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February 17, 2003

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.

FY 2002 Wave 23 Delayed One Week

Wave 23 of Funding Year 2002, which would normally have been released on Monday, February 24, will be delayed a week until March 3. The delay is designed to let applicants, who will be funded for non-recurring services such as equipment installations, take advantage of a FCC rule that extends the deadline for using these services until September 30, 2004, rather than September 30, 2003. The FCC rule provides an automatic one-year extension for any services funded after March 1 of any given funding year.

Applicants funded before March 1 (i.e., in Waves 1-22) may also qualify for extended non-recurring service deadlines, but only under more restricted circumstances (see Service Delivery Deadlines).

In announcing the delay, the SLD indicated that it would return to the normal wave schedule by issuing Wave 24 a week later on March 10. March 10th is important because the SLD's goal is to complete the review of FY 2002 applications by that date - a goal that does NOT apply to applications that are subject to the SLD's selective review process or that have been referred to other agencies for investigation.

FY 2003 Form 471 Receipt Acknowledgment Letters

After a Form 471 has been data entered, either online by the applicant or in Kansas by the SLD, and has been properly certified, a Form 471 Receipt Acknowledgment Letter ("RAL") is sent to the applicant for confirmation. An example of a RAL is (see sample RAL). The letter itself contains instructions on reviewing and correcting RAL information, but several points should be noted.

(1) The RAL summarizes the key data recorded for each funding request ("FRN") on the associated Form 471. The data should be reviewed carefully to make sure that errors weren't introduced by either the applicant or, in the case of mailed applications, by the SLD data entry staff. The SLD is particularly concerned this year about errors that seemingly overstate funding requests by orders of magnitude (usually attributable to misplaced decimal points).

(2) The RAL correction process permits only certain types of changes to be made (contact information, SPINs, FRN reductions or cancellations, etc.). FRN amounts can be reduced, but not increased. Any corrections made at this stage in the processing will save considerable effort later on.

(3) A three-week deadline for corrections is noted in the RAL, but this is only a guideline. The SLD does not actually put applications on hold for three weeks before sending them on for PIA review. Thus, the sooner a correction is received by the SLD, the better.

(4) Special care must be taken if any funding requests are missing. A missing FRN means either that the request was rejected outright or that it was skipped by the SLD during data entry. If an FRN was rejected, the applicant should receive an explanation in the letter. Appeals of FRN rejections must be made within the standard 60-day window. If a FRN is missing from the RAL, the applicant should write the SLD. In this case, we strongly recommend that the inquiry be structured as an appeal and be submitted within 60 days of the RAL date.

Upcoming E-rate Deadlines

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 1-14 have already passed. Applicants funded in subsequent waves, have later Form 486 deadlines. Here are the next few:

 

FCDL Date 486 Deadline
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
Wave 19 12/30/02 04/29/03
Wave 20 01/13/02 05/13/03
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).