News of the Week

Funding Status

The application window for FY 2011 opened on Tuesday, January 11, 2011, and will close at 11:59 p.m. EDT on Thursday, March 24, 2011. As of the release of last Friday's SLD News Brief, 248 Form 471s had already been filed.

Wave 34 for FY 2010 will be released on Wednesday, January 19th, for $29.8 million. This will raise cumulative funding for FY 2010 to $2.12 billion. Currently, Priority 2 funding is being awarded at 81% and above, and denied at 79% and below. Funding at 80% is still in doubt.

No funding wave for FY 2009 is scheduled for release this week.

Online Form 470/471 Issues

New versions of the online Form 470 and Form 471 became available on the SLD Web site last Monday and Tuesday, respectively. Early reports — and this is not a criticism of USAC which had to meet a tight timetable to enable the new online forms on an outdated computer system — are that there are a number of system bugs and anomalies that need to be ironed out for both forms. Here are a few of the more important points to note:

1. Applicants using online forms have always had to be a little careful about their choice of browsers, and that appears to be particularly true with the new forms (at least for now). The SLD provides the following suggestions for online filing:
   • Use Internet Explorer 7.x or 8.x for filing program forms online. Other browsers may cause errors. (Note: Mac users may want to find a PC to use for online filings.)
   • Clear your cache (temporary Internet files) after you submit or exit a form if you intend to start or view another form.
   • Disable your Internet Explorer content advisor.
   • Enable cookies.
   • Turn off pop-up blockers.
2. Applicants who filed the earlier version of the Form 470 and now want to view their filings using the online Search Posted tool will find that their old filings have been magically converted to the new format. The conversion doesn't look bad, and the search screens to find posted 470s are a little easier to use, but there are some problems with the conversion of certification checkboxes. In particular:
   • An original check for a higher-level tech plan (Item 20b) shows up as a "no technology plan is required" certification in the new Item 17.
   • An original check on Item 21 shows up as no check marks in the new Items 18 and 19 (which cover the same subjects).
     It is a little disconcerting to see a properly filed Form 470 now displayed with improper certifications. We understand that previously filed Form 470s were supposed to be displayed as filed (i.e., not converted to the new format) and that this problem will be resolved. We suspect, however, that this is not a trivial fix. We strongly recommend that applicants who filed earlier Form 470s carefully retain copies of their original filings.
3. Both the new Form 470 and new Form 471 require applicants to provide contact information on consultants used in the application process (if applicable). To enter this information, the filer must first enter the consultant's Consultant Registration Number ("CRN"). This will populate the consulting firm's basic name and address. A consultant-specific pull-down list will then permit identification of the individual consultant.
   
   There are a couple of problems with this process. The first is that, although the SLD has been collecting up-to-date contact information for consultants, the current CRN database appears hopelessly out-of-date. The pull-down list for E-Rate Central, for example, includes not only the updated information provided to the SLD (albeit with a few data entry errors), but the names of past employees and even a few past client contacts. There appears to be no easy way to correct this data. Further, the database used to populate the consultant fields appears to contain both applicant and service provider data. Entering AT&T's SPIN in the CRN field, for example, provides the company's address and E-rate contact information.
   
   Another concern is that, with or without FCC guidance, the display function for completed Form 470s and Form 471s publicly displays consultant information. Last November, in response to a petition by Funds For Learning, the FCC requested comments on the definition of a "consultant" and on the public release of consultant information. Although the FCC has not ruled on the disclosure of consultant information, the online availability of this information essentially makes the issue moot. While it is true that bulk download of Form 470 data — and apparently an equivalent capability for Form 471 data using the Data Retrieval Tool (not currently configured to display FY 2011 data) — does not include consultant information, it is not too difficult to work backwards from consolidated filing data to obtain a consultant's complete client list.
   
   It is also interesting to note that applicant contact and authorized signer data, which was not publicly available under the old Form 471 system, is now being made public.
4. The Block 4 entity data in the new Form 471 contains new codes to identify certain types of entities (e.g., NIF, new construction, pre-K, etc.). No changes, however, have been announced to the file structure required for filers seeking to upload Block 4 data into FY 2011 applications. While an early test of the Block 4 upload using the old file format, was successful, the new entity type data fields were blank. To add this data, an applicant would have to manually modify any affected entities online. We have not yet tested the new system's ability to copy Block 4 data from a previous year's Form 471, but would expect a similar result.

E-Rate Updates and Reminders

USAC Board of Director Appointments:

On January 10th, FCC Chairman Julius Genachowski named the following six members to the Board of Directors of the Universal Service Administrative Company (USAC) to fill vacancies for members whose terms had expired on December 31, 2010:

• Representative for commercial mobile radio service providers: Scott Bergmann, Assistant Vice President for Regulatory Affairs, CTIA.
• Representative for schools that are eligible to receive discounts: Anne Bryant, Executive Director, National School Boards Association.
• Representative for libraries that are eligible to receive discounts: Anne Campbell, Consultant, ALC Consulting (retired from National City (CA) Public Library).
• Representative for cable operators: Jose Manuel Jimenez, Executive Director, Regulatory Policy & Industry Relations, Cox Communications, Inc.
• Representative for state consumer advocates: Wayne Jortner, Senior Counsel, State of Maine Office of the Public Advocate.
• Representative for non-rural incumbent LECs: Joel Lubin, Vice President-Public Policy, AT&T Services, Inc.

With the exception of Mr. Jimenez, these are all Board reappointments. From an E-rate perspective, the reappointment of Anne Bryant and Anne Campbell is a welcome development.

Non-Recurring Services Invoice Deadline:

The deadline for submitting SPI or BEAR invoices for non-recurring services is Friday, January 28, 2011 (i.e., 120 days after September 30, 2010, the last day to receive services). Specifically, this deadline applies to FRNs for installation services for either:

• FY 2009, unless the normal service delivery deadline has been extended (typically until September 30, 2011).
• Earlier funding years for which the service delivery deadline had been extended until September 30, 2010.

Proposed Changes to NSLP Nutrition Standards:

The U.S. Department of Agriculture published a proposed rule last week to update the nutrition standards for meals served through the National School Lunch and School Breakfast programs as part of the Healthy, Hunger-Free Kids Act of 2010, signed into law by President Barack Obama last December (see DOA Release No. 0011.11).

Although the proposed rule would have no effect on E-rate discount rates, it is that time in the FY 2011 funding cycle to focus on NSLP student eligibility, so any program changes may be of interest to school administrators.

Schools and Libraries News Brief dated January 14 – FY 2011 Application Cycle

The SLD's January 14th News Brief includes a number of tips for filing FY 2011 Form 471 applications, including:

• File early. Too many applicants wait until the last days of the window to file their Form 471s, subjecting themselves to online system delays and disruptions.
• File online. The online system includes a number of checks designed to minimize common errors and inconsistencies.
• Certify online.
• Be mindful of program deadlines. In particular:
  • The last possible day to file a valid Form 470 for FY 2011 is February 24, 2011. If a Form 470 is filed on that day, the required 28-day waiting period will not end until the last day of the Form 471 application window.
  • The last possible day to file a Form 471 for FY 2011, either online or postmarked, is March 24, 2011 (at 11:59 p.m. EDT).
• Review program guidance on the SLD Web site (and, we humbly add, on the E-Rate Central site).
• Ask for assistance. SLD assistance can be obtained through the online Submit a Question  or by calling the Client Service Bureau (888-203-8100).