E-rate 101

For Maine Schools and Libraries

Simplifying E-rate can be a challenge

This is brief information and an outline of the process.

What is “E-rate-able”?

The FCC publishes the eligible services list each year.The services on that list are eligible for discounts from the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC) to schools and libraries. The list can be found at the SLD site in PDF format: http://fjallfoss.fcc.gov/edocs_public/attachmatch/FCC-07-182A2.pdf

Two different service “types

Priority 1

Priority 2

Priority 1 and Priority 2

Priority 1 services are always funded.

Priority 2 services are usually only given to very high level poverty schools

Most schools and libraries in Maine have discount levels that do not qualify for Priority 2 funds.

Discounts - NSLP

The discounts for the E-rate program are based upon National School Lunch Program (NSLP) data.

So schools that have over 75% of students that qualify for free and reduced lunch are usually the only schools that will receive funds for Priority 2 services.

Discounts - NSLP

Library discounts are calculated from the school district average.

All schools and libraries can receive funds for the Priority 1 services.

The Discount Matrix can be found at: http://www.universalservice.org/sl/applicants/step05/discount-matrix.aspx

Priority 1 Services

Telecommunication Services Telephone (local, long distance, cell phone services);

Digital Transmission Services - (T1, ATM, OC1, DSL)

Internet Services (access to Internet)

Priority 2 Services

Internal Connections (wiring, hubs, switches, cabling, some types of servers)

Basic Maintenance of Internal Connections

Two in Five Rule - These services can only be funded 2 times every 5 years

E-rate and Technology Plans

All services except telephone services require an approved technology plan.

The timing of when the plan is written and when services are requested is one of the sticking points in the program that can cause problems.

The plan needs to be dated before the Form 470 is filed.

E-rate and Technology Plans

Schools and libraries need to keep copies of the technology plan and the approval letter for audit purposes.

Schools and libraries also need to keep copies of all E-rate paperwork for 5 years after the last date of service.

E-rate and Technology Plans

Technology Plans Must meet 5 criteria for E-rate - http://www.universalservice.org/sl/applicants/step02/technology-planning/Private Schools and libraries just need these 5 elementsPublic schools need to meet NCLB Title IID, E-rate and Chapter 125 requirements More info at the E-rate website:

http://www.maine.gov/msl/erate/

5 Criteria

1.The plan must establish clear goals and a realistic strategy for using telecommunications and information technology to improve education or library services;

5 Criteria

2. 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;

5 Criteria

3.The plan must include an assessment of the telecommunication services, hardware, software, and other services that will be needed to improve library services;

5 Criteria

4.The plan must provide a sufficient budget to acquire and support the non-discounted elements of the plan: the hardware, software, professional development and other services that will be needed to implement the strategy; and

5 Criteria

5.The plan must include an evaluation process that enables the library to monitor progress toward the specified goals and make mid-course corrections in response to new developments and opportunities as they arise.

Technology Plans

Must be written prior to the Form 470 filing

Should have a “creation date” that pre-dates the Form 470

Should be written for 3 years but can be updated/modified if significant changes are needed

Needs to be approved by July 1 but actually needs to be “written” in the previous fall.

E-rate Forms

There are four basic forms - all can be filed online now.

1. Form 470

2. Form 471

3. Form 486

4. Form 472

File forms online at:http://www.sl.universalservice.org/menu.asp

Form 470

Request for services

RFP of sorts; opens competitive bidding process

Must be posted for at least 28 days

Keep track of all bids

Filed once for a multi-year contract

Filed annually for telephone

Contracts must be signed and dated before the Form 471 is filed.

Form 471

File after the Form 470 has been posted for at least 28 days and contracts are signed (if the service requires a contract)Indicates what vendor has been selectedItem 21 attachment – now online – fill out carefully and accurately to avoid problems in PIA reviews

Form 486

Filed after the school or library receives a Funding Commitment Decision Letter (FCDL)

Filed after services have begun. (Usually after July 1 but before October 30…exact timing depends on the date of the FCDL). 120 days after FCDL

This is the form that everyone forgets to do!

The Form 486 states that “services are now being received”

Certifies to technology plan existence, if needed

Certifies to CIPA

Form 472

Filed to invoice for reimbursement once bills have been paid. (Can be yearly, quarterly, etc)

Some schools and libraries receive discounts on each monthly bill rather than invoice at the ends of the year.

Now online – no faxing

PINS

PINs are digital signatures that allow you to certify forms online

PIN FAQ for Applicants

http://www.usac.org/sl/tools/search-tools/applicant-pin-faqs.aspx

PINS

PINs are automatically generated, mailed, and ready to be used once the applicant has certified any one of the forms.

PINs are assigned to a person at a location

PINS should be disabled if someone leaves and a new PIN obtained

E-rate Reviews PIA, site visits, denials appeals

As forms are filed they are reviewed by staff at the SLD

Schools and libraries may be asked to provide additional information.

Contracts, dates of contracts and types of services are reviewed for compliance.

E-rate Reviews PIA, site visits, denials appeals

This process can cause stress and lead to appeals and lost funding.

Following the process and filling in forms accurately can alleviate a good percentage of these problems.

Money for Maine

Although the process can be a burden there is a lot of money to be saved by schools and libraries.

Maine had funding commitments for 2006-2007 that amounted to over $ 7.2 million dollars

Money for Maine

But each year money is “lost” to schools and libraries due to paperwork errors, contract errors, etc that come up during the review process.

Is the money you get back worth the time and effort?

We are here to help!

Janet McKenneyPublic Library and MSLN E-rate Coordinatorjanet.mckenney@maine.gov

Sylvia K. Norton School E-Rate Coordinatorsylvia.k.norton@maine.gov

Useful E-rate Links

Maine E-rate website

http://www.maine.gov/msl/erate/index.shtml

SLD Website – Apply Onlinehttp://www.sl.universalservice.org/menu.asp

NSLP Data (Maine DOE)

http://portalx.bisoex.state.me.us/pls/doe_sfsr/sfsrdev.ed534.ed534_parameters

Discount Matrix

http://www.universalservice.org/sl/applicants/step05/discount-matrix.aspx

Data Retrieval Tool

http://www.universalservice.org/sl/tools/search-tools/data-retrieval-tool.aspx