E-rate Update - Funding Request Numbers
Message Posted March 6, 1998
SLC TO ASSIGN FUNDING REQUEST NUMBERS (FRN)
Form 471 provides rows in Items 15 and 16 for all the various categories of services eligible for discounts under the schools and libraries universal service fund. Applicants are to fill in a separate line: 1) for each separate service provider and each separate contract (if any) with that service provider, 2) for each separate category of service (i.e., Telecommunications Services, Internet Access, and Internal Connections (Shared) for Item 15 and Dedicated Services and Internal Connections for Item 16), 3) for each different Form 470 on which the service orders are based, and 4) for each separate discount rate for site-specific services.
SLC will internally assign a number to each separate row of Items 15 and 16. These will be referred to as "funding request numbers." When an applicant receives a funding commitment from SLC, these funding request numbers will be cited in relation to SLC's approval or rejection of funding requests in the notification letter to be mailed to the 471 applicants and to service providers.
ASSURING ONLY ELIGIBLE SERVICES ARE REQUESTED
As the instructions for Form 471 make clear, applicants may not seek discounts for ineligible services, for ineligible purposes, nor for services provided to ineligible entities. In fact, applicants may not include, in Items 15 or 16, such ineligible services, ineligible purposes, or services provided to ineligible entities.
There may be instances where applicants purchase eligible services bundled with ineligible services, and instances where services are shared with ineligible entities or services are used for eligible and ineligible purposes under a single contract with a service provider. The pre-discount costs (Columns 8-10 of Items 15 and 16) for only the eligible services to be provided to eligible entities for eligible uses should be included in Items 15 and 16.
SLC is developing an optional Pre-Discount Cost Calculation Grid that would help applicants determine the appropriate entries for Columns 8-10 of Items 15 and 16. The Grid is being developed so that, if sent in with the Form 471, it would satisfy the requirement for the lists of services to be attached per Item 17. We will post a notice on our Web Site and use our other communication channels to disseminate news of the proposed Grid and the final version of the Grid.
It is the applicant's responsibility to ensure that support is sought ONLY for eligible services to be provided to eligible entities for educational purposes. If applicants have any questions about whether or not a service is eligible for support, they should confirm that a purchase is only for eligible services BEFORE submitting Form 471. They may find answers by reviewing the list of eligible services available on the SLC Web Site (<www.slcfund.org>) or by contacting the SLC Client Service Bureau (Phone: 1-888-203-8100, Fax: 1-888-276-8736, E-mail address: question@slcfund.org).
Information Materials on Cost Allocation among bundled services and services shared among eligible and ineligible entities will be available shortly.
SLC will approve or disapprove requests for universal service support or discounts at the services ordered level (i.e., the separate rows of Items 15 and 16). Before funding commitments are made, SLC will conduct program integrity reviews to ascertain that requested support is only for eligible services to be provided to eligible entities for eligible purposes. These reviews will be based on the information provided in the Forms 470 and 471 and may involve requesting additional information from applicants, consistent with the documentation requirements as noted in the instructions. If SLC determines that the pre-discount costs in any services ordered line item (i.e., row of Item 15 or 16) include costs for ineligible services or for services to be provided to ineligible entities or for ineligible purposes, it will disapprove funding for that entire services ordered line item (row of Item 15 or 16) even though the services ordered line item may also include support for eligible services to be provided to eligible entities.
The funding commitment SLC will make after approving a Form 471 will not exceed the sum of the estimated total annual pre-discount costs for approved services (separate rows of Items 15 and 16) times the appropriate percentage discounts for each services ordered line item.
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