New SLD Procedures for Reporting Equipment Transfers
Message Posted April 4, 2005
In the FCC's 3rd Order (released December 2003), the Commission ruled that applicants may transfer E-rate funded internal connections equipment to other eligible entities three years or more after the actual purchase of the equipment. The only situation where the 3+ year rule doesn't apply is where the original entity receiving the equipment is permanently or temporarily closed. In those cases, the applicant may immediately transfer equipment to other eligible entities and the receiving entity need not be of the same discount level as the original recipient.
In these situations where a school has closed, the transferring entity must notify the SLD of the transfer, and both the transferring and receiving entities must maintain detailed records documenting the transfer and the reason for the transfer for a period of five years. In order to enable the SLD to verify compliance with this transfer prohibition, the FCC requires
all recipients of internal connections support to maintain asset and
inventory records for a period of five years sufficient to verify the actual
location of such equipment.
A quick reminder: Equipment purchased with E-rate support can never transferred “…in consideration of money or anything else of value” (even after 3-years). Applicants are, however, permitted to trade-in equipment, but the value received from the trade-in must be subtracted from the pre-discount price of the new equipment (see Trade-in Rules or
http://www.sl.universalservice.org/reference/EPSFAQ-f.asp).
How to Report Closed School Equipment Transfers to the SLD
The SLD's official guidance can be found at: www.sl.universalservice.org/reference/transfer_equipment.asp. To notify SLD
of a transfer of equipment, write a letter to SLD that contains the following information:
1. Name of transferring entity
2. Address of transferring entity
3. Entity Number of transferring entity
4. Contact person name for SLD questions about the transfer
5. Contact person address
6. Contact person telephone number
7. Contact person e-mail address
For each individual receiving entity:
8. Name of receiving entity
9. Address of receiving entity
10. Entity Number of receiving entity
11. Contact person name at receiving entity for SLD questions about the
transfer
12. Contact person address
13. Contact person telephone number
14. Contact person e-mail address
15. Form 471 Application Number(s) associated with the equipment to be
transferred to the receiving entity
16. Funding Request Number(s) associated with the equipment to be
transferred to the receiving entity
17. List of equipment to be transferred to the receiving entity
18. Physical location of equipment at the receiving entity
19. Reason for the transfer
20. Projected or actual date of transfer
21. If the transfer is temporary, the projected date that the equipment will
be returned to the transferring entity.
The letter may be sent by regular mail, fax, or e-mail.
Regular Mail
The letter should be labeled "Equipment Transfer Notification" and sent to:
Equipment Transfer Notification
Schools and Libraries Division
Box 125 - Correspondence Unit
80 S. Jefferson Road
Whippany, NJ 07981
Fax
Please include a fax cover page marked ATTN: Equipment Transfer Notification
and indicate the number of pages you are faxing. Fax your letter to: (973)
599-6526
E-mail
You can use the Submit a Question feature on the SLD web site to submit your
letter by e-mail. Click on the “Submit a Question” link, click “Continue”
from the Submit a Question page, and then choose the topic “Equipment
Transfers” from the Topic List and follow the prompts. Instructions will be
provided for sending an attachment.
Julie Tritt Schell
jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)
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