ARKANSAS

PROCESS OVERVIEWPresented byBecky Rains

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INTRODUCTION

• Schools and Libraries Program– Provides discounts to eligible schools and libraries for

Telecommunications Services, Internet Access, Internal Connections, and Basic Maintenance

– Applicants can be schools, libraries, or consortia, but only eligible recipients of service can receive discounts

– Applicants must apply for discounts each year (Form 471 application filing window)

– Funding cap each year is $2.25 billion– One of four programs in the Universal Service governed by the

Federal Communications Commission

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General information

• Federal Communications Commission (FCC), an independent U.S. government agency, oversees the E-rate program

• Universal Service Administrative Company (USAC), a not-for-profit, administers E-rate along with three other programs

• Schools and Libraries Division (SLD) is the part of USAC with responsibility for E-rate

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INTRODUCTION

• AR E-Rate Work Group– The AEWG is a working group representing public officials

responsible for K-12 education, and public libraries in the State of Arkansas. The Arkansas E-rate Workgroup (AEWG) works on behalf of state agencies that serve pre-K-12 students and public library patrons to increase student performance as well as public libraries.

– Members: Representatives from the Arkansas Department of Education, Department of Information Systems, North Central Educational Service Cooperative and Arkansas State Library.

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If this is a FEDERAL program, why is AEWG involved?

AR schools and libraries apply along side 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 SLD, call AEWG to act as intermediary.

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Basic Terms

• E-rate: – A common name for the Universal Service Fund for Schools and Libraries.

• FCC: – Federal Communications Commission, the regulatory agency that oversees the

E-rate, among many other responsibilities. • Telecommunications Act:

– The Telecommunications Act of 1996, among other things, established the federal universal service support mechanism for eligible schools and libraries.

• Universal Service Fund: – Provides discounts to telecommunications carriers for delivering affordable

telecommunications services to various categories of customers, including schools and libraries.

• SLD: – Schools and Libraries Division of the Universal Service Administrative Company

responsible for administering universal service. • USAC:

– The Universal Service Administrative Company is the parent company responsible for overseeing the administration of the Universal Service Fund.

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Other Related Terms

• Tariff services: – Telephone service (e.g., local and long distance) regulated by state and federal officials.

• POTS: – Plain Old Telephone Service for placing and receiving phone calls.

• Common Carrier: – Any telecommunications company that provides telecommunications services for a fee to

the general public or to businesses. • Month-to-Month Contract:

– Services billed on a monthly basis without a formal, written contract. • Pre-discount Cost:

– Cost of service before E-rate discount is applied. • Internal Connections:

– The wires and equipment needed for connecting computers within an entity. • Shared Services:

– Services delivered to more than one site; discount based on average or aggregate level. Site-Specific Services: Services delivered to only one entity, such as a single school.

• Weighted Average: – The calculated amount of discount that reflects the number of students eligible, for instance,

the National Free Lunch Program for a school district. • Window:

– Time during which all Form 471s are treated as if filed on same day.

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Basic Terms

– Billed Entity Number (BEN) – an identification number assigned by USAC to each school or library building

– Personal Identification Number (PIN) – a code assigned by USAC to applicants for use in certifying program forms online• USAC issues a PIN to every new authorized

person filing a paper Form 470, 471, or 486

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Basic Terms

• Client Service Bureau (CSB): – E-rate help desk where applicant and service

providers can get answers to questions. – 1-888-203-8100

• Program Integrity Assurance (PIA): – Team that reviews for compliance with FCC rules

• Technical Client Service Bureau (TCSB): – Team answering technical questions about eligible

services and program rules.

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NUMBERS TO REMEMBER

• FRN: – A Funding Request Number is assigned to each item in Block 5

of the Form 471 and is described in the Funding Commitment Decisions Letter.

• NCES: – National Center for Education Statistics

• SPIN: – A unique nine-digit number given to service providers after

submitting Form 473 and needed by applicants for completion of the Form 471.

• Applicant-Created Identifier: – A unique number assigned by the applicant on SLD forms.

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NUMBERS TO REMEMBER

• Entity Number: – A ten-digit number assigned to each entity applicant used to

track applications for that applicant at SLD. Often called the billed entity number.

• FCC Registration Number – Used by FCC to track who owes funds to the FCC and to

monitor who is compliant with the Red Light Rule, the FCC is requiring entities to obtain an FCC Registration Number (FCCRN).

• Form 470 Number: – A 15-digit number (formerly the Universal Service Control

Number) assigned to all Form 470 applications filed with the SLD.

• Form 471 Number: – Assigned to each Form 471 filed after data entry and used to

track the 471 at SLD; can be up to ten digits.

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E-rate Identity

• Eligible Entity: – Any school, library, or consortium eligible to participate in the E-

rate program.

• Billed Entity: – The organization that pays the bill, writes the check for services

delivered.

• Consortium: – A group of organizations or institutions that join together for the

purpose of contracting for and applying for E-rate funds.

• Service Provider/Vendors: – A business or organization that sells connections or equipment

necessary for communications.

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Eligibility

• To be eligible, a school:

– Must meet the statutory definition of an elementary or a secondary school in the No Child Left Behind Act of 2001

– Must not be operating as a for-profit business

– Must not have an endowment exceeding $50 million

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Eligibility

• To be eligible, a library:

– Must be eligible for assistance from a State library administrative agency under the Library Services and Technology Act

– Must not be operating as a for-profit business– Budget must be completely separate from

any schools (e.g., a school library would be included on the school’s application)

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Applicant Eligibility

• Consortia

– Can include both eligible and ineligible entities

– Only eligible entities can receive discounts

– Consortium leader has record-keeping and administrative responsibilities

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ELIGIBILITY

SCHOOLS:• Administrative buildings• School bus barns and

garages• Cafeteria offices• Facilities associated with

athletic activities

LIBRARIES:• Administrative buildings• Bookmobile garages• Interlibrary loan facilities• Library technology

centers

• Examples of Non-instructional Facilities (NIFs) that can receive Priority 1 services

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Service Provider Eligibility

• Form 498 (contact information)

– Request a Service Provider Identification Number (SPIN)

– Provide/update contact information

• Form 473 (annual certification)

– Must be filed for each funding year before USAC will pay invoices

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Service Provider Eligibility

Telecommunications Carriers

• Must provide telecommunications services on a common carriage basis

• Must file Form 499A every year and may be required to contribute to the Universal Service Fund

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Eligible Services

• Priority 1

– Telecommunications Services

• Local and long distance, wireline and wireless, voice/data/video

– Internet Access

• Basic conduit access to the Internet

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Eligible Services

• Priority 2– Internal Connections

(switches, hubs,routers, wiring, cabling)• Internal Connections funded

only 2 times in 5 funding years– Basic Maintenance of Internal ConnectionsNOTE: End user equipment - such as computers, monitors, or phone sets - is NOT eligible

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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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ELIGIBLE PURPOSE

• Educational purpose is defined as:– “The primary purpose of the services for which support is sought

must be the delivery of services into classrooms or other places of instruction at schools and libraries that meet the statutory definition of an eligible institution. Support for the administrative functions of a library or education program is permitted so long as the services are part of the network of shared services for learning. Universal service support will be limited to services delivered to the onsite educational facility or facilities. Services at a personal residence or at locations that do not host places of instruction or are not accessible to library patrons, with the exception of a centralized district office or similar facility, are not eligible for support.”

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ELIGIBILITY

• Eligible Entity

• Eligible Location

• Eligible Purpose

• Eligible Service

• Eligible User

• Eligible Service Provider

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General information

• How large are the discounts on eligible products and services?– Discounts range from 20% to 90% of eligible

costs– The discount for a school or library depends

on:• Percentage of eligibility of students for

National School Lunch Program (NSLP)• Urban or rural location of school or library

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Discounts Discount Matrix

Percent of NSLP Eligible Students

Urban Rural

Less than 1% 20% 25%

1% - 19% 40% 50%

20% - 34% 50% 60%

35% - 49% 60% 70%

50% -74% 80% 80%

75% -100% 90% 90%

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5. Application review

• USAC reviews your Form(s) 471 to:– Check the eligibility of the schools and

libraries and their discount levels– Verify that the services you requested are

eligible for discounts– Give you an opportunity to make allowable

corrections to your form– In some cases, ask for additional verification

of your compliance with program rules

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5. Application review

• Acronyms and terms– Program Integrity Assurance (PIA) – the

USAC group that reviews and makes funding decisions on program applications

– Funding Commitment Decision Letter (FCDL) – a letter issued by USAC to the applicant and the service provider that contains commitment decisions on funding requests

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5. Application review

• Acronyms and terms (cont.)– Funding wave (wave) – a group of

FCDLs for a funding year that are issued on the same date• In general, USAC issues a wave each

week for current funding years• USAC issues waves for previous funding

years and appeal waves as applications are ready for commitment

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Appeals

• Decisions of the SLD can be appealed to the SLD or to the FCC

• Can be filed electronically or on paper• Must be received or postmarked within 60

days of the SLD decision• See Appeals Procedure in the Reference

area for specific guidance• Requests for waivers of rules must be filed

with the FCC

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Funding timetable

• Recurring services (e.g., monthly telephone and Internet access) must be delivered during the funding year (July 1 – June 30)

• Non-recurring services (e.g., installations and equipment) have an additional three months (to September 30)

• The Window: Form 471 filing window (mid-November to early February before the start of the funding year)– We encourage you to file online

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A Guide to the Application Process

1. Create Technology Plan

2. File Form 470

3. Wait 28 days

4. File Form 471

5. PIA review and FCDL

6. File Form 486

7. Submit invoices to USAC

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General information

• How do I file a program form?– In general, you have three options:

• File online, certify online• File online, certify on paper• File and certify on paper

– Two online versions of each form• Standard version follows the paper form• Interview version asks you questions and

uses your answers to complete the form

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General information

• Each time you file a program form, USAC sends you a letter– Letters are color-coded by funding year

• 1998 and 1999 White• 2000 Canary (yellow)• 2001 Pink• 2002 Blue• 2003 Canary• 2004 Pink• 2005 Blue etc.

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Timeline

• Possibly working on three years• Each year has a different color

- Closing out Program Year 2007/2008– In PIA Review Program or Funded Form

486 or reimbursements Year 2008/2009 – Applying for Program Year 2009/1010

-

• Refer to handout for more details

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E-RATE FORMS and LETTERS

• Form 470: – Description of Services Requested is first step required of applicants.

• Receipt Notification Letter (RNL)

• Form 471: – The Services Ordered form is the second step required of applicants.

• Receipt Acknowledgment Letter (RAL)• Funding Commitment Decision Letter (FCDL)

• Form 486: – The Receipt of Services Confirmation form is the third step required of applicants.

• Form 486 Notification Letter (486NL)

• Form 500: – The Adjustment of Funding Commitment and Modification to Receipt of Services

Confirmation form filed by applicants for changes to or cancellation of a funding commitment request.

• Form 472: – The Billed Entity Applicant Reimbursement (BEAR) form filed by applicants seeking reimbursements for bills paid in full, now due a discount.

• BEAR Notification Letter — Form 472 only• Quarterly Disbursement Report

Form 479:– Form required of Consortium Lead prior to submitting Form 486

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(AP copy)

Develop a Technology

Plan

Form 470Services

Requested

Form 471ServicesOrdered

After Form 470 is posted, wait at least 28 days before negotiating a contract or agreement

Program Integrity

Assurance review

Form 486Services

Confirmed

RNL RAL FCDL

AP Ltr

Check filed Forms 470, contact

applicants and respond with bids

Form 473Annual Cert

Negotiate a contract or agreement

Assist with Program Integrity Assurance

review

FCDL

SP Ltr

SP 486 Ltr

Form 472BEAR Form

Form 474SP Invoice

Form

BEAR or SPIF invoice review (correct errors /

resubmit if needed)

Receive USAC remittance statement

and payment

Receive discounts on bills or

reimbursement by check or credit

BEAR

Approval

Ltr

Applicant

Service Provider

OR

AP 486 Ltr

BEAR

Approval

Ltr(if not done previously)

Form 498Apply for

SPIN

Problem Resolution

(manual filing)

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How the Process Works

• File the Form 470 application after July 1• Take bids for 28 days after it is posted• Sign contracts or service agreements• File Form 471 during “filing window”• Receive “funding commitments” in spring• Begin services on or after July 1, 2009• Applications this fall cover spending to June

30, 2010 (Sept. 30, 2011 for “non-recurring costs”)

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Funding Timetable

• Funding commitments are made by funding year (July 1 – June 30)– Recurring services received July 1 – June 30

(12 months)– Non-recurring services delivered and installed

July 1 – September 30 (15 months)

• The Window: Form 471 filing window (mid-November to early February before the start of the funding year)

• We encourage you to file online

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FIRST STEPIDENTIFICATION NUMBERS

• ENTITY NUMBER:

– Billed Entity Number

– School Entity Number

• FCC REGISTRATION NUMBER:

– NOTE: Although an entity may have only one Taxpayer Identification Number (see below), that entity may have to obtain more than one FCC RN.

– https://svartifoss2.fcc.gov/coresWeb/publicHome.do

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eCertification

• Your PIN will be mailed within one week of successful certification of your form. PINs are issued once each week to each authorized person submitting a Form 470, 471 or 486 certification on paper who has not previously been assigned a PIN.

• PINs are not portable. Since each eligible authorized signer has a separate PIN for each Billed Entity, USAC will assign and mail a new PIN to you, once you've submitted your first Form 470, 471 or 486 and signed a paper certification as the authorized person for the new Billed Entity.

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eCertification

• If you have misplaced your PIN, USAC must disable your current PIN and issue you a new PIN. Call the Client Service Bureau at 1-888-203-8100 and provide your full name and the associated Billed Entity Number. The Client Service Bureau will use that information to assign a new PIN that will be sent to you in a secure mailer.

• You cannot edit the mailing address associated with your PIN. You must disable your current PIN and file a Form 470, 471, or 486 with a paper certification that contains the correct authorized person address information. To disable your PIN, go to the USAC PIN Area and disable your current PIN.

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eCertification

• PIN belongs to the person assigned to. Use of another person’s PIN is the same as signing the form

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SPIN Search

You can locate service provider information

on the Schools and Libraries Division

website using the “SPIN search” link.

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SPIN Search

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SPIN Search

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SPIN Search

Click “SPIN Contact search”

Once the next page loads, click “SPIN contact search” again on that page.

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SPIN Search

SPIN Service Provider Name

Contact Name

Contact Address

Contact Phone

Eligible Telecom Provider

SPAC Filed

143004662 Southwestern Bell Telephone, L.P.

Lydia Trevino

406 North Carancahua Room 450, Corpus Christi, TX 78401

361967-7048

Y 1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

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SPIN Search

Take note!!

Some service providers have multiple SPIN numbers. Generally this indicates the service provider has a different SPIN for different service areas. If the service provider you have chosen has multiple SPIN numbers, be certain you have selected the correct SPIN for the service you are requesting.

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SPIN search

Take note!!

If the SPIN number for your chosen service provider changes, for example a merger, the service provider will contact the SLD and request a “Global SPIN change”. Typically, if a large number of applicants are affected, the SLD will automatically make the correction to all FRN’s affected by the global change.

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PIA Review

• Program Integrity Assurance (PIA) checks for compliance with program rules, eligibility of entities and services, verification of service types/costs

– Provide complete and prompt responses to PIA’s questions

– Ask for clarification if you don’t understand

– Service providers can assist applicants in responding to PIA questions about the products and services they are providing but not about other areas, such as the competitive bidding process and budget

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Time to Respond

• FCC has standardized on 15 days to respond to requests for information from USAC

• Applicants can always ask for an extension, but must be in writing

• Special rules in place during summer and winter breaks

• Further relief possible during disasters

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Funding Commitments

• USAC issues Funding Commitment Decision Letter (FCDL) to applicants and service providers when PIA review is complete

• Funding status by Funding Request Number (FRN):– Funded (includes modifications)– Not funded– As yet unfunded (applicant FCDL only)– Canceled

• Funds approved for specific services from specific service providers at the applicant’s approved discount rate

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GENERAL TIPS

• If you submit something to USAC:• Check your work• Sign and date it (online or on paper)• Submit it by the deadline• Keep a copy and proof of submission

• If USAC sends something to you:• Read it

• Take all appropriate actions

• Save it

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E-rate as Part ofYour Funding Strategy

• Assess how you are doing– SLD’s tools make it easier to compare yourself with other

districts– Compare yourself with peers in size and income level– Are your contracted expenses in line with theirs?– Are they doing a better job of leveraging?

• But remember: To get E-rate money, you must be willing to spend money

• Commitments aren’t the only measure of success• Are you making good use of your technology—and

budget?