EASY AS 1, 2, 3

E-rate for Beginners

PRESENTED BY:JULIE TRITT SCHELL

PENNSYLVANIA E-RATE COORDINATOROCTOBER 2011

What is E-rate?2

Telecommunications Act of 1996 established “Universal Service Discount Program for Schools and Libraries”

Annual $2.25 billion program ($2.29 with inflation)Provides 20-90% discounts on eligible servicesFund made up from charges on your phone billsFCC sets policy/USAC-SLD runs the programWhat is my E-rate discount?

2 factors used to determine discount

Who is Eligible?

Public libraries eligible for LSTA fundingPublic and private K-12 schools

For-profit schools not eligible Pre-k eligible in PA (age 3+) Head Start entities eligible in PA but only if operated

by a public school entity Residential facilities of school eligible beg. FY 2011 Non-instructional facilities (such as admin bldgs) are

eligible

Cannot have endowment exceeding $50 million

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E-rate Discounts: Poverty

Based on National School Lunch Program Eligibility Eligibility based on % of students whose family’s

income is less or equal to 185% of federal poverty level

Doesn’t matter if school serves lunch or participates in NSLP

Nonpublic schools use their own students’ dataNSLP data at www.e-ratepa.org Don’t participate in NSLP? Income survey method

available

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E-rate Discounts: Location

Urban/Rural defined by CountiesUses Metropolitan Statistical Area data

Many seem misclassified

List of Rural counties on PA E-rate website – www.e-ratepa.org Under “discount calculations’

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Discount Matrix for Single School/Library

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INCOME Measured by % of

students eligible for NSLP

URBAN LOCATION Discount

RURAL LOCATION Discount

If the % of students in your school that qualifies

for the NSLP...

...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 Calculations by Entity

Schools Use straight matrix discount

Districts Use weighted average of schools’ individual discounts

Consortium Use simple average of members’ discounts

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Alternative Measures to NSLP

Participation in these programs also qualifies: TANF Medicaid Food Stamps Supplementary Security Income Federal public housing assistance (section 8) Low Income Home Energy Assistance (LIHEAP)

Can conduct family survey (whether you participate in NSLP or not)

Not acceptable - Title 1, feeder schools method, principal’s estimate

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So Much Demand, So Little Money9

Funding Priorities needed because demand exceeds cap of $2.29 billion

Priority 1: Telecommunications and Internet Access All approved-inside the window-likely to be funded

Priority 2: Internal Connections and Basic Maintenance of IC Funds go first to neediest applicants (90% discount level),

then to others in order of discount until funds are exhausted

Eligible Telecom Services (P1)10

Basic Telecom Services Local, long distance, voice mail, cell, paging, centrex

Advanced Telecom Services T-1, PRI, ISDN, lit fiber, dark fiber, etc.

Leased WANsVendor equipment located on customer premisesInstallation of eligible telecom services

Including most taxes and surcharges and custom calling features

Hosted VOIP (can also be under Internet Access)

Ineligible Telecom Services11

900 CallsPayphone serviceCost of not-publishing phone numbersCost of additional directory listingsEnd user equipment (phones, beepers,

cell phones, fax machines, etc.)Late fees, admin feesPaper statement fees

Internet Access (P1)12

Eligible: Basic conduit access E-mail service Laptop aircard service Basic webhosting Blackberry/data

services Hosted VOIP

Ineligible: Filtering AntiVirus/AntiSpam Website creation tools

Eligible Internal Connections (P2)13

Network and phone wiring

Routers Switches, hubs Certain network

servers Video codecs VOIP equipment System operating

software For eligible

equipment only

Wireless access points

Private branch exchange (PBXs)

InstallationLimited maintenance

Only for actual work performed

Software/patches/online support

P2: To Apply or Not to Apply?

FY 2004 – down to 81% FY 2005 – down to 80% FY 2006 – down to 86% FY 2007 -- down to 81%FY 2008 -- down to 87%FY 2009 -- down to 77%

FY 2010 – all requests fundedFY 2011 – down to 90% so far

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WHO IS ELIGIBLE?WHAT IS ELIGIBLE?

HOW TO DISCOUNTS?

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Questions?

General Framework16

Plan Bid Apply Approval!

Receive Services

Pay Full Invoices

USAC Pays Applicant

Pay Discounted InvoicesUSAC Pays Vendor

Step 1: Technology Plan!17

Beginning with FY 2011, E-rate will not require technology plan for Priority 1 services

Priority 2 requests must have approved technology plan containing these 4 criteria

Goals and Strategies for using technology Needs Assessment Professional Development Evaluation

Must be “written” before Form 470 is filed and must cover full 12 months of NEXT funding year

3 year max Nonpublic tech plan approvers on SLD website

Step 2: Competitive Bidding18

All E-rate services must be competitively bidEvery year unless under a multi-year contract

that was bid under E-rate rules initially MTM services

Even… if no competition in your area

How? Must Use Form 47019

Must file a Form 470 online All 470’s posted on SLD web site Cannot select vendor until 29th day after 470 is

postedBut must have Form posted on web at least 29

days before the Form 471 window close (example: March 24 close = Feb 24 deadline) Don’t wait this long

Be sure to list services in correct category If unsure, post in several categories

Read the

Instructions!

Online Form 47020

Get 470 Information Immediately!

Posted 470 available immediately on SLD web site to view

Online 470 shows: Posting date of application Earliest date that your contract can be signed and thus

471 submitted Date that certification page was received at the SLD

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Step 3: Bid Evaluation

After 470 is posted for at least 28 days, review all bids received for all services

Create bid evaluation matrixPrice of eligible services/components MUST be the

most heavily weighted factorKeep:

documentation of criteria used to select vendor all winning and losing bids bid evaluation matrix all correspondence between applicant and all

vendors (winning and losing)

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Step 3: Bid Evaluation

What should you do if you receive no bids? Document via an email or file memo that no bids

were received Existing Services: can continue to receive services

from existing service provider New Services/Procurement: Solicit bid from willing

vendor (who is not your brother-in-law) Make sure price is cost-effective

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Step 4: Filing the 47124

Form that requests discounts (funding) Filed by entity that actually pays the billsShows discount calculations Lists which 470 was used to bid services, provides

contract signing dates, contract amounts Must be filed by close of 471 filing window

FY 2012 window dates: Not Yet Announced Will likely be first week in January – mid March

Step 4: Item 21 Attachments

Item 21 attachments provide descriptions of actual servicesBecause no space to do so on the 471

Must have separate description for each FRN (funding request/Block 5) Detailed list of products with associated prices that add up to

funding request List # of lines, speed, and description of service

File online or on paper (online preferred)Beginning FY 2011, Item 21 attachments MUST be

submitted by Form 471 deadlineKeep 471 Security Code to access Online Item 21

Attachment system

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Step 5: PIA Review26

Program Integrity Assurance (PIA) ReviewChecks for rule compliance

Eligible services Eligible entities Appropriate discount

Nearly all applicants receive PIA contact

Step 5: SLD Mails FCDL27

FCDL = Funding Commitment Decision LetterTells you which funding requests (block 5’s) of

Form 471 are approved or deniedProvides information for the next form -- Form

486Can appeal if you don’t agree with your

decision

Step 6: Applicant Files Form 48628

Must be postmarked no later than: 120 calendar days after the Service Start Date

featured on the Form 486 or 120 calendar days after the date of the Funding

Commitment Decision Letter whichever is later.

Signifies that it’s OK for SLD to pay any invoicesLists who approved tech plan (if required)Certifies CIPA compliance

CIPA29

Childrens’ Internet Protection Act Any applicant receiving Internet access or Internal

Connections funding must: Have a board-approved Internet Safety Policy Filter Internet going to all computers/devices

Requires schools’ Internet Safety Policies include "... educating minors about appropriate online behavior, including interacting with other individuals on social networking websites and in chat rooms and cyberbullying awareness and response." This means that schools will be required to teach online

safety to students as a prerequisite to receiving E-rate funding

Effective July 1, 2012

How Do You Get E-rate $?30

Two choices Discounts on bills (your vendor invoices USAC)

or Reimbursement process (applicant pays bills in full, then

invoices USAC) Applicant submits Form 472 – BEAR Form for reimbursement

Must select one method or the other for entire year Can be different choice for each funding request

eCertification/PINs

E-rate PINs can be used to file E-rate forms onlinePIN assigned to a person and is specific to that

entity while employed at that entity Not given to an entity

No way to request a PINMust sign a paper certification of a 470, 471 or

486 SLD will mail them a PIN in a small white mailer Can still submit these forms online, but cert page must be

signed and mailed to USACPIN then may be used to 470, 471, 486, and BEAR

Forms

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Paying Your Share

Applicants required to pay non-discounted portion of cost

Cannot be waived by the vendorVendor cannot provide a “grant” Funding must be in budget or draft

budgetMust keep all invoices and copies of

cancelled checks for 5 years after last day to receive service

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Can You Request Extensions?

Depends on the form and requirement Form 470 – no Form 471 – no Form 486 – no

but they will send a reminder letter and you can then file if you missed the original deadline

Form 472 BEAR – yes. Must be submitted by original deadline Service delivery – recurring services – no

Services must be delivered between July 1 – June 30 Service delivery – non-recurring services – yes

Installations and equipment purchases have until Sept 30 If applicant needs more time, they must request extension prior to

Sept 30 PIA inquiries – yes

If you cannot provide the info by the deadline, you may request extension, but it may not be granted

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Resources to Remember34

SLD web site: www.usac.org/slSLD Help Desk: 888-203-8100PA E-rate listserve

E-mail me name/e-mail address to subscribe jtschell@comcast.net

PA E-rate website: www.e-ratepa.org