E-Rate Year 2009 Opportunities for Kansas Schools and Libraries

E-Rate Year 2009 Opportunities for Kansas Schools and Libraries Don Dietrich Dietrich Lockard Group, Inc. (Includes content from October, 2008 SLD Seminars, with permission) E-Rate 2009 Agenda 9:00am - Morning Session E-Rate and Kan-ed E-Rate Review Technology Plans, CIPA & Budgets E-Rate Application Process Priorities & Eligibility Funding Years & Annual Cycles Forms 470, 471, Item 21 Attachments 12:00 – 1:00pm Lunch 1:00pm - Afternoon Session E-Rate Approval and Acceptance Process PIA Review Process Forms 486, 500, 472 BEARS vs Discounts Contract Extensions & Service Substitutions SPIN Changes Record Keeping, Appeals & Audit Preparation What’s new for 2009! October, 2008 2 E-Rate & Kan-ed  Kan-ed receives E-Rate funding for Telecom Services only. Funding is based on membership of ―eligible entities‖  Kan-ed Members must sign LOA (Letter of Agency) in order for Kan-ed to receive funding  Kan-ed E-Rate has no effect on individual school or library E-Rate applications October, 2008 3 E-Rate & Kan-ed  Your E-Rate Discounts are not affected by KANED subsidy per Telecom Act of 1996 “ (f) State support. Federal universal service discounts shall be based on the price of a service prior to the application of any state provided support for schools or libraries”. 47CFR54.505 October, 2008 4 E-Rate and Kan-ed From SLD Website “…for consortium applications, the consortium lead member must either collect Letters of Agency from each consortium member or be able to provide some other proof that each consortium member knew it was represented on the application…NOTE that the Letter of Agency must be certified BEFORE the filing of the Form 471.” October, 2008 5 E-Rate History - Telecom Act of 1996 – Concept of Universal Service began in 1934 – USAC (Universal Service Administrative Co) manages three programs under FCC (High Cost, Rural Health, Low Income) – Local Service is opened to competition in 1996 – Schools and Libraries Division of USAC created to administer special „Education Rate‟ fund to improve tech in learning – Amount recommended yearly by FCC / approved by congress – Original idea of funding only telecom and internet expanded in 1998 to include a growing list of internal connections – 1999 Carriers add charges to consumer telephone bills October, 2008 6 E-Rate History - Telecom Act of 1996 – 2000-2008 Rules and guidelines constantly changing but basic legislation and administration is constant. – Appeals and FCC Orders change the SLD‟s operating guidelines: • Definition of Educational Purposes • Clarification of “30% Rule” • Ministerial and Clerical Errors • Requirements for Signed Contracts • 2-in-5 Rule • …many others October, 2008 7 E-Rate Funding Year Cycle  Yearly cycle of applications, awards and spending  Current Year funded at $ 2.25 Billion  All Priority One Requests (Telecommunications & Internet) funded first regardless of need  Priority Two Requests (Internal Connections) awarded to poorest applicants first, until all funds are exhausted  Year One (1998) funded down to 70+% level  Year Two (1999) all levels funded (money left over)  2000 – 2007 variable, always a cutoff, usually mid 80%‘s  Year 2008 at 90% - may go to 83% October, 2008 8 E-Rate Program Rules  Discounts are based on NSLP and range from 20 – 90%  Competitive Process – requests must be posted for 28 days  All funds must be used for  Eligible goods and services (see handout)  Installed at eligible facilities  Provided by eligible service providers (SPIN numbers required)  Eligible goods and services divided into four categories  Telecommunications (carrier services)  Internet (ISP fees)  Internal Connections (switches, routers, cabling, servers…)  Basic Maintenance of Internal Connections October, 2008 9 E-Rate Discounts INCOME Measured by % of students eligible for the National School Lunch Program If the % of students in your school that qualifies for the National School Lunch Program is… Less than 1% 1% to 19% 20% to 34% 35% to 49% 50% to 74% 75% to 100% URBAN LOCATION RURAL LOCATION Discount Discount …and you are in an URBAN area, your discount will be… …and you are in a RURAL area, your discount will be… 20% 40% 50% 60% 80% 90% 25% 50% 60% 70% 80% 90% October, 2008 10 E-Rate Eligible Items • Telecommunications Services - includes basic phone service (local and long distance), data networks, cell phones etc. • • Internet Access – includes student e-mail, web hosting etc. Internal Connections - includes the wiring and network equipment needed to bring information directly to end-user – only available 2 out of 5 years • Maintenance (new in 2005) – very strict guidelines ELIGIBLE SERVICES LIST & UPDATES ON SLD WEBSITE October, 2008 11 What’s Covered Eligible Items Include: – – – – – – – – – – Local and long distance telephone usage, Cellular and Paging Internet access costs, Web Hosting, Email Service Cabling and hardware (switches, routers…) within buildings UPS‘s, equipment racks etc. Network Servers for Internet access, E-Mail… Telephone systems (PBX‘s) including VoIP Limited Software License Fees (Netware, some CALs) Maintenance charges (strict guidelines) VPN‘s (2006) Voice Mail Systems (2007) October, 2008 12 What’s Not Covered Not Eligible for E-Rate: – Project management – Computers, Telephone instruments, Video Cameras – Power infrastructure within building – Power service upgrade to building – Physical security or construction – Application Software – Consulting Services, Training, Personnel Costs October, 2008 13 E-Rate Eligible Items ESL & UPDATES http://www.usac.org/sl/tools/eligible-services-list.aspx Eligible Services List - Schools and Libraries - USAC October, 2008 14 http://www.usac.org/_res/documents/about/p df/2008-ESL-FCC0-07-130.pdf www.sl.universalservice.org October, 2008 15 Eligible Services List – Changes 2009 Few changes for 2009: October, 2008 16 E-Rate Eligible Locations • All K-12 Schools, Most Admin & NIFs (Non-Instructional Facilities) • Educational Purposes – Activities that occur on library or school property are presumed to be integral, immediate, and proximate to the education of students or the provision of library services to library patrons and therefore qualify as educational purposes. – Customary work activities of employees of a school or library are presumed to fall under the definition of education purposes. Step 6: Educational Purposes - Applicants - Schools and Libraries - USAC October, 2008 17 E-Rate Eligibility • Examples of Non-instructional Facilities (NIFs) that can receive Priority 1 services SCHOOLS: • • • • LIBRARIES: Administrative buildings Bookmobile garages Interlibrary loan facilities Library technology centers Administrative buildings • • School bus barns and garages • Cafeteria offices Facilities associated with athletic • activities October, 2008 18 18 E-Rate Eligibility • Educational Purposes – Priority 1 – Wireless Telecommunications Services used offsite may be eligible. For example, • School bus drivers delivering children to and from school • Library staff providing library services on a library‘s mobile library unit van • Teachers or other school staff accompanying students on a field trip or sporting event. October, 2008 19 19 E-Rate Eligibility • Educational Purposes – Priority 2 – Priority 2 services to NIFs are NOT eligible unless those internal connections are essential for the effective transport of information to an instructional building of a school or to a non-administrative building of a library. October, 2008 20 20 Conditional Eligibility October, 2008 21 21 Partial Eligibility & Cost Allocation • Straight Line method: Number of eligible functions Number of total functions = Eligible % • Example: A server is being used for: 1. DHCP (eligible) 2 2. DNS (eligible) = 67% Eligible 3. Applications (ineligible) 3 October, 2008 22 Priority 1 On-Premise Equipment 1. 2. Must be an integral component of Telecommunications or Internet Access service The same service provider that provides the telecommunications or Internet access service provides the equipment Responsibility for maintaining the equipment rests with the service provider, not the school or library The school or library may never own the equipment 3. 4. October, 2008 23 23 Priority 1 On-Premise Equipment 5. Upfront, capital charges of the eligible on-premise equipment are less than 67% of total charges (recurring plus non-recurring) in the funding year. Must only be used for the receipt of the eligible telecommunications or Internet access service The Local Area Network of the school or library is functional without dependence on the equipment. No limitations that would prevent the service provider from using its network equipment in part for other customers 6. 7. 8. October, 2008 24 24 Priority 1 On-Premise Equipment This leased router may be eligible for P1 funding if all conditions are met. Single demarcation – if the router is removed, the LAN would continue to function October, 2008 25 Priority 1 On-Premise Equipment Leased VoIP and PBX equipment are NOT eligible for Priority One funding. By removing the VoIP PBX equipment, the local voice network will cease to function. This equipment is eligible ONLY as Internal Connections. October, 2008 26 26 Annual Cycle Plan & File Form 470 Review / Update / Approve Technology Plan Free & Reduced Lunch Counts Competitive RFPs Developed (if required) Vendor Conference(s) Vendor Responses Received System / Vendor Selection Contract Negotiation Forms Submission to SLD (Form 471) Implementation (Form 486 / 500 / 472) October - November October - November Early December Mid December December - January February July – June September – October October, 2008 27 Technology Plan • Applicants must develop a technology plan – Use telecommunications services and information technology to achieve educational goals and/or library improvements • A plan is required for discounts on any products or services other than ―Basic Telephone Service and voice mail. Step 2: Technology Planning - Applicants - Schools and Libraries - USAC October, 2008 28 Technology Plan • • • • • Must be written before Form 470 is filed Must cover all 12 months of the funding year Must contain the five basic elements Should not cover more than 3 years Must be approved by a USAC Certified Tech Plan Approver (TPA) by the start of services or the filing of Form 486, whichever is earlier October, 2008 29 Technology Plan • Must contain five elements: – Goals/Strategies for using technology – Professional development – Needs assessment – Evaluation process – Sufficient budget October, 2008 30 Technology Plan – 5 Elements • The plan must establish clear goals and a realistic strategy for using telecommunications and information technology to improve education or library services; The plan must have a professional development strategy to ensure that staff know how to use these new technologies to improve education or library services; The plan must include an assessment of the telecommunication services, hardware, software, and other services that will be needed to improve education or library services; The plan must provide a sufficient budget to acquire and support the nondiscounted elements of the plan: the hardware, software, professional development and other services that will be needed to implement the strategy; and The plan must include an evaluation process that enables the school or library to monitor progress toward the specified goals and make mid-course corrections in response to new developments and opportunities and they arise. • • • • October, 2008 31 CIPA Requirements – CIPA compliance is only required if you are applying for Internet or Internal Connections – CIPA is NOT required if only applying for Telcom October, 2008 32 CIPA Requirements – Must have an Acceptable Use Policy or Internet Safety Policy that contains specific elements – Must have a public hearing or notice – Must have technology protection (filtering) software in place to protect minors. – All documentation supporting compliance with CIPA rules is maintained in E-rate binder. October, 2008 33 CIPA Requirements The Internet safety policy must address the following components: – Access by minors to inappropriate matter on the Internet and World Wide Web. – The safety and security of minors when using electronic mail, chat rooms, and other forms of direct electronic communications. – Unauthorized access including "hacking" and other unlawful activities by minors online. – Unauthorized disclosure, use, and dissemination of personal information regarding minors. – Measures designed to restrict minors' access to materials harmful to minors. October, 2008 34 CIPA Requirements Record of a public hearing or notice. • Per the FCC‘s CIPA Order, there must be reasonable public notice and at least one public hearing or meeting to discuss the proposed Internet safety policy and technology protection measure. Keep Board meeting minutes, advertisements, etc. Evidence a technology protection measure was in place during the audited Funding Year. • Filter reports. • Documentation showing the purchase or renewal of filter equipment, software and/or licenses. (Must cover the Funding Year(s) being audited.) October, 2008 35 CIPA Resources American Library Association website: http://staging.ala.org/ala/aboutala/offices/wo/woissues/civilliberties/cipaweb/cipa.cfm CIPA Rules from FCC http://www.fcc.gov/cgb/consumerfacts/cipa.html CIPA Rules from SLD http://www.universalservice.org/sl/applicants/step10/cipa.aspx CIPA Rules from IMLS (Inst of Museum & Libr Svcs) http://www.imls.gov/about/cipa.shtm October, 2008 36 Contracts • Applicants and service providers must sign contracts for services that are not provided under tariff or under month-to-month arrangements • Contracts can cover more than one year or contain extensions, but applicant must have indicated these options in the Form 470 Step 4: Contract Guidance - Schools and Libraries - USAC October, 2008 37 Contracts Tip Sheet http://www.usac.org/_res/documents/sl/pdf/tip-sheets/contracts.pdf October, 2008 38 Procurement Process Plan Tech Plan Requirements Procure Competitive RFP (if required) Vendor Selection Award Contracts Submit Specific Requests Implement Coordinate Vendors Monitor Installation Design Detail Specifications Board Approvals October, 2008 Resolve Upsets Audit Financial Documents Assure Completion Recommend Acceptance 39 E-Rate Forms Plan Form 470 Notice of applicant’s intent to acquire goods and services (nonspecific as to amounts or vendors) Procure Form 471 Specific request for goods and services by entity, category, detailed costs and vendor (requires signed contract with vendor) Implement Form 486 Notice of intent to accept funds awarded Form 500 Change award amount or items Form 472 (BEAR) – Recover discounts already paid to vendors for eligible goods and services. October, 2008 40 http://www.usac.org/_res/documents/sl/pdf/application-process-flow-chart.pdf October, 2008 41 E-Rate Form - 470 Step 3: Form 470 Filing Information - Applicants - Schools and Libraries - USAC October, 2008 42 E-Rate Form 470 • Filing Form 470 opens a competitive bidding process. • Can also issue a Request for Proposals (RFP). • Applicants are responsible for ensuring an open and fair process and selecting the most cost-effective provider of the desired services. • RFP is not required under FCC rules. • Even if you have an RFP, you must describe the services you desire on your Form 470. October, 2008 43 E-Rate Form 470 • Applicants must choose the most cost-effective solution to their Form 470 or RFP, with price as the primary factor • Other factors can be considered, but price must be the most heavily weighted. • Evaluation process should be carefully documented and that documentation must be maintained. • Must indicate willingness for a multi-year contract or contract with extensions if appropriate. http://www.usac.org/sl/tools/required-forms.aspx October, 2008 44 E-Rate Form 470 • File online or on paper • Online Filers can use Interview Mode or Form Fill-out • You will need to know how many entities you are applying for and the area-code, prefix of each • You will need the general descriptions for each service that you are requesting Training Website SLD Training Site October, 2008 45 E-Rate Form 470 • You must wait at least 28 days from the submission date before entering into a contract for services • If filed online, the form will calculate this date for you • If you are under a multi-year contract from a previous year, you do not need to file a Form 470 every year • If you are under Month-Month or Tariff rates, you must file a Form 470 every year October, 2008 46 E-Rate Form - 470 Applicant Personal Identification Numbers (PINs) • Will be automatically issued to any new authorized persons filing paper Forms 470, 471 and 486 on or after November 1 of the funding year. • After accepting Terms and Conditions, can be used immediately to certify online. October, 2008 47 E-Rate Form - 470 • You must keep records of all responses to Form 470 • You must keep records of how you decided on Service Providers • If only one response received then ‗email yourself‘ October, 2008 48 Form 470 - Bid Evaluation • Bid evaluation: – When evaluating your bids you must choose the most cost-effective offering with the price of the eligible products and services being primary – Can select other important factors for evaluating bids and weight each of those factors lower then price – Set up a simple chart, evaluate the bids and keep your documentation October, 2008 49 Form 470 - BID Evaluation http://www.usac.org/_res/documents/sl/pdf/2007_training/samples-checklist-vendor-selection-worksheet.pdf October, 2008 50 Competitive Process Tip Sheet http://www.usac.org/_res/documents/sl/pdf/tip-sheets/competitive-biddingprocess.pdf October, 2008 51 Annual Cycle Plan & File Form 470 Review / Update / Approve Technology Plan Free & Reduced Lunch Counts Competitive RFPs Developed (if required) Vendor Conference(s) October - November October - November September – October Vendor Responses Received System / Vendor Selection Contract Negotiation Early December Mid December December - January Forms Submission to SLD (Form 471) Implementation (Form 486 / 500 / 472) February July – June October, 2008 52 E-Rate Form - 471 Step 7: Form 471 Filing Information - Applicants - Schools and Libraries - USAC October, 2008 53 E-Rate Form - 471 Form 471 • Provides specific information on services, service providers selected, and contracts • Provides discount calculation information • Must be filed for each funding year • Contains certifications of compliance • Includes one or more funding requests • Each FRN must reference a specific Form 470 http://www.usac.org/sl/tools/required-forms.aspx October, 2008 54 E-Rate Form - 471 Form 471 Block 1 & 3 • Block 1 - Billed Entity Information • Block 2 – Impact of Services Ordered for Schools • Block 3 - Impact of Services Ordered for Libraries • Block 4 - Discount Information • Block 5 - Detailed Funding Requests • Block 6 - Certifications and Signature Training Website SLD Training Site October, 2008 55 E-Rate Form - 471 Form 471 Deadline • Must be filed online or postmarked on or before the close of the Form 471 application filing window. • Forms 471 filed after the close of the window will be considered after all Forms 471 filed in-window. • Certifications for associated Forms 470 also must be filed online or postmarked before the close of the window. October, 2008 56 E-Rate Form - 471 • Don‘t combine Priority 1 and Priority 2 requests on the same Form 471. • Review of Priority 2 requests may hold up Priority 1 commitments. • File (and certify) online • Reduces errors and speeds processing • USAC will issue you a PIN after successful certification of your Form 471 if you do not already have one. October, 2008 57 E-Rate Form - 471 • Remove ineligible costs from funding requests • Document ineligible costs carefully • 30% rule – if 30% or more of the dollar value of the request is for ineligible products and services, the entire request will be denied • Work with your service provider(s) to create your Item 21 attachment(s) • File Item 21 Attachments online October, 2008 58 E-Rate Form – 471 – Item 21 • You must attach a description of goods and services • Include breakdown of components, costs, manufacturer, make and model • Examples on SLD website • Clarity and completeness will prevent PIA questions • Use Online version if possible Step 7: Item 21 Attachments for Form 471 - Applicants - Schools and Libraries - USAC October, 2008 59 Form – 471 – Item 21 – Online Example October, 2008 60 Form – 471 – Item 21 – Paper Example Training Website SLD Training Site October, 2008 61 BREAK October, 2008 62 E-Rate 2009 Agenda 9:00am - Morning Session E-Rate and Kan-ed E-Rate Review Technology Plans, CIPA & Budgets E-Rate Application Process Priorities & Eligibility Funding Years & Annual Cycles Forms 470, 471, Item 21 Attachments 12:00 – 1:00pm Lunch 1:00pm - Afternoon Session E-Rate Approval and Acceptance Process PIA Review Process Forms 486, 500, 472 BEARS vs Discounts Contract Extensions & Service Substitutions SPIN Changes Record Keeping, Appeals & Audit Preparation What’s new for 2009! October, 2008 63 E-Rate Resources Sources of Information: • Service Provider‘s Manual (online) • SLD Website Schools and Libraries Program - USAC • Service Provider Hotline (1-973-428-7335) • User Hotline (1-888-203-8100) • Online ―Submit a Question‖ www.slforms.universalservice.org • Email Questions to: questions@sl.universalservice.org • SP Conference Calls (bi-weekly) October, 2008 64 E-Rate Resources Sources of Information: – SLD Reference Area http://www.usac.org/sl/tools/reference-area.aspx – SLD News http://www.usac.org/sl/tools/news-briefs/ – Kansas K-12 E-Rate http://www.ksde.org/Default.aspx?tabid=2768 – SLD Training Website http://usactrain.solixinc.com/TrainingSiteWarning.asp? – SLD Training Materials http://www.usac.org/sl/about/training-presentations/ – SLD Tip Sheets - http://www.usac.org/sl/about/tip-sheets.aspx October, 2008 65 E-Rate Resources http://www.ksde.org/Default.aspx?tabid=2768 October, 2008 66 E-Rate – PIA Review • Forms 471 are reviewed by Program Integrity Assurance (PIA) for compliance with program rules concerning areas such as: • Competitive bidding process • Contracts • Discount calculation • Sufficient budget • Establishing Form 470 • Technology plan • Children‘s Internet Protection Act Step 10: Children's Internet Protection Act (CIPA) - Applicants - Schools and Libraries - USAC October, 2008 67 E-Rate – PIA Review • Ministerial and Clerical Errors (M&C) – Correcting minor errors due to data entry – Applicants get opportunity to correct information once data entered by USAC • Form 470 Receipt Notification Letter • Form 471 Receipt Acknowledgment Letter – Make corrections to the letter you receive and return to USAC in timeframe specified in the letter to get corrections processed October, 2008 68 E-Rate – PIA Review • FCC clarified that the 30% Rule does not apply to entities and services, only eligibility issues • Contract standards have changed - no longer require service provider signature (but should still have it) • Still have to comply with your own procurement regulations • Still have to retain documentation for five years from the last date to receive service. October, 2008 69 E-Rate – PIA Review • PIA will verify items with you more carefully than before • At the end of the review, will give you one more opportunity to respond or correct errors • Applicants may split out PIA-detected problem services or entities into separate funding requests October, 2008 70 E-Rate – PIA Review Top Reasons for Denial No PIA Response from Applicant You MUST respond within 7 days or request extension Form 470 not certified there is NO DEFENSE except Fedex Receipt District checked box for “No Tech Plan Req’d” Centrex and T1’s are not “Basic Telecom” Internet vs Telecom Services Most ISP’s are NOT Telecom Providers (Verizon Network Integration) Invalid Contracts Purchase Orders are not always acceptable October, 2008 71 DenailsTip Sheet http://www.usac.org/_res/documents/sl/pdf/tip-sheets/common-applicant-errors.pdf October, 2008 72 E-Rate – PIA Review Summary • Provide information to PIA promptly • Work with your service provider to comply with information requests. • Make sure your answers respond completely to the questions asked. • Ask for more time to respond if you need it. (However, if you ask for more time, your PIA representative will work on other applications and you may wait longer for a decision) • Check the 471 Application Status Tool (SLD website) Form 471 Status Check Selection Criteria October, 2008 73 Annual Cycle Plan & File Form 470 Review / Update / Approve Technology Plan Free & Reduced Lunch Counts Competitive RFPs Developed (if required) Vendor Conference(s) October - November October - November September – October Vendor Responses Received System / Vendor Selection Contract Negotiation Early December Mid December December - January Forms Submission to SLD (Form 471) Implementation (Form 486 / 500 / 472) February July – June October, 2008 74 E-Rate Approval & Acceptance Funding Commitment Decision Letter (FCDL) – Cover page of important reminders – Reports status of individual funding requests: • Funded • Not funded • As yet unfunded (Priority 2 requests) – Service provider does not receive this status • Cancelled – May receive more than one FCDL Step 9: Funding Commitment Decision Letter - Applicants - Schools and Libraries - USAC October, 2008 75 E-Rate Approval & Acceptance Funding Commitment Decision Letter (FCDL) ALWAYS Appeal a decision you don‟t agree with Call Hotline for assistance October, 2008 76 E-Rate Approval & Acceptance • Check all entries on the FCDL carefully to make sure there are no data entry errors. • Use the information on the FCDL to prepare your Form 486. • Service Providers all receive copies of FCDL and should call to move forward. October, 2008 77 E-Rate Form 486 Step 10: Form 486 Filing Information - Applicants - Schools and Libraries - USAC October, 2008 78 E-Rate Form 486 Form 486 • Notifies USAC that services have started and invoices can be paid • Certifies that Tech Plan (if required) meets program requirements. • Certifies the status under Children‘s Internet Protection Act (CIPA). • Lead members of consortia may be required to collect CIPA certifications from consortium members on a separate form (Form 479). October, 2008 79 E-Rate Form 486 Children‟s Internet Protection Act (CIPA) • Applicants must certify compliance with requirements: • Internet safety policy • Public notice or meeting • Technology protection measure (filter) • CIPA does not apply to BASIC Telecommunications Services, but applicant must still certify that it receives only those services Training Website SLD Training Site KANED 48601 2007 Draft Copy.pdf October, 2008 80 E-Rate Form 486 Form 486 Deadline • Form 486 must be filed online or postmarked no later than • 120 days after the Service Start Date OR • 120 days after the date of the FCDL whichever is later. • If the Form 486 is late, the date 120 days before the Form 486 online filing or postmark date will become the start date for discounted services and funding may be reduced. October, 2008 81 E-Rate Form 486 Form 486 Service Start Date • USAC may adjust the Service Start Date in order to comply with program rules: • Form 486 filed after the deadline • Technology plan approval issues • CIPA compliance issues • Conflict with Form 470 allowable contract date • The adjusted date is the earliest date that discounted services may be provided. • Invoices for services provided before that date will not be paid. October, 2008 82 E-Rate Form 486 Form 486 Service Start Date • Cannot be before July 1 of the funding year. • Can be as early as the date that the service provider ships the product to the applicant — or earlier, depending on the arrangements between the applicant and the service provider and/or the terms of the contract. October, 2008 83 E-Rate Implementation Service delivery deadlines • Recurring Services (June 30) • Non-recurring Services (September 30) • Deadline automatically extended to September 30 of the following year for FCDLs, service substitution approvals, and SPIN change approvals dated on or after March 1 of the funding year. • Applicants can also request extensions for specific reasons involving difficulties with delivery of services by service provider. October, 2008 84 E-Rate Reimbursements Don‟t Stop Here – you have to ask for the money • Applicants must use SPI (Service Provider Invoicing) or BEAR (Billed Entity Application for Reimbursement) process to actually GET THE MONEY. • Contact your vendor • Call our Hotline if you need help October, 2008 85 BEARs vs Discounts • BEAR (Billed Entity Applicant Reimbursement) Form 472 is filed by the applicant and certified by the service provider after the applicant receives services and pays for the services in full. • DISCOUNTS (SPI Service Provider Invoice) Form 474 is filed by the service provider after providing services and billing the applicant for its non-discount share. • Form 472 or 474 must be filed online or postmarked no later than • 120 days after the last date to receive service OR • 120 days after the date of the 486 NL October, 2008 86 BEARs vs Discounts • Form 471 allows you to specify your preference • Service Providers will receive this notice and should comply – but it‘s not required by SLD • Put requirements into your RFP or Contract October, 2008 87 E-Rate Form 472 - BEAR Form 472 and Instructions - Tools - Schools and Libraries - USAC October, 2008 88 E-Rate Form 472 - BEAR • • • • • Must use New Form April 2007 File Annually, or Quarterly Filing Online is MUCH easier and faster Must have copies of invoices Expect delays in processing 30-60 days (paper) Training Website SLD Training Site October, 2008 89 KS Unclaimed Funds as of 10/14/08 Unclaimed Commitments can still be recovered! October, 2008 90 E-Rate Reimbursements BEAR DEADLINE IS 10/28/2008 • – – If you need more time to invoice, file an invoice deadline extension request Requests for extensions must be postmarked or received by USAC as soon as possible after the last date to invoice USAC provides for the extension of invoice deadlines under certain conditions, such as • Authorized service provider changes • Authorized service substitutions • USAC errors (for example, in data entry) that ultimately result in a late invoice • Circumstances beyond the service provider‘s control October, 2008 91 E-Rate Changes – Form 500 • Change FRN Start Date • Contract Extensions • FRN Reductions • FRN Cancellations – Unused Funds October, 2008 92 Form 500 • Required to make changes to Funding Requests • Service Start Date • Contract Expiration Date • Amount of Funding (reductions only) • No ONLINE version (yet) – must print / fill out / mail October, 2008 93 E-Rate Changes – Other • FRN Extensions • Service Substitutions • SPIN Changes Use Online “Submit a Question” October, 2008 94 FRN Extensions (Service Delivery Extension Request) • Only applies to Internal Connections • Must be requested if work cannot be finished by 09/30 deadline • Must be requested prior to deadline • Will be granted only in certain cases • No FORM exists, just use SLD guidelines • Must also file FORM 500 to extend contract date Step 11: Service Delivery Deadlines and Extension Requests - Applicants - Schools and Libraries - USAC October, 2008 95 Service Substitutions • Use if you change (buy) anything that varies from what you described on your 471 & Item 21 • No FORM, just follow instructions • File Online using ―Submit a Question‖ • Depending on specifics, may not need to wait for approval Service Substitutions - Schools and Libraries - USAC October, 2008 96 SPIN Changes • • • • • • If you change Vendors from your 471 CORRECTIVE vs OPERATIONAL No FORM, just follow instructions File online using ―Sumbit a Question‖ Usually approved in a few weeks Vendors will be notified (SPIN) Change Guidance - Schools and Libraries - USAC October, 2008 97 Record Retention • Setup an electronic and paper file for each funding year • Make a checklist of included items • Make a spreadsheet across years • Monitor at least monthly October, 2008 98 Record Retention • USAC E-Rate Binder Table of Contents – Downloadable Table of Contents Guide – Downloadable Table of Contents (Word document preformatted for Avery© Ready Index 10) – Located in USAC web site Reference Area http://www.usac.org/sl/tools/reference-area.aspx#c Use for electronic model: ERate Binder October, 2008 99 Record Retention • Retain documents to show your compliance: – Letters of agency and any agreements with all consultants – Technology Plan and Plan Approval letter – RFP, including evidence of publication date – Any and all bids (winning and losing) – Documents describing bid evaluation criteria and weighting – Any correspondence with potential bidders – Documents related to the selection of the service provider(s) – Signed and dated copies of contracts. By law you must retain all records for 5 years October, 2008 100 Appeals • USAC decisions can be appealed to USAC or to the FCC. • Generally, appeal first to USAC. • Can appeal to the FCC if USAC denies. • Can be filed electronically or on paper. • Must be filed within 60 days of the USAC decision. • Requests for waivers of rules must be filed with the FCC • Call our Hotline for help File an Appeal - Schools and Libraries - USAC October, 2008 101 Appeals Checklist http://www.usac.org/_res/documents/sl/pdf/2007_training/samples-checklistappeals-checklist.pdf October, 2008 102 Audits • Why me? – Applicants and service providers certify and agree to be audited for up to five years – from end of service. – Some are random / some are not – You will receive advance notice of the audit – Auditors can be from USAC, the FCC or external (contracted) Audit Firms Understanding Beneficiary Audits - Schools and Libraries - USAC October, 2008 103 Audits – Some are random FCC OIG Audits • Compliance attestation examinations. • Performed at the direction of and with oversight from the FCC Office of Inspector General (OIG) . • Managed by USAC IAD. – OIG Randomly selected, statistically valid sample. • Conducted by external accounting firms. • Annually between November and July 31. • Conducted in accordance with Government Auditing Standards (GAGAS). October, 2008 104 Audits – some are not USAC Internal Audit Division (IAD) Audit • Performance Audit – Assess compliance with FCC Rules. – Recalculate support/contributions. – Conclusion is Compliant, Generally Compliant and Not Compliant. – Provides ―reasonable assurance‖. – Targeted based on • Specific request from USAC management or FCC. • Media report or credible whistleblower complaint. • IAD risk assessment. • Conducted and managed by IAD in accordance with Government Auditing Standards (GAGAS). October, 2008 105 Common Findings in Audits • Insufficient documentation of the competitive bidding process. • Lack of necessary resources. • Service substitutions that would not meet criteria established in the rules. • Receipt of duplicative services. • Failure to pay non-discounted share. • Failure to complete service(s) within the funding year. • Discount calculation violation. • Services not provided for full funding year. • Failure to have an approved technology plan. October, 2008 106 Audit Results • Findings – An internal control or other observation that is not a program rule violation. • Exceptions – A program rule violation. This can result in reducing committed amount or return of funds. • COMAD = Commitment Adjustment • RIDF = Recovery of Improperly Disbursed Funds Any results can be appealed. Comments or complaints can be emailed to SLD: auditinquiry@usac.org October, 2008 107 Audit Preparation • Make sure that your documentation is in order. See website for complete list of documents that you should have available to support your applications. • Make sure that your physical inventory lists are in order so that you can quickly identify equipment • Financial records – including cancelled checks - could be required • Maintain E-Rate Binder (5 Years beyond end of activity) October, 2008 108 Changes for Year 2009 Program Oversight and Scrutiny 1998-2008 (and beyond) • • • • • • • • Congress Government Accountability Office (GAO) Federal Communications Commission (FCC) FCC Office of the Inspector General Department of Justice External Audit Firms USAC Internal Audit Media 109 October, 2008 Changes for Year 2009 • Many more audits cause more funding delays • Fiscal Year Audits versus E-Rate Year Audits • ―Attestation Examinations‖ • Increased Priority 1 requests may mean reduced amounts for Internal Connections and Maintenance October, 2008 110 Changes for Year 2009 • Document everything - ―Email yourself‖ • Build and retain an ―E-Rate Binder‖ • Plan for eventual audit • New guidance on new, merged and closed libraries • New guidance on State Master Contracts October, 2008 111 Changes for Year 2010 NPRM (Notice of Proposed Rule Making) could result in more eligible services in future funding years… • Interconnected VoIP • Filtering Software • Dark Fiber • Anti-Virus Software • Scheduling Software • Telephone Broadcast Messaging http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-173A1.doc October, 2008 112 FY 2009 Window 471 Filing Window: opens at noon (EST) on closes at 11:59pm (EST) on LAST DAY FOR Form 470 is October, 2008 113 Information & Assistance Kansas E-Rate Support Hotline 866-372-8302 Our Goal: Answer all questions – escalate or provide references and contacts as required. Resources include: SLD and affiliated agencies & hotlines Kan-ed: Jerry Huff (jhuff@ksbor.org) Kansas State Dept of Ed: Melinda Stanley (mstanley@ksde.org) State Library of Kansas: Jeff Hixon (jeffh@kslib.info) October, 2008 114 Information & Assistance E-Rate Support Hotline We Can Provide Advice on: SLD forms 470, 471, att 21, 486, 472, 500 Eligibility of goods, services and locations How to prepare a SPIN change letter How to prepare a Service Substitution letter Strategy for writing an appeal When to file an invoice extension request We Cannot: Prepare, complete or submit FCC forms Act on behalf of an entity October, 2008 115 Information & Assistance DIETRICH LOCKARD GROUP St. Louis, MO http://www.dietrichlockard.com/subpages/KS-E--rate-Services/ Toll Free Support Hotline – 866-372-8302 Email to: e-rate@dietrichlockard.com Don Dietrich’s email: ddietrich@dietrichlockard.com Carol Underriner’s email: cunderriner@dietrichlockard.com Don Dietrich’s Cell Phone: 314-378-1667 October, 2008 116 Questions October, 2008 117