December 5, 2008
E-rate:
A Review for 2009
-Session starts at 1pm-
Bob Bocher
608-266-2127 cell 608-212-2773
robert.bocher@dpi.wi.gov
Steve Sanders
608-266-3856
stephen.sanders@dpi.wi.gov
Agenda
1. 2. 3. 4.
Overview of the E-rate program Eligibility and discounts Technology plans Review of forms and application process
Video and PowerPoint: http://dpi.wi.gov/pld/erate.html
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Overview
Created by 1996 Telecom Act $2.25 billion annually from interstate phone revenue
Can use rollover funds
WI averages $25 million annually
FCC has regulatory and legal oversight SLD does program administration
SLD division of USAC K-12 public and private schools, CESAs, Head Starts Public libraries, library systems
The Telecom Act created a program to enable “access to advanced telecommunications and information services for all elementary and secondary schools and public libraries.”
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Eligible applicants
Status of 2008 WI Funding Requests (2452 FRNs)
Pending, 820, 33%
Funded, 1 494, 61 %
Not funded, 1 6% 38,
Check your application status at http://www.sl.universalservice.org/FY3_form471/471StatusCheck.asp
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What Are The Eligible Services?
Priority 1
Telecommunications services (telco’s only)
Local/long distance, wireline and wireless, voice, video, data
Internet access
Basic access
Priority 2
Internal connections Basic maintenance of IC Very few WI applicants get P2
Demand exceeds funds available. Priority 1: Funded first. Priority 2: Funded starting at highest discounts (90%, 89%, 88%, etc.). P2 seldom funded <80%.
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2009 Eligible Services List (ESL)
Official ESL released November 21
471 window open now, closes: 10:59 p.m. CST Thursday, Feb 12, 2009 2009 list same as 2008 list Filtering, expanding ―basic‖ telecom to include data circuits, dist. learning scheduling
FCC refused action on eligibility of:
DPI filed comments supporting the above
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2009 Eligible Services List (ESL)
If it’s not in the ESL, assume it’s not eligible
E.g., email storage vs. archiving
Must be used in an eligible location for eligible purposes See SLD site ―Determine Eligible Services‖ Ineligible components/services must be removed
Full funding may be provided as Ancillary Use
Funding requests must be cost effective
USAC will not approve funding requests that have unreasonable costs compared to the marketplace. -FCC’s 2003 Ysleta Order
How Much Discount Can I Get?
Discounts range from 20% to 90%
Based on free/reduced lunch eligible
Enrollment and lunch data entered on ISES by Nov 6
Part of NCLB mandates About 15 districts still have outstanding issues
DPI does not verify schools using their own data
―Alternate‖ options Sends file to SLD
DPI plans to post Excel file third week of Dec.
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Discounts
Calculating Discount Methods
Primary measure: NSLP (via ISES)
Alternative discount mechanisms
Shared Discounts
School districts use the weighted average of the discounts of individual schools in the school district
Libraries use the simple average discount of the school district in which they are located
Consortia use the simple average of the consortium members
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Discount Matrix
Percent of Eligible Students Less than 1% 1% - 19% 20% - 34% 35% - 49% 50% -74% 75% -100% Urban 20% 40% 50% 60% 80% 90% Rural 25% 50% 60% 70% 80% 90%
State average is 53%
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Technology Plans
Technology plans must be ―developed‖ before the Form 470 is filed. (1st step in process) Plans must support requested services on Form 470 Plans must be approved before service begins, usually July 1, 2009
Technology plans must cover the entire funding year for which a service is being sought. (Can’t expire before June 30, 2010)
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Technology Plans
Timelines for Information and Technology Plans
Developed prior to 470 Filing **
Dec 2008 Plan to DPI by: May 1, 2009 Plan Approved by: July 1, 2009
Plan Expires June 30, 2009
** E-Rate Note: A change in the E-Rate technology plan requirements occurred in August 2004. Technology plans must be “developed”, but not approved, before Form 470 is submitted.
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CIPA/NCIPA Compliance
(Children's Internet Protection Act)
Compliance with CIPA required for: o Internet access o Internal connections o But not telecommunications CIPA requires filtering and having an Internet Safety Plan New law will require Internet safety policy to 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.
See DPI’s CIPA FAQ at: http://dpi.wi.gov/pld/cipafaq.html
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E-Rate Flowchart (Part 1)
Tech Plan before 470
Oct - Dec
Form 470 posted Wait 28 Days Pick vendor, sign contract
RNL
Select vendor, cost main factor. If no bids, applicant selects provider.
Dec – Feb ?
Submit 471
RAL
Retain all documentation for at least five years!!
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E-Rate Flowchart (Part 2)
PIA Review
FCDL - Decision
July – Oct ?
Applicant can appeal a denial of funding to the SLD within 60 days of date on FCDL. SLD mails applicant and service provider a 486 approval letter. SLD mails applicant and service provider a BEAR approval letter.
Form 486 – Service Start
Discount on bills BEAR (472)
Form 500 (optional)
Online filing/certification available for most forms
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Forms and Deadlines
Form or Event Funding Year
Deadline or Dates
July 1 through the following June 30; Current year is 2008. Applying for 2009. Starts request for services. Must be posted at least 28 days before the filing Form 471. Keep in mind (1) the timeframe for all bids (2) the Form 471 filing closing date. Will receive Receipt Acknowledgement Letter – RAL. 470 deadline will be late Dec. or Early Jan. Tells SLD what services you want to receive, the provider, costs, schools getting services, discount %, contract or MTM, etc. Will probably be due early February 2009. Will receive Receipt Notification Letter – RNL. SLD’s Program Integrity Assurance (PIA) staff review all applications, which can take over 8 months. PIA will contact you with questions. Starting late April, Funding Commitment Decision Letters sent to applicants. This continues for months. Confirms start of service. Must be received/postmarked within 120 days after FCDL date or 120 days after the Service Start Date, whichever is later. Get discounts on bills (#474) or reimbursements (#472). Received or postmarked no later than 120 days after the date of the Form 486 Notification Letter or 120 days after the last date to receive service, whichever is later. Must be received within 60 days of date on the FCDL. DPI can help you with any appeals.
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Form 470
Form 471 PIA review FCDL sent Form 486 Form 472 / Form 474 Appeals
Form 470
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Form 470
470 begins bidding process, must be filed for 2009
If you have no contract for the requested services
Often tariffed or monthly telco or Internet service
If a contract expires on June 30, 2009
File 470 once for length of multi-year contracts or contracts with voluntary extensions
470 and RFP must indicate this
Check 7a and b and both options under b
In future years on the 471, site the original 470
Be sure to file for correct category of service
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Form 470
Can file the 470 now for 2009 services
Be certain to have draft Tech Plan
143 WI applicants have already filed 374 form 470s.
File one 470 for all services, or file separate forms for each service 470 must be posted on SLD Website for at least 28 days before you select a provider or sign a contract
See ―Form 470‖ area of the News Briefs
Form 470 drop dead filing date is January 15.
But do not wait until then!
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Form 470 and Competitive Bidding
Must have a fair and open bidding process
Bid document (RFP) helpful, but not required All bidders are treated the same All bidders have equal access to information Cost must be primary factor
Must choose most cost-effective bid
Non-eligible products/services not part of cost effectiveness
Fully document your bid review process and any decision(s)
Record dates of any decisions
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Common Bidding Violations
Cost was not primary factor Provider involved with 470 and/or RFP Applicant’s consultant associated with service provider
Consultant used with no Letter of Agency (LOA)
Contract signed before RFP due date or before 28 days Failure to provide bidding documentation when requested by PIA
Keep all information received from all providers
Document if you received no responses
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Online Forms Training Site
(http://usactrain.solixinc.com)
See Oct 3 News Brief for training site information.
470 options
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Checking all to keep all options open.
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25
Check these boxes
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Block 4 information
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Check all certifications, enter authorized person (bottom)
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Use Print Preview to check all data, then Submit and certify online or via paper
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Form 471
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E-rate Form 471
Provides specific information on services, service providers selected, and contracts and/or agreements, costs, etc.
Provides discount calculation information
Must be filed each funding year
Applicant certifies compliance with all program rules Must be postmarked or filed online by ??? Form 470 certifications must also be filed online or postmarked before the close of the 471 filing window
2009 Form 471 drop dead date:
Likely Early-Mid Feb, 2009, 10:59PM CST
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Form 471 Online Interview
You can use the interview form if you meet the following conditions: 1. You are one of the following: • An individual school • A school district • An individual library • A library system. 2. You have National School Lunch Program student counts - or equivalent data using an alternative discount mechanism - for each school (individual schools and school districts) or for all school districts in which your outlets/branches are located (individual libraries and library systems). You are strongly encouraged to print a copy of the Form 471 Interview Filing Guide to use for reference.
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Block 1:
Basic contact information
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RECORD YOUR SECURTIY CODE!!!!
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Block 4: Calculate Discount. Adding entities (schools)
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Block 4: Calculate Discount. Adding entities (schools)
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Block 4: Calculate Discount. Adding entities (schools)
NCES Codes: http://nces.ed.gov/globallocator/
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Block 5: One for each funding request. Adding entities (schools)
Spin search tool http://www.sl.universalservice.org/Forms/SPIN_Contact_Search.asp But VERIFY with service provider!
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Block 5: Type of service. 470 Number
Contract or Month-tomonth
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Block 5: Service start and end dates OR
Contract award and expiration date
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Block 5: Item 21 Attachment
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Block 5 — Item 21 Attachment
‖You MUST attach a description of the service, including a breakdown of components, costs, manufacturer name, make and model number….‖ Examples are provided in the document ―Item 21 Attachments for Form 471‖
http://www.sl.universalservice.org/reference/ Form471item21Attachments.asp
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Block 5: •Enter Amounts. •Add another block 5?
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Block 6: Certifications Have necessary resources
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Block 6: Certifications: Have Technology Plan
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Block 6: Certifications: Send Signed Certifications or PIN
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Block 6:
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Tips on Filing 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) online speeds processing and reduces errors
Filing
Examine,
correct, and save Receipt Acknowledgement Letter
(RAL)
Paper
forms and instructions: http://usac.org/sl/tools/required-forms.aspx
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Receipt Acknowledgement Letter
Form 471 Receipt Acknowledgment Letter (RAL)
Cover page of important reminders Provides confirmation of certain information entered from Form 471
Data entry errors may be corrected within three weeks by using the RAL (including Block 4 worksheets) Applicants can request funding reductions but not funding increases
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Funding Commitment Decision Letter (FCDL)
FCDL
reports status of individual funding requests:
funded
Funded
Not
As
yet unfunded (internal connections)
Canceled
May
Use
receive more than one FCDL
info on FCDL to prepare Form 486
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E-rate Form 486
Notification that services have started and that SLD can pay invoices Certifies that Tech Plan (if required) has been approved and covers the entire funding year. Form 486 deadline is 120 days after service starts –OR– 120 days after date of Funding Commitment Decision Letter date, whichever is later
Late
October deadline for FCDL before July 1
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Online version continues to have issues
E-rate Form 472/474 (Invoices)
Invoices — Form 472 or Form 474
BEAR (Billed Entity Applicant Reimbursement) Form 472 filed by applicant and certified by service provider after receipt and payment for services
Form often due late October, 120 days after last day of services on June 30 or 120 days after date of Form 486 Notification Letter
-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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Issues of Waste, Fraud, Abuse
W/F/A still problem in program
90% discount and complex program rules Vendors have been debarred, people are in prison More certifications
U.S. District Judge Peter Messitte sentenced Andre Hornsby, Mitchellville, Maryland, today to six years in prison in connection with his conviction by a federal jury of wire fraud, witness and evidence tampering arising from a scheme to cause the Prince George's County Public Schools to award lucrative contracts to benefit associates and himself.
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W/F/A drives many FCC decisions
More PIA requests for information
More audits leading to more COMADs
FCC can recoup funds going back 5 years
See SLD Fall 2008 slides on audits
Rule Violations That Can Warrant Recovery of Funds
Insufficient documentation
Competitive bidding, discount rate, contracts
Funding approved for ineligible services Receipt of duplicative services Lack of necessary local resources Technology plan issues (e.g., no approved plan)
The auditors estimated the improper payment rate at 12.9%. There was noncompliance in several areas, such as recordkeeping; eligible services; and entering into a contract too early in the application process. —FCC Notice of Inquiry, 9-08 The E-rate has become so complex that it is almost impossible for schools or libraries to be 100% accurate in their execution of the application or invoicing process. However, there is a fundamental difference between intentional fraud and inadvertent errors due to program complexity. —ALA Response to FCC NOI
Telecom provider issue 470/471 service 3% mismatch Other 4% 6% Service provider involvement 4% Tech plan issues 4% Budget issues 5% 471 filing issues 9% No 470 posted 9%
Common Reasons for Denial of Funding
Contract issues 24%
Insufficient documentation 17% 30% rule 15%
http://dpi.wi.gov/pld/eratedenials.html
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Contract Issues
FCC/SLD E-rate contract rules trump local policies Telecom and Internet may/may not be contracted services As noted, on the 470, always check #7, options a and b You must sign and date contract before filing Form 471
Verbal agreements are not acceptable Quotes are not acceptable
Always try and have contract timed to E-rate cycle State Master Contracts
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State Master Contracts
DOA cell contract
Applicant files 471 for cell service using their own or DOA 470
Still working on some SPIN issues U.S. Cellular has many dead SPINs
Gary McFall, DOA cell contract contact (608-266-1032 gary.mcfall@wisconsin.gov,)
DOA STS, Centrex, VoIP contract
DOA did not file 470; you must file both Form 470 and 471
471, #18, Contract Award Date (CAD) is date you selected SMC as winning bid Still cannot use TEACH circuits; issue ―under review‖
Mark Rappe, DOA VoIP contract contact (608-264-9406; mark.rappe@wisconsin.gov)
VoIP and DOA/TEACH circuit issue
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Program Integrity Assurance (PIA)
Application Review
PIA reviews all applications
To ensure that funds are used for eligible services/products
To ensure that funds go for eligible uses by eligible entities To annoy you by asking for same documents multiple times Need more information on requested services Competitive bidding process and contracts Discount calculation Establishing Form 470
―Please provide the Form 470 that established the bidding for the contract extension.‖
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Common PIA requests to applicants
Program Integrity Assurance (PIA)
Application Review
Respond within 15 days to PIA requests
Work with service provider if needed
Respond completely to PIA questions, but no more
Ask for more time or for clarification if needed; contact DPI 17% of all WI denials: No response or insufficient info 10% of FRNs move to ―Selective Review”
PIA initial review
Check 471 status at 471 Application Status Tool
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Appeals
Funding denials can be appealed
Generally, appeal first to the SLD
Then appeal to FCC if SLD denies appeal
Must be postmarked within 60 days of denial on FCDL FCC has been granting many appeals
But can be a year or more No appeal form
Contact DPI for appeal advice and template
See Appeals Procedure on SLD Website
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Where to Go For Help
On the Web: www.usac.org/sl/
Fall training slides Reference: http://www.usac.org/sl/tools/reference-area.aspx News Briefs: http://www.usac.org/sl/tools/news-briefs/Default.aspx Enter your BEN and get info on your application
E-rate Central, WI site
Client Service Bureau: 888-203-8100 Email: question@slcfund.org Fax: 888-276-8736
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DPI Help
DPI’s E-rate Web site:
dpi.wi.gov/pld/erate.html
dpi.wi.gov/pld/wieratelist.html
DPI’s WIERATE email list:
DPI Staff:
Bob Bocher
608-266-2127; fax 608-266-2529 robert.bocher@dpi.state.wi.us
Steve Sanders
608-266-3856; fax 608-266-2529 stephen.sanders@dpi.state.wi.us
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December 2008
E-rate for 2009
? Questions ?
Bob Bocher 608-266-2127 fax 608-266-2529
robert.bocher@dpi.state.wi.us
Steve Sanders 608-266-3856 fax 608-266-2529
stephen.sanders@dpi.state.wi.us
History of Demand*
* From E-Rate Management Professionals Association
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