E-Rate Survival What You Need to Know for Success Dawn L Belden Operations Director Educational Consortium 5/1/2017 E-Rate Survival

Know your overall discount percentage before you file your form 470 Let’s talk basics Know your overall discount percentage before you file your form 470 Be aware of contracts that are due to expire at the end of the current funding year Know your IA bandwidth needs and circuit speeds Update your EPC connectivity questions Make sure to update your entity profiles in the EPC before filing your form 471 5/1/2017 E-Rate Survival

Eligibility and Discount Percentage Previously calculated by school building Currently calculated by total population 5/1/2017 E-Rate Survival

E-Rate Eligibility Changes No reduction in eligibility of broadband services Voice service phase out continues Includes circuits dedicated to voice Voice equipment removed Video services and equipment removed Other non-broadband services removed E-mail Webhosting Voicemail 5/1/2017 E-Rate Survival

Voice SERVICES Phase out Base Discount 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 20% - 25% 5% 40% 50% 30% 10% 60% 70% 80% 90% 5/1/2017 E-Rate Survival

Common ineligible items in Category 1 Inside wire maintenance DID number blocks Charges for touch tone All add-on calling features: Caller ID Call forwarding Voice mail Call blocking Etc. Carrier cost recovery charges Administrative fees charged by your provider 5/1/2017 E-Rate Survival

New for Dark Fiber New rules regarding funding for dark fiber – either leased or self-provisioned New self-provisioning of fiber if cost effectiveness can be substantiated in review – includes 1st year payout of special construction costs If you are applying for dark fiber you must also solicit bid responses for lit fiber at the same time and choose the most cost effective option evaluated over a specified time frame New – modulating electronics necessary to light existing dark fiber is now eligible as a category 1 expense New – maintenance of existing dark fiber networks are also eligible under category 1 An RFP is required if applying for dark fiber 5/1/2017 E-Rate Survival

Self-provisioning Application Guidelines Start early! Create your RFP and file your 470 as soon as possible. Make sure that your RFP also includes options for leased lit and leased dark fiber. Include modulating electronics and maintenance as part of your request. Set realistic criteria to use when evaluating the costs for self-provisioning against lit and dark fiber lease. (This includes a time frame cost analysis – 5years or 10 years) Even if done correctly you may be denied funding or delayed – have contingency plans in place. 5/1/2017 E-Rate Survival

Category 2 Funding Each instructional facility has a per student budget spanning a 5 year period beginning when funding is first awarded NEW – if seeking category 2 funding, purchase and installation can begin on or after April 1st prior to the beginning of the funding year Licenses spanning a 3 year period can be purchased and paid for in the first year BMIC is only available in 1yr increments – if your quote says license and support it is considered basic maintenance of internal connections. 5/1/2017 E-Rate Survival

Inflationary Adjustment to Cat2 Budget 5/1/2017 E-Rate Survival

Category 2 - Reimbursement There are 2 options for reimbursement on Category 2 purchases SPI – is available to districts after their Form 471 has been reviewed and approved for E-Rate funds. In order to utilize this method a FCDL must be issued prior to installation. BEAR – this method requires that your project be completed and paid prior to reimbursement. All BEAR reimbursements will be paid through ACH transfer Make sure to compare bank deposits with your remittance email sent to the financial contact on your form 498 5/1/2017 E-Rate Survival

Category 2 rules and records Equipment purchases are specific by school building. Equipment purchased with Category 2 funds must remain in the building for which it was purchased for a period of 3 years Exceptions: Building closure or destruction Moving equipment requires a Form 500 filing Records must be maintained to account for all equipment purchased with Category 2 funds Equipment must be labeled and listed on an asset registry form Equipment may be moved to another location but that change must be noted on the equipment registry On site audits may occur – keep good records 5/1/2017 E-Rate Survival

E-Rate Productivity Center - (EPC) Portal All schools and school districts must be registered in the EPC portal to apply for E-Rate beginning with FY2016 All changes to Entity profiles will be made through your EPC Portal All E-Rate applications will be created and certified in your EPC Portal The filing of all forms related to an E-Rate application (Form 500, Appeals, SPIN Changes, etc.) must be filed through the EPC All E-Rate correspondence will occur in your EPC portal for FY2016 and beyond Keep your EPC current – if you have changes effecting the Account Administrator of your portal make sure it is updated prior to the change over Keep your form 498 current so you continue to receive notices of deposits 5/1/2017 E-Rate Survival

Form 470 Changes If you have an RFP for a service, then you must have it available to upload into the EPC - 470 form in order to proceed (Know your state and local procurement rules) Although it has been simplified, the 470 is confusing and vague – it may lead to additional contact from vendors for clarification Your 28 day waiting period prior to evaluating bid responses does not begin until your 470 is certified in your EPC Portal To ensure enough time to navigate the remainder of the process, your 470 should be filed at least 60 days prior to the closing of the 471 filing window 5/1/2017 E-Rate Survival

Competitive Bidding The 28 day competitive bidding window must be observed – you may not enter into new contracts or select a vendor until the 28th day All bids submitted must be considered during the bid evaluation process (if you decide to consider bids submitted beyond the 28 day window – you must consider all bids that were submitted in your time frame) Choose your bidding criteria wisely Keep all correspondence from vendors related to the bidding process Prepare a bid evaluation table for your records 5/1/2017 E-Rate Survival

Sample Bid Tab 5/1/2017 E-Rate Survival

Form 471 Changes Any new contracts must be uploaded into the form 471 when filing. All contracts from previous years that are still in effect must also be uploaded prior to filing. The new format may require additional time to navigate – the item 21 feature is built into the form. Cat2 applications are cumbersome – plan on additional time to file! NEVER plan on a deadline extension for filing. 5/1/2017 E-Rate Survival

What is the PIA Process (Program Integrity Review) You may be contacted by PIA (Program Integrity Assurance) with questions regarding your 471 If PIA needs additional information the contact person on your form 471 will be notified by email. PIA inquiries will also appear in your EPC news feed All responses to PIA requests are submitted through the EPC portal All PIA requests are time sensitive Failure to respond to PIA requests may result in reduction or denial of funding 5/1/2017 E-Rate Survival

Funding Commitments (FCDL) Notifications of funding awards are made through email notifications to the contact person on your 471 You no longer receive a physical Funding Commitment Decision Letter in the mail FCDLs appear in your EPC – you need to generate and view your FCDL notification All data related to your funding appears in a .csv file that is attached to your notification Once you receive your FCDL you can immediately create and certify your 486 accepting the funds 5/1/2017 E-Rate Survival

E-Rate Timeline Make sure that your EPC Portal is operational and up to date File your Form 470 before the Christmas break if possible Evaluate vendor proposals after the 28 day bidding window has closed If necessary get new contracts on the February or March Board agenda for approval Get signed agreements by the end of March so your Form 471 can be filed. 5/1/2017 E-Rate Survival

Remember the document retention policy Remember the document retention policy! All documents related to a funding year must be retained for a period of 10 years past the last date of service in that funding year. This includes all forms, notices, bid documentation, email correspondence, proof of delivery, vendor invoices, proof of payment, etc. If you are audited an cannot supply the documents you will be required to return funds. 5/1/2017 E-Rate Survival

Don’t leave available funds on the table! Know the rules! Stay informed! Don’t leave available funds on the table! Call me or email me for more information: dbelden@eratespecialist.org 215-504-5457 5/1/2017 E-Rate Survival