News of the Week

Funding Status

Wave 18 for FY 2012 will be released on Tuesday, November 13, 2012. Priority 2 funding is being provided at 90%, and is being denied at 89% and below. Cumulative funding for FY 2012 is $1.46 billion.

Wave 69 for FY 2011 will be released on Wednesday, November 14, 2012. Priority 2 requests are being funded at 88% and above, and denied at 87% and below. Cumulative funding for FY 2011 is $2.43 billion.

Wave 103 for FY 2010 will be released on Thursday, November 15, 2012. Priority 2 requests are being funded at all discount levels. Cumulative funding for FY 2010 is $3.04 billion.

SLD Fall Training – Myths and Misconceptions

The SLD's presentation on Myths and Misconceptions Debunked during its fall training focuses on common misunderstandings concerning E-rate rules and requirements. Here's a simple true/false quiz to test your understanding:

Please circle "T" for true or "F" for false, then check your answers at the end.
T  F      An applicant needs to draft its technology plan each funding year before it files its Form 470(s) for all services.
T  F      Technology plan approvals are always due July 1st.
T  F      A school can provide Internet access to its students and staff at home, but only for educational purposes.
T  F      If a school in a district, or a branch in a library system, uses a year under the Two-in-Five Rule, it counts for the district/system as a whole.
T  F      Under the Two-in-Five Rule, an applicant receiving a commitment for Internal Connections can get the year back so long as it doesn't invoice USAC for any equipment.
T  F      Under the Two-in-Five Rule, an applicant can receive discount on a PBX one year, and data switches in each of the following two years, because they are different types of Internal Connections.
T  F      If USAC issues a SPIN to a service provider, the service provider is (a) certified by USAC, and (b) all its services are eligible for discounts.
T  F      An applicant should wait for the Form 471 window to open before filing its Form 470(s).
T  F      An applicant needs to file a Form 470 every year.
T  F      If all of a school's students or a library's patrons are impoverished, the applicant can claim a 90% discount.
T  F      An applicant is considered "rural" if cows can be seen from its windows.
T  F      The easiest way for a new E-rate contact to file forms is to simply copy information from the Form 470(s) and Form 471(s) filed by the applicant last year since USAC approved them.
T  F      A new E-rate filer, who does not have a PIN, can either call the Client Service Bureau and request one, or use the PIN of the former E-rate filer.
T  F      If an applicant's state filed a Form 470 for a service, and signed contracts with three service providers, an applicant can just pick one of those providers for its Form 471.
T  F      If a region is served by only one service provider, an applicant can obtain service on a "sole source" basis without undertaking a competitive bidding process.
T  F      Item 21 attachment material is not really due until PIA asks for it.
T  F      An applicant who has received an FCDL will receive a grant check for the approved amount.
T  F      An applicant who filters all of its computers and has written an Internet safety policy is necessarily CIPA compliant.
T  F      An applicant should keep hard copies of all of its E-rate documentation.
T  F      An applicant who finds a less expensive service provider than the one approved, should do a SPIN change to the cheaper supplier; both USAC and the applicant will "win."
T  F      An applicant extend a contract, a service delivery deadline, and/or an invoice deadline can do one or more by filing a Form 500.

The answers — in case you haven't already guessed — are all false. If you marked any as "true," please refer to the referenced SLD presentation slides (arranged in the same order).

E-Rate Updates and Reminders

FCC Appeal Decisions Watch:

The FCC released two appeal decisions last week. One decision (DA 12-1771), granting seven appeals and denying one, dealt with issues involving whether or not contracts were in place before the applicants filed their Form 471 applications. In one approved case, for example, the actual contract had not been signed until the day after the Form 471 filing (which had led to the USAC denial), but the school district's Board had approved the terms of the contract the week before (which the FCC deemed sufficient).

The second decision (DA 12-1792) is more interesting. The case involved three years of rescinded funding commitments or denials for a school district and its service provider, Net56, for what USAC determined were multiple rule violations. The FCC reviewed and overturned all of USACs determinations. Of specific note:

1. Payment for the services in question had been made through a finance company, rather than paid directly to the service provider. USAC had found, therefore, that the district had not technically paid its non-discounted share to the service provider. The FCC found no rule violation with respect to payments made through a third-party. This decision may ultimately serve as a precedent for answering long-standing E-rate questions concerning equipment leasing such as:
   1. Is the underlying vendor or the leasing company the "service provider" for E-rate purposes?
   2. Can a three- to five-year lease of Internal Connections equipment be counted as a single year for 2-in-5 Rule purposes?
2. USAC had determined that the hosted service, whereby equipment was maintained at a service provider location, was not cost effective in comparison to the cost of the equipment if purchased and installed locally. The FCC found that USAC failed to account for other non-product costs associated with a non-hosted service, such as personnel and training costs.
3. The FCC decided – although it hadn't been raised by USAC – that the vendor charges were in line with charges for similar service provided to non-E-rate customers; thus that there was no violation of the FCC's Lowest Corresponding Price requirement. This is the first time we've seen LCP addressed in an actual FCC appeal.

New Internet Safety Resources:

Google and the FBI have each developed Web-based resources that schools may find useful in meeting the new CIPA requirement to educate students on proper online behavior.

The Google project involves an interactive curriculum entitled 10 Lessons: Understanding YouTube & Digital Citizenship. There is also a YouTube Curriculum Channel where videos of the project will be posted.

The FBI has revamped its Web site called Safe Online Surfing. Anyone can use the site, but grades 3 through 8 have specific sections.  An exam is available for each level if a teacher signs up.

New York State E-Rate Training:

E-Rate Central will again be providing half-day E-rate training workshops throughout New York later this fall. The New York training schedule is as follows:

Schools and Libraries News Brief Dated November 9 – Technology Planning

The SLD News Brief for November 9, 2012 reviews the technology plan requirements for applicants applying for discounts on Priority 2 services. In summary:

• The technology plan must be "created" before the Form 470 is filed.
• The technology plan must cover all 12 months of the funding year.
• The technology plan must contain all four of the required elements.
• The technology plan must be approved by a USAC-certified Technology Plan Approver.
• The technology plan should not cover more than three years.