Form 471 1

1
Form 471The Dirty Dozen

• 12 Most Common Mistakes -- And How to Avoid Them!

2
Agenda

• Quick Updates Years 1, 2 and 3
• Focusing In On Form 471
• What Happens to Your Form After Filing
• Minimum Processing Standards
• Dirty Dozen 12 Most Common Mistakes (Plus a few
  Lingering Confusions)
• QA

3
Quick Updates For Years 1, 2 3
4
Year 1 Quick Updates

• Funding commitment final tally
• 1.66 billion in commitments
• Average commitment 64,378
• 25,000 funded applicants
• 78 schools and districts, 18 libraries, 4
  consortia
• 53 urban, 43 rural
• Appeals process moving briskly
• Appeals from less than 5 of applicants
• Notifications have begun

5
More Year 1 Updates

• BEAR thru June 30 Can file 2 quarterly or 1
  six-month BEAR if no discounted bills
• Grace period Installations (non-recurring) can
  be done through September 30, 1999
• Contracts (Telecom/Internet access) expiring
  before 12/31/98 Can now extend contracts/qualify
  for funding Jan.1-June 30

6
Year 2 Quick Updates

• Form 470 window closes with a bang!
• 36,500 Form 470s filed
• Breaks 1998 record
• Eligible Services Updated
• Addendum posted 3/16
• Rules of Priority Affirmed
• Telecom and Internet access for all
• Internal connections for neediest first -- 90
  discount, then percentage point by percentage
  point

7
Year 3 Quick Updates

• Streamlining and improving for 2000-01
• Year 3 Task Force of school, library, and service
  provider reps
• Brainstorming session 2/22
• Working through preliminary recommendations
• Expect to have final recommendations in April
• Send your MOST URGENT change to
  comments_at_slcfund.org

8
Focusing In On Form 471
9
Calendar Check

• All parts of Form 471 must be at SLD by 1159
  p.m. ET on Tuesday, April 6
• If filing online, must send in hard copies of
  Item 14 worksheet, Item 17 attachment, and
  signed Certification page so received by SLD by
  deadline
• Form 471 cannot be filed until 29th day after
  posting of Form 470
• Plan around spring holidays!

10
Why the Window Matters

• Factor in setting funding level for Year 2
• Once window closes, SLD reports estimated demand
  to FCC
• FCC sets collection/funding level for 1999-2000
• In 1998, only in the window applications could
  be considered for funding

11
How to File

• On paper, by hand or typed
• Get forms at www.slcfund.org, or call
  888-203-8100
• Type-in/print-out
• At www.slcfund.org
• Online -- Pilot test
• Internet Explorer 4.5 v4.71, Windows 95 or better
• Visually equivalent Word or Excel versions
• From other peoples Web sites

12
How Many to File

• Do what works best for you
• Some applicants may want to file separate Forms
  471 for Priority 1 (Telecommunications and
  Internet Access) and Priority 2 (Internal
  Connections)
• Funding priorities will remain in place
• Letters will go out in waves
• SLD still has goal of letting you know about all
  requests on your application at one time

13
What Happens to Your 471?
File Form 470 (posted for 28 days)
File Form 471(on paper or online)
Funding Commitments
Program Integrity Assurance
Corrections/Appeals
14
Minimum Processing Standards (MPS)

• What are Minimum Processing Standards?
• Bare minimum needed for data entry
• If filing online, system forces you to meet MPS
• If filing on paper, have to pass or your form
  will be summarily rejected and sent back to you
• MPS for entire formsMPS for line items (Funding
  Request Numbers)

15
MPS Checklist

• OMB approved form or visually equivalent
• Form submitted correctly (online/mail or mail
  only--no fax/e-mail)
• All pages submitted -- none missing
• At least one row of Items 15/16 has valid USCN
  number (see Dirty Dozen 5) -- FRN MPS
• At least one row of Items 15/16 has completed
  entry in Columns 8, 9, or 10 (see Dirty Dozen 8)
  -- FRN MPS
• Signature in Block 6 is original and not signed
  in pencil

16
Receipt Acknowledgment Letter

• Sent to applicants and service providers
  following data entry -- to provide checkpoint for
  corrections
• Does NOT indicate approval -- only successful
  data entry
• Assigns Form 471 application number and Funding
  Request Numbers

17
Form 471, Blocks 1-3

• LINGERING CONFUSIONS
• NCES Code Only required if you have one
• Billed Entity Number Also known as entity
  Number, assigned during Form 470 process
• Contact person/preferred mode Fill out as much
  as you canwe will used preferred whenever
  possible
• Item 7c Dont use unless specifically directed
• Block 3 Data collection/analysis

18
Block 4, Item 14

• LINGERING CONFUSIONS
• The purpose of Block 4
• Show entities covered by application
• Demonstrate how discount was calculated
• PIA uses for checking discounts, eligible
  entities, etc.
• Different kinds of applicants must complete in
  different ways

19
Dirty Dozen 1

• Not listing entities correctly (Block 4, Item 14)
• Are you individual school or library?
• Just list yourself
• Are you a school district?
• List all schools in district
• Even if only seeking shared services, need all
  schools for calculation of weighted average
  discount
• Are you a state agency, regional agency, or
  E-rate consortium?
• List all entities

20
Dirty Dozen 2

• Miscalculating your discount (Block 4, Item 14)
• Different kinds of applicants must calculate
  their discounts differently
• Individual schools
• School districts
• Libraries/library consortia (applying as selves)
• Consortia of multiple entities (including library
  consortia acting as E-rate consortia)
• See following slides, Form 471 Instructions, and
  Calculating Your Discount fact sheet

21
Calculating Discounts-1

• Individual School
• Calculate percentage of your students who are
  eligible for free and reduced lunch
• Acceptable alternatives to actual count
• Sibling method -- siblings participating in NSLP
• Family income matched to NSLP scale
• Participation in income-based programs (public
  assistance, financial aid)
• Survey of students families
• Find E-rate discount on matrix, and list in
  Column 6

22
Calculating Discounts-2

• School District
• Determine individual school discounts (previous
  slide)
• List for each school in Column 6 -- use for Site
  Specific if needed, check Column 7 if including
  in Shared
• For district discount, calculate weighted average
  (not simple average) of individual school
  discounts
• See Form 471 Instructions and Calculating Your
  Discount guidance sheet for step-by-step
  instructions
• Weighted average is likely to be percentage
  point -- such as 86 or 71 -- rather than
  straight matrix

23
Calculating Discounts-3

• Library/Library Consortium(applying as self)
• Use the weighted average discount (see previous
  slide) of school district in which you are
  located
• Dont use simple average or other districtwide
  numbers
• School in Column 4 only identifies district
• Get correct district discount from state library
  E-rate contact and/or from E-rate approved
  district
• If located in more than one district, use simple
  average of weighted district averages
• Discount may be percentage point (82 vs. 80)

24
Calculating Discounts-4

• Consortium of Multiple Entities
• Consortia include state agencies, regional
  agencies, intermediate service agencies, library
  consortia applying as special E-rate consortia
• Find correct discount for each consortium member
• Individual schools -- Districts -- Libraries
• Calculate simple average of correct discounts
• See Form 471 Instructions and Calculating Your
  Discount guidance sheet for details and examples
• Discount may be percentage point (82 vs. 80)

25
Dirty Dozen 3

• Not documenting your discount (Block 4, Item 14
  and attachments)
• If you are an individual school or library, you
  dont need to attach Item 14 worksheet
• UNLESS you used alternative methods to calculate
  discount-- then must provide documentation
• All other applicants must include Item 14
  worksheet showing discount calculations
• See Form 471 Instructions for models

26
Block 5, Items 15-16

• LINGERING CONFUSIONS
• Shared vs. site-specific?
• Telecommunications Services and Internet Access
  are generally shared
• Internal connections are generally site-specific
• Whats a dedicated service?
• Telecommunications Service or Internet Access
  only for specific site
• Truly dedicated services are fairly rare

27
Block 5, Items 15-16

• MORE LINGERING CONFUSIONS
• Telecommunications Tariffed vs. contract?
• Tariffed means you have NO signed, written,
  formal contract
• Month to month service at regulated rates
• Must post Form 470 for bidding as New Service
  each year
• Fill in T for Contract Number
• Contract means you have a signed, written, formal
  contract specifying rates and terms of service
• List contract information in Columns 3, 4, 5

28
Dirty Dozen 4

• Bundling Internal Connections with Priority 1
  services (Block 5, Items 15-16)
• Funding priorities No Priority 2 (Internal
  Connections) services can be funded before
  Priority 1 (Telecom and Internet Access)
• Equipment at end-user location (leased or owned,
  for LAN or Internet) is always counted as
  Internal Connections
• If any Internal Connections, FRN now reclassified
• PLEASE UNBUNDLE!

29
Dirty Dozen 5

• Leaving off a SPIN (Block 5, Items 15-16, Col. 1)
• SPIN Service Provider Identification Number
• SPINs are expected from the get-go this year on
  all Forms 471
• SPIN must be provided by service provider (not
  SLD)but we can help
• For contact at each service provider, see
  www.slcfund.org, SPIN/BEAR Contact Database

30
Dirty Dozen 6

• Listing non-qualified provider for Telecom
  Services (Block 5, Items 15-16, Column 1)
• In Telecommunications Services category, only
  common carrier telecommunications companies can
  be listed as service providers
• If you buy your telecom services through a state
  network, ask which underlying common carrier to
  list as your service provider
• If you get a package of telecom and other
  services from a non-telco, unbundle on your Form
  471 AND list underlying common carrier for
  Telecommunications Services
• Dont list your Internet Access as
  Telecommunication Services!

31
Dirty Dozen 7

• Mixing local and long distance phone service
  (Block 5, Items 15-16)
• Most often, your local and long distance services
  are provided by different companies
• Long distance bill may come WITH local bill, but
  providers are different (e.g., BellSouth and
  ATT)
• You must break these services out on separate
  lines on Form 471, and list true SPIN for each

32
Dirty Dozen 8

• Flubbing the USCN Number (Block 5, Items 15-16,
  Column 2)
• USCN 15-digit number assigned to the Form 470
  you filed THIS year for THIS service
• Not your Billed Entity Number (thats YOU, not a
  particular application)
• Not a 1998 Form 470 (even if contract continues)
• If service is a tariffed telecommunications
  service, the Form 470 cited by USCN must not have
  Item 10 checked!

33
Dirty Dozen 9

• Wrong info for Contract Number, Award Date,
  Expiration Date (Block 5, Items 15-16, Columns 3,
  4 5)
• If tariffed telecommunications service, you have
  NO contract List T in Columns 3, 4 5
• If new contract, Award Date must NOT be earlier
  than 29th day after filing Form 470
• If existing contract, Award Date will be 1998 or
  on/before July 10, 1997

34
Master Contracts

• Master contracts can be
• Qualified E-rate contracts in their own right if
  signed on/before July 10, 1997 OR after posting
  of Form 470 by contract holder
• If master contract qualifies, can use master
  contract info in Columns 3-4-5
• Bids on new services posted by end-users
• If using master contract as a bid, then info in
  Columns 3-4-5 MUST be of your subsidiary contract
  (such as a properly signed P.O.), not of master
  contract

35
Dirty Dozen 10

• Service start date error (Block 5, Items 15-16)
• Date that E-rate discountable service begins
• Not same as Contract Award Date
• Earliest possible date July 1, 1999
• For tariffed services, and for existing
  contracts, use July 1, 1999
• For new contracts, use date service will begin

36
Dirty Dozen 11

• Leaving Columns 8/9/10 blank or completing
  incorrectly (Block 5, Items 15-16)
• Show us the money!
• All blank Fail MPS for line-item FRN
• Most common error Confusing monthly vs. one-time
  charges
• Please double-check your data -- we may not be
  able to catch your mistake

37
Dirty Dozen 12

• Failing to attach Item 17or attaching
  insufficient documentation (Block 5, Item 17)
• Item 17 absolutely necessary to confirm contract
  status and mix of services
• Best choices Service provider contract summary,
  services list, or SLD optional grid
• You can use copy of bill or create your own list
  of services or (but we may ask for more)

38
Block 6 Reminders

• Do you need a new technology plan?
• Your plan and your certifier determine when
  update is due
• Item 22 is for real Make sure you have the
  resources you need
• Item 31 signature must be original and not in
  pencil -- BLUE INK NOT REQUIRED

39
Other Form 471 Tips

• Remember Your completed Form 471(including paper
  attachments, if filing online) must arrive by
  1159 p.m. ET on April 6
• Send via certified mail, return-receipt
  requested, or other method that provides proof of
  delivery
• Please double-check your work and be neat

40
Dirty Dozen, Redux

• 1. Not listing entities correctly in Item 14
• 2. Miscalculating your discount
• 3. Not documenting your discount
• 4. In Items 15/16, bundling internal connections
  with other services
• 5. Leaving off a SPIN
• 6. Listing non-telecom provider for telecom
  services

• 7. Combining local and long distance service
• 8. Flubbing the Form 470/USCN Number
• 9. Wrong Contract , Award Date, Expiration
  Date info
• 10. Service start date error (compared to
  contract date)
• 11. Leaving Items 8/9/10 blank or completing
  incorrectly
• 12. Failing to attach Item 17

41
SLD Contact Information

• On the Web www.slcfund.org
• Application forms
• Guidance and updates
• Help line 888-203-8100
• Via e-mail question_at_slcfund.org
• Via fax [phone]
• Guidance documents via fax on demand 800-959-0733