Funding Year 2007-2008 Update Happy 10 th Birthday, E-rate!!

1. Funding Year 2007-2008UpdateHappy 10th Birthday, E-rate!! Presented by: Julie Tritt Schell PA E-rate Coordinator E-rate Training for Veterans Webinar October 2006

2. Year 8 (2005-2006) • BEAR deadline is October 28, 30, 2006 for recurring services • (Jan 28, 2007 for nonrecurring services) • File Invoice Deadline Extension Request within 30 days if you miss the deadline. • Submit SPIN change requests by October 28, 30 • Approval of SPIN change will give you an automatic invoice deadline extension of 120 days. • Submit SPIN changes using “Submit a Question” on SLD website. • File Form 500 to release funding or cancel FRN. • Priority 2 funding down to 81%... Could go lower.

3. Year 9 (2006-2007) • If you HAVE been funded…. • File 486 within 120 days after FCDL date. • Cannot file 486 until an FRN has been funded. • Lists of nearly-due 486s being sent each month to PA E-rate listserve. • Contact vendors if you would like to receive discounted bills. • Appeal within 60 days of FCDL date if you disagree with a decision. Appeal! Appeal!

4. Year 9… if you have NOT been funded • More than 30% of PA’s E-rate applicants have NOT received FCDLs as of Oct 11. • Unfortunately, nothing you can do but wait. • YOU WILL BE FUNDED! • Why the delay? • Bishop Perry remands and new requirements

5. New Bishop Perry Guidelines • Major new error correction allowances from FCC • Can correct on RAL or during PIA review • What can be corrected on the Form 470? • If you hit submit on your 470 at least 29 days before 471 deadline, there are two major items that can corrected: 1) A missing or late filed Form 470 certification;2) Adjustments to your Item 17 Billed Entity List.

6. New Bishop Perry Guidelines • What clerical errors can be corrected on the 471? – Major Items: • * Missing Block 6 certification and/or signature • * Discount calculations – even if it increases the discount rate • * Item 12 – Form 470 application number • * Item 18 - Contract award date • * Item 22 – Entities receiving service – even if it increases the discount rate • Other corrections permitted under PIA procedures that aren’t part of Bishop Perry

7. Year 10 Has Begun! • Form 471 Application “window” likely: • Mid-November through early February. • FCC has not yet approved ESL • File Form 470s now for all T/MTM services or new contracted services. • Wait at least 29 days before signing a contract. • Check to see when your current contracts end!

8. Changes for ESL - proposed • Funding requests must be cost effective • You may bundle internet and telecom into the telecom category on the 471…. IF • You listed them both in the telecom and internet categories on the 470. • You must be CIPA compliant even if you have it listed in the telecom category on the 471. • Blackberry services only eligible if auditable system in place to prove that internet and e-mail are used on school property. • Text messaging on cell phones not eligible

9. Changes to ESL - Proposed • Internet access is only for basic conduit access to Internet… no telecom services may be funded under Internet. • So if WAN is from a non-telecom provider, it can only be used for internet -- not data, voice or video. • Cost allocation on Form 471 must be done. • Solution? File under telecom category and be sure that vendor has ETP status. • SLD website under SPIN Contact Search

10. Changes to ESL - Proposed • IC components that are installed in standby mode, are redundant, or are not active and online are not eligible. • Software CALs are eligible under internal connections – not basic maintenance. • USF fees are eligible, but vendor fees to administer USF are NOT eligible.

11. Changes to ESL - Proposed • Webhosting • Significant tightening of what’s eligible under webhosting and e-mail. • Cost allocation must be done to remove all costs not associated with BASIC webhosting, such as calendaring, lesson planning aids, file storage, content, content creation or editing, web site creation tools, etc.

12. Changes to ESL - Proposed • Webhosting, continued • Costs attributable to the creation or modification of information, such as a web site creation fee or content maintenance fee, are not eligible.  • Software, services, or systems used to create or edit Internet content are not eligible.  • In addition, the cost must be cost effective when compared with other basic web hosting services.

13. Technology plans • Update or Write New Tech Plan • Approval letter must be dated prior to 7/1/2007 by approving agency. • Tech Plan must cover full 12 months of next funding year. • Be sure tech plan includes dates that it actually covers. • SLD now asking applicants for exact date that tech plan was written. Be sure to answer that it’s before the date that the 470 was posted! • List of when public school tech plans are due will be e-mailed to each IU for distribution to the schools. It will NOT be posted on the PA E-rate website.

14. Online Item 21 attachments • Provides consistent format for applicants and reviewers. • Submit in lieu of submitting bills/contracts. • May still be asked to submit during PIA review • Information should be based on bill/contract • Saves information as computer data. • Linked to Eligible Products Database for Internal Connections. • Create after submitting Form 471.

15. Online Item 21 attachments • System not perfect • May not be suitable for complex applications • Not mandatory • Expected to speed processing • Lack of bills will save intense scrutiny of all little charges

16. Online Item 21 Attachments Let’s take a look!

17. Keep your security code!

18. Click on ‘Create Attachment’ to Begin

20. For example: “Additional E-mail servers for three locations” “Internet access for new library branch” “Local and Long Distance Phone Service for District's 12 buildings” Enter description of overall funding request.

21. Start Here

22. Select type of service from drop down box Local Long Distance Combined Local and Long Distance Cellular Centrex Digital Transmission (T-1, ISDN, etc) Paging Service Other If needed, add more detailed description of service, such as speed of service, model numbers, what equipment will or will not be used for, etc.

23. Enter Appropriate Amounts Here or choose to retrieve from 471 Click Here to Continue

24. Examples of what to include. Review prior year’s PIA requests and provide the additional information upfront they may ask for. • Identification of ineligible components • Substantiation of an increase cost from a previous application • Description of one-time charges • Certifications (remote access, on-premise equipment, etc) To save work and return to create Item 21 attachments for other FRNs. This does not submit your Item 21 attachment. To continue to preview/submit page.

25. Print THIS page for your confirmation. (Use the buttons below to print a copy of your Item 21 attachment.)

26. New Online BEAR (Form 472) • What do applicants need? • PIN to e-certify BEAR Form • Online BEAR cannot be certified on paper • Two types of PINs for certifying forms • All online program forms including BEAR • Online BEAR only • PINs issued automatically to paper filers • Valid email address

27. New Online BEAR (Form 472) • Login using your PIN. • Complete a BEAR Form online. • Certify the form using your PIN. • Your PIN mailer will tell you if your PIN can be used for all program forms or only for BEARs. • Use the text field to provide information to service provider (field not visible to USAC). • Vendor receives e-mail notice that BEAR is pending their approval.

28. New Online BEAR (Form 472) • Vendor approves and electronically submits to USAC (applicant receives e-mail that BEAR has been submitted to USAC). OR • Vendor denies and BEAR item is cancelled. • Applicants can check status of all BEAR items online, including after submitted to USAC.

29. New Online BEAR (Form 472) • Send any requested information to your service provider • If the form is not certified after seven days: • USAC will generate auto reminder to vendor (applicant receives copy) • If the form is not certified after 15 days: • Applicant and vendor receive email notification of BEAR cancellation • If BEAR Form has been canceled, applicant must file a new BEAR Form • If one or more lines on the form are canceled, you must file a new BEAR Form for those lines

30. New Online BEAR (Form 472) • If the form is not certified after 15 days: • Receive email notification of BEAR cancellation • Once your BEAR Form has been canceled, you must file a new BEAR Form • If one or more lines on the form are canceled, you must file a new BEAR Form for those lines

31. New Online BEAR (Form 472) • What do service providers need? • Form 498 E-cert ID and password • E-cert ID acts as your PIN • Obtained after filing a paper Form 498 • Officer must request additional E-certs if other employees will certify BEAR Forms • Valid email address • Verify the accuracy of the email address currently on Form 498

32. New Online BEAR (Form 472) • Vendors receive email notification of BEAR Form filed online by applicant • Vendors login and review applicant BEAR Form online using your E-cert ID • Certify entire form OR certify line-by-line • Request information from applicant as necessary

33. New Online BEAR Let’s take a look!

40. Most Common Mistakes (you asked for them!) • Telecom Provider Status • Telecom service not being provided by eligible telecom provider • Doesn’t have Y in the SPIN search • 470 category of service doesn’t match 471 category of service • When in doubt, put in both places on 470! • Forget to file Form 486 or BEARs • Miss 471 filing deadline

41. Most Common Mistakes (you asked for them!) Contract Issues • Contract signed before end of 28 day waiting period • No contract was in place when 471 was submitted • Ineligible “stuff” • 30% or more of FRN contains charges for XXX

42. 2 in 5 Rule for IC • Determined on an entity basis (ie each school, library or NIF) • 2007 is the 3rd year for the rule – many entities affected • All entities on a Block 4 worksheet that received a positive commitment for IC, are counted as taking a year • Can “erase” year if funding not used and Form 500 submitted to cancel FRN. • If a school or library building received IC funding in 2005 and 2006, that school or library is not eligible again until 2010.

43. Split FRNs • When service on single FRN is provided by two different companies in a single funding year. • Accomplished by submitting Operational SPIN Change to SLD. • Must state beginning date and ending date for each provider • Also include how much $ should be allotted to each provider. • 486 required for BOTH FRNs. • Common with regional WANs

44. eFund and E-rate • Deadline for eFund is October 27 at 2:00 p.m. • Apply for local connection for Year 10, even if switching to WAN. • Reason? Most WANs from Year 9 not installed on July 1. • eFund grant guidelines very specific about E-rate requirements, but sure to provide all information requested. • If E-rate pre-discount amount is more than $500,000, it must be amortized over at least 3 years. eFund does not have the same requirement.

45. Data Retrieval Tool & ERC Funding Info Tool • Most data on SLD website, using DRT. • Download who state, by SPIN, by entity, etc. • ALSO… E-rate Central Funding Information Tool. • www.e-ratecentral.com • Click on State Info, then PA. • In upper left corner of page enter Billed Entity Number. • View summary by funding year. • Click on funding year to see status of all FRNs. • Click on FRN to see details of that FRN. • Also updated nightly.

46. SLD Site Visits • 1000 being conducted per year. • Bearing Point conducting visits • Entities randomly chosen based on recent invoice submitted. • Visits usually take 3-4 hours. • Be prepared! • E-mail me for list of questions you’ll be asked. • Gathering ‘best practices’ BUT… really trying to determine whether you’re in compliance • Can lead to recovery of funds. • Do NOT brag that you are providing remote internet access to teachers and students.

47. Form 470 Reminders • Description of Service must be included for RFP Postings • Item 7b:  Contract featuring voluntary extensions?  • If you intend to have any extensions in your contract, you MUST check this box.   • Also, if you have a current multi-year contract with options to renew, you must post a new 470 for the optional years, UNLESS your previous 470 or RFP contained the renewal provisions.

48. Reminders… • Dual Contract Signatures/Dates • Consultants Letters of Agency • Consortium Letters of Agency • Must have all members sign and date prior to 471

49. Reminders… • Year 10 • Have you updated/written your techplan for 07-08 services? • Have you filed your Form 470? • Year 9 • Have you filed your 486s yet? • Have you requested discounted billing from your vendors? • Year 8 • Have you filed your BEARs (if not receiving discounted bills?) • Have you filed a Form 500 if needed?

50. www.e-ratepa.org