® e-rate program update, 2005 a presentation for schools and

®

E-rate Program Update, 2005

A Presentation for Schools and Libraries A Presentation for Schools and Libraries

November 2004November 2004

This presentation may not be copied or presented without the express written This presentation may not be copied or presented without the express written permission of Funds For Learning, LLC permission of Funds For Learning, LLC

All Information Subject to Change Without NoticeAll Information Subject to Change Without Notice Copyright 2004 Funds For Learning, LLCCopyright 2004 Funds For Learning, LLC 22

What We’ll Cover Today

Review of Program Basics for NovicesReview of Program Basics for Novices

A Review of What’s EligibleA Review of What’s Eligible

Key Points to Remember at Each Key Points to Remember at Each Stage of the ProcessStage of the Process

Important New Rule Changes Important New Rule Changes

Answers to your QuestionsAnswers to your Questions

Material is current today, but subject Material is current today, but subject to changeto change


Background on Funds For Learning, LLC

Consulting firm based in Washington, DC, Consulting firm based in Washington, DC, and Oklahoma Cityand Oklahoma City

Focused on the E-rate program since 1997Focused on the E-rate program since 1997

Hired by schools and libraries to prepare Hired by schools and libraries to prepare their applicationstheir applications

Provide independent consulting support to Provide independent consulting support to service providersservice providers

Participated on 2003 SLD Waste, Fraud and Participated on 2003 SLD Waste, Fraud and Abuse Task Force and FCC Forum on E-rateAbuse Task Force and FCC Forum on E-rate


What Is the E-rate?

Designed to connect schools and Designed to connect schools and libraries to the Internetlibraries to the Internet

Still largest, most reliable, dedicated Still largest, most reliable, dedicated funding source for K-12 ed-techfunding source for K-12 ed-tech

Not going away (entering 8th year)Not going away (entering 8th year)

Supported by assessments on telecom Supported by assessments on telecom companies, not federal budgetcompanies, not federal budget

Funding process difficult, but not Funding process difficult, but not subjective like competitive grantssubjective like competitive grants


What Does Program Provide?

Discounts of 20 to 90 percent on the Discounts of 20 to 90 percent on the purchase of certain services and purchase of certain services and productsproducts

Available in these service categoriesAvailable in these service categories– Telecommunications servicesTelecommunications services

– Internet accessInternet access

– Internal connections (Equipment and Internal connections (Equipment and maintenance)maintenance)

More than $2 billion worth of discounts More than $2 billion worth of discounts can now be disbursed each yearcan now be disbursed each year


Who Is Eligible?

Virtually all public K-12 schoolsVirtually all public K-12 schools

– Elementary/ secondary schools as defined by Elementary/ secondary schools as defined by states under No Child Left Behind Actstates under No Child Left Behind Act

Private schoolsPrivate schools

– Must be operated on a non-profit basisMust be operated on a non-profit basis

– Endowment can’t exceed $50 millionEndowment can’t exceed $50 million

– Includes religious schoolsIncludes religious schools

Most public librariesMost public libraries

– Budget must be separate from a schoolBudget must be separate from a school


Consortia Can Also Apply

Some regional agencies (BOCES, Some regional agencies (BOCES, ISDs, states) apply on behalf of ISDs, states) apply on behalf of membersmembers

Can include both eligible and Can include both eligible and ineligible entities, but discounts can ineligible entities, but discounts can only be applied to services for only be applied to services for eligible entitieseligible entities

All program review requirements All program review requirements must still be metmust still be met


A Quick Guide to Acronyms

SLD—Schools and Libraries DivisionSLD—Schools and Libraries Division

– Day-to-day administration of programDay-to-day administration of program

USAC—Universal Services Administrative USAC—Universal Services Administrative Co.Co.

– Parent organization of SLDParent organization of SLD

– Administers 4 Universal Service Fund programsAdministers 4 Universal Service Fund programs

– Disburses E-rate supportDisburses E-rate support

FCC—Federal Communications CommissionFCC—Federal Communications Commission

– Sets overall program policySets overall program policy

– Ultimate judge of appealsUltimate judge of appeals


What Is Your Discount Rate?

Based on relative poverty of schoolsBased on relative poverty of schools Designated as “urban” or “rural” by Designated as “urban” or “rural” by

federal governmentfederal government Matrix derived from eligibility for federal Matrix derived from eligibility for federal

school lunch programschool lunch program If school doesn’t participate, other poverty If school doesn’t participate, other poverty

measures can be usedmeasures can be used Libraries derive their discount rates from Libraries derive their discount rates from

school districts where branches locatedschool districts where branches located Discount rate of individual school or whole Discount rate of individual school or whole

district may apply, based on nature of district may apply, based on nature of serviceservice


E-rate Discount Matrix

% of students eligible for national school lunch program

(estimated % of US schools in category)

< 1 3 20 25

1-19 31 40 50

20-34 19 50 60

35-49 15 60 70

50-74 16 80 80

75-100 16 90 90

Schools and Libraries Discount Matrix Discount Level

How Disadvantaged?urban

discount (%)

rural discount

(%)


Discount Matrix Could Be Revised

FCC considering various proposalsFCC considering various proposals

Some stakeholders have urged a Some stakeholders have urged a revision to:revision to:

– Address concerns about waste, fraud Address concerns about waste, fraud and abuseand abuse

– Make more money available to more Make more money available to more schoolsschools

Timetable for decision not clearTimetable for decision not clear

Monitor E-rate announcementsMonitor E-rate announcements


How the Process Works

Applicants says what they want (Form 470)Applicants says what they want (Form 470)

Applicant must receive bids for 28 daysApplicant must receive bids for 28 days

Applicant signs contracts or purchase Applicant signs contracts or purchase agreementsagreements

Applicant submits funding requests (Form Applicant submits funding requests (Form 471)471)

Funding requests reviewed for approvalFunding requests reviewed for approval

Applicant and service providers follow up Applicant and service providers follow up with payment paperwork (Form 486, BEAR, with payment paperwork (Form 486, BEAR, SPIs)SPIs)


Funding Priorities

Priority One servicesPriority One services– Telecommunications servicesTelecommunications services

– Internet accessInternet access

– Everyone qualifies, no matter your discount Everyone qualifies, no matter your discount raterate

Priority Two servicesPriority Two services– Internal connectionsInternal connections

– New category: Basic MaintenanceNew category: Basic Maintenance

– Awarded, based on need, with funding left Awarded, based on need, with funding left over after Priority One funding is awardedover after Priority One funding is awarded

New “2 out of 5 years” rule takes effect this year New “2 out of 5 years” rule takes effect this year


“But I’m Not Poor Enough to Qualify for Internal

Connections” Maybe not. . .Maybe not. . .

Program changes may make more Program changes may make more funding available for applicants that funding available for applicants that have fallen below threshold in the have fallen below threshold in the past past


Threshold for Internal Connections

(“Priority Two”)

– Support awarded on the basis of need, as Support awarded on the basis of need, as long as funds are availablelong as funds are available

– Most years’ discountMost years’ discount“threshold” has“threshold” hasbeen betweenbeen between70%-85%70%-85%

– Currently it’s at 90%Currently it’s at 90%-- but could go down-- but could go downto 70% or lower forto 70% or lower for2004 funding year2004 funding year

70

82 81

70

9086

0102030405060708090

100

1998 1999 2000 2001 2002 2003 2004

Fund

ing

Thre

shol

d (%

)

AllRequestsFunded


New Rule Changes That Should Impact Demand

Can’t transfer E-rate-supported equipment Can’t transfer E-rate-supported equipment for three years unless facility closes for three years unless facility closes temporarily or permanentlytemporarily or permanently

Sites can “receive commitments” in only 2 Sites can “receive commitments” in only 2 out of every 5 yearsout of every 5 years– Will count when commitment is approvedWill count when commitment is approved

– Districts should plan and aggregate workDistricts should plan and aggregate work

– Should tend to discourage district-wide funding Should tend to discourage district-wide funding requests for internal connectionsrequests for internal connections

Priority 2 funding available every year for Priority 2 funding available every year for network maintenance IF school is poor network maintenance IF school is poor enoughenough


Some Basic Requirements

Must have approved tech planMust have approved tech plan

Must be able to pay non-discounted Must be able to pay non-discounted portion of priceportion of price

Must comply with state and local Must comply with state and local procurement rulesprocurement rules

Must be able to certify that you have Must be able to certify that you have sufficient funds for other necessary tech sufficient funds for other necessary tech components (desktop computers, staff components (desktop computers, staff development, network maintenance, etc.)development, network maintenance, etc.)

May have to comply with Children’s May have to comply with Children’s Internet Protection Act (CIPA)Internet Protection Act (CIPA)


Eligible Services: Basic Concepts

Key Reference: Each year’s update of Key Reference: Each year’s update of Eligible Services List Eligible Services List

Services must be used for Services must be used for “educational purposes”“educational purposes”

Eligibility ultimately depends on who Eligibility ultimately depends on who uses it, where and for what purposesuses it, where and for what purposes

Services cannot be sold, resold or Services cannot be sold, resold or transferred in return for transferred in return for compensationcompensation

End-user devices and content End-user devices and content generally not eligiblegenerally not eligible


Internal Connections: Eligible Services

If it can be owned, it has to be If it can be owned, it has to be internal connectionsinternal connections

Routers, switches, firewallsRouters, switches, firewalls

NICs if separately priced NICs if separately priced

Wiring and Wireless networksWiring and Wireless networks

Operating Software (NOS, e-mail, Operating Software (NOS, e-mail, etc.)etc.)

PBXes (but not handsets)PBXes (but not handsets)


Internal Connections: Network File Servers

Eligible usesEligible uses– DHCP serversDHCP servers

– Domain Name serversDomain Name servers

– E-mail serversE-mail servers

– Firewall serversFirewall servers

– Terminal serverTerminal server

– Proxy serverProxy server

Allocation required if used for Allocation required if used for combination of eligible and combination of eligible and ineligible purposesineligible purposes

Ineligible usesIneligible uses– Caching serverCaching server

– Print serverPrint server

– Database/archive Database/archive serverserver

– Application serverApplication server


Internal Connections: Cost-Allocated Services

Eligible to the extent they Eligible to the extent they support eligible equipmentsupport eligible equipment

Uninterruptible Power SuppliesUninterruptible Power Supplies

RacksRacks

Taxes, shipping and installation Taxes, shipping and installation costs must be allocated based costs must be allocated based on product eligibilityon product eligibility


Tougher Standards for Maintenance, Tech Support

Must be cost-effectiveMust be cost-effective Must identify specific products, models to be maintained Must identify specific products, models to be maintained

and sitesand sites Generally Eligible Generally Eligible

– Repair and upkeep of eligible hardwareRepair and upkeep of eligible hardware– Wire and cable maintenanceWire and cable maintenance– Basic tech support and configuration changesBasic tech support and configuration changes

IneligibleIneligible– ““On-site” duty station when off-site could provide “as needed”On-site” duty station when off-site could provide “as needed”– 24-hour network monitoring24-hour network monitoring– Network managementNetwork management– Help desks and tech support contracts covering more than Help desks and tech support contracts covering more than

basic maintenancebasic maintenance– Broader tech support contractBroader tech support contract


Internal Connections: Other Things to Remember

Ineligible servicesIneligible services

– Desktop computers, faxes, modems, Desktop computers, faxes, modems, control devicescontrol devices

– Network management or monitoring Network management or monitoring softwaresoftware

Wide Area Networks only eligible when Wide Area Networks only eligible when leased from a telecommunications carrierleased from a telecommunications carrier

Internal connections in admin buildings must Internal connections in admin buildings must be part of instructional network (e.g. a hub) be part of instructional network (e.g. a hub) to qualifyto qualify


Eligible Services: Telecommunications Services Basic telephone serviceBasic telephone service

Long distance serviceLong distance service

Cellular servicesCellular services

Paging servicesPaging services

Data linesData lines

High-speed transmission (ISDN, DSL, High-speed transmission (ISDN, DSL, Frame Relay, etc.)Frame Relay, etc.)

Satellite transmission serviceSatellite transmission service

Voice mailVoice mail


Telecommunications Services: Things to Remember

Must be purchased from a common carrierMust be purchased from a common carrier

Break out cost of handsets, directory advertising, Break out cost of handsets, directory advertising, other ineligible items from amount you requestother ineligible items from amount you request

Review bills to exclude any ineligible users, Review bills to exclude any ineligible users, facilities and servicesfacilities and services

Does not have to be under contractDoes not have to be under contract

But if not under contract, must file a Form 470 But if not under contract, must file a Form 470 every year every year – No exceptions—even when only one telephone carrier No exceptions—even when only one telephone carrier

is availableis available

Purchased PBX equipment is not a telecom Purchased PBX equipment is not a telecom serviceservice


Eligible Services: Internet Access

Basic Internet access service Basic Internet access service chargescharges

Data links provided to Internet Data links provided to Internet gatewaygateway

E-mail serviceE-mail service

Web hosting (excluding content Web hosting (excluding content creation or data storage) creation or data storage)

Firewall serviceFirewall service


Internet Access: Things to Remember

Does not have to be under contractDoes not have to be under contract

But if purchased under month-to-month But if purchased under month-to-month arrangement, a Form 470 must be filed arrangement, a Form 470 must be filed every year every year

Content priced separately is not eligible Content priced separately is not eligible for supportfor support

““Bundled” content not eligible unless Bundled” content not eligible unless service was the “most cost-effective” service was the “most cost-effective” Internet accessInternet access

Filtering software ineligibleFiltering software ineligible


When in Doubt. . .

Check out SLD’s formal eligible services Check out SLD’s formal eligible services list at list at http://www.sl.universalservice.org/http://www.sl.universalservice.org/ Reference/eligible.aspReference/eligible.asp

2005 list issued on October 142005 list issued on October 14

Additional FAQs and eligible services Additional FAQs and eligible services framework availableframework available

Break out questionable items separatelyBreak out questionable items separately

– Be mindful of “30 percent rule”Be mindful of “30 percent rule”

Seek help from KNOWLEDGEABLE VendorsSeek help from KNOWLEDGEABLE Vendors

http://www.sl.universalservice.org/


New Pilot Online Eligible Services Data Base

Only for internal connections equipmentOnly for internal connections equipment

Manufacturers volunteered to participateManufacturers volunteered to participate

Participation lower than SLD had expectedParticipation lower than SLD had expected

Eligibility of listed products is always conditional Eligibility of listed products is always conditional on useon use

Non-inclusion does not mean product is Non-inclusion does not mean product is ineligibleineligible

SLD hopes to implement mechanism for SLD hopes to implement mechanism for generating paper Description of Services generating paper Description of Services documents this yeardocuments this year

Many projects will require additional items to be Many projects will require additional items to be citedcited


The Most Important Rules

Applicants must accept bids for 28 Applicants must accept bids for 28 daysdays

Applicant must not sign a contract or Applicant must not sign a contract or final application before the 28 days final application before the 28 days have passedhave passed

Applicants must meet ALL the Applicants must meet ALL the deadlinesdeadlines

Applicants must be careful not to Applicants must be careful not to request support for ineligible servicesrequest support for ineligible services

®

Key Parts of the Process


A New Number This Year:Another “FRN”

Federal Communications Commission Federal Communications Commission Registration NumberRegistration Number

Designed to facilitate “Red Light Rule” of Designed to facilitate “Red Light Rule” of Debt Collection Improvement ActDebt Collection Improvement Act

Go to Go to www.fcc.govwww.fcc.gov and click on link at top and click on link at top leftleft

Will need Taxpayer ID Number (typically Will need Taxpayer ID Number (typically Employer Identification Number for firms)Employer Identification Number for firms)

Supposed to get by Nov. 1, but not yet Supposed to get by Nov. 1, but not yet required on an application—PIA will requestrequired on an application—PIA will request

Applicants must obtain one for every school Applicants must obtain one for every school or branchor branch

http://www.fcc.gov/


Form 470 Application

Applicant explains what it wants to buyApplicant explains what it wants to buy

– Must reference an RFP if there is one or will Must reference an RFP if there is one or will be onebe one

Applicant is supposed to provide enough Applicant is supposed to provide enough specificity that a vendor can bidspecificity that a vendor can bid

Filed by entity that will sign the contract Filed by entity that will sign the contract and negotiate with vendorsand negotiate with vendors

Applicant needs to manage state and Applicant needs to manage state and local procurement rules at the same timelocal procurement rules at the same time


Form 470 Revisions for 2005

More clarity about whether an RFP is availableMore clarity about whether an RFP is available

– Released or “intend to release”Released or “intend to release”

– Must make available to all interested biddersMust make available to all interested bidders

Must briefly describe what RFP is seekingMust briefly describe what RFP is seeking

New category of “basic maintenance of internal New category of “basic maintenance of internal connections”connections”

Applicants can designate billing preference Applicants can designate billing preference methodmethod

Applicants must certify that they will consider all Applicants must certify that they will consider all bids and choose the most cost-effective one for bids and choose the most cost-effective one for meeting educational goals and tech planmeeting educational goals and tech plan


How Much HelpCan a Vendor Give?

FCC/SLD very concerned about maintaining fair FCC/SLD very concerned about maintaining fair and open bidding processand open bidding process

No longer considered appropriate to get an RFP No longer considered appropriate to get an RFP from a vendorfrom a vendor

Applicants can specify brands (“compatible Applicants can specify brands (“compatible with”), but govt. is wary of too much upfront with”), but govt. is wary of too much upfront advice from single companyadvice from single company

Key is for applicant to provide all vendors with Key is for applicant to provide all vendors with the chance to bid the chance to bid

Must retain documents detailing vendors they Must retain documents detailing vendors they heard from and how they made their choiceheard from and how they made their choice– May be asked to provide bid analysis when application May be asked to provide bid analysis when application

reviewedreviewed


28-Day Posting Period

Pay attention to “Allowable Contract Date”Pay attention to “Allowable Contract Date” DON’T sign a contract before that dateDON’T sign a contract before that date DON’T sign a Form 471 before that dateDON’T sign a Form 471 before that date Communicate with all responsive biddersCommunicate with all responsive bidders Vendors may report applicants to SLD if they Vendors may report applicants to SLD if they

feel they are violating competitive bidding feel they are violating competitive bidding requirements requirements

Keep good records on vendor contacts and Keep good records on vendor contacts and how you reached your decision how you reached your decision

Don’t have to choose lowest bidder, but Don’t have to choose lowest bidder, but must be able to demonstrate that cost was must be able to demonstrate that cost was given the greatest weightgiven the greatest weight


After Allowable Contract Date

Contract or purchase agreement required Contract or purchase agreement required for internal connectionsfor internal connections

Priority 1 services can be purchased at Priority 1 services can be purchased at tariffed rates or month-to-month basis, if tariffed rates or month-to-month basis, if desireddesired

When contract required, both parties When contract required, both parties must sign and date before Form 471 is must sign and date before Form 471 is filedfiled

Contracts can be made contingent on Contracts can be made contingent on receiving E-rate supportreceiving E-rate support


Other Contracting Issues

Pre-existing contracts bid outside E-rate rules Pre-existing contracts bid outside E-rate rules only eligible if signed before July 10, 1997only eligible if signed before July 10, 1997

All E-rate eligible contracts must be able to point All E-rate eligible contracts must be able to point to a Form 470 that started the procurementto a Form 470 that started the procurement

Multi-year contracts permissible (but must file for Multi-year contracts permissible (but must file for funding each year)funding each year)

E-rate-eligible contracts may only be “extended” E-rate-eligible contracts may only be “extended” if original contract included an extension clauseif original contract included an extension clause

If willing to do multi-year contract, inform all If willing to do multi-year contract, inform all bidders through Form 470/RFPbidders through Form 470/RFP

Know the history of your contractsKnow the history of your contracts


Form 470 Mistakes ThatCould Be Avoided

RFP occurs early in school year?RFP occurs early in school year?

Form 470 not filed in right categoriesForm 470 not filed in right categories

Contract signed before Allowable Contract Contract signed before Allowable Contract DateDate

Contract not signedContract not signed

Form 470 certification not filed before filing Form 470 certification not filed before filing window deadline. (Double-check online)window deadline. (Double-check online)

““We’ve already decided” - That’s a rule We’ve already decided” - That’s a rule violationviolation


Form 471 Application

Most important application—take time to do it Most important application—take time to do it rightright

Funding requests and service details are criticalFunding requests and service details are critical What you request is the most you can getWhat you request is the most you can get But you must be able to justify your requestBut you must be able to justify your request Can do online but must follow up with Can do online but must follow up with

Description of Services paper attachmentDescription of Services paper attachment Pay close attention to the filing deadline!Pay close attention to the filing deadline! Proofread, don’t leave blanks—you could fail Proofread, don’t leave blanks—you could fail

“Minimum Processing Standards” for paper“Minimum Processing Standards” for paper SLD recommends separate applications for SLD recommends separate applications for

Priority One and Priority Two services to speed Priority One and Priority Two services to speed approvalapproval


Form 471: Revisions for 2005

New category of “Basic Maintenance of Internal New category of “Basic Maintenance of Internal Connections”Connections”

Flag state master contracts, continuation of FRN Flag state master contracts, continuation of FRN under previous multi-year contractunder previous multi-year contract

One discount worksheet for all entitiesOne discount worksheet for all entities– Doing it wrong no longer grounds for automatic Doing it wrong no longer grounds for automatic

rejectionrejection– Requires NCES codes for schools, FSCS code for Requires NCES codes for schools, FSCS code for

librarieslibraries– Flag Pre-K, Adult Ed or Juvenile Justice facilitiesFlag Pre-K, Adult Ed or Juvenile Justice facilities– Flag Alternative Discount CalculationFlag Alternative Discount Calculation

Must flag “duplicate funding requests” (e.g. not Must flag “duplicate funding requests” (e.g. not yet approved, under appeal) and supply FRN(s)yet approved, under appeal) and supply FRN(s)

Change in “Impact of Services Ordered” dataChange in “Impact of Services Ordered” data


Reviewing Applications

Receipt Acknowledgement Letter Receipt Acknowledgement Letter provides a chance to correct some provides a chance to correct some kinds of clerical mistakes (but not kinds of clerical mistakes (but not revision upwards)revision upwards)

Problem Resolution and Program Problem Resolution and Program Integrity AssuranceIntegrity Assurance

SLD reviewers may call with questionsSLD reviewers may call with questions

It’s important to be responsiveIt’s important to be responsive

Can request additional time if necessaryCan request additional time if necessary


Funding Commitment Decisions

Don’t count on the money until it is Don’t count on the money until it is approvedapproved

At least one Funding Commitment Decision At least one Funding Commitment Decision Letter (FCDL) issued per applicationLetter (FCDL) issued per application

Applications for Priority One services likely Applications for Priority One services likely to get approved firstto get approved first

Vendors are notified at the same timeVendors are notified at the same time Don’t start projects before July 1 if you want Don’t start projects before July 1 if you want

them to remain eligible for supportthem to remain eligible for support If you can’t do project without E-rate If you can’t do project without E-rate

discounts, don’t start it before your funding discounts, don’t start it before your funding has been approvedhas been approved


Newly SLD Priorities for Issuing Commitments

11stst priority given to commitments priority given to commitments for earlier funding years that are for earlier funding years that are ready to be issued (late approvals, ready to be issued (late approvals, appeals, etc.)appeals, etc.)

Priority 1 before Priority 2Priority 1 before Priority 2

Then based on date application Then based on date application review was finishedreview was finished

Promotes early filingPromotes early filing


Payment Paperwork Requirements

Applicant must file Form 486 within 120 days of Applicant must file Form 486 within 120 days of date of funding commitment letter or service date of funding commitment letter or service start date, whichever is laterstart date, whichever is later

Starting July 1, 2004, applicant can choose Starting July 1, 2004, applicant can choose preferred billing methodpreferred billing method– Service Provider Invoice filed by service providerService Provider Invoice filed by service provider

Applicant must pay its share within 90 days of project Applicant must pay its share within 90 days of project completioncompletion

Service certification may be requested of customerService certification may be requested of customer

– BEAR Form BEAR Form Applicant prepares, service provider signsApplicant prepares, service provider signs Payment must be remitted to applicant within 20 daysPayment must be remitted to applicant within 20 days

Once used for a funding request, must use all Once used for a funding request, must use all year longyear long


Understanding the E-rate Calendar

Can now apply for funding for July 1, Can now apply for funding for July 1, 2005 to June 30, 2006 (September 30 2005 to June 30, 2006 (September 30 in some cases)in some cases)

Form 471 is due February 17, 2005Form 471 is due February 17, 2005

Applications reviewed, starting in Applications reviewed, starting in springspring

Commitments may or may not be Commitments may or may not be approved by funding year startapproved by funding year start

Funding commitment approval on hold Funding commitment approval on hold since August, but should be temporarysince August, but should be temporary


Spotlight on Waste, Fraud and Abuse

Convictions for fraud, obstruction of justice, Convictions for fraud, obstruction of justice, bid-riggingbid-rigging

Individuals debarred from program Individuals debarred from program participationparticipation

Ongoing investigations by Antitrust Division, Ongoing investigations by Antitrust Division, FBI, FCC’s inspector generalFBI, FCC’s inspector general

House Commerce oversight and House Commerce oversight and investigations subcommittee hearings on investigations subcommittee hearings on program wasteprogram waste

Media reports focused on excessive Media reports focused on excessive purchasespurchases


Important New Compliance Requirements

E-rate-supported equipment must E-rate-supported equipment must not be moved for three yearsnot be moved for three years

Rule can be waived only when a Rule can be waived only when a facility is closed, either permanently facility is closed, either permanently or temporarilyor temporarily

New asset inventory requirement New asset inventory requirement for tracking where equipment is for tracking where equipment is installed and locatedinstalled and located


Important New Compliance Requirements

All E-rate documentation must be All E-rate documentation must be retained for 5 years after last date retained for 5 years after last date of service or installationof service or installation

All stages of the process from bids, All stages of the process from bids, applications, installation, invoices, applications, installation, invoices, etc.etc.

Failure to produce records can lead Failure to produce records can lead to Commitment Adjustment order to to Commitment Adjustment order to return funds return funds


What’s Different Now?

Actions that may not have been rule Actions that may not have been rule violations in the past now looked upon violations in the past now looked upon criticallycritically

Sloppy procedures no longer toleratedSloppy procedures no longer tolerated

Toughening up of SLD rules with force of lawToughening up of SLD rules with force of law

Applicants can be penalized if they are at Applicants can be penalized if they are at fault fault

SLD planning 1,000 site visits in coming SLD planning 1,000 site visits in coming year to assess program, evaluate year to assess program, evaluate compliance and outreach needscompliance and outreach needs


If Something Goes Awry. . .

Don’t wait forever to inquire about statusDon’t wait forever to inquire about status

If application is rejectedIf application is rejected

– Are there valid grounds for appeal?Are there valid grounds for appeal?

– Must respond within 60 daysMust respond within 60 days

– Don’t appeal to the SLD and FCC at the Don’t appeal to the SLD and FCC at the same timesame time

Very important to keep good records to Very important to keep good records to make your case (or in case of an audit)make your case (or in case of an audit)


Available Resources: E-rate Manager SL

Free Web-based tool created by Funds For Free Web-based tool created by Funds For LearningLearning

Sign-up details at Sign-up details at www.eratemanager.comwww.eratemanager.com

Review your funding requests and available Review your funding requests and available fundingfunding

Details of contracts that were reported to SLDDetails of contracts that were reported to SLD

Stay on top of payment deadlinesStay on top of payment deadlines

Program updatesProgram updates

Searchable Eligible Services List and appeals Searchable Eligible Services List and appeals decisionsdecisions

Particularly useful if taking over E-rate from Particularly useful if taking over E-rate from someone elsesomeone else

http://www.eratemanager.com/


Available Resources

Submitting questions to the SLDSubmitting questions to the SLD– Email is recommended approachEmail is recommended approach

– Click on “Contact Us” on SLD home Click on “Contact Us” on SLD home page orpage or

– Go to Go to http://www.slforms.universalservice.http://www.slforms.universalservice.org/EMailResponse/EMail_Intro.aspxorg/EMailResponse/EMail_Intro.aspx

Answers should be backed up Answers should be backed up with research on SLD Web sitewith research on SLD Web site

http://www.slforms.universalservice.org/EMailResponse/EMail_Intro.aspx

http://www.slforms.universalservice.org/EMailResponse/EMail_Intro.aspx

®

E-rate Program Update, 2005

A Presentation for Schools and Libraries A Presentation for Schools and Libraries

November 2004November 2004

This presentation may not be copied or presented without the express written This presentation may not be copied or presented without the express written permission of Funds For Learning, LLC permission of Funds For Learning, LLC

® e-rate program update, 2005 a presentation for schools and

Documents

funding available

funding year

discount rate priority

erate program update

erate discount matrix

transfer erate

program changes

funding requests form