portion of all E-rate services (see SLD Notice). The SLD also directed applicants to the related Free Services Advisory posted in the Reference Section (see Free Services Advisory).
Program rules require an applicant to certify that it has secured access to the funds needed to pay whatever portion of the service cost that is not covered by E-rate discounts. This amount cannot be forgiven or otherwise contributed by the supplier, nor can it be offset with "free" services. Specifically, the SLD reminded applicants that:
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| "Secured access" means that you can show that these funds are, or will be, part of your annual budget; or, if you are obtaining the funds from an outside source, that these funds have been promised to you. If you obtain these funds from an outside source, the funds must not come directly or indirectly from your service provider(s). |
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Hopefully, most applicants successfully met the February 6th deadline for submitting Form 471 applications for FY 2003. Understandably, at this stage, many don't want to hear about other upcoming E-rate deadlines
It is important to remember, however, that applicants funded in recent FY 2002 waves must file their Form 486s within 120 days of the start of service (normally July 1, 2002) or the date of the Funding Commitment Decision Letter ("FCDL"), whichever is later. The deadlines for applicants funded in Waves 1-13 have already passed. Applicants funded in subsequent waves, have later Form 486 deadlines. Here are the next few:
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FCDL Date |
486 Deadline |
| Wave 14 |
10/21/02 |
02/18/03 |
| Wave 15 |
11/04/02 |
03/04/03 |
| Wave 16 |
11/18/02 |
03/18/03 |
| Wave 17 |
12/03/02 |
04/02/03 |
| Wave 18 |
12/17/02 |
04/15/03 |
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| The penalty for missing a Form 486 deadline is a reduction in funding. If, for example, an applicant funded in Wave 6 does not file the associated Form 486 until March 1st, the SLD will adjust the start date to 120 days prior to the postmark date (i.e., to November 1, 2002) and reduce the funding accordingly (i.e., to 8/12ths of the originally approved amount). |