1. 1 E-Rate for California E-Rate for California Beginner Applicants

2. 2 List of Acronyms ATO – Authorization to Order BEN – Billed Entity Number CIPA – Children's Internet Protection Act CALNET 2 – State Master Contract for Telecommunication Services DTS – Department of Technology Services EETT – Enhancing Education Through Technology FCDL – Funding Commitment Decision Letter FRN – Funding Request Number SPIN – Service Provider Identification Number SSD – Service Start Date RAL – Receipt Acknowledgement Letter (Form 471) RNL – Receipt Notification Letter (Form 470) NSLP – National School Lunch Program NIF – Non-Instructional Facility PIA – Program Integrity Assurance USAC Link: http://www.usac.org/sl/tools/reference-area.aspx http://www.usac.org/sl/tools/reference-area.aspx

3. 3 Who Administers the E-rate Program? The federal E-rate program is overseen by the Federal Communications Commission (FCC) and is administered by the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC)

4. 4 How is USAC related to the FCC?  Comprehensive information about the E-Rate program is available at the SLD website: http://www.usac.org/sl/  USAC is a not-for-profit corporation appointed by the FCC to act as the administrator of the E- Rate program

5. 5 The California Department of Education (CDE) does not administer the federal E-Rate program.  CDE has no statutory authority to administer the federal E-Rate program  CDE only provides general information about the E- Rate program including: training and outreach, reference materials, and other publicly available SLD/USAC resources

6. 6 Eligibility - Schools Elementary or Secondary education as defined by Education Act, Elementary Act and State Laws (Includes private schools, religious schools, and charter schools) Must be non-profit Must not have endowment exceeding $50 million

7. 7 Pre-K and Adult Ed State law, in conjunction with E-Rate rules, determines eligibility of Pre-K, Adult Ed and Juvenile Justice. In California, all three are eligible http://www.usac.org/sl/applicants/step01/non- traditional-k-12/k-12-eligibility-table.aspxhttp://www.usac.org/sl/applicants/step01/non- traditional-k-12/k-12-eligibility-table.aspx

8. 8 Eligibility - Libraries Eligible for assistance from a state library administrative agency under Library Services and Technology Act Budget is completely separate from that of any schools Must be operating as non-profit

9. 9 Eligibility - Consortia Eligible Schools or Libraries may form a consortia with –Other eligible schools and/or libraries –Certain health care providers –Public sector (governmental) entities Only eligible entities can receive discounts

10. 10 Entity Numbers Billed Entity Number - BEN –http://www.sl.universalservice.org/Utilities/Bille dEntitySearch_Public.asphttp://www.sl.universalservice.org/Utilities/Bille dEntitySearch_Public.asp Service Provider Identification Number –http://www.sl.universalservice.org/Forms/SPI N_Contact_Search.asphttp://www.sl.universalservice.org/Forms/SPI N_Contact_Search.asp

11. 11 Funding Commitment Process 1.E-rate Technology Planning – What are my goals? 2.Form 470 - Starting the Application Process 3.Competitive Bidding 4.Form 471 – Selecting Your Vendors 5.PIA (Program Integrity Assurance) Review 6.Funding Commitment 7.Form 486 Receipt of Services Confirmation 8.Form 472 – BEAR and Form 474 – SPI – Invoicing “Getting the Money”

12. 12 E-Rate Cycle Funding Year is July 1 – June 30 Funding commitments are made by funding year (services starting on or after July 1 and ending on or before the following June 30) The Window –Form 471 application window –Opens mid to late fall and closes late January to early February

13. 13 1. E-Rate Technology Planning

14. 14 Required Elements For E-Rate Plan: 1.Goals 2.Professional Development 3.Needs Assessment 4.Budget 5.Evaluation Process Tech Plan Help www.usac.org/sl/ applicants/step02/ For EETT/Federal/State funding: Executive Summary/Introduction Stakeholders Curriculum Professional Development Infrastructure Adult literacy Research Funding and Budget Monitoring and Evaluation E-Rate supplemental budget analysis … and also see: www.cde.ca.gov/ls/et/rs/techplan.asp

15. 15 Technology Plan Help Tech Plan Help –http://www.usac.org/sl/applicants/step02/http://www.usac.org/sl/applicants/step02/ –http://www.library.ca.gov/services/libraries/era te.htmlhttp://www.library.ca.gov/services/libraries/era te.html –http://www.cde.ca.gov/ls/et/rs/techplan.asphttp://www.cde.ca.gov/ls/et/rs/techplan.asp

16. 16 Technology Plan Must be certified by an approved agency –http://www.usac.org/sl/tools/reference/tech/def ault.asphttp://www.usac.org/sl/tools/reference/tech/def ault.asp –Service Providers may not act as technology plan approvers or aid in writing the tech plan Must be approved by the start of services or the filing of Form 486, whichever is earlier

17. 17 Technology Plan Reminders 1.Must cover entire funding year 2.Must be “written” prior to posting Form 470 3.Must include all services that E-Rate discount is being requested on 4.Must be approved by a “Certified Technology Plan Approver” 5.Technology Plan approver for 486 purposes is: If EETT & E-rate, the approver is CDE If only E-rate, the approver is COE or State Library Private Schools see USAC tech plan approver list

18. 18 Discount Calculations Calculated based on two factors 1.Percentage of students eligible for National School Lunch Program http://www.usac.org/sl/applicants/step05/discount-matrix.aspx http://www.usac.org/sl/applicants/step05/discount-matrix.aspx 2.Urban or Rural status of Entity http://www.usac.org/sl/applicants/step05/urban-rural/ http://www.usac.org/sl/applicants/step05/urban-rural/

19. 19 Free and Reduced Lunch Information (NSLP) Reported to CDE in October of each year. (posted in April/May) Where the numbers come from –Claim Reimbursement from Food Services Manager for month of October –Program Integrity Assurance (PIA) looks at Dataquest information that is posted in April/May Dataquest Link: http://dq.cde.ca.gov/dataquest/http://dq.cde.ca.gov/dataquest/ –Keep all Free and Reduced lunch information in your records for future USAC Inquiries

20. 20

21. 21 Discount Matrix % Eligible Students for NSLP UrbanRural Less than 1%20%25% 1% to 19%40%50% 20% to 34%50%60% 35% to 49%60%70% 50% to 74%80% 75% to 100%90%

22. 22

23. 23 District Students Enrolled # Free and Reduced Lunches % Free and Reduced Lunches Urban or Rural % E-Rate Subsidy Weighted Average for District Sample School District Urban Sample School 1191473.68%80%15.2 Sample School 283632338.64%60%501.6 Sample School 31885428.72%50%94 Sample School 41216553.72%80%96.8 Sample School 51583622.78%50%79 Sample School 6105020419.43%40%420 TOTALS FOR DISTRICT2372696 1206.6 WEIGHTED AVERAGE 50.87%

24. 24 Billed Entity VS Entity Billed Entity vs Entity –An entity is considered a "billed entity" if it is responsible for making payments directly to a service provider District is “billed entity” Each school site has its own entity number NIF (non-instructional facility) must have an Entity Number

25. 25 Non-Instructional Facilities (NIFs) Examples SCHOOLS:LIBRARIES: Administrative buildings School bus barns and garages Bookmobile garages Cafeteria officesInterlibrary loan facilities Facilities associated with athletic activities Library technology centers

26. 26 Discount Calculations Instructional Facilities will have a discount that comes straight from Matrix Non-Instructional Facilities will use District Weighted Average (District Office, Maintenance, Bus Barn, Bookmobile Garages, Cafeteria, etc)

27. 27 Eligible Services - Categories Priority 1 (P1) –Telecommunications –Internet Access Priority 2 (P2) –Internal Connections –Basic Maintenance on Eligible Internal Connections

28. 28 Non-Instructional Facilities (NIFs) Are eligible for Priority 1 services, telecommunications and internet access Are NOT eligible for Priority 2 services, internal connections, UNLESS they are essential for the effective transport of information to an instructional building of a school or to a non-administrative building of a library

29. 29 Eligible Services – Basic Concepts Key reference: Eligible Services List – http://www.usac.org/sl/tools/eligible-services-list.aspx http://www.usac.org/sl/tools/eligible-services-list.aspx This List is updated Annually Services must be used for “Educational Purpose” - http://www.sl.universalservice.org/reference/educational_pur poses.asp http://www.sl.universalservice.org/reference/educational_pur poses.asp End-user devices and content generally not eligible –PCs/PDAs-Printers-Television –Laptops-Phones- VCRs

30. 30 Educational Purpose Activities that occur on library or school property are presumed to be integral, immediate and proximate to the education of students or the provision of library services to library patrons and therefore qualify as educational purposes. Customary work activities of employees of a school or library are presumed to fall under the definition of education purposes.

31. 31 2. Form 470: Starting the Application Process

32. 32 Prepare For The E-rate Cycle Technology Plan MUST be Written Existing network structure, both telecommunications and data Expected growth Number of classrooms and computers with phone/internet access National School Lunch Program (NSLP) data for discount percentage Ensure Children's Internet Protection Act (CIPA) Compliance, implemented, board approval.

33. 33 Manage the Cycle - Teamwork Authorized signer ( Legally Authorized Signer ) Designated contact person (Will receive E-rate calls) Organize paper trail –Written Technology Plan –Assessment of existing Contracts, with signatures and dates (expiring contracts, etc) –Prior years submitted applications –Correspondence from SLD, Service Providers, etc. –All bids received and evaluation documents –Calendar of Deadlines

34. 34 2. Form 470

35. 35 Going On-line Web site http://www.usac.org/sl/

36. 36 Form 470 – Contract Issues Block 2, Item 7 – Summary Description of Needs or Services Requested –Tariffed or Month-to-Month services –Services for which a new written contract is sought Multi-year and/or a contract featuring voluntary extensions Should also state in Item 13

37. 37 Form 470 Block 2, Items 8 – 9 –Describe services you desire from Eligible Services List Must fill this area out even if you have an RFP –Allows for service provider to decide if they qualify to bid –Form 470 could be considered invalid without this information

38. 38 Submit and Certify Form 470 Once the Form 470 is submitted you must 1.Certify online using a PIN, or 2.Print the certification page sign and mail this form ASAP-” certified mail” Print the Form 470 for your records, and note the Allowable Contract Date (ACD) –Also provided in the Receipt Acknowledgement Letter (RAL)

39. 39 Form 470 Reminders Allow adequate time for the following to be completed: –Do your form 470 NOW – Do not wait –Competitive Bidding – minimum of 28 days before contract signing –Local Procurement –Board Approval –Signing Contracts CALNET 2 ATO’s CMAS - Letter of Intent (LOI) Understand –Your existing services –Products and services you will need in the coming year Identify E-rate category for each product and service, P1 or P2

40. 40 Form 470 DO’s and DON’Ts From SLD’s Tip Sheets DO list your requested services on your Form 470 — and your RFP if you have one. DO list your requested services in the correct categories of service (Telecommunications, Internet Access, Internal Connections, or Basic Maintenance of Internal Connections). DO mark the correct boxes in Block 2 for multi-year contracts and/or voluntary extensions. DO certify your Form 470 prior to the close of the Form 471 application window. DON’T allow a service provider that may bid on your services to fill out your Form 470. DON’T wait until the Form 471 window opens to file your Form 470.

41. 41 Receipt Notification Letter (RNL) GOLDEN Opportunity to review application and correct minor errors http://www.universalservice.org/_res/documents/ sl/pdf/sampleletters/470RNL.acc.pdfhttp://www.universalservice.org/_res/documents/ sl/pdf/sampleletters/470RNL.acc.pdf

42. 42 3. Competitive Bidding

43. 43 Cornerstone of E-Rate All expiring and new contracts must be competitively bid to receive E-rate funding Form 470 starts the bidding process with a minimum of 28 days to receive bids Must respond to ALL vendors –If you choose not to, you MUST have a good reason, ie Spam

44. 44 Competitive Bidding and Program Compliance http://www.sl.universalservice.org/reference/Be stPractices.asphttp://www.sl.universalservice.org/reference/Be stPractices.asp –Keep copies of all bids, winning and losing –Documentation on the award process and bid evaluation criteria for your award –Complete copies of all related contracts FOLLOW LOCAL PROCUREMENT POLICIES

45. 45 Program Compliance Best Practice: use standard evaluation process for all bids. Keep evaluation documentation for each bid. If you get NO bids – document this for audit purposes –Same is true if you get only ONE bid You may need to be proactive in soliciting for bids

46. 46 Evaluation Criteria Price must be the most heavily weighted factor Can choose most responsive and responsible response, but must DOCUMENT the choice and process Have District official SIGN and DATE the completed rubric as acknowledgement

47. 47 Vendor AVendor B RawWeightedRawWeighted Selection Criteria Weight* (%) Score**Score*** Score Prices/Charges40%10.420.8 Understanding of Needs15%20.310.15 Prior E-Rate Experience10%20.210.1 Prior District/Service Prov experience 10%20.210.1 Completeness of Response15%20.310.15 References10%20.210.1 Overall Ranking100%1.61.4 SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE

48. 48 CALNET 1 to CALNET 2 State Posted Form 470 267290000544188 2005,Sept 16 th –Includes Telecommunications Services –Did NOT Include ISP or Internal Connections –CALNET 2 Contract was signed on January 30 th, 2007 (State Master Contract) –CALNET 2: http://www.dts.ca.gov/stnd/calnet- II/calnetII.asp http://www.dts.ca.gov/stnd/calnet- II/calnetII.asp RFP: http://www.dts.ca.gov/stnd/calnet-II/revised-calnetII- rfp.asphttp://www.dts.ca.gov/stnd/calnet-II/revised-calnetII- rfp.asp May wish to post your own form 470 for all services you will apply for (More details in the intermediate/advance training see additional hand-outs) Three Signatures are required on a CALNET 2 contract

49. 49 Form 470 – Multi-Year Contracts You may not need to file Form 470 every year if: –The language on the Form 470/RFP covered all services on the contract AND –The applicant indicated on the Form 470 that a contract was being sought AND –The applicant indicated on the Form 470/RFP that a multi-year contract was being sought (perhaps w/voluntary extensions) –The Form 471 had a multi-year contract

50. 50 Competitive Bidding Reminders DO ensure a fair and open competitive bidding process. All service providers must be treated equally and cannot be given biased or privileged knowledge of the bid. DO select the most cost-effective service provider, with price as the primary factor. DO keep ALL records relating to the bid evaluation process (correspondence with potential vendors, winning and losing bids, worksheets, evaluation criteria, contract, etc.). Note in a memo if one (or no) bids are received. DO remember that contracts must be signed and dated by the applicant and service provider before filing the Form 471. DON’T sign a contract until after the Form 470 has been posted for 28 days.

51. 51 CONTRACT REMINDERS Contract Reviews: Do not wait until the last minute –Leave time for board approval and signatures Signing Contracts: 3 signatures/dates (DGS, Applicant, Service Provider) required for CALNET 2 Contracts “ATO” Other contracts may only require 2 signatures/dates

52. 52 4. Form 471: Selecting your Vendors

53. 53

54. 54 Form 471 – Your application for Funds Specific information on services, service providers selected, and contracts Discount calculation information Must be filed every funding year Contains certifications of compliance Includes one or more funding requests This is your actual funding request –Services Selected

55. 55 Online Demonstration of Form 471 http://www.universalservice.org/sl/

56. 56 Form 471 Deadline Best Practice: –File Online – Do not combine Priority 1 and Priority 2 services on the same Form 471 –Submit BEFORE close of window –Certify BEFORE close of window Online if using PIN By trackable mail if you do not use your PIN ** Bishop Perry Order – 15 day grace period for certifications made after the deadline http://www.usac.org/_res/documents/sl/pdf/List-of-Correctable- Ministerial-and-Clerical-Errors.pdf http://www.usac.org/_res/documents/sl/pdf/List-of-Correctable- Ministerial-and-Clerical-Errors.pdf

57. 57 RAL Process Applicants should carefully review the Form 471 RAL and must notify USAC of any data entry errors within three weeks of the postmark date of the RAL. http://www.usac.org/_res/documents/sl/pdf/samplel etters/471RAL.pdf

58. 58 Item 21 Attachments Used to prove your request –Substantiating documentation that proves the pre-discount cost of services or products –Should be clear and concise Samples available on USAC website –http://www.sl.universalservice.org/reference/Form471ite m21Attachments.asphttp://www.sl.universalservice.org/reference/Form471ite m21Attachments.asp

59. 59 Item 21 Attachment Identify and remove ineligible costs Work with service provider(s) to create your Item 21 attachment (s) Include your Item 21 with your application Ensure that your Item 21 and Form 471 totals match

60. 60 Recurring vs. Non Recurring Costs Separate Recurring from Non-recurring costs in Block 5 of the Form 471 –Services for recurring costs must ALWAYS be received by June 30 –Services for non-recurring costs must be received by September 30 following the Funding year (deadline can be extended for certain circumstances)

61. 61 Missed deadline? Form 471 is not submitted before the close of “the window” or is not certified within the grace period: –The application will not be considered for funding

62. 62 5. PIA (Program Integrity Assurance) Review

63. 63 Program Integrity Assurance (PIA) Applications are reviewed for compliance with program rules concerning areas such as: –Properly executed contracts –Discount calculation –Establishing Form 470 –Eligibility of services being requested –Eligibility of entities requesting discounted services –Proper completion of all of blocks/item 21

64. 64 Item 21 and PIA Read PIA carefully; do not ignore it or it will be denied 15 days to respond. Don’t wait till the last day! Take action! Involve Service Providers when possible Description of 30% Rule –If 30% or more of the dollar amount of the request in Form 471 Block 5 Item 23K is for ineligible services (including services for ineligible entities or uses), USAC will deny the entire Block 5 funding request, even if eligible components are part of the request. http://www.universalservice.org/sl/applicants/step07/funding- requests.aspx http://www.universalservice.org/sl/applicants/step07/funding- requests.aspx

65. 65 Item 21 and PIA Opportunity to correct – new to Funding Year 2007 –Agree with the reviewer’s findings –Provide different cost allocation based on “tangible criteria” –Question reviewer’s eligibility assessment of product – 3 rd party supporting documentation required –Split product/amount to different FRN

66. 66 Be Responsive Respond promptly, answering questions in their entirety (you are given 15 days initially) Document communication with PIA, e-mail is preferred (acknowledgement of receipt) Ask for more time if you need it –May delay your application Don’t assume that Reviewer has your original Item 21 attachment The PIA person can help clarify their questions Establish a working relationship Contact your service provider immediately when you need response information from them

67. 67 6. Funding Commitment

68. 68 What Happens After PIA Review? A Decision – Funding Commitment Decision Letter (FCDL) –Funded –Not Funded –As Yet Unfunded (Priority 2 requests) –Cancelled IMPORTANT – Check all entries in the FCDL carefully to make sure there are not data entry errors.

69. 69 Funding Commitment Decision Letter Should be your “trigger” to file subsequent forms both for USAC and Service Providers Starts deadline clock for appeal on denial(s) – 60 Days

70. 70 7. Form 486 Receipt of Services Confirmation

71. 71 Purpose of 486 Notifies USAC that services have started or are scheduled to start and invoices can be paid Certifies that Tech Plan is approved and meets program requirements Certifies the status of Children’s Internet Protection Act (CIPA) compliancy Do NOT miss the 486 deadline for your district –http://www.universalservice.org/sl/applicants/step10/form4 86-filing-information.aspxhttp://www.universalservice.org/sl/applicants/step10/form4 86-filing-information.aspx

72. 72 What is the deadline? Filed AFTER receipt of FCDL –Form 486 must be filed online or postmarked no later than 120 days after the Service Start Date OR 120 days after the date of the FCDL –Whichever is later –Grace period from USAC – letter giving additional 20 days to file 486 – (Alaska Gateway order) Take this letter seriously

73. 73 Missed deadline? If the Form 486 is late, your Service Start Date will be adjusted to 120 days prior to the online submission or 120 days prior to the postmark. WILL affect telecommunications and internet access –Funding will more than likely be reduced MAY affect internal connections –Depends on installation date compared to service start date

74. 74 Form 486 Notification Letter (486NL) Letter received after filing of Form 486 –Verify that ALL FRNs are on letter –Verify service start dates for each FRN USAC is now ready to begin receiving invoices for payment on these FRNs –Form 472 – filed by Applicant OR –Form 474 – filed by Service Provider

75. 75 8. Invoicing - “Getting the Money” Form 472 – BEAR Form 474 – SPI

76. 76 Receipt of Funds One of two ways: –Applicant pays entire bill up-front and gets reimbursed Form 472, or BEAR – filed by Applicant –Service Provider applies discounts to bills and submits to USAC for reimbursement Form 474, or SPI – filed by Service Provider –Note: Telecommunications that are eligible for CTF Services must use SPI process –You can not file BOTH a BEAR and SPI on the same FRN. You must choose

77. 77 Form 472 Once form is filled out, it must be signed by –Applicant –Service Provider Form is then mailed to SLD –SLD reviews the form –BEAR Notification is sent to both Applicant and Service Provider From the date Service Provider receives funds from USAC, he has 20 days to pay Applicant.

78. 78 Form 474 - SPI Used by Service Providers –Puts discount on the bill –Applicant pays only their non-discounted portion –Service provider Forms such as “Grid” and “Data Gathering Form” Every service provider has their own process Follow up with Service Provider to ensure receipt of funds PLEASE return GRIDS to Service Providers PROMPTLY

79. 79Reminders After Posting the Form 470 –WAIT AT LEAST 29 DAYS BEFORE: Selecting a service provider Signing a contract Signing and dating the Form 471 Submitting the Form 471 MUST OCCUR IN THIS ORDER Both Applicant and Service Provider must sign and date all contracts. Work with Telecom to consolidate their bills Hint: Form 471 must be filed before end of window

80. 80 Form 471 Do’s and Don’ts From SLD’s Tip Sheet DO verify that services ordered match the category requested on the correct Form 470. DO file separate Form 471 applications for Priority 1 services and Priority 2 services. DO read the Eligible Services List and request discounts only on eligible services. DO complete your Item 21 Attachment and include the pre-discount prices of the services. DO split out requests of questionable eligibility into separate Funding Request Numbers (FRNs). DO check your math. The Form 471 and the Item 21 attachment totals should match. DO file electronically and DO certify online before the close of the window. DO keep a record of postmark or electronic submission.

81. 81Reminders Print and retain copies of everything Keep E-Rate files organized Create YOUR OWN timeline of E-Rate deadlines –opening and closing of the Form 471 –Form 486 deadline based on FCDL Be aware of timelines and adhere to them –Not all dates are set in stone Share this information with others at your site

82. 82 Contact Information State Library: Rushton Brandis, (916) 653-5471, rbrandis@Library.ca.gov rbrandis@Library.ca.gov CDE: Patrick McMenamin, (916) 322-5894, pmcmenam@cde.gov pmcmenam@cde.gov CDE: Tech Plans: Larry Hiuga, (916) 327-4629, lhiuga@cde.ca.gov K-12 HSN/Butte COE: Russ Selken, 530-532-5678rselken@bcoe.orgrselken@bcoe.org