E-rate An Overview
HSTI Becky Rains Arkansas E-rate Work Group June 16 & 17, 2004
What is E-rate?
Telecommunications Act of 1996
Universal Service Discount Program for Schools & Libraries
Annual $2.25 billion program Provides 20-90% discounts (Not Grants) on
Telecommunication Services, Internet Access, & Internal Connections Money collected on telephone bills is made available to service providers who give discounts to qualified applicants.
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E-rate in Arkansas
Program Year 1 (1998-1999)
$13,408,504 Program Year 2 (1999-2000) $11,017,045 Program Year 3 (2000-2001) $17,072,496 Program Year 4 (2001-2002) $21,047,283 Program Year 5 (2002-2003) $21,034,455 Program Year 6 (2003-2004) $25,476,956 Program Year 7 (2004-2005) $3,518,454 (through June 12) TOTAL TO-DATE $112,575,193
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Arkansas (5 Yr Totals December 2003)
E-RATE
$90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 State Total
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Funded Disbursed Unused
State Network
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Arkansas (5 Yr Totals December 2003)
Funding Categories
$35,000,000 $30,000,000
$25,000,000
$20,000,000
$15,000,000
Funded Disbursed Unused
$10,000,000
$5,000,000
$0 Telecommunications Internet Access Internal Connections ARKANSAS E-RATE WORK GROUP
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Who Administers E-rate?
FCC Federal Communications Commission Creates program rules and sets policy USAC Universal Services Administrative Company Created by FCC to run E-rate and other universal service programs SLD Schools and Libraries Division Entity within USAC that runs the E-rate Program Interprets FCC policy - Makes no policy decisions
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If this is a FEDERAL program, why is AEWG involved?
AR schools and libraries apply along with 30,000
other schools and libraries in U.S. We want to make sure you know how to complete forms, etc. so you can get $ you deserve. AEWG does not administer program, we simply provide flow-through for some information and periodically conduct workshops. If you experience problems with SL, call AEWG to act as intermediary.
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$100 (existing) bills you would pay
Follow the Money
You apply to SLD for discounts
You get 55% in discounts
The vendor’s bill drops by $55 Vendor gets $55 from SLD
Vendor invoices SLDSLD approves invoice You now only owe $45
General Framework
From Technology Planning to Payment or
Reimbursement for Discounted Services Discounts available on three types of services:
Telecom Including taxes and surcharges Internet Internal Connections (Networking)
Eligible entities apply for discounts through the
SLD. Service providers extend discounts to approved applicants. (See Process Chart)
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SL Program Overview
Why These Services?
Purpose of fund is affordable access to advanced telecommunications services by schools and libraries down to the “classroom” level Focus of program is on infrastructure and transport, NOT content and end-user equipment
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General Framework
Yearly application process Set funding level (capped at $2.25B). Application process significantly in advance of
discounts. Rules of Priority
Priority 1: Telecom and Internet Access Priority 2: Internal Connections
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Application Process at a Glance
Develop a Technology Plan File Form 470: Seeking services 28 DAYS Receive bids for new services/hold pre-existing contracts
Problem Resolution/ Program Integrity Review
File Form 471: Services Ordered
Negotiate a Contract
Funding Commitment!
File Form 486: Services Flowing
(Tech Plan must be final) (CIPA Compliant)
Discounted bills from Service Providers
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School Eligibility
Public schools and school districts. Non-profit, private K-12 school with endowment of
$50M or less. Must meet federal definition of elementary or secondary school. State departments of education, county offices of education, and consortia. New entities must obtain an Entity Number from the SLD (call CSB).
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NON-INSTRUCTIONAL FACILITIES
Non-instructional facilities now qualify for
Priority I services
Need to obtain an entity number for the facility http://www.sl.universalservice.org/reference/E ntity_Numbers.asp You will receive a call from PIA about the facility asking you to justify the eligibility
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LIBRARIES
Must meet the statutory definition of library or
library consortium found in the Library Service 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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SL Program Overview Eligible Entities
Consortium:
DIS files as Consortium Lead for the APSCN network Of Eligible Schools and/or Libraries Of Eligible and Ineligible Entities Ineligible Entities would pay the lower pre-discount prices Only Eligible Schools and Libraries would receive the added benefit of universal service discount mechanisms
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What is My Discount?
Two Criteria Needed for Discount Level Poverty
Defined by National School Lunch Program Eligibility based on % of student whose family‟s income is within 185% of federal poverty level Official sanctioned methods exist for alternative methods of determining eligible students. Rural Vs. Urban (by Counties) Uses Metropolitan Statistical Area data
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Location
All discounts based on individual school data
Discount Matrix *
% of Students Eligible for School Lunch Program
<1% 1-19% 20-34% 35-49% 50-74% 75-100% 20% 40% 50% 60% 80% 90%
Discounts
Urban Rural
25% 50% 60% 70% 80% 90%
*Matrix applies only to individual schools; all other applicants use weighted/simple average depending on type of applicant.
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Funding Priorities
Priority One: Telecommunications & Internet
Access
All approved funding requests will be funded, at all discount levels. Funds go first to neediest applicants (90% discount level), then to others in order of discount until funds are exhausted. Possible Changes for Year 8
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Priority Two: Internal Connections
Eligible Services
Three Categories
Telecommunications Internet Access Internal Connections
PBXes eligible as Internal Connections
No end user equipment (phones, fax
machines, computers, etc.). http://www.sl.universalservice.org/data/pdf/Eli gibleServicesList101003.pdf
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TELECOMMUNICATIONS
Eligible Telecommunications Basic Telecom (Telephone) Non-Eligible
Services
Dial Tone Centrex Service Long Distance 800 Service Cellular Service
Telecommunications Directory Advertising Directory Listing Unlisted Number Charges
Advanced Telecom Services
(high-capacity data circuits such as T-1, ATM, Frame Relay, etc.).
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TELECOMMUNICATIONS
SERVICE PROVIDERS
Must be a recognized Telecommunications Provider by both the FCC & the Arkansas PSC Must have a SPAC on file http://www.sl.universalservice.org/Forms/spin_ contact_search.asp Arkansas PSC http://170.94.29.3/companytype_results2.asp? companytype=telephone&certified=yes
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BEAR SPIN SEARCH
SERVICE PROVIDER NAME ELIGIBLE TELECOMM PROVIDER
SPIN
CONTACT NAME
CONTACT ADDRESS
CONTACT PHONE
SPAC FILED
143004662 Southwestern Bell Telephone Company
E-Rate Service Center
406 North Carancahua Room 450, Corpus Christi, TX 78401
800-7598195 Y
1998 1999 2000 2001 2002 2003
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INTERNET ACCESS
DIS files for the Internet Access on the APSCN network and select libraries When filing under Internet Access, the only use is accessing the Internet VOIP SERVICE is not eligible in this category
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INTERNAL CONNECTIONS
Eligible: Ineligible: Wiring Personal computers Routers FAX machines Switches Modems/cable modems Hubs Asbestos removal Network servers Cameras System software Electrical wiring Wireless LANs Teacher training Private branch exchange (PBX) Curriculum software
For a complete list, see the SLD website: http://www.sl.universalservice.org/reference/eligible.asp
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“Two Out of Five Rule” for Internal Connections
Starting in Funding Year 2005, eligible entities will
only be able to receive support for Internal Connections in two out of every five funding years. For each eligible entity, the five-year period begins in any year, starting with Funding Year 2005, in which that entity receives support for Internal Connections. This limitation does not apply to Telecommunications and Internet Access services, nor to basic maintenance services categorized as Priority 2 services. Basic maintenance services are eligible for support each year if they are necessary to the operation of the internal connections network.
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“Two Out of Five Rule” Example
A
set of examples for the “Two Out of Five Rule” is included below.
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PROPOSED DISCOUNT MATRIX FOR INTERNAL CONNECTIONS
Proposal One
URBAN <1% 1-19% 20% 40% RURAL 25% 50% 60% 70% 80% 80% <1% 1-19%
Proposal Two
URBAN 20% 40% RURAL 25% 50% 60% 70% 70% 70%
20-34% 50% 35-49% 60% 50-74% 80% 75100% 80%
20-34% 50% 35-49% 60% 50-74% 70% 75100% 70%
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Arkansas: Internal Connections Made Easy
Department of Information Systems
State purchasing program for technology equipment Many E-rate eligible items included http://fiscal.state.ar.us/contract_list.html
DIS submits 470 Applicant doesn‟t have to!
Information posted on the E-rate web site http://www.asl.lib.ar.us/PublicL/erate.htm You just submit 471 inside the window
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CONTRACTS
Do not be sign until 28 days after 470 posting Must be signed before filing 471 Must be legally binding Price must be the primary factor
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You Must Have a Technology Plan! *
Five SL technology plan criteria
Goals and Objectives Needs Assessment Professional Development Budget Evaluation
Vendors cannot write or approve technology plans No tech plan required for basic phone service or long distance Tech plans approved for no more than 3 years Must be approved by „SL-certified approver‟ before services
begin (usually July 1) Certify on 486 who approved plan
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PLAN – PLAN – PLAN
Write ACSIP
Technology to accomplish ACSIP
Write Technology Plan File 470
Sign contracts
File 471
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Form 470--Description of Services Requested & Certification Form
Who must file: Schools Libraries Consortia (Acting on behalf of schools and libraries) Entity that will negotiate with potential service providers
on behalf of eligible entities should file Form 470.
Service providers may not be the applicant, contact person (or use the SP contact address) or the authorized person providing the signature and certifications in Block 5.
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E-rate Forms
Form 470 (Proposal) Announces your intent to seek services. Starts the federal competitive bidding process. Is relatively general. Form 471 (Request) More specific - list the eligible discount level and dollars for goods and services. Provides contract/purchase information. Must be received within “Window” (usually MidNov. through first week in Feb.) but filed at least 28-days after posting Form 470.
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E-rate Forms
Form 486 (Services Received) Services have been or will be received. Permits SLD to begin paying vendor. Tech Plan & Internet Filter Certification Form 500 (Make a Change) Tells SLD you are changing certain items: change a contract start/end date, cancel an approved request for funding, reduce an approved request for funding. Form 479 (CIPA compliance) Form sent to DIS annually
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LETTER OF AGENCY
DIS MUST obtain a new LOA from all
consortium members before the PY2004/2005 E-rate application is approved.
If DIS does not obtain new LOAs from consortium members, the applications will be denied. If all but a few LOAs are received, PIA will reduce DIS‟ E-rate application to remove charges associated with non-responsive entities. Can be faxed to DIS 501-682-4310
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LETTER OF AGENCY
Current
We, the Participant, (Cooperative/District/School/Library Name) authorize the Department of Information Systems to act as a consortium lead on our behalf in matters related specifically to any State and Federal discount programs (such as Universal Service Program -- E-Rate -- and others) solely for the purposes of securing those discounts on E-rate eligible services. Future We, the Participant, (Cooperative/District/School/Library Name) authorize the Department of Information Systems to act as a consortium lead on our behalf in matters related specifically to any State and Federal discount programs (such as Universal Service Program -- E-Rate -- and others) solely for the purposes of securing those E-rate discounts on Telecommunications Services, Internet Access and Internal Connections.
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E-CERTIFICATION
Applicant can E-Cert most forms Apply for a PIN to Enable E-Certification
Must have a signature on file with the SLD PIN assigned to individual not entity http://www.sl.universalservice.org/reference/os certs.asp
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CIPA Compliance
SLD Information on CIPA
http://www.sl.universalservice.org/reference/CIPA.asp http://www.sl.universalservice.org/reference/CIPAfaq.asp
Technology Protection Measure
Internet Safety Policy
Public Notice & Hearing Form 479 sent to DIS
CIPA Guide (Wisconsin)
http://www.dpi.state.wi.us/dlcl/pld/cipafaq.html
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PY2003 & PY2004 DENIALS
Reasons for Denials
No technology plan 30% rule
Unsubstantiated amount Ineligible use
The service/product requested is not being used in accordance with program rules. The 470 cited did not include service of this type; therefore it does not meet the 28 day competitive bidding requirement.
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WASTE FRAUD & ABUSE
AUDIT FINDINGS
Competitive Bid violations
Bid rigging
Unused equipment Non-discounted portion not paid Price inflated Over-purchasing for school size Submitting false reimbursement claims Submitting false and fraudulent documents to hide planned installation of ineligible items, Service Provider agreeing to donate “free” items that it planned to bill E-Rate Submitting false and fraudulent documents to defeat inquiry into the legitimacy of the funding request. Wire Fraud
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WFA ATLANTA PUBLIC SCHOOLS
Atlanta Public Schools misspent or mismanaged nearly $73 M Now needs $14 M a year to run Students have not seen benefits Same equipment put in schools regardless of school size Copper cable run to classrooms, the following year fiber cable ran, no increase in speed $1 M for access, same size school received same result for $200,000 Purchased wireless infrastructure for future, not used because of expense In 2002 asked for $81 M in upgrades School officials “If federal money is out there for us to provide services for the children of this school system, then we have an obligation to go out and get it.” “This money was being given to provide this kind of technology, if not for current use, for future use. We needed to take advantage.”
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WFA ATLANTA PUBLIC SCHOOLS
Vendors did not provide school the manufacture‟s educational
discount charging the schools full price (CISCO gives a 30% discount) Invoices not detailed enough to show what the money was spent on Purchasing equipment for schools scheduled for closure, one school closed 2 weeks after a $92,870 equipment purchase Price was not the primary factor in purchasing Billed for wiring more equipment closets than the school had (18 closets, billed for 38) Newspaper found several million dollars‟ worth of equipment in storage some unopened & some 3 years old Purchasing equipment for schools that already had the gear 268 FRNs filed in PY2004; E-rate discounts: 13 @ 60%, 62 @ 80%, 15 @ 85%, and 180 @ 90%
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Arkansas On Your Side
AR ERate Work Group
The Arkansas E-rate Workgroup (AEWG) works on behalf of state agencies that serve pre-K-12 students and public library patrons. The AEWG represents all E-rate applicants in the state of Arkansas. Members: Representatives from the Arkansas Department of Education, Department of Information Systems, Governor's Office, Little Rock School District, Office of Executive CIO, and State Library.
AR E-rate list serve
Subscribe to listserv@adelist.k12.ar.us
No Subject Message: Subscribe Erate
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E-RATE LIST SERVE
Highlights new information from the SLD‟s
website E-rate News of the Week Early notification of who received funding Interesting articles Updates on FCC Orders & pending actions First place to go when seeking information from AR applicants A source for applicants Q&A
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WEB SITE
www.asl.lib.ar.us/arerate/index.htm
Links of interest Training material E-rate templates Important notices Presentations
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AEWG ASSISTANCE
Training
Answer applicant questions during application
filing Assist applicant with PIA questions Assist applicants with Appeals Escalate applicant issues Respond to FCC Notice of Proposed Rule Making
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TRAINING
September Arkansas State Coordinators attend Train-the-Trainer in Washington, DC September – October AEWG prepares training information October – November AEWG conducts training sessions in Arkansas Schedule announced on E-rate list serve and posted on E-rate website November AEWG video conference for Q&A November – February AEWG responds to Arkansas applicant questions
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Resources to Remember *
SL web site: www.sl.universalservice.org SL CSB: 888-203-8100 Via e-mail: question@universalservice.org Via fax: 888-276-8736 AEWG E-rate website: www.asl.lib.ar.us/arerate/index.htm AEWG E-rate list serve: Send email to: listserv@adelist.k12.ar.us No subject Message “Subscribe Erate” (without quotes) Arkansas Contacts Dana Koite, ADE – 501.682.1287 or dkoite@arkedu.k12.ar.us Becky Rains, DIS – 501.682.4003 or becky.rains@arkansas.gov Carolyn Ashcraft, ASL – 501.682.5288 or cashcraft@asl.lib.ar.us
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WHERE DO I FIND THE INFORMATION Schools & Libraries web site:
www.sl.universalservice.org
Data retrieval tool
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Why use the Data Retrieval Tool?
See the data for your organization.
Where do you stand? Now? In the past?
Compare your E-Rate Status with other
participants on local, state and national levels. Decision Making Data
Vendor Choice Others
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Data Retrieval Tool (DRT)
Examples of DRT Use
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Data Retrieval Tool
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Choose a Funding Year and State.
Narrow data search using these items.
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Additional narrowing of data by choosing needed fields. OR Click on “SELECT ALL” to get everything.
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VIEWING INFORMATION
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