E-Rate for Tennessee Intermediate/Advanced Applicants

1. E-Rate for TennesseeIntermediate/Advanced Applicants Presented by: Kim Friends State E-Rate Coordinator for the Tennessee Department of Education

2. Agenda General Information E-rate Technology Planning Discount Calculations/Strategies Eligible Services Forms 470/471 Procurement/Competitive Bidding Program Compliance and Updates E-rate Gift Rules Post-Commitment Processes

3. The Role of TN Dept. of Ed • TDoE has no statutory authority to administer the federal E-Rate program • TDoE only provides general information about the E-Rate program including: training and outreach, reference materials, and other publicly available SLD/USAC resources

4. What is Kim’s Role? • Contracted with by TDoE to serve as TN State E-rate Coordinator • Provide outreach and training to applicants in TN • Represent TN before federal policymakers • Maintain TN E-rate website and listserve • Act as resource when E-rate administrator can’t help

5. Tennessee E-Rate Website

6. Intermediate/Advanced Presentation E-Rate Technology Planning

7. Purpose of the Tech Plan Tech plans ensure that schools and libraries are prepared to effectively use the requested services to integrate telecommunications and internet access into the educational program or library services that they provide to students.

8. Technology Plan Review • ONLY required if applying for Priority 2 funding • Plan must include four SLD technology plan criteria • Goals and Strategies for using technology • Needs Assessment • Professional Development • Evaluation • Must align with funding requests • Must be “written” before 470 is filed • Be sure to document the existence of this draft plan • Must cover full 12 months of upcoming funding year (include dates!) • 3 year maximum

9. “Must Do” Reminders • Must be “Written” prior to posting Form 470: • It must be documented that it is written before the posting of the form 470! (Applicant must document the existence of this plan, i.e., e-mail with plan attached, memo from cabinet level about the plan being written, including the date. “DATE STAMP”) • Must include a sufficient level of detail and cover all services (priority 2) for which E-Rate discounts are being sought on the Form 470(s) and subsequent Form 471(s). • Must be approved by the start of services (July 1) or the filing of Form 486, whichever is earlier • E-rate Tech Plans must be approved by a “USAC Certified Technology Plan Approver” see USAC link: http://www.usac.org/sl/tools/reference/tech/default.asp • Must include all four required elements (as noted previously)

10. Additional Reminders • Service Providers may notact as technology plan approvers, write/create, or assist in the tech plan in any capacity (except as offering technology/provider neutral information only) • Remember to include in your tech plan all the services that you apply for on Form 470/471, required for Priority 2 – (Internal connections and Basic Maintenance of Internal Connections)

11. Additional Reminders • There are some ‘non-starters’ that will require revision (even to draft plans) • If your dates have not been changed throughout the entire document to reflect the period for which the draft is being written, revisions will be required • The TDoE and my office will be presenting a Technology Planning workshop toward the end of January, 2013 to help those of you who actually need your plans APPROVED before July 1, 2013. • Stand by for details

12. Tech Plan Help and Approval Email your questions/concerns to the TennSEC office at kfriends@tennsec.com or bfriends@tennsec.com Email your draft plans for verification of receipt and review in anticipation of approval. Tech Plan approval letters will be issued from the TN State E-Rate Coordinator’s Office.

13. Questions?

14. Intermediate/Advanced Presentation Discounts

15. Calculate the discount rate for each individual school • School District average = weighted average of the schools • Multiply E-Rate discount by total student population of the school to get weighted product • Add all weighted products and divide by total students in school district • Discounts are based on schools actually receiving services in the FRN (may not be all schools in the district) • Schools/School Districts • Calculating Your Discount

16. Calculating Your Discount – Using the Matrix

17. Calculate the discount rate for each individual school • School District average = weighted average of the schools • Multiply E-Rate discount by total student population of the school to get weighted product • Add all weighted products and divide by total students in school district • Discounts are based on schools actually receiving services in the FRN (may not be all schools in the district) • Calculating Your Discount

18. Individual School uses straight Discount from Matrix Calculating Your Discount – Individual School

19. Weighted Average of Individual School Discounts Note: NIFs use the weighted average discount of the schools they are serving School District Discounts – the “Weighted” discount

20. NIFs on the campus of single school/library and that serve only that entity, get the discount of that school/library (Separate entity number necessary only if located at a different physical address) • NIFs that serve multiple schools/libraries, and without classrooms or public areas, get shared discount for the school district/library system • NIFs that serve multiple schools and with classrooms use the snapshot method to get discount • Snapshot method: Choose a specific day and determine the NSLP eligibility of the student population that is in class on that day • DOCUMENT your process • Non-Instructional Facilities (NIFs) • Calculating Your Discount

21. Please refer to exercise Kim is showing • Calculating Your Discount - Strategy

22. NSLP eligibility based on student’s family being at or below 185% of federal poverty levels • Income Eligibility Guidelines (IEG) published annually by U.S. Department of Agriculture • Other alternative discount methodologies seek to determine if a student meets the NSLP IEG threshold • Alternative Discount Mechanisms • Alternative Discount Mechanisms

23. Programs that meet the IEG threshold for the NSLP: • Medicaid • Food stamps (SNAP) • Supplementary Security Income (SSI) • Section 8 Housing Assistance • Low Income Home Energy Assistance Program (LIHEAP) • Food Distribution Program on Indian Reservations • Acceptable Mechanisms • Alternative Discount Mechanisms Unacceptable Mechanisms • Programs that do not meet the IEG threshold for the NSLP: • Temporary Aid to Needy Families (TANF) • Title 1 • Scholarship programs

24. If school can establish that one sibling in a family is eligible for NSLP, then it can count the other siblings in the same family as eligible for NSLP even if the other siblings do not participate . • Sibling Match • Alternative Discount Mechanisms

25. Must be sent to all families whose children attend the school • Surveys must contain at least student and family name, size of family, income level of family or acceptable alternative mechanism • Surveys are valid for two years • NSLP application forms are never anacceptable survey instrument • Surveys • Alternative Discount Methods

26. Can conduct family survey even if your school participates in NSLP • Must survey all families in the school • If more than 50% of surveys are returned, survey is considered valid and results may be extrapolated for entire school • Keep careful documentation • Beneficial for both public and nonpublic schools seeking funding • Use common sense when deciding whether to try to utilize the survey method • Calculating Your Discount (Advanced) • Use the survey method

27. If a survey is sent to all households of its students, and • If at least 50% of surveys are returned • School may extrapolate the data to 100% of its students • Example: • 100 families received the survey; 75 returned them • 25 of the 75 families are eligible for NSLP • 25/75 = 0.33 • School can report 33% of all students are eligible • Survey Extrapolation • Alternative Discount Methods

28. Ensure that the same students are not double counted. • Surveys cannot be combined with other alternative discount methods if you have extrapolated • Provisions 1-4 cannot be combined with other alternative discount methods since they include extrapolation • Keep detailed records to show that the same students were not double counted • Combining Alternative Discount Methods • Alternative Discount Methods

29. Feeder School Method • Extrapolating from elementary to secondary schools • Principal’s Survey/Estimate • Based on administrators’ knowledge of some of their students • Title I eligibility alone • Neighborhood poverty measurements • Unacceptable Alternative Discount Calculation Methods • Alternative Discount Methods

30. Questions?

31. Intermediate/Advanced Presentation Eligible Services List (ESL)

32. FCC changed their rule regarding designation of service for Telecommunications and/or Internet Access (P1) to indicate that the applicant is only required to check one of the two boxes on Form 470 as long as the services requested are described in sufficient detail to allow prospective service providers. Updated forms for next year expected to indicate only a single category of service as “Priority One”. • New for 2013/2014

33. Local, long distance, cellular phone service and paging • Includes voice mail and custom calling features • Centrex, hosted VOIP phone service • Broadband services (WAN services) • T-1, PRI, Frame Relay, ISDN, leased lit and dark fiber*, etc. • Installation of eligible telecom services • If installation is included on your application • Most taxes and surcharges • Telecommunications services must be provided by an Eligible Telecommunications Provider (ETP) • Exception: Hosted VOIP and Fiber WAN services canbe provided by non-ETP • Telecommunications Services • Priority One

34. Broadcast “Blast” messaging • Monitoring services for 911, E911 or alarm telephone lines • Services to ineligible locations • End-user devices • Cell phone, tablet computers • Not Eligible as Telecom Services • Priority One

35. Support for IA includes Internet Service Provider (ISP) fees as well as the conduit to the Internet • Other eligible IA services include: • E-mail service • Wireless Internet access • Interconnected VoIP • Basic Web hosting • Internet Access (IA) • Priority One

36. Costs for Internet content • Subscription services such as monthly charges for on-line magazine subscriptions • Internet2 membership dues • Web site creation fees • Web based curriculum software • Software, services or systems used to create or edit Internet content • Not eligible as Internet Access • Priority One

37. Interconnected VoIP (aka Hosted VoIP) Defined as a service that Enables real-time, two-way voice communications. Requires a broadband connection from the user’s location. Requires Internet protocol-compatible customer premises equipment (CPE). Permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

38. Priority One Services May be applied for in either Telecommunications or Internet Access on Form 470. The Form 471 application category of service selection will be decided by the type of provider, whether ETC or not. Interconnected VoIP

39. Support for equipment and cabling on-site that transport information to classrooms or public rooms of a library • Subject to the Two-in-Five Rule • Entities can only receive funding every two out of five years • Internal Connections • Priority Two

40. Basic Eligibility Conditions • Priority Two

41. Support for basic maintenance of eligible internal connections (BMIC) such as: • Repair and upkeep of hardware • Wire and cable maintenance • Basic tech support • Configuration Changes • Agreements or contracts MUST state the eligible components covered, make, model and location • Service must be delivered within the funding year • July 1 – June 30 • Two-in-Five Rule does not apply to BMIC • Basic Maintenance of Internal Connections • Priority Two

42. Standard manufacturer warranties of no more than three years remain eligible as long as it is provided as BUNDLED (included) with the purchase of the device. • If there is a line item cost associated with the warranty, then the warranty is not eligible • Support for BMIC for hardware is limited to actual work performed under the contract • BMIC Updated Guidance • Priority Two

43. Applicants may make estimates based on: • Hours per year of maintenance • History of needed repairs and upkeep • Age of eligible internal connections • Applicants using the factors listed above must submit a bona fide request • It is not reasonable to estimate an amount that would cover the full cost of every piece of eligible equipment. • BMIC Updated Guidance • Priority Two

44. Flat rate contracts may be eligible however, applicants may only invoice for services actually delivered/work performed. • Exceptions that will not require demonstration that work was performed are: • Software upgrades and patches • Bug fixes and security patches • Online and telephone based technical support • BMIC Updated Guidance • Priority Two

45. A transfer may occur three years or more after the purchase of the equipment to other eligible entities • No equipment transfer may occur prior to three years from the date of installation, unless the eligible entity is permanently or temporarily closing • Equipment transfer rules • Equipment Transfers

46. Notify USAC • Both the closing entity and the recipient must retain records of the transaction • Include the reason for the transfer • Records must be kept for five years after the date of the transfer • Records for equipment transferred after >3 years follow the traditional document retention requirements • Equipment transfers less than 3 years • Equipment Transfers

47. As of January 3, 2011, applicants can dispose of obsolete equipment, but no sooner than five years after the date the equipment is installed • Resale for payment or other consideration is allowable no sooner than five years after the equipment is installed • Resale or disposal is prohibited before the five years have passed. • Disposal of Equipment Rules • Disposal of Equipment

48. Trade-ins of equipment may be permitted if the E-rate funded equipment to be traded in has been installed for at least five years • This limitation does not apply for equipment not funded through E-rate • Value of trade-in does not have to be ‘shared’ with USAC. • Trade-ins and Exchanges • Trade-ins and Exchanges

49. Questions?

50. Intermediate/Advanced Presentation Form 470