ERATE OVERVIEW

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E-RATE OVERVIEW

• Arkansas E-rate Work Group
• Fall 2003

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Overview

• School and Libraries Support Mechanism
• Provides discounts to eligible schools and
  libraries for Telecommunications Services,
  Internet Access, and Internal Connections
• Applicants can be schools, libraries, or
  consortia, but only eligible recipients of
  services can receive discounts
• Applicants must apply for discounts each year
• Disbursements are capped at 2.25 billion annually

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History

• Schools and Libraries Support Mechanism started
  providing discounts as of January 1, 1998
• Telecommunications Act of 1996
• Congress directed the FCC to establish
  competitively neutral rules . . . to enhance, to
  the extent technically feasible and economically
  reasonable, access to advance telecommunications
  and information services for all public and
  non-profit elementary and secondary school
  classrooms . . . and libraries.
• First Report and Order (FCC 97-157)

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Introduction

• Commitments to Date by Applicant Type
• (Inception to September 10, 2003)

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Introduction

• Commitments to Date by Service Type
• (Inception to September 10, 2003)

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Introduction

• Commitments to Date by Discount Band
• (Inception to September 10, 2003)

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Introduction

• Vendor Assistance
• NECA in New Jersey
• Application review Program Integrity Assurance
  (PIA)
• Invoice review (PIA)
• Appeal process
• Program correspondence, including change and
  extension requests
• Pearson Government Solutions in Kansas
• Client Service Bureau (call center)
• Forms processing

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Eligibility

• 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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Eligibility

• Eligible Entities
• Schools (cont.)
• Pre-kindergarten, Adult Education, Juvenile
  Justice
• Must meet state definition of elementary or
  secondary education
• Students and/or facilities may be eligible
• SLD requests updated information from state
  departments of education every two years

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Eligibility

• Eligible Entities
• Libraries
• Must meet the statutory definition of library or
  library consortium found in the Library Services
  and Technology Act (LSTA) of 1996
• Must be eligible for assistance from a state
  library administrative agency under LSTA
• Budget must be completely separate from any
  schools
• Must not be operating as a for-profit business

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Eligibility

• Eligible Services
• Priority 1
• Telecommunications Services
• local and long distance
• wireline and wireless
• voice, data, video
• Internet Access
• Priority 2
• Internal Connections (switches, hubs, routers,
  wiring)
• Priority 1 funded first, then Priority 2 funded
  beginning with neediest applicants (90, 89,
  88, etc.)

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Eligibility

• Eligible Services
• Eligible Services List
• Lists services by category (Telecommuncations
  Services, Internet Access, Internal Connections,
  and Miscellaneous)
• Services which are conditionally eligible
• Ineligible services
• Available on SLD web site
• http//www.sl.universalservice.org/reference/eligi
  ble.asp
• Updated list recently posted

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Service Providers

• Service Providers
• Must file Form 498
• Request a Service Provider Identification Number
  (SPIN)
• Provide/update contact information
• Providers of Telecommunications Services
• Must provide telecommunications services on a
  common carriage basis to be an eligible
  telecommunications provider
• In general, must provide services and bill
  customers before being reimbursed for discount on
  services

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Calculating Discounts

• Discount Calculation
• National School Lunch Program (NSLP)
• Individual schools start with the percentage of
  students eligible for NSLP for their school
• School districts start with the NSLP
  percentages of individual schools in the
  district, calculate weighted average of all
  schools
• Libraries start with the percentage of students
  eligible for NSLP for the school district in
  which the library is located
• Consortia calculate simple average of
  discounts of members
• Urban or rural status of county in which school
  or library is located (from web site)

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Calculating Discounts

• Points to Remember
• All discount calculations will involve
• percentage of students eligible for NSLP in a
  school or school district
• use eligibility numbers not participation numbers
• determination of Urban/Rural status
• discount from Discount Matrix
• Applicant with members or subunits must calculate
  an average of those members
• School district individual schools
• Library system library outlets/branches
• Consortium eligible member entities

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Calculating Discounts
Discount Matrix
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Arkansas Rural Counties

• Arkansas
• Ashley
• Baxter
• Boone
• Bradley
• Calhoun
• Carroll
• Chicot
• Clark
• Clay
• Cleburne
• Cleveland
• Columbia
• Conway
• Craighead
• Cross

• Dallas
• Desha
• Drew
• Franklin
• Fulton
• Garland
• Grant
• Greene
• Hempstead
• Hot Spring
• Howard
• Independence
• Izard
• Jackson
• Johnson
• Lafayette

• Lawrence
• Lee
• Lincoln
• Little River
• Logan
• Madison
• Marion
• Mississippi
• Monroe
• Montgomery
• Nevada
• Newton
• Ouachita
• Perry
• Phillips
• Pike

• Poinsett
• Polk
• Pope
• Prairie
• Randolph
• Scott
• Searcy
• Sevier
• Sharp
• St. Francis
• Stone
• Union
• Van Buren
• White
• Woodruff
• Yell

based on the Metropolitan Statistical Area (MSA)
data
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Calculating Discounts

• INDIVIDUAL SCHOOL EXAMPLE
• Determine the total number of students in the
  school
• Determine the number of students eligible for
  NSLP
• Divide the number of students eligible for NSLP
  by the total number of students to get the
  percentage of students eligible for NSLP
• Determine if the school is Urban or Rural
• Look up the discount from the Discount Matrix

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Calculating Discounts

• INDIVIDUAL SCHOOL EXAMPLE (cont.)
• Polk Elementary School
• Rural location
• 64 total students
• 31 students eligible for NSLP
• Calculation
• 31 / 64 48.437 eligible for NSLP
• Rural location
• Discount Matrix 70 discount

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Calculating Discounts

• SCHOOL DISTRICT EXAMPLE
• School districts calculate a weighted average of
  the discounts for their individual schools to get
  their shared discount percentage, as follows
• Calculate the matrix discount for each individual
  school
• Calculate the weighted product (the matrix
  discount multiplied by the total number of
  students) for each individual school
• Determine the total number of students in the
  School District and the total of the weighted
  products
• Divide the total of the weighted products by the
  total number of students to get the shared
  discount percentage

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Calculating Discounts
SCHOOL DISTRICT EXAMPLE (cont.)
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Calculating Discounts

• SCHOOL DISTRICT EXAMPLE (cont.)
• Madison Elementary School
• Urban location
• 127 total students
• 49 students eligible for NSLP
• Calculation
• 49 / 127 38.582 eligible for NSLP
• Discount Matrix 60 discount
• 127 x 60 76.2 weighted product for Madison
  Elementary School

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Calculating Discounts

• SCHOOL DISTRICT EXAMPLE (cont.)
• Madison Elementary School
• 127 total students, 76.2 weighted product
• Adams Middle School
• 195 total students, 97.5 weighted product
• Washington High School
• 142 total students, 71.0 weighted product
• Calculation
• 127 195 142 464 total students in school
  district
• 76.2 97.5 71.0 244.7 total of weighted
  products
• 244.7 / 464 53 shared discount percentage
  for school district

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Calculating Discounts

• LIBRARY OUTLET/BRANCH EXAMPLE
• Determine the total number of students in the
  school district in which the library is located
• Determine the number of students eligible for
  NSLP in that school district
• Divide the number of students eligible for NSLP
  by the total number of students to get the
  percentage of students eligible for NSLP in that
  school district
• Determine if the library is Urban or Rural
• Look up the discount from the Discount Matrix

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Calculating Discounts
LIBRARY OUTLET/BRANCH EXAMPLE (cont.)
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Calculating Discounts

• LIBRARY OUTLET/BRANCH EXAMPLE (cont.)
• Polk Public Library
• Rural location
• Located in Lincoln School District
• Polk Elementary School has 64 total students, 31
  students eligible for NSLP
• Lincoln Jr/Sr High School has 92 total students,
  62 students eligible for NSLP
• Calculation
• 64 92 156 total students
• 31 62 93 students eligible for NSLP
• 93 / 156 59.615 eligible for NSLP
• Discount Matrix 80 discount

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Calculating Discounts

• LIBRARY SYSTEM EXAMPLE
• Library systems calculate a simple average of the
  discounts for their individual outlets/branches,
  as follows
• Calculate the matrix discount for each individual
  library outlet/branch
• Calculate the total of the matrix discounts for
  all the library outlets/branches
• Divide the total of the matrix discounts by the
  total number of library outlets/branches to
  determine the library systems discount

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Calculating Discounts
LIBRARY SYSTEM EXAMPLE (cont.)
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Calculating Discounts

• LIBRARY SYSTEM EXAMPLE (cont.)
• Washington Main Library and
• Jefferson Branch Library
• Both in Washington School District
• 127 195 142 464 total students
• 49 67 47 163 students eligible for NSLP
• 163 / 464 35.129 eligible for NSLP
• Urban location
• Discount Matrix 60
• Monroe Branch Library
• In Lincoln School District
• Discount Matrix 80 (calculated previously)

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Calculating Discounts

• LIBRARY SYSTEM EXAMPLE (cont.)
• Washington Main Library
• Discount Matrix 60
• Jefferson Branch Library
• Discount Matrix 60
• Monroe Branch Library
• Discount Matrix 80 (calculated previously)
• Calculation
• 60 60 80 200 total of matrix discounts
• 200 / 3 67 simple average of three
  outlet/branch discounts gives the shared discount
  percentage

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Calculating Discounts

• CONSORTIUM EXAMPLE
• Consortia calculate a simple average of the
  discounts for their individual member entities,
  as follows
• Determine the matrix discount for each eligible
  member of the consortium, depending on its entity
  type
• Calculate the total of the matrix discounts for
  all the eligible members of the consortium
• Divide the total of the matrix discounts by the
  total number of eligible members to determine the
  consortiums shared discount

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Calculating Discounts
CONSORTIUM EXAMPLE (cont.)
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Calculating Discounts

• CONSORTIUM EXAMPLE (cont.)
• Polk Elementary School
• 70 matrix discount
• Washington School District
• 53 matrix discount
• Polk Public Library
• 80 matrix discount
• Washington Library System
• 67 matrix discount
• Calculation
• 70 53 80 67 270 total of matrix
  discounts
• 270 / 4 68 simple average of four consortium
  members and shared discount percentage

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Application Process

• Technology Plan What is my plan?
• Form 470 What services do I need to fulfill
  my technology plans?
• Form 471 What services did I order?
• Form 486 When did services start?
• Form 472 or Form 474 How do I receive
  reimbursements or discounts?
• Online filing/certification available for most
  forms

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Application Process

• Applicant Actions
• SLD Actions

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Technology Planning

• Technology Plans
• Not required for local/long distance phone
  service
• ADE Requires TP from All Public School Districts
  Open Enrollment Charter Schools
• Must be in place before Form 470 filing
• Must be approved by an SLD-certified approver
  before Form 486 filing or start of services,
  whichever is earlier
• Must cover five areas
• Goals / Strategies for using technology
• Professional development
• Needs assessment
• Sufficient budget
• Evaluation process
• New SLD enforcements will be covered later

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Technology Planning

• Points to Remember
• Tech Plan must establish the connections between
  the technology and specific curriculum reforms or
  library service improvements
• Tech Plan should provide evidence of securing the
  resources needed to make effective use of the
  discounted services
• Tech Plan should include an evaluation process to
  monitor progress toward established goals
• Tech Plan Approver listed on Form 486 must be SLD
  certified

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Form 470

• Form 470
• Opens a competitive bidding process
• Applicant responsible for ensuring an open, fair
  process and selecting the most cost-effective
  provider of the desired services
• Must wait 28 days after POSTING of Form 470 to
  select service provider, sign contract/agreement,
  and sign and submit Form 471
• Service providers who will participate in the
  bidding process cannot complete Form 470
• Can be filed once for multi-year contracts, but
  470 and RFP must indicate intent to sign
  multi-year contract
• Make RFP available or list specific
  service/function and quantity/capacity

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Form 470

• Competitive Bidding
• Request for Proposal (RFP)
• Not required, but a good idea
• Describes your project scope, location, other
  requirements in detail
• 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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Form 470

• Points to Remember
• Competitive bidding process must be open and fair
  
• List services sought in correct category of
  service (Form 471 must match)
• Retain worksheets, bid evaluation criteria,
  winning AND LOSING bids
• Form 470 must be certified by close of Form 471
  application filing window
• Filing online speeds processing and reduces
  errors

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Form 470

• Form 470 Receipt Notification Letter (RNL)
• Cover page of important reminders and deadlines
• Notifies applicant that Form 470 has been posted
  to the SLD web site
• System will generate RNL for Forms 470 filed
  online after form is submitted but before it is
  certified
• Form MUST be certified before close of Form 471
  application filing window
• Contains Allowable Vendor Selection / Contract
  Award Date

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Form 471

• Form 471
• 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, which
  include 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

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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
• 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

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Form 471

• Obligation to Pay Non-discount Share
• Applicants are required to pay their share of the
  cost (the non-discount portion or 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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Form 471

• Form 471 Receipt Acknowledgment Letter (RAL)
• Cover page of important reminders and deadlines
• Provides confirmation of certain information
  entered from Form 471
• Data entry errors may be corrected by submitting
  a copy of the RAL with the specific errors lined
  out and the correct information supplied
  three-week deadline
• Funding request reductions may also be submitted
  before funding commitment

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Application Review

• Review of Applications
• Review by PIA, which may include
• Competitive bidding process
• Contracts and agreements
• Discount calculation
• Sufficient budget
• Establishing Form 470
• Technology Plan

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Funding Commitments

• Points to Remember
• Provide information requested by reviewers (PIA)
  promptly
• If desirable, work with your state coordinator to
  comply with information requests
• Ask for more time if you need it
• Retain documentation
• Review Request for Selective Review Information
  fax to understand what information might be
  requested

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Funding Commitments

• Funding Commitment Decision Letter
• Cover page of important reminders and deadlines
• FCDL reports status of individual funding
  requests
• Funded
• Not Funded
• As Yet Unfunded (Internal Connections)
• Canceled
• May receive more than one FCDL

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Funding Commitments

• Points to Remember
• Check all entries on the FCDL carefully to make
  sure there are no data entry errors
• Review the FCDL and the SLD web site for
  information on requesting SPIN changes and
  service substitutions, if necessary
• Use the information on the FCDL to prepare the
  Form 486

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Funding Commitments

• Commitments vs. Disbursements
• 2.25 billion cap is on disbursements
• SLD can commit more than 2.25 billion in a given
  Funding Year, because commitments have
  historically exceeded disbursements

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Form 486

• Form 486
• Notification that services have started and the
  SLD can pay invoices
• Certifies that Tech Plan (if required) has been
  approved
• 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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Form 486

• Points to Remember
• Tech Plan must be approved by an SLD-certified
  Tech Plan Approver (list available on SLD web
  site)
• CIPA certification(s) must be consistent with
  those filed in previous years
• Filing online speeds processing and reduces
  errors

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Form 486

• 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
• whichever is later
• If Form 486 is postmarked later than the above
  deadline, the date 120 days before the Form 486
  postmark date will become the start date for
  discounted services and funding may be reduced

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Form 486

• Form 486 Notification Letter
• Cover page of important reminders and deadlines
• Provides confirmation that a Form 486 has been
  successfully data entered
• Copies sent to both applicant and service
  provider

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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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Invoices

• Points to Remember
• Invoices cannot be used to request SPIN changes
  or service substitutions
• Invoices are reviewed for program compliance
  respond promptly to requests for information
• Service providers have 20 days after RECEIPT of a
  check from SLD to reimburse the applicant

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Invoices

• Invoice 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
• whichever is later
• If Form 486 is postmarked later than the above
  deadline, payment will be denied
• Extensions of invoice deadlines may be requested
  under certain conditions

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Invoices

• BEAR Notification Letter
• Cover page of important reminders and deadlines
• Provides confirmation that a Form 472 (BEAR) has
  been successfully data entered
• Copies sent to both applicant and service
  provider
• Indicates what amounts are being paid and reason
  for reductions/denials

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Document Retention

• In general, documents must be retained for five
  years
• Examples of documents that must be retained
• Worksheets
• Bid evaluation sheets
• Winning and losing bids
• Contracts and agreements
• Invoices sent to SLD
• Service provider bills sent to customer

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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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Questions
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