2. E-rate Training Webinar for South Dakota Libraries Presented by Debra Kriete, Esq. South Dakota E-rate Coordinator for the South Dakota Department of Education November 17, 2015

3. What is E-rate?  Federal program overseen by FCC, run by USAC  $3.913 billion cap, plus unspent $ from prior years  Provides discounts ranging from 20-90% on broadband, Internet and voice services, and 20-85% on internal connections equipment/services  All services/equipment must be competitively bid on USAC website for at least 28 days 2

4. Four Primary Components of E-rate 1.Building must be an eligible library under LSTA 2.Request bids for eligible services and equipment to set prediscount price 3.Quantify library discount 4.Library discount x prediscount price = E-rate funding request 3

5. Library Discount Calculations Two factors determine library discounts:  The percentage of students that qualify for NSLP from the school district in which the library’s main branch is located and  Whether the main branch of the library is located in a “rural-designated” area o Urban applicants are those with addresses in an “urbanized area” or “urban cluster” o Urbanized areas have populations of 50,000 or more o Urban clusters have populations between 25,000 – 49,999 o All areas that are not considered “urban” are classified as rural o Aberdeen, Rapid City and Sioux Falls are the only urban areas in South Dakota 4

6. 2 Ways Libraries Apply for E-rate  Individual Libraries o Most SD libraries should apply as the Main Branch of their library, and not as a library system  Library System o Made up of multiple library branches o Library system must apply for funding on behalf of all branches 5

7. Library must be the Billed Entity to Qualify  Individual stand-alone library may apply o Library may pay bills directly o Library may pay local government for their share of bills  Libraries that are part of a system can apply only as a system  Public and school district shared libraries o Who pays for Internet/phone service/responsible for network equipment? If the public library pays, they can file for E-rate Talk to school district to ensure there is no double dipping 6

8. Where to Find NSLP Data  One year old data is available from School District E-rate funding applications from last year  However, beginning in FY 2016, the library will not provide any discount calculation data o The library’s EPC Portal will identify which school district the main branch is located o The district will have their enrollment/NSLP data in THEIR own EPC Portal o The new Form 471 will draw the school district and its NSLP data directly from the EPC portal of the school district that the library has “associated” itself with in the library’s EPC Portal 7

9. What’s Eligible for Category 1?  Category 1 (to the building): o Telecommunications/broadband services Lit leased fiber and Leased dark fiber Ethernet T-1 lines Cable modem/DSL service Purchase of dark fiber beginning in FY 2016 o Internet access Filtering is not eligible o Voice services (being phased out by 20%/year) PRIs, VOIP, local, long distance, cellular voice – eligible Data plans, DID blocks, special calling features – not eligible Only exceptions for mobile data plans are for bookmobiles, or where you can prove that they are more cost effective than installing WIFI in the library 8

10. Voice Phase Out Schedule If Your Library Discount is (in a given year): Voice Discount Will Be: FY 2015FY 2016FY 2017FY 2018FY 2019 20%No Funding 25%5%No Funding 40%20%No Funding 50%30%10%No Funding 60%40%20%No Funding 70%50%30%10%No Funding 80%60%40%20%No Funding 90%70%50%30%10%No Funding 9

11. What’s Eligible for Category 2?  Category 2 (inside the building): o Internal connections Wireless equipment (WAPs/controllers) Internal wiring Hub, routers, switches Firewalls, racks, UPSs (to support eligible equip) Caching servers (this is the only eligible server) o Basic maintenance of eligible IC Warranties with separate cost are not eligible o Managed broadband services Paying an outside vendor to own/maintain the equipment Paying an outside vendor to maintain library-owned equipment Eligible for $30/year/student o No voice or video equipment is eligible for C2 10

12. Category 2 - Other  Training on how to use eligible equipment is eligible  Installation and configuration is eligible Doesn’t have to be provided by the same vendor  Multi-year licenses are eligible and can be required in full in first year  Eligible equipment may be purchased and/or installed on or after April 1 prior to the beginning of the funding year 11

13. Category 2 Overview Maximum Category 2 discount is 85% 12 NSLP EligibilityUrbanRural Less than 1%20%25% 1 – 19%40%50% 20 – 34%50%60% 35 – 49%60%70% 50 – 74%80% 75 – 100%85%

14. Category 2 Funding Budgets  Most library buildings are eligible for a pre-discount cap of $2.30 per square foot or a minimum building cap of $9,200, over a rolling five-year basis o Square footage includes areas off-limits to the public o Only indoor footage may be counted  Money is allocated per library and applicants cannot move funding from one library to another  Annual application is required and funding approval is subject to available funds each year 13

15. Priority 2 Funding Budget Example  The Budget Cap is the pre-discount price, not the E-rate eligible price for a five year period. E-rate discounts will then apply on top of the budget cap. LibrarySquare FootageBudget Multiplier5-Year Budget Cap Hill City Public Library3,000$2.30$9200 (minimum cap applies) Deadwood Public Library5,360$2.30$12,328 Mitchell Public Library17,000$2.30$39,100 14

16. Category 2 – Administrative Buildings  Library Administrative Buildings (that are not actual libraries) are not eligible for Category 2 funding  However, if the admin building houses the WAN/WLAN central equipment (such as the network operations center, C2 equipment may be located there o Libraries must allocate a portion of each library’s $2.30 budget toward the purchase of such equipment 15

17. New EPC Portal Required  Beginning NOW, all entities applying for E-rate (or included on a consortium application) must set up an E-rate EPC Portal  Complicated process AND non-intuitive portal  Each Billed Entity will have an Account Administrator who must set up the library’s account o The AA will then assign other users, designate consultants, enter enrollment/NSLP data, join consortia, etc  If you haven’t yet set up your EPC account, do it now o FY 2016 Form 470 MUST be filed in EPC 16

18. Application Process – 7 Steps 1.Bid All Services/Equipment – Form 470 2.Vendor Selection/Bid Evaluation 3.Request E-rate Funding – Form 471 4.Application Review – PIA 5.Funding Commitment – FCDL 6.Turn on Funding/CIPA Compliance – Form 486 7.Submit Invoice to USAC – Form 472 BEAR o If paying invoices in full o Vendor submits invoice to USAC if you receive discounted bills 17

19. Step 1: Posting the Form 470  Form 470 opens the competitive bidding process for any new contract o If multi-year contract signed, 470 not required in out years of contract  RFPs may be used to describe specific needs and circumstances, but aren’t required o If available, RFPs must be uploaded into Form 470 when it’s posted  Descriptions of equipment/services cannot be manufacturer-specific  Form 470 must be filed in EPC Deadline: Form 470 must be posted online at least 29 days before the Form 471 window close (example: March 18 close = Feb 18 deadline). File 470 before the end of the calendar year 18

20. How to Get Started to Post Form 470  Identify your library’s “billed entity number” o Number assigned by E-rate to each building o Search online at http://www.sl.universalservice.org/Utilities/BilledEntitySearch_Public.asphttp://www.sl.universalservice.org/Utilities/BilledEntitySearch_Public.asp 19

21. Step 2: Vendor Selection/Bid Evaluation  After the Form 470 has been posted online, vendors submit proposals to the library o Proposals must be accepted for a minimum of 28 calendar days, but applicants may accept proposals after this date  Vendors will contact you if they need additional information  When contacted by a vendor, you must indicate your willingness to receive a proposal for services listed on Form 470 o Do NOT say you are just going to stay with your current vendor  On 29 th day after Form 470 is posted (called the Allowable Contract Date), you may conduct your bid evaluation and select a vendor  Price of eligible services/equipment MUST be the most heavily weighted factor during bid evaluation 20

22. South Dakota Library Entity #s 21

23. South Dakota Library Entity #s 22

24. Vendor Selection/Bid Evaluation  Vendor selection must be done before you submit Form 471  Be careful not to make any decisions, sign anything or file any forms during 28-day waiting period  Contracts must be signed and dated by applicant o Unless receiving services on month-to-month basis  Cannot select 2 vendors to provide the same service o FCC believes there should always be one bidder that is more ‘cost effective’ than any other 23

25. Step 3: Filing the 471  Purpose of the Form 471 o Formally requests E-rate funding commitments from USAC o Shows discount calculations o Asks which 470 was used to bid services, what were contract signing dates, contract amounts, etc. o Asks detailed questions about services or equipment o Asks which entities (buildings) are receiving the service/equipment o Asks for upload/download speeds of services  Filed by entity that actually pays the bills (the billed entity) 24

26. When and How Many to File  471 Application Window: Likely early January –March o Do NOT miss this March deadline!  Can file a single 471 for all C1 requests o Multiple Category 1 471s are ok  Category 2 requests must be placed on a separate 471  New Form 471 for FY 2016 o Not yet available  Must be filed in EPC Portal  Enrollment and NSLP data will be pre-populated using EPC Portal data 25

27. Step 4: PIA Review  Program Integrity Assurance (PIA) Review  Checks for rule compliance o eligible services o eligible entities o accurate discount  Almost everyone receives a PIA contact o Applicants have 15 days to respond  If they are going to deny an FRN, they will tell you so and give you 1 more chance to submit new information  Check application status on SLD website o Under Form 471 Column of ‘apply online’ page 26

28. Step 5: SLD Issues FCDL  FCDL = Funding Commitment Decision Letter  Beginning in FY 2016, will be delivered in EPC Portal  Tells you which funding requests of Form 471 are approved or denied  Provides information for the next form - Form 486  Can appeal if you don’t agree with your decision o Must do so within 60 days o Appeal to SLD if they made an error o Can then appeal to the FCC if USAC denies o Appeal to FCC for waivers and policy issues 27

29. Step 6: Filing the Form 486  Form 486 s ignifies that it’s OK for SLD to pay any invoices for that FRN, AND certifies CIPA compliance  Deadline: Must be certified no later than: o 120 calendar days after the Service Start Date featured on the Form 486 or o 120 calendar days after the date of the Funding Commitment Decision Letter o whichever is later  Submit online using info from FCDL o Use 07/01/2015 as service start date for FY 2015 o Will be submitted in EPC for FY 2016  USAC then issues the Form 486 Approval Letter to vendor and applicant 28

30. CIPA Requirements Any library receiving either Internal connections or Internet access must...  Filter all Internet access  Have an Internet Safety Policy that addresses required elements o Policy must have been adopted after public hearing  Recipients only receiving telecommunications services are exempt from E-rate CIPA compliance o If you apply for just telecom, but are in an Internet consortium (perhaps through a system), you must be CIPA compliant 29

31. Step 7: Receiving E-rate Funding!  Applicant has a choice o Discounts on bills (vendor invoices USAC) o or o Reimbursement process (applicant pays bills in full, then invoices USAC)  Must select one or the other for entire year  If you want discounted bills, call provider and file Form 486 as soon as you are funded o Vendors sometimes have additional forms to complete to proceed with discounted bills 30

32. Discounted Billing Method  Discounts appear on applicant’s bill  Service provider submits Form 474 to USAC after providing discounted bill o the Service Provider Invoice Form (SPIF)  Providers usually get reimbursed by USAC within 30 days from date of submission  Applicants do nothing except make sure they are receiving the discounts they deserve on bills 31

33. Reimbursement Method - BEAR  Applicant pays bill in full  Applicant submits Form 472 – BEAR Form for reimbursement o Complete one BEAR for each SPIN  Calculated based on eligible charges on actual bills o Not AP register or amount committed o Subtract ineligible charges  Deadline o October 28 (following close of funding year) for recurring services; o January 28 for non-recurring services/equipment o Can request 1 extension Extension must be requested prior to original invoice deadline 32

34. Reimbursement Method - BEAR  FY 2014 o SLD approves BEAR and sends approval letter to vendor and copy of letter to applicant o SLD then sends payment to vendor o Vendor must send check to applicant within 20 business days of date on BEAR approval letter  Starting July 1, 2016: o SLD approves BEAR and posts approval letter in EPC o SLD then sends check to applicant o Applicants will need to provide bank account information to USAC in order set up EFT arrangements 33

35. E-rate Help  SLD o Client Service Bureau (CSB) o E-rate “Help Desk” where applicant & service providers can get answers to questions o Accessed via 888-203-8100 o ‘Submit a Question’ on SLD website  South Dakota Coordinator o E-mail dmkriete@comcast.netdmkriete@comcast.net o 888 232 0241 34

36. What is EPC?  EPC = E-rate Productivity Center  All E-rate forms, letters and communications will migrate to the EPC Portal system and will be all electronic – no more paper  Benefits o All forms, submitted documentation and requests will be archived in a single location – document retention made easier o A lot of data will be entered and stored in EPC prior to filing forms o Forms will be pre-populated with information – avoid duplicate data entry o Supposed to streamline review and processing of forms

37. Setting up EPC/Account Administrator  USAC created an EPC account in their database for each applicant entity and identified an Account Administrator  Currently, only the AA can perform these functions: o Create Users o Assign Users’ Rights/Permissions o Change AA to another user  AA and Users with “full rights” can also: o Join Consortia o Link to Your Consultant o Enter Enrollment/NSLP Data

38. Who is the Account Administrator?  USAC initially established each applicant’s AA as the person who certified the FY 2015 Form 471 o unless it was a consultant  In July, each AA received an e-mail from USAC indicating that their EPC Account had been created (in the backend) and that they should establish their password o If you are the AA and did not receive this e-mail or cannot remember if you received an email, contact CSB at 888-203-8100 to have AA account set up in the backend of the system

39. How to Change the AA to Someone Else  Choose one of the following based on your situation: 1)If the current AA has set up their password, the current AA must log-in to the system and change AA authority to another user 2)If the current AA has not yet set up their password, the AA can send an e- mail to SLDPR@GDIT.com to request a different AASLDPR@GDIT.com Must provide full contact information for new AA 3)If the current AA is no longer with the organization, the new AA can send an e-mail to SLDPR@GDIT.com requesting that they be designated the new AASLDPR@GDIT.com –Be sure to explain that the original AA is gone –Must provide full contact information for new AA  For 2 and 3, the new AA will then receive an e-mail from EPC inviting them to establish their EPC password (it looks like this...)

40. Sample E-mail to FY 2015 Form 471 Certifier:

41. For AAs Who Do Not Yet Have an EPC Password:  Go to this URL for EPC Log-In/Password reset: https://portal.usac.org/suite/ Click “I Agree”

42. Epic Log-In Screen Looks Like:

43. What Are Your EPIC Log-In Credentials?  Username = FY 2015 Form 471 Authorized Signer’s E-mail Address o Must be specific to a person’s name o Must be all lowercase  Password = There is no Password! Click on “Forgot Password”

44. Establishing/Resetting Your Password  The next screen will look like this:  Enter username again (which is your e-mail address), and click Request Password Reset

45. Password Reset  After you click ‘Request Password Reset’, the system will send a temporary link to that e-mail address (which is only valid for 15 min.)  Click on the temporary link which will take you to this screen to set a password: Note password rules

46. Password Reset  The system will then display this screen stating that your password has been reset and that you may now log-in to EPIC:  Note: EPC Passwords are only valid for 60 days, so you’ll have to reset them often

47. Go to this URL for EPC Log-In: https://portal.usac.org/suite/

48. Now Log-in to EPC https://portal.usac.org/suite/

49. Where to Go For Help  Call CSB – 888-203-8100 o They are extremely knowledgeable and can see the “backend”  USAC’s EPC Website: www.usac.org/slwww.usac.org/sl o Contains FAQs o User Guides o Video Tutorials

50. 2015 E-rate Program Applicant Trainings I How to Use the Portal 49 EPC page on the USAC website