**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * | File No. SLD-138811          |
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| Request for Review of the        | ) | CC Docket No. 96-45          |
| Decision of the Universal        | * |                              |
| Service Administrative Company   | * | CC Docket No. 97-21          |
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| Marion County Public Schools     | * |                              |
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| Ocala, Florida                   | ) |                              |
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**ORDER**

**Adopted:** April 23, 2001 **Released:** April 24, 2001

By the Common Carrier Bureau:

1.  In this Order, we grant a Request for Review filed by the Marion
    County Public Schools (Marion), Ocala, Florida,[^1] seeking review
    of a funding commitment decision issued by the Schools and Libraries
    Division (SLD) of the Universal Service Administrative Company
    (Administrator) pursuant to a funding request for internal
    connections.[^2]

2.  Under the schools and libraries universal service support mechanism,
    eligible schools, libraries, and consortia that include eligible
    schools and libraries, may apply for discounts for eligible
    telecommunications services, Internet access, and internal
    connections.[^3] In order to receive discounts on eligible services,
    the Commission's rules require that the applicant submit to the
    Administrator a completed FCC Form 470, in which the applicant sets
    forth the school's technological needs and the services for which it
    seeks discounts.[^4] Once the applicant has complied with the
    Commission's competitive bidding requirements and entered into an
    agreement for eligible services, it must file an FCC Form 471 to
    notify the Administrator of the services that have been ordered, the
    carrier with whom the school has entered into an agreement, and an
    estimate of funds needed to cover the discounts to be given for
    eligible services.[^5] This information is generally provided in
    Block 5 of FCC Form 471. Using information provided by the applicant
    in its FCC Form 471, SLD issues a Receipt Acknowledgement Letter
    (RAL), which summarizes the applicant's funding requests and
    provides a limited period for the applicant to make corrections.[^6]
    SLD also may contact the applicant with requests for further
    information.[^7] Requests for funding are then approved or denied in
    a Funding Commitment Decision Letter.[^8]

3.  The instant appeal arises from SLD's approval of Marion's request
    for discounts for internal connections based on an annual
    pre-discount cost of \$319,626.00, as opposed to the \$391,626.00
    reported in Marion's FCC Form 471. In its FCC Form 471, dated March
    30, 1999, Marion indicated in Item 15 of Block 5 that it was seeking
    discounts for internal connections from Unisys Corporation. The
    contract period was listed as March 24, 1998 through June 30, 2002.
    The estimated monthly pre-discount cost was listed at \$26,635.50
    and the estimated total annual pre-discount cost was listed at
    \$391,626.00. Based on an annual pre-discount cost of \$391,626.00,
    the monthly pre-discount cost should have been reported as
    \$32,635.50.

4.  On July 18, 1999, SLD issued an RAL to Marion, specifying, *inter
    alia*, that the total annual pre-discount cost for FRN 215125 was
    \$391,626.00, based on Column 10 of Items 15/16 (the Column
    containing the total annual pre-discount cost).[^9] It also
    instructed that "\[i\]f the information reported in this letter is
    at variance with the information that you provided in your
    application, please write to us at the address listed at the bottom
    of this letter under 'Questions about this Letter.'"[^10] It further
    stated that "\[i\]f we (or you) have made errors in Form 471 data
    entry, . . . the Receipt Acknowledgement Letter offers you the
    opportunity to make corrections" and directed the applicant to send
    such corrections to SLD within two weeks of receiving the RAL.[^11]
    Marion did not respond to the RAL.

5.  By letter dated September 21, 1999, SLD approved Marion's request
    for discounts for services listed on its FCC Form 471. With respect
    to internal connections, SLD's Funding Commitment Decision Letter
    indicated that the estimated total annual pre-discount cost was
    \$319,626.00 and the discount percentage approved by the SLD was
    71%. Thus, Marion was eligible for a discount totaling \$226,934.46
    for the contract with Unisys.[^12]

6.  Marion filed an appeal with SLD on October 7, 1999, stating that,
    when calculating the pre-discount monthly cost of \$26,635.50 for
    internal connections, Marion "transposed \$[391]{.underline},626
    with \$[319]{.underline},626."[^13] SLD denied Marion's appeal on
    May 3, 2000, stating that information submitted on the original
    application is the responsibility of the applicant.[^14] SLD
    continued that "\[c\]orrections to the application can not be made
    once the application is approved, unless the error is proven to be
    the fault of SLD."[^15] Marion filed the instant appeal with the
    Commission on May 18, 2000.[^16] In this appeal, Marion states that
    SLD should have notified Marion of any errors in its FCC Form
    471.[^17] Marion notes that SLD's Form 471 Receipt Acknowledgement
    Letter included the correct estimated total annual pre-discount cost
    of \$391,626.00.[^18] Based on the Receipt Acknowledgement Letter,
    Marion alleges that it "thought there was no problem" with its
    application for discounts.[^19]

7.  We have carefully reviewed Marion's application as well as SLD's
    records relating to this application. Because SLD included the
    correct annual pre-discount cost for internal connections in
    Marion's RAL, we conclude that Marion had no reason to make
    corrections to its FCC Form 471.[^20] Therefore, in spite of
    language in the RAL to the contrary, Marion was not provided with an
    effective "opportunity to make corrections" to its FCC Form
    471.[^21] In an effort to provide applicants with an effective
    opportunity to make such corrections after the issuance of RALs, SLD
    now includes both the monthly and annual pre-discount cost of
    funding requests in RALs.[^22]

8.  ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under
    sections 0.91, 0.291, and 54.722(a) of the Commission's rules, 47
    C.F.R. §§ 0.91, 0.291, and 54.722(a), that the Request for Review
    filed on May 18, 2000 by Marion County Public Schools, Ocala,
    Florida, IS GRANTED to the extent provided herein. We direct the
    Schools and Libraries Division to review Marion's funding
    application and, if warranted, issue a revised Funding Commitment
    Decision Letter in accordance with the above-stated decision.

FEDERAL COMMUNICATIONS COMMISSION

Carol E. Mattey

Deputy Chief, Common Carrier Bureau

# 

[^1]: Letter from Doug Joiner, Marion County Public Schools, to the
    Federal Communications Commission, filed May 18, 2000 (Request for
    Review).

[^2]: *See* Letter from Schools and Libraries Division, Universal
    Service Administrative Company, to Doug Joiner, Marion County Public
    Schools, issued September 21, 1999 (Funding Commitment Decision
    Letter); Letter from Schools and Libraries Division, Universal
    Service Administrative Company, to Doug Joiner, Marion County Public
    Schools, issued May 3, 2000 (Administrator's Decision on Appeal).

[^3]: 47 C.F.R. §§ 54.502, 54.503.

[^4]: 47 C.F.R. § 54.504 (b)(1), (b)(3).

[^5]: 47 C.F.R. § 54.504(c).

[^6]: The Commission's regulations authorize SLD to establish rules and
    procedures for the administration of the schools and libraries
    support application process in an efficient and effective manner.
    *See* 47 C.F.R. §§ 54.701(a), 54.702, 54.705(a). Pursuant to this
    authority, SLD has incorporated the FCC Form 471 RAL as part of the
    FCC Form 471 application process. *See
    \<*<http://www.sl.universalservice.org/data/pdf/prgm2000.pdf>\> (SLD
    Program Description) (providing overall description of SLD
    application process, including description of the Form 471 Receipt
    Acknowledgement Letter).

[^7]: *See* SLD Program Description.

[^8]: *See* *id.*

[^9]: Letter from Schools and Libraries Division, Universal Service
    Administrative Co, to Doug Joiner, Marion County School District,
    dated June 18, 1999, at 2 (RAL).

[^10]: RAL at 2.

[^11]: RAL at 3.

[^12]: *See* Funding Commitment Decision Letter at 5.

[^13]: Letter from Doug Joiner, Marion County Public Schools, to Schools
    and Libraries Division, Universal Service Administrative Company,
    filed October 7, 1999 (SLD Letter of Appeal).

[^14]: *See* Administrator's Decision on Appeal at 1.

[^15]: *Id.*

[^16]: *See* Request for Review.

[^17]: *Id.* at 2.

[^18]: *Id.* at 1 (citing Letter from Schools and Libraries Division,
    Universal Service Administrative Company, to Doug Joiner, Marion
    County Public Schools, issued June 18, 1999 (Form 471 Receipt
    Acknowledgement Letter)).

[^19]: *Id.*

[^20]: Marion's Request for Review therefore is distinguishable from
    *Visitation Academy*, in which SLD included an incorrect annual
    pre-discount amount in an RAL. *See Request For Review By Visitation
    Academy, Federal-State Joint Board on Universal Service, Changes to
    the Board of Directors of the National Exchange Carrier Association,
    Inc.*, CC Docket Nos. 96-45, 97-21, Order, DA 01-655 (Com. Car. Bur.
    rel. Mar. 14, 2001).

[^21]: *See* RAL at 3.

[^22]: We note that this conclusion does not diminish an applicant's
    obligation to correctly calculate the estimated monthly and annual
    pre-discount cost of funding requests. Applicants are responsible
    for ensuring that their applications are complete and accurate, and
    the burden of discovering and correcting errors rests with the
    applicants. *See, e.g., Request For Review By Scranton School
    District, Federal-State Joint Board on Universal Service, Changes to
    the Board of Directors of the National Exchange Carrier Association,
    Inc.*, CC Docket Nos. 96-45, 97-21, Order, 15 FCC Rcd. 181, 184
    (Com. Car. Bur. 2000).