E-Rate Central News for the Week of August 31, 2009

· FY 2009 Funding Status

· SLD Computer System Upgrade, cont.

· E-Rate Updates and Reminders

· Schools and Libraries News Brief dated August 28^th — Non-Recurring Services

The E-Rate Central News for the Week is prepared by E-Rate Central. E-Rate Central specializes in providing consulting, compliance, and forms processing services to E-rate applicants. Additional E-rate information is located on the E‑Rate Central Web site (http://www.e‑ratecentral.com). To learn more about our services, please contact us by phone (516-832-2881) or through our Contact Us Web form (http://www.e-ratecentral.com/contactUs/contactForm.asp).

FY 2009 Funding Status

Wave 19 for FY 2009 is scheduled to be released on Thursday, September 3^rd. For the first time this year, funding will be provided for Priority 2 (Internal Connections and Basic Maintenance of Internal Connections). Unlike past years for which Priority 2 funding was at first available only at 90%, this year’s funding will begin at 85% and above. Although we expect that the final funding threshold to be a few percentage points lower, the prospects for funding down to 80% appear bleak.

SLD Computer System Upgrade, cont.

As discussed in the last few weekly newsletters, the computer systems that support SLD operations are about to be moved from New Jersey to Virginia. While the move is in process, most online form filing systems and databases currently accessible via the SLD Web site will be unavailable to applicants, service providers, and even the SLD itself.

The SLD released another special News Brief last week on the USAC IT Upgrade (http://www.universalservice.org/sl/tools/news-briefs/preview.aspx?id=251) providing additional reminders and, more importantly, setting the following system transition dates:

September 1: Last day (up to 5:00 p.m. EDT) to submit online forms or to access the SLD’s interactive databases.

September 3: Last invoice payment run.

September 2-13: Online forms and interactive databases will be unavailable.

September 14: Interactive systems expected to be back online (by 9:00 a.m. EDT).

September 17: First invoice payment run after the upgrade.

Please note that funding data through September 1^st, normally accessible via the SLD’s Data Retrieval Tool (“DRT”), will continue to be available during the upgrade period using the Funding Quick Search feature in the State Information pages of the E-Rate Central Web site (see http://www.e-ratecentral.com/us/default.asp).

E-Rate Updates and Reminders

Pending NPRM on CIPA:

The Protecting Children in the 21^st Century Act, enacted last October, expanded the E‑rate provisions of the earlier Children’s Internet Protection Act (“CIPA”) to include a mandatory educational component in school Internet Safety Policies. (Libraries are not affected.) Although several providers of Internet education curriculum products have suggested that applicants are already risking E-rate funding for non-compliance with the new Act, the FCC has not yet provided any regulatory guidance.

On August 21^st, however, FCC Chairman Genachowski took a first step in this direction by circulating a draft Notice of Proposed Rulemaking (“NPRM”) on the subject to the other four commissioners for approval. It is not yet known whether the NPRM will deal solely with the provisions of the new Act, or more broadly with all aspects of CIPA. Even if the NPRM is released for public comment in September, no resulting FCC regulations are expected this year.

Fall E-Rate Training:

Final training schedules and registration information for the eight one-day SLD workshops planned for this fall are available on the SLD Web site. Registration is still open for Newark, Orlando, and Houston. The last dates to make hotel reservations at the conference rates are September 2-21, depending upon the session location.

Dallas Debarments:

Two individuals, including the former Chief Technology Officer of Dallas ISD, already suspended from the E-rate program after being convicted of FY 2002 procurement violations, have been formally debarred for a period of three years.

Dallas’ E-rate position remains under a cloud with over $225 million in funding requests still pending for FY 2005 – FY 2009. The pending total is actually down from over $390 million earlier this year, but only because of subsequent denials as the result of a settlement agreement between Dallas ISD and the U.S. Department of Justice.

Schools and Libraries News Brief dated August 28^th — Non-Recurring Services

http://www.universalservice.org/sl/tools/news-briefs/preview.aspx?id=249

The SLD News Brief of August 28, 2009, includes Part 2 of a discussion of non-recurring services and contracts. In Part 1, the SLD reviewed the conditions under which a Service Delivery Deadline for non-recurring services would be extended automatically, or could be extended by applicant request. Part 2 makes the off-misunderstood point that services provided under an extended Service Delivery Deadline must be covered by a valid, unexpired, contract. Under this criterion, an existing contract may have to be formally extended and the SLD must be advised of the extension (via a Form 500). Most specifically, the News brief notes that:

If a contract expires before services will be delivered, applicants should do the following:

· Check the FRN Extension Table [see http://www.sl.universalservice.org/utilities/FRN_CurFundExt.asp] to verify that USAC has extended the service delivery deadline for the FRN.

· Determine that an extension of the contract is allowed under the terms of the contract and under state and local procurement rules and regulations.

· If allowed, negotiate an extension of the contract with the service provider.

· File a Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form [see http://e-ratecentral.com/formsRack/app/Form500.asp] to change the contract expiration date on file with USAC.

· After USAC issues a Form 500 Notification Letter, the products and services can be delivered and installed and USAC can be invoiced.

The SLD Web site contains additional information on Service Delivery Deadlines and Extension Requests (see http://www.universalservice.org/sl/applicants/step11/service-deadlines-extension-requests.aspx).

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Disclaimer: This newsletter may contain unofficial information on prospective E-rate developments and/or may reflect E-Rate Central’s own interpretations of E-rate practices and regulations. Such information is provided for planning and guidance purposes only. It is not meant, in any way, to supplant official announcements and instructions provided by either the SLD or the FCC.