The Erate:

1
The E-rate
November 2nd and 3rd, 2005
FY2006

• Steve Sanders
• 608-266-7112fax [phone] stephen.sanders_at_dpi
  .state.wi.us

Bob Bocher 608-266-2127fax [phone]robert.bo
cher_at_dpi.state.wi.us
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Agenda

• Brief E-rate overview
• Whats new for 2006?
• Tips on the application process

Videostreamed live Nov 3rd 330-545 and archived
at http//www.uwex.edu/ics/stream/dpi/
PowerPoint at http//dpi.wi.gov/pld/erate.html
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E-rate Program Overview

• Part of the 1996 Telecommunications Act
• Funded at 2.25 billion annually contributed by
  telcos
• Schools and Libraries Division (SLD) manages
  program
• Get discounts on three eligible services
• Telecommunications
• Internet access
• Internal connections
• Who is eligible?
• K-12 public and private schools
• Public libraries
• NIFs (Priority 1)

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What Are E-rate Eligible Services?

• Eligible services described in Eligible Services
  List
• Lists Services which are conditionally eligible
  and ineligible
• 2006 list to be public in a few days?
• Priority 1
• Telecommunications services
• Local and long distance
• Wireline and wireless
• Voice, video, data
• Internet access
• Priority 2
• Internal connections (switches, hubs, routers,
  wiring)

Priority 1 funded first, then Priority 2 funded
starting with neediest applicants (90, 89, 88,
etc.). Seldom funded below 80.
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How Much Discount Can I Get?

• Discount based on students eligible for
  free/reduced lunch
• Data entered on DPIs Lunch Data Website
• Lunch Website open November 3? December 6?
• Letter sent to all district administrators last
  Friday
• Letter had background info and login and PW for
  each district

For 2006 E-rate applications, DPI will send to
the SLD enrollment and lunch data from 2004-05
school year.
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Lunch Data Entry

• NCLB causing issues in timely collection of
  enrollment data
• Only in Oct. 2005 were enrollment data from
  2004-05 finalized
• NSLP requires using enrollment and free/reduced
  lunch numbers for last operating day in October
• NSLP enrollment differs from enrollment numbers
  collected via ISES for NCLB compliance
• DPI Food and Nutrition Team uses NSLP enrollment
• E-rate uses ISES enrollment
• Schools always free to use fall 2005 ISES
  enrollment data
• But fall 2005 ISES data cannot be verified by DPI
  to the SLD

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Whats New for 2006?

• Overall, issues of Waste/Fraud/Abuse driving most
  program changes
• Greater Congressional scrutiny
• Congressional W/F/A rpt out in October
• Funding suspension possible for 2005 or 2006?
• ADA bill in House
• Hurricane Katrina impacting opening of the 471
  window
• ESL must be posted for 60 days before window
  opens
• FCC must act to overrule this regulation
• USAC wanted 30 day window

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Whats New for 2006 (cont)

• Block 4 bulk upload
• Block 4 info can be created outside of the online
  Form 471, and then uploaded
• Of most value for large applicants and consortia
• Expected to be available at window opening
• Online Item 21 Attachment
• Of most value for smaller, simple funding
  requests
• Site visits continue
• Notify DPI if you get a site visit

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Whats New for 2006 (cont)

• Any bids (RFPs) must be open for at least the
  same 28 days as the 470 posting
• Applicants must be prepared to explain if/how
  they disqualified bids
• Contracts must be signed before submitting 471
• Contracts must contain two signatures and two
  dates (applicant and provider)
• State contracts with multiple winners
• You must be able to document why you selected the
  specific provider off the state contract

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Whats New for 2006 (cont)

• DPI comments to FCC E-rate Rule Notice
• Eliminate Form 470 and use local procurement
  processes
• Eliminate Form 486 and Form 472
• Get reimbursed after the fact
• Reduce max discount to 70
• Support evergreen 471
• Support SECA and ALA comments
• STS/SCS contract expires June 30, 2007
• Like last year, you must file a Form 470 for STS
  services
• Info at http//dpi.wi.gov/pld/stsinfo.html

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Whats New for 2006 (cont)

• All entities doing business with the FCC must
  have an FCC Registration Number (FCC RN)
• Apply through FCC website. Click on CORES.
• Need one per BEN or SPIN.
• Linked to Tax ID, and used for Red Light Rule
  implementation.
• FCC site https//svartifoss2.fcc.gov/coresWeb/pu
  blicHome.do

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Whats New for 2006 (cont)

• Schools need NCES no. libraries need FSCS no.
• Schools http//nces.ed.gov/ccd/schoolsearch/
• Libraries http//nces.ed.gov/surveys/libraries/l
  ibrarysearch/
• Asked for on Form 471 Block 4
• If new school or dont have one for other valid
  reason, it is not required to continue

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Whats New for 2006 (cont)

• New PIN Numbers
• USAC will issue you a PIN after successful
  certification of your Form 470 if you do not
  already have one
• USAC will issue you a PIN after successful
  certification of your Form 471 if you do not
  already have one
• Old PIN will be good until new ones started
• Should get email notification prior to windowing
  opening

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Clarified for 2006 Eligibility of NIFs

• Examples of NIFs that can receive Priority 1
  services

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

• LIBRARIES
• Administrative buildings
• Bookmobile garages
• Interlibrary loan facilities
• Library technology centers

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Clarified for 2006 Document Retention

• You must retain all records related to the
  application for receipt and delivery of
  discounted services for a period of five years
  after the last day of service
• This requirement started in 2004, but is being
  stressed more by the SLD
• Failure to maintain records or failure to make
  available required documentation is an FCC rule
  violation that may warrant recovery of funds

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Examples of Retained Documents

• Pre-bidding process
• Bidding process
• All responses to bid
• Notes from bid review meetings
• Contracts

• Purchase and delivery of services
• Invoices
• Inventory
• All E-rate forms

Retain all documentation for at least five years!!
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The Application Process

• Technology Plan What is my plan?
• Form 470 What services do I want?
• Form 471 What services did I order?
• Lunch data How much of a discount do I get?
• Form 486 When did services start?
• Form 472 or Form 474 How do I receive
  reimbursements or discounts?

Retain all documentation for at least five years!!
Online filing/certification available for most
forms
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The Application Process
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Technology Plans

• Not required for basic phone service -(Rule of
  thumb- if you dial a 9 or whatever to get out it
  is probably not basic also not needed for voice
  mail.)
• Technology plans must be developed before the
  Form 470 is filed.
• Plans must be approved before service begins.
• Technology plans must cover the entire funding
  year for which service is being sought.

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E-Rate Changes/Expiration Revision
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Technology Plans

• Technology plans approved for the Ed Tech (EETT)
  program are acceptable for E-rate with one
  qualification
• The plan must also include documentation that
  the applicant is aware of and will be able to
  secure the financial resources it will need to
  achieve its technology aims, including technology
  training, software, and other elements outside
  the coverage of the Commissions support
  program.

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Technology Plans

• Must cover five areas
• Goals / Strategies for using technology
• Professional development
• Needs assessment
• Sufficient budget
• Evaluation process
• If missing something add it in an addendum

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Technology Plans

• Libraries are covered by Library System Plans and
  approved by DPI
• Public school plans are approved by DPI
• http//www.dpi.state.wi.us/dpi/dltcl/imt/techexp.h
  tml
• Private schools by WCRIS or TEACH

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Forms are off the SLD home page.
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E-rate Form 470

• 470 begins required request/bidding process for
  services
• tariffed or monthly telco or Internet services,
  if you have no contract
• new contractual services
• 470 must be posted on SLD Website for at least 28
  days before you select a provider or sign a
  contract
• Will get a 470 Receipt Notification Letter (RNL)
  from SLD

Violating 28 day rule is 1 reasonfor denial of
applications
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Main Sections (Blocks) of Form 470

• Block 1 Applicant Address and Identifications
• Block 2 Summary Description of Needs or
  Services Requested
• Block 3 Technology Resources
• Block 4 Recipients of Service
• Block 5 Certification and Signature

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Tips on Filing Form 470

• You can file the 470 now for 2006 services
• File one Form 470 for all services, or file
  separate Forms for each service
• The 470 request for services must be open and
  fair
• Bid document (RFP) helpful, but not required
• Do not get too close to vendors!
• Can file 470 once for multi-year contracts
• 470 and any bid documents must indicate length of
  contract, including any optional extensions

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More Tips on Filing Form 470

• Select the most cost-effective provider of the
  service
• Does not have to be the least expensive, but cost
  must be the primary factor
• File online, use Interview form for easy
  applications
• After 28 days, then file Form 471
• Early January 2006 Drop dead date for 470 filing
• Maybe later in January for 2006?
• Form 470 must be certified by close of Form 471
  application filing window

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CIPA/NCIPA Compliance

• Compliance with CIPA required for Internet access
  and internal connections not telecommunications.
• CIPA requirements include filtering and an
  Internet Safety Plan

Certification made on Form 471 and 486
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E-rate Form 471
2006 Form 471 drop dead date ?????, 2006
1059PM CST

• Provides specific information on services,
  service providers selected, and contracts and/or
  agreements
• Provides discount calculation information
• Must be filed for each funding year
• Applicant certifies compliance with rules,
  including securing access to resources to make
  effective use of discounts
• Must be postmarked on or before the last day of
  the Form 471 application filing window
• Certifications for associated Forms 470 also must
  be filed online or postmarked before the close of
  the window.

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• Form 471 Online Interview
• You can use the interview form if you meet the
  following conditions    
•  
• 1. You are one of the following
• An individual school
• A school district
• An individual library
• A library system.
• 2. You have National School Lunch Program student
  counts - or equivalent data using an alternative
  discount mechanism - for each school (individual
  schools and school districts) or for all school
  districts in which your outlets/branches are
  located (individual libraries and library
  systems).
• You are strongly encouraged to print a copy of
  the Form 471 Interview Filing Guide to use for
  reference.

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Tips on Filing Form 471

• Points to Remember
• WAIT AT LEAST 28 DAYS from the posting of the
  Form 470 before
• selecting a service provider
• executing a contract or agreement
• signing and submitting Form 471
• Use the new Form 471!!!!

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Tips on Filing Form 471

• File separate Forms 471 for Priority 1 and
  Priority 2 services
• Remove ineligible costs and document or estimate
  eligible costs carefully (30 Rule)
• Filing online speeds processing and reduces
  errors
• Examine, correct, and save Receipt
  Acknowledgement Letter (RAL)
• Paper forms and instructions http//www.sl.univer
  salservice.org/form/

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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 / 471Applicants

• State Master Contracts
• If the state filed a Form 470, then the applicant
  can cite the states Form 470 on its Form 471
  Funding Request.
• If the applicant filed a Form 470, the applicant
  can consider a state master contract as one of
  the bids, and can choose it as the winning bid if
  it is the most cost-effective solution.
• The state master contract can meet the FCC
  requirements for a signed contract.

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Block 5, Item 21
The Item 21 Attachment

• You MUST attach a description of the service,
  including a breakdown of components, costs,
  manufacturer name, make and model number.
• Examples are provided in the document Item 21
  Attachments for Form 471

http//www.sl.universalservice.org/reference/Form4
71item21Attachments.asp
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Item 21 Example
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Block 6 Certifications Have necessary resources
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Block 6 Certifications Have technology plan
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Funding Commitments

• Funding Commitment Decision Letter (FCDL)
• FCDL reports status of individual funding
  requests
• Funded
• Not Funded
• As Yet Unfunded (Internal Connections)
• Canceled
• May receive more than one FCDL
• Use the information on the FCDL to prepare the
  Form 486

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Receipt Acknowledgement Letter

• 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 within three
  weeks by using the RAL (including Block 4
  worksheets)
• Applicants can request funding reductions but not
  funding increases

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Application Review

• 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

• Provide information to PIA promptly
• 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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E-rate Form 486

• Notification that services have started and the
  SLD can pay invoices
• Certifies that Tech Plan (if required) has been
  approved and covers the entire funding year.
• Certifies 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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Filing Form 486 (cont)

• Form 486 Deadline
• Form 486 must be postmarked no later than
• 120 days after the Service Start Date featured on
  the Form 486
• OR
• 120 days after the date of the Funding Commitment
  Decision Letter

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Invoices

• Invoices Form 472 or Form 474
• BEAR (Billed Entity Applicant Reimbursement) Form
  472 filed by the applicant and certified by the
  service provider after the applicant receives
  services and pays for the services in full
• OR
• SPI (Service Provider Invoice) Form 474 filed by
  service provider after providing services and
  billing applicant for its non-discount share

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Invoice Deadlines

• Invoice (Form 472) Deadline
• Invoices must be postmarked no later than
• 120 days after the last date to receive service
• OR
• 120 days after the date of the Form 486
  Notification Letter

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Top Reasons for Denial

• Form 470 not filed
• Form 470 not certified or certified late
• 28-Day Rule violation
• Competitive bidding violations
• Contracts not signed or not valid
• Insufficient support resources
• Invalid telecom provider
• Insufficient documentation
• Requests for ineligible products and services

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Appeals

• Decisions of the SLD can be appealed to the SLD
  or to the FCC
• Generally, appeal first to the SLD
• Can appeal to the FCC if SLD does not grant the
  appeal
• Can be filed electronically or on paper
• Must be postmarked within 60 days of the SLD
  decision
• See Appeals Procedure in Reference Area for
  specific guidance
• Requests for waivers of rules must be filed with
  the FCC

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Where to Go For Help

• On the Web www.sl.universalservice.org
• Client Service Bureau 888-203-8100
• Via e-mail question_at_slcfund.org
• Via fax [phone]
• Fax on demand documents 800-959-0733

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DPI Help

• DPI E-rate Web site
• dpi.wi.gov/pld/erate.html
• DPIs WIERATE email list
• send message to imailsrv_at_dpi.listserv.wi.gov
• leave subject blank
• in body type subscribe wierate
• DPI Staff

Steve Sanders 608-266-7112 fax [phone]
stephen.sanders_at_dpi.state.wi.us
Bob Bocher 608-266-2127 fax [phone]robert.
bocher_at_dpi.state.wi.us
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The E-rate An Overview of Basics for 2006
Questions ?

• Steve Sanders
• 608-266-7112fax [phone] stephen.sanders_at_dpi
  .state.wi.us

Bob Bocher 608-266-2127fax [phone]robert.bo
cher_at_dpi.state.wi.us