Form 471: The Dirty Dozen

1. 3/22/99 Form 471 - 1 Form 471:The Dirty Dozen 12 Most Common Mistakes -- And How to Avoid Them!

2. 3/22/99 Form 471 - 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�) Q&A

3. 3/22/99 Form 471 - 3 Quick Updates For Years 1, 2 & 3

4. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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@slcfund.org

8. 3/22/99 Form 471 - 8 Focusing In On Form 471

9. 3/22/99 Form 471 - 9 Calendar Check All parts of Form 471 must be at SLD by 11:59 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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 people�s Web sites

12. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 13 What Happens to Your 471?

14. 3/22/99 Form 471 - 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 forms�MPS for line items (Funding Request Numbers)

15. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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 can�we will used preferred whenever possible Item 7c: Don�t use unless specifically directed Block 3: Data collection/analysis

18. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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 Don�t 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 25 Dirty Dozen #3 Not documenting your discount (Block 4, Item 14 and attachments) If you are an individual school or library, you don�t 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. 3/22/99 Form 471 - 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 What�s a �dedicated service�? Telecommunications Service or Internet Access only for specific site Truly dedicated services are fairly rare

27. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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 Don�t list your Internet Access as Telecommunication Services!

31. 3/22/99 Form 471 - 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 AT&T) You must break these services out on separate lines on Form 471, and list true SPIN for each

32. 3/22/99 Form 471 - 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 (that�s 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 37 Dirty Dozen #12 Failing to attach Item 17�or 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 39 Other Form 471 Tips Remember: Your completed Form 471(including paper attachments, if filing online) must arrive by 11:59 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. 3/22/99 Form 471 - 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. 3/22/99 Form 471 - 41 SLD Contact Information On the Web: www.slcfund.org Application forms Guidance and updates Help line: 888-203-8100 Via e-mail: question@slcfund.org Via fax: 888-276-8736 Guidance documents via fax on demand: 800-959-0733