ERATE AND YOU A RELATIONSHIP MADE IN H

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E-RATE AND YOUA RELATIONSHIP MADE IN H
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WELCOME

• TO DEATH by PowerPoint.

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E-Rate and YouA Relationship Made in H

• Mary Mehsikomer, State E-Rate Liaison
• November 2007

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Overview

• Schools and Libraries Program
• Provides discounts to eligible schools and
  libraries for Telecommunications Services,
  Internet Access, Internal Connections, and Basic
  Maintenance
• Applicants can be schools, libraries, or
  consortia, but only eligible recipients of
  service can receive discounts
• Applicants must apply for discounts each year
  (Form 471 application filing window)
• Funding cap each year is 2.25 billion

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Overview

• Funding year July 1 through following June 30
• Competitive Bidding Process Form 470
• July 28 days before end of 471 window
  (usually February)
• Services Selected Form 471
• November February (check website for exact
  dates)
• (60 days after release of Eligible Services List
  from FCC)
• Receipt of Services Confirmation Form 486
• 120 days after USAC response from 471 letter or
• 120 days after the service start date
• Billing Entity Reimbursement Form Form 472 or
  Form 474
• 120 days after date of the Form 486
  Notification Letter or
• 120 days after the last date to receive service

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Overview

• Forms for Applicants
• Technology plan Letter from MDE
• Form 470
• Form 471
• Form 486
• Form 472 BEAR

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Overview
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Overview

• Application process
• Eligibility
• Technology planning
• Competitive bidding / Form 470
• Calculating discounts
• Funding requests / Form 471
• Application review / Funding commitments
• Starting services / Form 486
• Invoicing USAC / Form 472 (BEAR) or Form 474

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Calculating Discounts
Discount Matrix
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EligibilityApplicants

• Eligible Entities - Schools
• Must meet the statutory definition of elementary
  or secondary school found in the No Child Left
  Behind Act of 2001.
• Must be a non-profit institutional day or
  residential school, including a public charter
  school, that provides elementary or secondary
  education, as determined under state law.
• Must not be operating as a for-profit business.
• Must not have an endowment exceeding 50 million.

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EligibilityApplicants

• Eligible Entities - Schools
• Pre-kindergarten, Adult Education, Juvenile
  Justice students/facilities may be eligible. In
  MN, Pre-K and Juvenile Justice are eligible.
• Must provide elementary or secondary education as
  determined under state law.
• USAC requests updated eligibility information
  from state departments of education every two
  years.

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EligibilityApplicants

• Consortia
• Eligible schools and/or libraries may form
  consortia with
• Other eligible schools and/or libraries
• Certain health care providers
• Public sector (governmental) entities
• Only eligible entities can receive discounts

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Eligible ServicesBoth

• Priority 1 funded first
• Telecommunications Services
• Basic telephone service wireline or wireless
  phone service (local, cellular/PCS, and/or long
  distance)
• Voice mail
• Transmission services (T-1, DSL)
• Internet Access
• Basic conduit access to the Internet

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Eligible ServicesBoth

• Priority 2
• Internal Connections (switches, hubs, routers,
  wiring)
• Basic Maintenance on Internal Connections
• Priority 1 funded first, then Priority 2 begins
  with neediest applicants (90 first, then 89,
  88, etc.).
• Internal Connections funded in only two out of
  five funding years. (may or may not make a
  difference).

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EligibilityApplicants

• Educational Purposes
• Activities that occur on school property are
  presumed to be integral, immediate, and proximate
  to the education of students or the provision of
  library services to library patrons and therefore
  qualify as educational purposes.
• Customary work activities of employees of a
  school or library are presumed to fall under the
  definition of education purposes.

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EligibilityApplicants

• Examples of Non-instructional Facilities (NIFs)
  that can receive Priority 1 services

• SCHOOLS
• Administrative buildings
• School bus barns and garages
• Cafeteria offices
• Facilities associated with athletic activities

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EligibilityApplicants

• Educational Purposes Priority 1
• Wireless Telecommunications Services used offsite
  may be eligible. For example,
• School bus drivers delivering children to and
  from school when cell phones are need to make
  sure no child is left behind.
• Cell phones for teachers or other school staff
  accompanying students on a field trip or sporting
  event.

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EligibilityApplicants

• Educational Purposes Priority 2
• Priority 2 services to NIFs are NOT eligible
  unless those internal connections are essential
  for the effective transport of information to an
  instructional building of a school.

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Technology PlanningApplicants

• Technology Plans
• Not required for basic telephone service (but
  theyre a good idea anyway)
• Must be written before Form 470 filing
• Must be approved by a certified approver before
  the Form 486 is filed or discounted services
  start, whichever is earlier
• Must cover entire program year
• Must cover five specific elements

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Technology PlanningApplicants

• Technology Plans
• Must cover five specific elements
• Goals / Strategies for using technology
• Professional development
• Needs assessment
• Sufficient budget
• Evaluation process

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Competitive Bidding / 470Applicants

• Filing Form 470 opens a competitive bidding
  process.
• Can also issue a Request for Proposals (RFP).
• Applicants are responsible for ensuring an open
  and fair process and selecting the most
  cost-effective provider of the desired services.

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Competitive Bidding / 470Applicants

• Request for Proposal (RFP)
• Not required under FCC rules, but a good idea
• Must comply with local and state procurement laws
• Describes your project scope, location, other
  requirements in detail
• Even if you have an RFP, you must describe the
  services you desire on your Form 470.

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Competitive Bidding / 470Applicants

• Competition
• Goal is to have as many bidders as possible
• Promotes better service and lower prices
• Fair and open process
• All bidders treated the same
• No advance knowledge of RFP information
• No secrets in the process
• All bidders know what is required of them.

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Competitive Bidding / 470Applicants

• Selecting service providers
• Applicants must choose the most cost-effective
  solution to their Form 470 or RFP, with price as
  the primary factor
• Other factors can be considered, but price must
  be the most heavily weighted.
• Evaluation process should be carefully documented
  and that documentation must be maintained.

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Competitive Bidding / 470Applicants

• Form 470 Deadline
• Absolute deadline is 28 days before the close of
  the Form 471 filing window.
• However, if the applicant waits until that date
  to file a Form 470, the following must all occur
  on the last day of the window
• Selecting a service provider
• Signing a contract
• Signing, dating and submitting Form 471.

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Competitive Bidding / 470Applicant Tips

• Retain worksheets, bid evaluation criteria,
  winning AND LOSING bids
• Prepare a memo to file if you received only one
  bid or no bids
• File (and certify) online
• Reduces errors and speeds processing
• USAC will issue you a PIN

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What should I keep?

• Keep all documents FIVE years after the last day
  of service for the E-rate funding year.
• Applicants, service providers, and consultants
  should ALL retain E-rate documentation.

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TOP 5 MISSING DOCUMENTS

• Discount verification (NSLP, etc.)
• Asset listings
• Signed and dated contracts
• Consultant agreement or LOA
• Bid evaluation/award schedule

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Competitive Bidding / 470Applicants

• Form 470 Receipt Notification Letter (RNL)
• Cover page of important reminders
• Notifies applicant that Form 470 has been posted
  to the USAC web site
• RNL generated before certification
• Contains Allowable Vendor Selection / Contract
  Date

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Calculating DiscountsApplicants

• Discounts are calculated using
• Percentage of students eligible for National
  School Lunch Program (NSLP)
• Urban or rural status of county in which school
  or library is located (from web site)
• These two pieces of information are carried into
  the Discount Matrix

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Funding Requests / 471Applicants

• Form 471
• Provides specific information on services,
  service providers selected, and contracts
• Provides discount calculation information
• Must be filed for each funding year
• Contains certifications of compliance
• Can include one or more funding requests, but
  break out Form 471s based on service category.

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Funding Requests / 471Applicants

• Form 471 Deadline
• Must be filed online or postmarked on or before
  the close of the Form 471 application filing
  window.
• Forms 471 filed after the close of the window
  will be considered after all Forms 471 filed
  in-window.
• Certifications for associated Forms 470 also must
  be filed online or postmarked before the close of
  the window.

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Funding Requests / 471Applicants

• Contracts
• Applicants and service providers must sign
  contracts for services that are not provided
  under tariff or under month-to-month arrangements
• Contracts can cover more than one year or contain
  extensions, but applicant must indicate these
  options in the Form 470

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Funding Requests / 471 Applicant Dos and Donts

• WAIT AT LEAST 28 DAYS BEFORE
• Selecting a service provider
• Signing a contract
• Signing and dating the Form 471
• Submitting the Form 471
• These actions must occur in this order.
• Refer to 470 RNL for allowable date.
• Both applicants and service providers must sign
  and date all contracts.

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Funding Requests / 471 Applicant Tips

• Remove ineligible costs from funding requests
• Document ineligible costs carefully
• 30 rule if 30 or more of the dollar value of
  the request is for ineligible products and
  services, the entire request will be denied
• Work with your service provider(s) to create your
  Item 21 attachment(s)

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Funding Requests / 471 Applicant Tips

• Dont combine Priority 1 and Priority 2 requests
  on the same Form 471.
• Review of Priority 2 requests may hold up
  Priority 1 commitments.
• When in doubt, split it out.
• File (and certify) online
• Reduces errors and speeds processing
• USAC will issue you a PIN

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Funding Requests / 471Both

• Form 471 Receipt Acknowledgment Letter (RAL)
• Cover page of important reminders
• Provides confirmation of certain information
  entered from Form 471
• Data entry errors may be corrected
• Applicants can request funding reductions but not
  funding increases

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Application Review Applicants

• Forms 471 are reviewed by Program Integrity
  Assurance (PIA) for compliance with program rules
  concerning areas such as
• Competitive bidding process
• Contracts
• Discount calculation
• Sufficient budget
• Establishing Form 470
• Technology plan
• Childrens Internet Protection Act

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Application Review Applicant Tips

• Provide information to Program Integrity
  Assurance (PIA) promptly 15 days
• Work with your service provider to comply with
  information requests.
• Make sure your answers respond completely to the
  questions asked.
• Ask for more time to respond if you need it.
• However, if you ask for more time, your PIA
  representative will work on other applications
  and you may wait longer for a decision.
• Check the 471 Application Status Tool.

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Funding Commitments Both

• Funding Commitment Decision Letter (FCDL)
• Cover page of important reminders
• Reports status of individual funding requests
• Funded
• Not funded
• As yet unfunded (Priority 2 requests)
• Cancelled
• May receive more than one FCDL

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Funding CommitmentsApplicant Tips

• Check all entries on the Funding Commitment
  Decision Letter (FCDL) carefully to make sure
  there are no data entry errors.
• Use the information on the FCDL to prepare your
  Form 486.

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Starting Services / 486Applicants

• Form 486
• Notifies USAC that services have started and
  invoices can be paid
• Certifies that Tech Plan (if required) meets
  program requirements.
• Certifies the status under Childrens Internet
  Protection Act (CIPA).
• Lead members of consortia may be required to
  collect CIPA certifications from consortium
  members on a separate form (Form 479).

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Starting Services / 486Applicants

• Childrens Internet Protection Act (CIPA)
• Applicants must certify compliance with
  requirements
• Internet safety policy
• Public notice or meeting
• Technology protection measure (filter)
• CIPA does not apply to requests for plain old
  telephone service, but does apply to any request
  for Internet access.

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Starting Services / 486Applicants

• Form 486 Deadline
• Form 486 must be filed online or postmarked no
  later than
• 120 days after the Service Start Date OR
• 120 days after the date of the Funding Commitment
  Letter whichever is later.
• If the Form 486 is late, discounts will be
  reduced to reflect the submission date.

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Starting Services / 486 Both

• Form 486 Notification Letter (486NL)
• Cover page of important reminders
• Provides confirmation that a Form 486 has been
  successfully data entered.
• Reports Service Start Date or Adjusted Service
  Start Date
• USAC will accept invoices from applicants (Form
  472 - BEAR) or service providers (Form 474) once
  the Form 486 is certified.

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Starting ServicesBoth

• Obligation to Pay Non-discount Share
• Applicants are required to pay their share of the
  cost (the non-discount portion or share) this
  share cannot be donated, forgiven or ignored.
• Service providers cannot waive or credit the
  applicants share.
• Offers to reduce price must be incorporated into
  the total pre-discount amount.
• Service provider must bill the applicant for
  non-discount share of services.

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Invoicing / 472 or 474Both

• Billed Entity Applicant Reimbursement (BEAR) Form
  472 is filed by the applicant and certified by
  the service provider after the applicant receives
  services and pays for the services in full.
• Service Provider Invoice (SPI) Form 474 is filed
  by the service provider when the bills to the
  applicant are directly discounted by the
  provider.

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Invoicing / 472 Applicant Dos and Donts

• Form 472 (BEAR Form)
• DO verify that your service provider has signed
  the last page of the form before you submit it.
  
• DO check your calculations.
• Make sure you have service provider bills that
  agree with your reimbursement request.
• DO make sure you have paid your non-discount
  share.

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Invoicing / 472 Both

• Invoicing deadlines
• Form 472 (BEAR) must be filed online or
  postmarked no later than
• 120 days after the last date to receive service
  OR
• 120 days after the date of the 486 NL
• whichever is later.
• If using BEAR do them quarterly.
• If the invoice is late, payment will be denied.
• Extensions of invoicing deadlines may be
  requested under certain conditions.

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Invoicing / 472

• BEAR Notification Letter
• Cover page of important reminders
• Provides confirmation that a Form 472 has been
  successfully data entered.
• Indicates what amounts are being paid and reasons
  for reductions or denials.
• Invoice Status Report / E-notification
• Indicates what amounts are being paid and reasons
  for reductions or denials.
• Sent only to service providers.

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Invoicing / 472

• Quarterly Disbursement Report
• Sent only to applicants
• Authorized person
• Billed Entity (BEN) address.
• Contains all invoice (Form 472 and Form 474)
  payment authorization amounts for the Billed
  Entity for all funding years approved during that
  quarter.

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Appeals

• USAC decisions can be appealed to USAC and to the
  FCC.
• Applicants MUST appeal first to USAC.
• Can appeal to the FCC if USAC does not grant the
  appeal.
• Can be filed electronically or on paper.
• Must be filed electronically or postmarked within
  60 days of the USAC decision.
• Requests for waivers of rules must be filed with
  the FCC.

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General Tips

• If you submit something to USAC
• Check your work
• Sign and date it (online or on paper)
• Submit it by the deadline
• Keep a copy and proof of submission
• If USAC sends something to you
• Read it
• Take all appropriate actions
• Save it for AT LEAST FIVE YEARS.

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Assistance

• Schools and Libraries / USAC web site
• http//www.universalservice.org/sl/
• Client Service Bureau
• Use the Submit a Question link on the web site
• Fax toll-free at 1-888-276-8736
• Telephone toll-free at 1-888-203-8100
• Form instructions

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Assistance (continued)

• Mary Mehsikomer, Minnesota State E-Rate Liaison
• [phone]
• mary.mehsikomer_at_state.mn.us