1. E-rate
Where to Start

2. Step 1 – Understand how important E-rate is to the State of Mississippi
$636,158,277 committed since the program started in 1998
For 2015, $62 million was requested for $75 million in pre-discount services
So far, $45 million has been committed for 2015

3. Step 2 – Understand what E-rate is all about
Established by Congress, Directed by the FCC, Managed by USAC
Provides funding for specific services
Internet Access
WAN circuits and WAN equipment
Internal Connections (LAN equipment and cabling)
Maintenance of Internal Connections
Managed Wi-Fi
Voice – POTS, LD, Cell Service, being phased out

4. Step 3 – Understand what E-rate will fund
To know what e-rate will fund you must follow the Eligible Service List (ESL)
Handout – List of all eligible services
ESL Changes every year
services-list.aspx
IF it not listed on the ESL as eligible, then the assumption is that it is not eligible

5. Step 4 – Understand how services are categorized?
Category 1 (C1)
Funded first with remaining dollars going to C2
Internet Access, WAN circuits/equipment, Voice
Category 2 (C2)
Funded with remaining dollars after C1
LAN equipment, cabling, fiber between buildings, maintenance of LAN equipment, Wi-Fi, managed Wi-Fi.
Each school has a C2 budget based upon $150 per student for a 5 year cycle

6. Step 5 – Understand how you get your E-rate dollars
It is a discount program, not a grant program
You must receive the services to receive the funding
You can receive your discounts on your invoice
You simply pay your non-discount amount
Service Provider files a form to have USAC pay them directly for your discounted amount
You can pay in full and receive a reimbursement
After paying for services in full, you will file a form and USAC will send a deposit directly into your district bank account

7. Step 6 – Understand what Forms are required by E-rate
Form 470 – is part of the procurement to establish a contract
Form 471 – is your request for funding
Form 486 – you have been funded and services have begun
Form 472 – BEAR, filed by you to get a reimbursement Check
Form 498 – allows USAC to send a check directly to your bank
Form 500 – to return unused funding
Form 474 – filed by Service Providers to have discounted amount paid to them directly (SPI method)

8. Step 7 – Understand the Process: Cookies
Crisco
Vanilla
GSugar
BSugar
Eggs
Flour
Chips
Bake

9. Step 7 – Understand the Process: E-rate
ESL
470
Contract
471
Review
Process
FCDL
486
BEARs
SPIs

10. Ah, the E-rate Process What are your needs?
Of those needs, which ones will e-rate fund?
Do you have a contract to purchase services?
How do you request e-rate funding?
Who approves the funding?
How do they inform you of your funding?
Once funded, how do you start the services and notify USAC?
How do you get your discounts?

11. What are your needs? Check with your schools to identify their needs
More Bandwidth?
Expanded Wi-Fi?
More Laptops?
Check with your business manager to see what your Technology Budget looks like
Don’t go where you budget can’t take you
Check with your Super to see what his or her goals are in relation to what your schools need
What are the Super’s priorities – more Wi-Fi, more internet?

12. Of those needs, which ones will e-rate fund?
More Bandwidth
More Internet?
Increased circuit speeds, then verify the speeds are allowable under your contract and that the contract covers next year.
Are these services e-rate eligible?
Check the ESL

13. Of those needs, which ones will e-rate fund?
Expanded Wi-Fi
Where are my weak spots?
Will my internet access support more devices?
Do I have any remaining Category 2 Budget to spend on Wi-Fi?
Are these services e-rate eligible?
Check the ESL

14. Of those needs, which ones will e-rate fund?
Laptops
Are these services e-rate eligible?
Check the ESL

15. Do you have a contract to purchase services?
If you are using one of the ITS State Master Contracts (SMCs) then you simply cite the State’s 470 and use the contract.
If you are using your own contract then verify it is still valid for next year.
If not, and you do not want to use one of the SMCs, then you must perform your own procurement to establish an E-rate Eligible Contract by posting your own Form 470.

16. How will you request e-rate funding?
Once the Window for filing Form 471s opens you will be able to file a Form 471 requesting discounts for e-rate eligible services. The Window is usually open for approximately days.
After you have submitted and certified your Form 471, it will be reviewed by USAC and they will contact you if they have any questions.
Always answer their questions, and don’t argue.

17. Who approves the funding?
USAC hires a contractor through a competitive bid process. Currently the contract is with Solix. Solix has employees that review the application by performing a Program Integrity Assurance (PIA) review. That is why we say “We got a call from PIA asking questions about our application.”
Applications go through multiple levels of review which is why we may get the same question more than once.
Your application cannot be funded until all questions from PIA have been answered.

18. How do they inform you of your funding:
Once your application has made its way through all levels of PIA review, and all questions have been satisfactorily answered, USAC will issue a notification to you.
The USAC notification is call a Funding Commitment Decision Letter (FCDL).
You will get the FCDL if you are funded, or if you are denied.
USAC no longer sends letters for this notification.

19. Once funded, how do you start the services.
Once you have received your FCDL, you should contact your service provider to verify that they too have been notified of your funding.
Just like any other purchase you make for your district, your obligation to purchase is not official until you issue a Purchase Order.
You can file your 486 after you receive your FCDL.

20. How do you get your discounts?
You, the applicant, have a choice.
You can pay for your services in full and then file a BEAR (Billed Entity Applicant Reimbursement). USAC will issue a Reimbursement check deposited directly into your district bank account
You can file BEARs monthly, quarterly, annually….
You can inform your SP that you want to be invoiced only for your non-discounted portion and the SP will invoice USAC directly for the discounted portion

21. Where do you start? Well, find yourself first.
On any given day, you may have three funding years to be worried about. So today you have:
Funding Year 2015 started July 1, 2015 and ended June 30, 2016
Funding year 2016 (current) started July 1, 2016 and will end June 30, 2017
Funding Year 2017 PROCESS starts now, and the funding year will end June 30, 2018
E-rate is an exercise in Project Management

22. What is the current status for each funding year?
FY2015
Did someone file the 486?
Was a BEAR filed to seek reimbursement?
Did my service provider file the SPI?
If there were remaining unused funds, did someone file a 500 to return dollars?
FY2016
What has been funded?
Have the services started?
Has a 486 been filed?
FY2017
What needs to be applied for next year?
Do I have a contract that covers next year?
Do I have any remaining C2 budget for next year?

23. You cannot Pay for services to any residential home
Include ineligible services in your request unless you perform a cost allocation
Accept any type of free service from the vendor – nothing is free
Accept a gift from a vendor that exceeds $20 per event or $50 per year

24. You cannot Transfer equipment before three years
Receive discounts for duplicative services
Receive discounts for redundant services
Receive discounts for backup/spare services

25. If you want to succeed Then you must respond to PIA
Then you must keep up with every little detail of every funding year
Then you must attend training sessions such as this one (No excuses)
Then you must ask us or somebody if you do not understand

26. Questions

27. How do you find out about FY 2015?