Updated Guidance for IU Discount Calculations
March 25, 2015
~ New Instructions for NIF-only IUs on Consortium 471s ~
Intermediate Units (and perhaps some Diocesan entities) have multiple ways to file their E-rate applications, depending on what services they are procuring, for whom those services are being procured, and whether an IU has its own schools or not. The instructions on how IUs should file their Form 471s for each situation have generally not changed over the years, but I thought it would be helpful to spell-out exactly how to file for each scenario. Also, with the new Form 471, there is a technical problem (described in # 3) because the online application will not permit a NIF (non-instructional facility)-only entity to be a stand-alone consortium member. USAC has provided guidance as a work-around for this year if you are in this situation.
1) IU FILING FOR ITS OWN SERVICES – WHERE SERVICE ISN’T BEING SHARED WITH ITS DISTRICTS
- In the Basic Information section (Block 1), select School District.
- In Discount Calculation section (Block 4), list the IU’s NIFs (non-instructional buildings), all of the IU’s schools (if they have any) AND all of the schools they service in their IU’s service territory (not districts), as if they were the one giant school district. The template should list the IU’s BEN in Column A for all entities. This will correctly calculate the discount rate.
- In the Funding Request section (Block 5), you should select the IU’s actual buildings receiving the service in Manage Entities.
2) IU AS CONSORTIUM LEAD – WHERE IU HAS SCHOOLS OF ITS OWN
- In the Basic Information section (Block 1), select Consortium.
- In Discount Calculation section (Block 4), upload your template where the consortium member’s BENs are in Column A and all of the schools associated with that BEN in Columns B and C. The IU would be listed as a separate consortium member and would include their NIFs and their IU’s schools. If the IU only has a NIF and no schools of its own, see # 3 below for instructions.
- In the Funding Request section (Block 5), you should select the buildings receiving the service in Manage Entities. If service is only being delivered to the Districts’ head-ends (hub-sites), you should only select those buildings.
3) IU AS CONSORTIUM LEAD – WHERE IU HAS NO SCHOOLS
As it currently stands, the new Form 471 application will not permit the filing of a consortium application in which the IU is a consortium member but has no schools. Although not perfect, the following is USAC’s guidance on how to file in these situations:
- In the Basic Information section (Block 1), select Consortium.
- In Discount Calculation section (Block 4), upload your template where the consortium member’s BENs are in Column A and all of the schools associated with that BEN in Columns B and C. Because the IU cannot be listed as a NIF-only consortium member, do NOT list the IU’s BEN in Column A, but rather add the IU’s NIFs to one of the school districts on the application. Be sure to identify it as an ESA under School Attributes.
- In the Funding Request section (Block 5), the IU must explain in the Narrative text box of the first FRN which IU NIF(s) should be a stand-alone entity and with which school district they were placed. Including the IU’s NIFs in a school district will not affect the discount rate as the NIFs do not have any students and they are not considered in the urban/rural status determination.
- Using Manage Entities, you should select the buildings receiving the service. If service is only being delivered to the Districts’ head-ends (hub sites), you should only select those buildings.
If you have any questions, please don’t hesitate to contact me at jtschell@comcast.net
– Julie
Julie Tritt Schell
PA E-rate Coordinator
717-730-7133 – o
717-730-9060 – f
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