A.

Funding Commitments

We plan to continue to issue funding commitments each week for FY2005 commitments.

FY 2005
Wave 034 2/15/2006 $26.2 million
Wave 035 2/23/2006 $16.9 million
Wave 036 3/01/2006 $ 9.3 million
Wave 037 3/08/2006 $14.8 million

Appeal waves can now be accessed through the updated Data Retrieval Tool (DRT). Appeal waves are designated by the letter "A" and a two-digit number. For example, "A04" is the fourth appeal wave run in a funding year. There is now a separate field for the appeal wave number in the DRT.

B.

Internal Connections Commitments for FY2005

USAC is still making commitments for Internal Connections for FY2005 at the 90% level.  We hope to be able to make commitments below this level soon. Please watch the website and the Schools and Libraries News Briefs for more information.

C.

Demand Estimate for FY2006 Applications

Although we have not completed the processing of paper applications, we currently have over 39,000 FY2006 Forms 471 in our system. The processing of paper applications has in past years taken six to eight weeks, because about 80% of these applications have errors that must be resolved through applicant contact. As in the past, we plan to release the Demand Estimate for FY2006 shortly after we file it with the FCC.

The new system improvements have been very successful. Over 29,000 Forms 471 were certified electronically using the new PIN system, and applicants filed over 14,000 Item 21 attachments online.

We began the review of FY2006 applications several weeks ago, so applicants have already started to hear from PIA reviewers.

D.

Second Katrina Window

The Katrina website is being updated with new information and guidance for the extended FY2006 window.

While the guidance is not yet final, you should be aware of the following:

• The deadline for FY2006 applications for the second Katrina window is Monday, October 2, 2006. (September 30 is a Saturday.)
• This second window is for applicants to restore their networks to pre-Katrina functionality, not to add new functionality.
• Applicants in affected areas must apply on paper (both Form 470, if needed, and Form 471).

E.

Invoicing Update
Payments for the month of February totaled $133,642,793.33, against requests for $206M. In total, 5,949 invoices were processed for 1,268 service providers. This represented 28,688 lines in February with 91% being completed within 30 days. Only 4% of the lines paid were in process over 90 days.

There are now 161 in-process lines over 90 days. With only 2,664 lines in process, those over 90 days comprise only 6% of the total.

Remember that requested information should be returned to the invoice reviewer as soon as possible. The procedures allowing additional time to collect information have been modified so that we may process the invoices on hand as quickly as possible. If the requested information is not complete or not returned, then we will process the payment request with as much information as we have on hand. This may result in a rejection of the request or a partial payment.

If an invoice line is rejected due to missing or incomplete information - e.g., dates entered incorrectly, wrong FRN, information requested not returned in a timely manner - you should first collect that information and then resubmit your invoice. If the deadline to submit an invoice has passed, you can file an invoice deadline extension request and provide an appropriate explanation. Please note that filing an appeal before you have exhausted these options can result in needless delays.

The Service Provider Invoice Form 474 can be found through the "Required Forms" link under the Schools and Libraries Tools header on the left-hand side of the website. All program forms are listed in this area; links to the Form 474 and Instructions and the online Form 474 are located under the Service Provider Forms header.

USAC is beginning a project to implement an online submission process for the Billed Entity Applicant Reimbursement (BEAR) Form 472. The project also envisions the online certification of those forms by the service provider using a web interface. We will keep you informed as the details for this project become available.

Other

USAC is working on a draft of the FY2007 Eligible Services List. (Remember that this is not a final list, but the draft that USAC must submit to the FCC by June 30 of each year.) If you have specific suggestions to clarify descriptions of eligible products and services or to make other formatting changes to improve the current document, please submit them to USAC by e-mail.

G.

General Questions Received by E-mail

The new Data Retrieval Tool contains 3 new columns: '486 SSD', 'Orig 471 SSD', 'Cmtd 471 SSD'. It is clear that 'Orig 471 SSD' is the service start date the applicant provided for the FRN on their 471. '486 SSD' represents the Service Start Date as reported on the applicant's 486. Please clarify what 'Cmtd 471 SSD' represents, and which of these dates from the DRT is the actual/correct SSD for purposes of applying and tracking approved funds?

The '486 SSD' is the date to keep in mind. If USAC has adjusted the service start date reported by the applicant on the Form 486, the date in this field will reflect that adjustment. The 'Orig' and 'Cmtd' Service Start Date fields simply reflect the data that were entered and then reviewed on the Form 471.

If an applicant posts a 470 with the intention of using it for FY2006, but the contract (multiyear) does not get signed until after the FY2006 window closes, can they use this for FY2007? If so, are there any special procedures they need to do to protect the integrity of the process?

As long as the FY2006 Form 470 indicated the desire for a multi-year contract, the applicant could cite that Form 470 and the resulting contract on a Funding Year 2007 Form 471 funding request.

Will there be, or is there, any planned formal training for e-Rates and USAC/SLD programs this year?

Yes. USAC is in the process of finalizing its outreach and training plan for this year. Most likely, we will be conducting two-day trainings in a number of cities across the United States in the fall. We will announce the training schedule in an upcoming News Brief and on the website when our plans are finalized, and provide online registration.

Must a customer file a a Form 500 if they receive a funding commitment and then decide not to use the funding? If yes, and the customer does not file the form is there a penalty or does this affect future funding?

Applicants are not required to file the Form 500 to cancel funding. However, if the funding commitment is for Internal Connections, USAC will consider the applicant to have used a year of funding under the "Two-in-Five" Rule unless the commitment is canceled with a Form 500. Moreover, it is very helpful if applicants file Forms 500 once they are sure they will not use the funds, because that action releases funds that can be committed to other applicants.