News of the Week

NNote: A slightly longer version of this item was included in the E-rate News for the Week of 10/7. Because of the importance of these October deadlines, the key information is being repeated below.

October 28th and 29th are important filing deadlines. Most E-rate participants will be affected by at least one of these deadlines. To avoid losing funding that has already been awarded, please review the following deadlines carefully.

(1) The deadline for filing BEARs (Form 472s) for discount reimbursements is 120 days after the last day of receipt of service (or, in special circumstances, 120 days after a Form 486 Notification Letter is issued). For most applicants seeking reimbursements on FY 2001 recurring services (ending June 30, 2002), BEARs must be postmarked by October 28, 2002. Remember that BEAR forms must be acknowledged by the suppliers before they can be sent to the SLD, so do not wait until the last day to begin completing your forms.

If a SPIN change must be made before a BEAR can be filed, the change must also be made by October 28th (see SPIN change).

(2) The deadline for filing Form 486s, indicating receipt of services, is 120 days after either the date of the Funding Commitment Decision Letter ("FCDL") or the start of services, whichever is later. For FY 2002 awards, with services starting July 1, 2002, the following Form 486 deadlines are particularly critical:

Wave 14 Funding for FY 2002

Wave 14 of Funding Year 2002 will be released on Tuesday, October 22. Total funding in this Wave is approximately $11 million for 80 applications, the smallest wave to date. The cumulative total for FY 2002 is now $1.39 billion for over 26,800 applications.

Internal Connection funding is now being provided for applicants at the 90% discount rate. No Internal Connection funding is available below 80%. Internal Connection funding for discounts in the 80-89% range cannot yet be projected.

Online Form 486 Available on SLD Web Site

It is now possible to fill in and file a Form 486 online. This filing feature can be accessed in the Apply Online (see online applications) section of the SLD Web site. Please note the following:

(1) Unlike previous online forms, the screen format for the Form 486 looks exactly like the paper form (the September 2002 version with the scanning hash marks). We understand that similar changes will be made in the appearance of the online Form 470 and Form 471.

(2) Currently, there is no ability to save a partially completed online Form 486. Once you start, you must complete and submit it (or start anew).

(3) Letters typed directly onto the Form initially appear to disregard the scanning hash marks but, as soon as the Tab button is used to go to the next field, the characters are properly reoriented.

(4) If the Billed Entity Number is entered first, the system will pre-populate the entity name and address information. Similarly, entering the data for Columns (A) and (B) of Block 3 will pre-populate Columns (C) - (F). Changes can be made to the pre-populated fields, if necessary, but this saves a lot of typing.

(5) Once the Form is complete and submitted, the system assigns an Application Number, which should be recorded and saved. A copy of the completed Form 486 should also be printed at this stage for your files.

(6) An applicant, who has registered for electronic certification and who has received a PIN (see certifications), can certify the Form 486 online. If electronic certification (or "E-cert") is used, a Cert ID Number will be assigned and should also be recorded and saved.

(7) An applicant, who does not have a PIN, must sign a printed copy of Page 7 and mail it to the SLD at the address shown on that page. Although not stated in the instructions, it is best to assume that the mailed signature page must be postmarked by the Form 486 deadline discussed above.

Updated Eligible Services List Available from SLD

An updated version of the SLD's Eligible Service List is now available. Changes from last October's version are highlighted in bold type.

The biggest change is philosophical. The previous version included a designation for each entry in the ELIGIBILITY column indicating "Yes," No," or "Conditional." This year's designations are "Not Eligible" or blank. The significance of the blanks is that no service is considered fully eligible under all conditions. Services are eligible only if used for eligible purposes at eligible locations. These eligibility conditions are described on a service-by-service basis in the ELEMENT/DESCRIPTION column.

The following is a list of several important modifications or clarifications:

(1) A more complete description is provided of Basic Telephone Service. This definition is particularly important for applicants without approved technology plans who can only apply for discounts on "basic" telephone service.

(2) Voice or video over IP ("VoIP") is eligible if provided as a telecommunications service by a telecommunications carrier (specifically, not by an Internet service provider). Conversely, a wide area network ("WAN") service can be provided by an Internet service provider, but only to distribute Internet access services, not for other telecommunications services.

(3) Additional guidance is provided for bundled products and services that contain both eligible and ineligible components. In various cases, such bundled products can be considered completely ineligible, partially eligible, or fully eligible. For more information, see Cost Allocation Guide.

New Student Eligibility Survey Letter Available

By now, most schools participating in the National School Lunch Program ("NSLP") have begun reporting free and reduced-price lunch data for the new school year. With the Form 471 window set to open November 4th, this is a good time to check prospective discount rates for next year's applications. Since E-rate discounts can be based on the percentage of students eligible for reduced-price lunches, not on the percentage participating, it is often worth doing some extra work to determine student eligibility using alternative measures. For schools not participating in NSLP, alternative measures are the only way to document discount rates. The SLD's fact sheet on alternative discount mechanisms is available on their Web site.

One of the most important mechanisms that can be used is a student survey. An updated sample survey package, including a cover letter and a two-page questionnaire, is now available on the E-Rate Central Web site (see Tip 2 under Discount Rate Optimization in the Application Tips section). A Spanish-language version of this survey package will be available shortly.

CIPA Filtering Required for Administrative Areas

Several school applicants have recently reported being approached by Internet service providers offering to provide unfiltered Internet services to separate administrative areas and/or buildings. The schools are apparently being advised that, although such services would not eligible for E-rate discounts, the existence of these separate services would not jeopardize the school's other E-rate discounts covered by the Children's Internet Protection Act ("CIPA"). We do not agree.

For better or worse, neither the SLD nor the FCC has promulgated extensive regulations for CIPA compliance. Only broadest of guidelines have been provided (see CIPA Guidelines). Applicants are required to certify compliance with CIPA, but are effectively being told to interpret details of the Act themselves.

Although we have been informally advised by the SLD that filtering is required for all Internet-enabled computers, whether used by school administrators or students, the SLD's only written indication of this requirement in the CIPA reference material is the statement:

"A Technology Protection Measure is a specific technology that blocks or filters Internet access. It must protect against access by adults and minors to visual depictions that are obscene, child pornography, or - with respect to use of computers with Internet access by minors - harmful to minors. It may be disabled for adults engaged in bona fide research or other lawful purposes [emphasis added]."

This language strongly indicates that CIPA's filtering provision is not meant to apply solely to students, nor does it provide any hint that separate unfiltered Internet access for administrators is permissible. (It should be noted, however, there is no indication that filtering for adults must be as pervasive as for student if a school's filtering system supports different levels of protection.)