E-rate for California Intermediate/Advanced Applicants

1. E-rate for CaliforniaIntermediate/Advanced Applicants

2. Agenda Role of CDE and State Library E-rate Technology Planning Discount Calculations Eligible Services (interconnected VOIP) FCC Form 470 Competitive Bidding FCC Form 471 Myths & Misconceptions- CIPA Gifting Rules Form 500 Audits CALNET 3 Appendices California Teleconnect Fund (CTF) Discount Calculations Eligible Services Invoice Reconciliation

3. The role of CA Dept of Ed and State Library General Information about E-rate • CDE & State Library have no statutory authority to administer the federal E-rate program • CDE & State Library only provide general information about the E-rate program including: training and outreach, reference materials, and other publicly available SLD/USAC resources

4. Intermediate/Advanced Presentation E-rate Technology Planning

5. E-rate Process

6. Technology Plan Review • FCC rules require an “approved” technology plan when receiving E-rate discounts for priority 2 services. • Find your public charter, district or COE Tech Plan status at: http://www.cde.ca.gov/ls/et/rs/ap/county.asp • Tech Plan must be “written” prior to posting Form 470. • DOCUMENT the existence of this “Written Plan” – i.e., Letter/E-mail from Cabinet, screen print of file name and date, and physical copy of plan. • Must cover all 12 months of the funding year (July 1 – June 30). • E-rate only plans should not cover more than 3 years; EETT tech plans that meet E-rate requirements can cover 5 years with progress review during 3rd year. • Tech plans must include all services (both current and future) for which E-rate discounts are sought. • Must be approved by a “Certified Technology Plan Approver” See the Technology Plan approver locator tool on the USAC website: http://www.sl.universalservice.org/reference/tech/default.asp 10. Leverage the technology expertise of your CTAP regional assistance: CTAP: http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp

7. 4 Required Elements of a Technology Plan Used for E-rate • Clear statement of goals and realistic strategy for using telecommunications and information technology to improve education or library services. • Professional Development strategy to ensure staff understands how to use technologies to improve education or library services • Needs Assessment of telecommunication services, hardware, software, and other services that will be needed to improve education/library services • Evaluation process to monitor progress towards goals and allows for mid-course corrections in response to new developments as they arise Budget:No longer required in the tech plan but USAC will likely request this information during PIA or other application reviews. Best practice would be to put a budget with appropriate fund sources highlighted in your E-rate related documentation files.

8. The technology plans may be submitted for approval anytime but no later than: • Cycle A: November 30, 2012 • Cycle B: May 31, 2013 • EETT Tech Plan Cycle Dates • Technology Planning

9. 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 only plans must be approved by a “USAC Certified Technology Plan Approver” see USAC link: http://www.sl.universalservice.org/reference/tech/default.asp • Tech plans must be submitted to your CTAP region for approval: http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp • Must include all four required elements (as noted previously) regardless of the type of plan being used (E-rate only or Long Form tech plan) • “Must Do” Reminders • Technology Planning

10. Service Providers may notact as technology plan approvers, write/create, or assist in the tech plan in any capacity • 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 • Additional reminders • Technology Planning

11. CDE/E-rate: Larry Hiuga, E-rate@cde.ca.gov, 916-327-4629 • CDE/Tech Plans: Doris Stephen, dstephen@cde.ca.gov, 916-324-9943 • CTAP: http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp • CTAP Tech Plan Builder: http://myctap.org/index.php/techplan/tpb • Libraries: RushtonBrandis, rushbrandis@library.ca.gov , 916-653-5471 • Help • Technology Planning

12. Questions?

13. Intermediate/Advanced Presentation Discounts

14. General information Discounts • How large are the discounts on eligible products and services? • Discounts are 20-90 percent of eligible costs • Discount level for a school or library depends on: • Percentage of students who are eligible for National School Lunch Program (NSLP) in • (for a school) the school • (for a library) the school district in which the library is located • Urban or rural location of the school or library

15. Discount Matrix Discounts

16. CNIPS Discounts – sample report

17. CARS Discounts – sample report

18. 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 • Raw data files located at: • http://www.cde.ca.gov/ds/sh/cw/filesafdc.asp • Schools/School Districts • Calculating Your Discount

19. Calculate the total percentage of students eligible for NSLP in the school district in which the building is located • Use the urban/rural status of the county or census tract in which the library outlet is located • Individual Libraries • Calculating Your Discount Library Systems • Calculate the E-rate discount for each library outlet • Calculate the simple average of the library outlets • Add discounts for each outlet and divide by total number of outlets

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 public right-of-way is crossed • NIFs that serve multiple schools/libraries, and without classrooms or public areas, get shared discount (aka weighted average) 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 • Non-Instructional Facilities (NIFs) • Calculating Your Discount

21. School under construction • Population is known = use that data • Population is unknown = use district shared discount • Library under construction • Same as regular individual library outlet • Private/Charter Schools • Population is known: use that data • Population is unknown: apply for 20% but can amend with actual figures if obtained later • New School Construction • Calculating Your Discount

22. Allow for socio-economic survey to be used to establish reimbursement rate and reduce paperwork for schools • Applicant uses approved NSLP eligibility percentage to calculate discount rate • Schools submit base-year documentation to support discount rate • If extension is granted, applicants can submit extension approval letter to support discount rate • Provisions 1, 2, and 3 • National School Lunch Program

23. All Head Start students meet free lunch guidelines under NSLP • Head Start entities automatically qualify for 90% discount • Home based Head Start is not eligible • Early Head Start (EHS) is not eligible • If facility is shared with Head Start students and Early Head Start students a cost allocation must be done to account for the ineligible students • Head Start • National School Lunch Program

24. Follow instructions for the creation of certification letter from entity (http://www.k12hsn.org/files/erate/training_material/2012/Entity_and_Discount_Validation_Template.doc • http://www.k12hsn.org/programs/erate/training_materials.php • Send E-mail certification letter(using template with completed information from the above web link) and USAC PIA review e-mail to e-rate@cde.ca.gov for validation • Validation e-mail from CDE will be created and sent to USAC within 48 hours if not sooner. • If USAC’s PIA Reviewer Questions Entity and/or Discount %, Request Validation Letter from CDE • Validation Letter Process

25. Questions?

26. Intermediate/Advanced Eligible Services List (ESL)

27. Priority 1 (P1): funded first • Telecommunications Services • Internet Access • Telecommunications • Priority 2 (P2): funding starts with neediest applicants • Internal Connections • Basic Maintenance of Internal Connections • Categories of Service • Eligible Services

28. Eligible Services List (ESL) Order • Format changes for Priority One services • Reduced burdens for the FCC Form 470 • Priority One (P1) • Priority Two (P2) • Miscellaneous • Dark fiber • Equipment transfers, disposals, and trade-ins • Areas of Review • Eligible Services

29. No changes to overall eligibility of products and services • Format changes to the ESL • Priority One services are consolidated into one list • New information about service category selection for Priority One services on FCC Form 470 • Overview • Eligible Services List Order

30. Priority One services are no longer separated by regulatory category (Telecommunications Services, Telecommunications, and Internet Access) • Consolidation is to make ESL more user-friendly • There are no changes to FCC rules and requirements • Consolidated list includes services that can be requested as Telecom Services or Internet Access on the FCC Form 471 (e.g., voice mail, interconnected VoIP, fiber) depending on the type of service provider • FY 2012 ESL - Consolidated List of P1 Services • Eligible Services List Order

31. FCC Form 470 Guidance • Sufficient for applicants to check off one Priority One service category (Telecom Services or Internet Access) • Description of the services requested or RFP must contain enough detail for service providers to identify services and formulate bids (no change from current requirement) • Service providers should review entire Priority One section • ESL Order – Other highlights • Eligible Services List Order

32. FCC Form 471 Guidance • Applicants must continue to select the correct category of service on the FCC Form 471 for regulatory purposes such as: • Telecom Services must be provided by eligible telecom carriers • Requests for Internet Access must be CIPA compliant • Once an applicant has selected a vendor, they may consult with the vendor to determine which service category to check in Block 5 of the FCC Form 471 • ESL Order – Other highlights • Eligible Services List Order

33. Eligible Services Priority One

34. Local and long distance service • Cellular • Digital Transmission Services • DSL • T1, DS1, DS3 • Satellite • PRI • For more details refer to Beginners Presentation at http://www.k12hsn.org/programs/erate/training_materials.php • Telecommunications Services • Priority One

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

36. Support for IA includes charges to access the Internet and costs for the conduit to the Internet • For wireless IA make the distinction if this is cellular (i.e. mobile) or not and if it is on campus only. • Other eligible Internet Access services include: • E-mail service • Wireless Internet access • Interconnected VoIP • Web hosting • Internet Access (IA) • Priority One

37. Costs for Internet content • Subscription services such as monthly charges for on-line magazine subscriptions • Internet2 membership dues • Website creation fees • Web-based curriculum software • Software, services or systems used to create or edit Internet content • Off campus  use of wireless IA is not eligible • Not Eligible as Internet Access • Priority One

38. Eligible Services Priority Two

39. Support for equipment and cabling onsite that transport info 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. Internal Connections • Priority Two

41. Support for basic maintenance of eligible internal connections • Such as: • Repair and upkeep of hardware • Wire and cable maintenance • Basic tech support • Configuration changes • Basic Maintenance of Internal Connections (BMIC) • Priority Two

42. Agreements or contracts must state the eligible components covered, make, model, and location • Service must be delivered between July 1-June 30 • Two-in-Five Rule does not apply to BMIC • Basic Maintenance of Internal Connections • Priority Two

43. Standard manufacturer warranties of no more than three years remain eligible • If there is a cost associated with the warranty, then the warranty is not eligible • Support for BMIC is limited to actual work performed under the contract • BMIC Updated Guidance • Priority Two

44. Applicants may make estimates based on: • Hours per year of maintenance • History of needed repairs and upkeep and • 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

45. 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 and • Online and telephone based technical support • BMIC Updated Guidance • Priority Two

46. Are free VoIP handsets permissible if provided to all customers? • –DA 10-2355 states, “For example, many cell phones are free or available to the general public at a discounted price with the purchase of a two-year service contract. Schools and libraries are free to take advantage of these deals, without cost allocation, but cannot accept other equipment with service arrangements that are not otherwise available to some segment of the public or class of users.” • FCC still determining eligibility of handsets. • Case by case basis • Open Items for USAC/FCC • Eligible Services

47. Cloud Services: • You may see CLOUD type services being offered as part of a web hosting (bundled internet), etc. At USAC training in LA, CLOUD services was stated as being ineligible in general. There was no specific official guidance at this point. USAC will work with FCC for an official position • Open Items for USAC/FCC • Eligible Services

48. Eligible Services • -Ineligible charges related to web hosting • Costs attributable to the creation or modification of information, or design such as a web site creation fee or content maintenance fees. • Content supplied as part of a web hosting service created by third-party vendors or the web hosting service provider itself and any features or software involving data input or • Retrieval other than the provision of applicant-created content for an educational purpose (e.g. teacher web pages or blogs). • The parts of a web hosting service including, but not limited to, any portion of tools, capabilities or integration with other systems such as: Student Information Systems (SIS); • Databases; student attendance or grades or grade management; course scheduling; tests or testing systems; on-line/interactive education systems; and learning/education • Management systems. (An eligible web hosting service will also not include support for the applications necessary to run online classes or collaborative meetings).

49. Intermediate/Advanced FCC Form 470

50. Form Summary FCC Form 470 • Indicates the services and categories of service which entities are seeking. • Must be based on tech plan for Priority 2 services. • Must be posted for at least 28 days. • Indicates if you are planning/have issued an RFP. • Indicates any special requirements and/or disqualification factors. • Indicates who will be receiving the services.