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In the Schools and Libraries Third Report and Order, the Federal Communications Commission (FCC) stated "[r]ecipients of support are expected to use all equipment purchased with universal service discounts at the particular location, for the specified purpose for a reasonable period of time." If equipment is not serving the entities specified on the FCC Form 471 Funding Request Number (FRN) approved by USAC, applicants need to ensure that they have not transferred the equipment in a manner inconsistent with FCC rules.
Eligible products and services purchased with Schools and Libraries Program discounts cannot be sold, resold, or transferred for money or any other thing of value, with the following exceptions:
Equipment is transferred if it provides service to entities that were not included on the original approved FRN. Therefore, if the equipment provides service to entities that were not included on the original approved FRN, a transfer has occurred. A transfer does not automatically occur because equipment is moved or relocated; rather the question to ask is what entities are being served by the equipment.
In the following examples, assume that School A, School B, and School C in the same school district are sharing a router installed at School A one year ago.
Example 1: The same three schools share the router, but the router has been moved from School A to School B. No transfer has occurred because the entities sharing the service have not changed from the original approved FRN.
Example 2: School A moves the router to the District Office (Non-Instructional Facility Z). The router continues to serve Schools A, B and C. No transfer has occurred because the same entities on the original approved FRN continue to receive service.
Example 3: School D in the same school district wants to share the router with the other three schools. Yes, a transfer has occurred because service is being provided to an entity not included in the original approved FRN.
Example 4: School B is no longer sharing the router because it has closed. No transfer has occurred, because Schools A & C were included on the original approved FRN.
Note that in all examples, the applicant must maintain asset and inventory records for five years from the date of purchase that clearly show the actual location of the equipment. When equipment is transferred, the applicant must maintain detailed records that document the transfer and the reason for the transfer for five years from the date of the transfer.
Equipment cannot be transferred within three years of the date of purchase unless the location served by the equipment is permanently or temporarily closed. After this three-year period, the equipment can be transferred to another eligible entity, regardless of discount level. For example, a 90 percent school could transfer equipment to a 20 percent school after 3 years. Transfers after three years cannot be for money or anything else of value. Entities must maintain records documenting the transfer and the reason for the transfer for five years from the date of the transfer.
Equipment can be transferred to other eligible entities - even if those entities are at a lower discount level - if the particular location where the service was originally received is temporarily or permanently closed. This includes equipment serving part of a facility, such as equipment serving individual classrooms, if that portion of the facility is temporarily or permanently closed. The transferring entity must notify USAC of the transfer, and both the transferring and receiving entities must maintain detailed records of the transfer and the reason for the transfer for five years from the date of the transfer.
To notify USAC about a transfer of equipment, send a letter to USAC by regular mail, fax, or email that contains the following information:
The letter should be labeled "Equipment Transfer Notification" and sent to:
Schools and Libraries - Correspondence Unit
30 Lanidex Plaza West
PO Box 685
Parsippany, NJ 07054-0685
Please include a fax cover page marked "ATTN: Equipment Transfer Notification" and indicate the number of pages you are faxing.
Fax your letter to:
Use the Submit a Question feature on this website to submit your letter by email. Click on the "Submit a Question" link, click "Continue" from the Submit a Question page, and then choose the subject "Equipment Transfers" from the Topic List and follow the prompts. Instructions will be provided for sending an attachment.