E-Rate FundingE-Rate Funding

MASBOMASBO

February 18, 2004February 18, 2004

OverviewOverview

School and Libraries Support School and Libraries Support MechanismMechanism– Provides discounts to eligible schools and Provides discounts to eligible schools and

libraries for Telecommunications Services, libraries for Telecommunications Services, Internet Access, and Internal Connections Internet Access, and Internal Connections

– Applicants can be schools, libraries, or Applicants can be schools, libraries, or consortia, but only eligible recipients of consortia, but only eligible recipients of services can receive discountsservices can receive discounts

– Applicants must apply for discounts each yearApplicants must apply for discounts each year– Disbursements are capped at $2.25 billion Disbursements are capped at $2.25 billion

annuallyannually

HistoryHistory

Schools and Libraries Support Schools and Libraries Support Mechanism started providing Mechanism started providing discounts as of January 1, 1998discounts as of January 1, 1998– Telecommunications Act of 1996Telecommunications Act of 1996

Congress directed the FCC to “establish competitively Congress directed the FCC to “establish competitively neutral rules . . . to enhance, to the extent neutral rules . . . to enhance, to the extent technically feasible and economically reasonable, technically feasible and economically reasonable, access to advance telecommunications and access to advance telecommunications and information services for all public and non-profit information services for all public and non-profit elementary and secondary school classrooms . . . and elementary and secondary school classrooms . . . and libraries.”libraries.”

First Report and Order (FCC 97-157)First Report and Order (FCC 97-157)

IntroductionIntroduction

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Mississippi Funding by Year

IntroductionIntroductionAssistanceAssistance

– NECA in New JerseyNECA in New Jersey Application review — Program Integrity Application review — Program Integrity

Assurance (PIA)Assurance (PIA) Invoice review (PIA)Invoice review (PIA) Appeal processAppeal process Program correspondence, including change Program correspondence, including change

and extension requestsand extension requests

– Pearson Government Solutions in KansasPearson Government Solutions in Kansas Client Service Bureau (call center)Client Service Bureau (call center) Forms processingForms processing

EligibilityEligibility

Eligible EntitiesEligible Entities– SchoolsSchools

Must meet the statutory definition of Must meet the statutory definition of elementary or secondary school found in the elementary or secondary school found in the No Child Left Behind Act of 2001No Child Left Behind Act of 2001

Must be a non-profit institutional day or Must be a non-profit institutional day or residential school, including a public charter residential school, including a public charter school, that provides elementary or secondary school, that provides elementary or secondary education, as determined under state laweducation, as determined under state law

Must not be operating as a for-profit businessMust not be operating as a for-profit business Must not have an endowment exceeding $50 Must not have an endowment exceeding $50

millionmillion

EligibilityEligibility

Eligible EntitiesEligible Entities– Schools (cont.)Schools (cont.)

Pre-kindergarten, Adult Education, Juvenile Pre-kindergarten, Adult Education, Juvenile JusticeJustice

– Must meet state definition of elementary Must meet state definition of elementary or secondary educationor secondary education

– Students and/or facilities may be eligible Students and/or facilities may be eligible – SLD requests updated information from SLD requests updated information from

state departments of education every two state departments of education every two yearsyears

EligibilityEligibility

Eligible ServicesEligible Services– Priority 1Priority 1

Telecommunications ServicesTelecommunications Services– local and long distancelocal and long distance– wireline and wirelesswireline and wireless– voice, data, video voice, data, video

Internet AccessInternet Access

– Priority 2Priority 2 Internal Connections (switches, hubs, routers, wiring)Internal Connections (switches, hubs, routers, wiring)

– Priority 1 funded first, then Priority 2 funded Priority 1 funded first, then Priority 2 funded beginning with neediest applicants (90%, 89%, beginning with neediest applicants (90%, 89%, 88%, etc.)88%, etc.)

EligibilityEligibility

Eligible ServicesEligible Services– Eligible Services ListEligible Services List

Lists services by category Lists services by category (Telecommuncations Services, Internet (Telecommuncations Services, Internet Access, Internal Connections, and Access, Internal Connections, and Miscellaneous)Miscellaneous)

– Services which are conditionally eligibleServices which are conditionally eligible– Ineligible servicesIneligible services

Available on SLD web siteAvailable on SLD web site

CalculatingCalculatingDiscountsDiscounts

INCOME URBAN LOCATION RURAL LOCATION

Measured by % of students eligible for the National School

Lunch Program

Discount Discount

If the % of students in your school that

qualifies for the National School Lunch

Program is…

…and you are in an URBAN area, your discount will be…

…and you are in a RURAL area, your discount will be…

Less than 1% 20% 25%

1% to 19% 40% 50%

20% to 34% 50% 60%

35% to 49% 60% 70%

50% to 74% 80% 80%

75% to 100% 90% 90%

Discount MatrixDiscount MatrixDiscount MatrixDiscount Matrix

ApplicationApplicationProcessProcess

• Technology Plan – What is my plan?Technology Plan – What is my plan?• Form 470 – What services do I want?Form 470 – What services do I want?• Form 471 – What services did I order?Form 471 – What services did I order?• Form 486 – When did services start?Form 486 – When did services start?• Form 472 or Form 474 – How do I Form 472 or Form 474 – How do I

receive reimbursements or discounts?receive reimbursements or discounts?

Online filing/certification available for Online filing/certification available for most formsmost forms

ApplicationApplicationProcessProcess

or Tech Plan

Form 470

Form 471

Form 486

Form 472

Form 474

$$$

Applicant (AP) requesting more than local/long distance telephone service prepares Tech Plan

AP files Form 470 to describe services sought and open its competitive bidding process

AP waits at least 28 days before selecting service provider (SP), then signs agree-ment and posts Form 471 detailing funding requests

AP notifies SLD that services have started, certifies Tech Plan status, certifies CIPA compliance

SLD posts AP Form 470 to USAC web site

AP requests reimburse-ment on Form 472 or SP requests payment on Form 474

PIA reviews Form 471, then communi-cates funding decisions by letter (FCDL)

SLD reviews invoice

TechnologyTechnologyPlanningPlanning

• Technology PlansTechnology Plans• Not required for local/long distance phone Not required for local/long distance phone

serviceservice• Must be in place before Form 470 filingMust be in place before Form 470 filing• Must be approved by an SLD-certified approver Must be approved by an SLD-certified approver

before Form 486 filing or start of services, before Form 486 filing or start of services, whichever is earlierwhichever is earlier

• Must cover five areas:Must cover five areas:• Goals / Strategies for using technologyGoals / Strategies for using technology• Professional developmentProfessional development• Needs assessmentNeeds assessment• Sufficient budgetSufficient budget• Evaluation processEvaluation process

TechnologyTechnologyPlanningPlanning

• Points to Remember:Points to Remember: Tech Plan must establish the connections Tech Plan must establish the connections

between the technology and specific curriculum between the technology and specific curriculum reforms or library service improvementsreforms or library service improvements

Tech Plan should provide evidence of securing Tech Plan should provide evidence of securing the resources needed to make effective use of the resources needed to make effective use of the discounted servicesthe discounted services

Tech Plan should include an evaluation process Tech Plan should include an evaluation process to monitor progress toward established goalsto monitor progress toward established goals

Tech Plan Approver listed on Form 486 must be Tech Plan Approver listed on Form 486 must be SLD certifiedSLD certified

Form 470Form 470• Form 470Form 470

• Opens a competitive bidding processOpens a competitive bidding process• Applicant responsible for ensuring an open, fair Applicant responsible for ensuring an open, fair

process and selecting the most cost-effective process and selecting the most cost-effective provider of the desired servicesprovider of the desired services

• Must wait 28 days after POSTING of Form 470 to Must wait 28 days after POSTING of Form 470 to select service provider, sign contract/agreement, select service provider, sign contract/agreement, and sign and submit Form 471and sign and submit Form 471

• Service providers who will participate in the bidding Service providers who will participate in the bidding process cannot complete Form 470process cannot complete Form 470

• Can be filed once for multi-year contracts, but 470 Can be filed once for multi-year contracts, but 470 and RFP must indicate intent to sign multi-year and RFP must indicate intent to sign multi-year contractcontract

• Make RFP available or list specific service/function Make RFP available or list specific service/function and quantity/capacityand quantity/capacity

Form 470Form 470

• Competitive BiddingCompetitive Bidding• Request for Proposal (RFP)Request for Proposal (RFP)

• Not required, but a good ideaNot required, but a good idea• Describes your project scope, location, other Describes your project scope, location, other

requirements in detailrequirements in detail

• CompetitionCompetition• Goal is to have as many bidders as possibleGoal is to have as many bidders as possible• Promotes better service and lower pricesPromotes better service and lower prices

• Fair and open processFair and open process• All bidders treated the same, no advance knowledge All bidders treated the same, no advance knowledge

of RFP informationof RFP information• No secrets in the process, all bidders know what is No secrets in the process, all bidders know what is

required of themrequired of them

Form 470Form 470

• Points to Remember:Points to Remember:Competitive bidding process must be Competitive bidding process must be

open and fair open and fair List services sought in correct category List services sought in correct category

of service (Form 471 must match)of service (Form 471 must match)Retain worksheets, bid evaluation Retain worksheets, bid evaluation

criteria, winning AND LOSING bidscriteria, winning AND LOSING bidsForm 470 must be certified by close of Form 470 must be certified by close of

Form 471 application filing windowForm 471 application filing windowFiling online speeds processing and Filing online speeds processing and

reduces errorsreduces errors

Form 470Form 470

• Form 470 Receipt Notification Letter (RNL)Form 470 Receipt Notification Letter (RNL)• Cover page of important reminders and Cover page of important reminders and

deadlinesdeadlines• Notifies applicant that Form 470 has been Notifies applicant that Form 470 has been

posted to the SLD web siteposted to the SLD web site• System will generate RNL for Forms 470 filed System will generate RNL for Forms 470 filed

online after form is submitted but before it is online after form is submitted but before it is certifiedcertified• Form MUST be certified before close of Form 471 Form MUST be certified before close of Form 471

application filing windowapplication filing window

• Contains Allowable Vendor Selection / Contract Contains Allowable Vendor Selection / Contract Award DateAward Date

Form 471Form 471

• Form 471Form 471• Provides specific information on services, Provides specific information on services,

service providers selected, and contracts service providers selected, and contracts and/or agreementsand/or agreements

• Provides discount calculation informationProvides discount calculation information• Must be filed for each funding yearMust be filed for each funding year• Applicant certifies compliance with rules, Applicant certifies compliance with rules,

which include securing access to resources which include securing access to resources to make effective use of discountsto make effective use of discounts

• Must be postmarked on or before the last Must be postmarked on or before the last day of the Form 471 application filing day of the Form 471 application filing windowwindow

Form 471Form 471

• Points to Remember:Points to Remember: WAIT AT LEAST 28 DAYS from the posting of WAIT AT LEAST 28 DAYS from the posting of

the Form 470 beforethe Form 470 beforeselecting a service providerselecting a service providerexecuting a contract or agreementexecuting a contract or agreementsigning and submitting Form 471signing and submitting Form 471

File separate Forms 471 for Priority 1 and File separate Forms 471 for Priority 1 and Priority 2 servicesPriority 2 services

Remove ineligible costs and document or Remove ineligible costs and document or estimate eligible costs carefully (30% Rule)estimate eligible costs carefully (30% Rule)

Filing online speeds processing and reduces Filing online speeds processing and reduces errorserrors

Form 471Form 471

• Obligation to Pay Non-discount ShareObligation to Pay Non-discount Share• Applicants are required to pay their Applicants are required to pay their

share of the cost (the “non-discount” share of the cost (the “non-discount” portion or share) — cannot be donated, portion or share) — cannot be donated, forgiven or ignoredforgiven or ignored

• Service providers cannot waive or credit Service providers cannot waive or credit the applicant’s sharethe applicant’s share• Offers to reduce price must be incorporated Offers to reduce price must be incorporated

into the “total pre-discount amount”into the “total pre-discount amount”

• Service provider must bill the applicant Service provider must bill the applicant for non-discount share of servicesfor non-discount share of services

Form 471Form 471

• Form 471 Receipt Acknowledgment Form 471 Receipt Acknowledgment Letter (RAL)Letter (RAL)• Cover page of important reminders and Cover page of important reminders and

deadlinesdeadlines• Provides confirmation of certain Provides confirmation of certain

information entered from Form 471information entered from Form 471• Data entry errors may be corrected by Data entry errors may be corrected by

submitting a copy of the RAL with the submitting a copy of the RAL with the specific errors lined out and the correct specific errors lined out and the correct information supplied — three-week deadlineinformation supplied — three-week deadline

• Funding request reductions may also be Funding request reductions may also be submitted before funding commitmentsubmitted before funding commitment

ApplicationApplicationReviewReview

• Review of ApplicationsReview of Applications• Review by PIA, which may include:Review by PIA, which may include:

Competitive bidding processCompetitive bidding processContracts and agreementsContracts and agreementsDiscount calculationDiscount calculationSufficient budgetSufficient budgetEstablishing Form 470Establishing Form 470Technology PlanTechnology Plan

FundingFundingCommitmentsCommitments

• Points to Remember:Points to Remember:Provide information requested by Provide information requested by

reviewers (PIA) promptlyreviewers (PIA) promptlyIf desirable, work with your state coordinator If desirable, work with your state coordinator

to comply with information requeststo comply with information requestsAsk for more time if you need itAsk for more time if you need it

Retain documentationRetain documentationReview Request for Selective Review Review Request for Selective Review

Information fax to understand what Information fax to understand what information might be requestedinformation might be requested

FundingFundingCommitmentsCommitments

• Funding Commitment Decision LetterFunding Commitment Decision Letter• Cover page of important reminders and Cover page of important reminders and

deadlines deadlines • FCDL reports status of individual funding FCDL reports status of individual funding

requests:requests:FundedFundedNot FundedNot FundedAs Yet Unfunded (Internal Connections)As Yet Unfunded (Internal Connections)CanceledCanceled

• May receive more than one FCDLMay receive more than one FCDL

FundingFundingCommitmentsCommitments

• Points to Remember:Points to Remember:Check all entries on the FCDL carefully to Check all entries on the FCDL carefully to

make sure there are no data entry errorsmake sure there are no data entry errorsReview the FCDL and the SLD web site for Review the FCDL and the SLD web site for

information on requesting SPIN changes information on requesting SPIN changes and service substitutions, if necessaryand service substitutions, if necessary

Use the information on the FCDL to Use the information on the FCDL to prepare the Form 486prepare the Form 486

FundingFundingCommitmentsCommitments

Commitments vs. DisbursementsCommitments vs. Disbursements– $2.25 billion cap is on $2.25 billion cap is on

disbursementsdisbursements– SLD can commit more than $2.25 SLD can commit more than $2.25

billion in a given Funding Year, billion in a given Funding Year, because commitments have because commitments have historically exceeded historically exceeded disbursementsdisbursements

Form 486Form 486

• Form 486Form 486• Notification that services have started Notification that services have started

and the SLD can pay invoicesand the SLD can pay invoices• Certifies that Tech Plan (if required) has Certifies that Tech Plan (if required) has

been approvedbeen approved• Certifies status under Children’s Internet Certifies status under Children’s Internet

Protection Act (CIPA)Protection Act (CIPA)• Lead members of consortia may be required Lead members of consortia may be required

to collect CIPA certifications from consortium to collect CIPA certifications from consortium members on a separate form (Form 479)members on a separate form (Form 479)

Form 486Form 486

• Points to Remember:Points to Remember:Tech Plan must be approved by an SLD-Tech Plan must be approved by an SLD-

certified Tech Plan Approver (list certified Tech Plan Approver (list available on SLD web site)available on SLD web site)

CIPA certification(s) must be consistent CIPA certification(s) must be consistent with those filed in previous yearswith those filed in previous years

Filing online speeds processing and Filing online speeds processing and reduces errorsreduces errors

Form 486Form 486

Form 486 DeadlineForm 486 Deadline

Form 486 must be postmarked no later thanForm 486 must be postmarked no later than• 120 days after the Service Start Date featured on 120 days after the Service Start Date featured on

the Form 486 ORthe Form 486 OR• 120 days after the date of the Funding 120 days after the date of the Funding

Commitment Decision LetterCommitment Decision Letter

whichever is laterwhichever is later• If Form 486 is postmarked later than the If Form 486 is postmarked later than the

above deadline, the date 120 days before the above deadline, the date 120 days before the Form 486 postmark date will become the start Form 486 postmark date will become the start date for discounted services and funding may date for discounted services and funding may be reducedbe reduced

Form 486Form 486

• Form 486 Notification LetterForm 486 Notification Letter• Cover page of important reminders and Cover page of important reminders and

deadlines deadlines • Provides confirmation that a Form 486 Provides confirmation that a Form 486

has been successfully data enteredhas been successfully data entered• Copies sent to both applicant and Copies sent to both applicant and

service providerservice provider

InvoicesInvoices

• Invoices — Form 472 or Form 474Invoices — Form 472 or Form 474• BEAR (Billed Entity Applicant BEAR (Billed Entity Applicant

Reimbursement) Form 472 filed by the Reimbursement) Form 472 filed by the applicant and certified by the service applicant and certified by the service provider after the applicant receives provider after the applicant receives services and pays for the services in fullservices and pays for the services in full

OROR

• SPI (Service Provider Invoice) Form 474 SPI (Service Provider Invoice) Form 474 filed by service provider after providing filed by service provider after providing services and billing applicant for its non-services and billing applicant for its non-discount sharediscount share

InvoicesInvoices

• Points to Remember:Points to Remember:Invoices cannot be used to request SPIN Invoices cannot be used to request SPIN

changes or service substitutionschanges or service substitutionsInvoices are reviewed for program Invoices are reviewed for program

compliance – respond promptly to compliance – respond promptly to requests for informationrequests for information

Service providers have 20 days after Service providers have 20 days after RECEIPT of a check from SLD to RECEIPT of a check from SLD to reimburse the applicantreimburse the applicant

InvoicesInvoices

Invoice DeadlineInvoice Deadline

Invoices must be postmarked no later thanInvoices must be postmarked no later than• 120 days after the last date to receive service 120 days after the last date to receive service

OROR• 120 days after the date of the Form 486 120 days after the date of the Form 486

Notification LetterNotification Letter

whichever is laterwhichever is later• If Form 486 is postmarked later than the If Form 486 is postmarked later than the

above deadline, payment will be deniedabove deadline, payment will be denied• Extensions of invoice deadlines may be Extensions of invoice deadlines may be

requested under certain conditionsrequested under certain conditions

InvoicesInvoices

• BEAR Notification LetterBEAR Notification Letter• Cover page of important reminders and Cover page of important reminders and

deadlines deadlines • Provides confirmation that a Form 472 Provides confirmation that a Form 472

(BEAR) has been successfully data (BEAR) has been successfully data enteredentered

• Copies sent to both applicant and Copies sent to both applicant and service providerservice provider

• Indicates what amounts are being paid Indicates what amounts are being paid and reason for reductions/denialsand reason for reductions/denials

DocumentDocumentRetentionRetention

• In general, documents must be retained In general, documents must be retained for five yearsfor five years

• Examples of documents that must be Examples of documents that must be retained:retained:• WorksheetsWorksheets• Bid evaluation sheetsBid evaluation sheets• Winning and losing bidsWinning and losing bids• Contracts and agreementsContracts and agreements• Invoices sent to SLDInvoices sent to SLD• Service provider bills sent to customerService provider bills sent to customer

AppealsAppeals• Decisions of the SLD can be appealed to Decisions of the SLD can be appealed to

the SLD or to the FCCthe SLD or to the FCC• Generally, appeal first to the SLDGenerally, appeal first to the SLD• Can appeal to the FCC if SLD does not grant Can appeal to the FCC if SLD does not grant

the appealthe appeal• Can be filed electronically or on paperCan be filed electronically or on paper• Must be postmarked within 60 days of the Must be postmarked within 60 days of the

SLD decisionSLD decision• See Appeals Procedure in Reference Area See Appeals Procedure in Reference Area

for specific guidancefor specific guidance• Requests for waivers of rules must be filed Requests for waivers of rules must be filed

with the FCCwith the FCC

QuestionsQuestions

ContaConta

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Ken Thompson601-359-1722kthompson@mde.k12.ms.us