Invoicing Mick Kraft

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InvoicingMick Kraft

Train-the-Trainer Workshop September 24-26,
2003 Schools Libraries Division
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Invoicing

• Invoices
• Deadlines
• Forms

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Invoicing

• Invoices
• Deadlines
• Forms

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Invoicing

• Invoices
• BEAR Filed by means of FCC Form 472
• Billed Entity Applicant Reimbursement
• Filed by Applicant
• Signed by Service Provider
• Postmark date important

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Invoicing

• Invoices
• SPI Filed by means of FCC Form 474
• Service Provider Invoice
• Filed by Service Provider
• Only allowed after Applicant has filed Form 486
  certifying start of service

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Invoicing

• Invoices
• FCC Second Order
• Choice
• Reimbursement ? BEAR
• or
• Discounts or Credits ? SPI

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Invoicing

• Invoices
• Deadlines
• Forms

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Invoicing

• Deadlines With Respect to FY2002
• Recurring - General
• Service Delivery - 7/1/02 to 6/30/03
• Form 486 - 10/29/02 or 120 days from start of
  services or 120 days from FCDL date, whichever is
  later
• Invoices 10/28/03 or 120 days after 486
  Notification Letter, whichever is later

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Invoicing

• Deadlines With Respect to FY2002
• Non-Recurring Services
• Service Delivery - 7/1/02 to 9/30/03
• Form 486 - 10/29/02 or 120 days from start of
  services or FCDL date, whichever is later
• Invoices 1/28/04 or 120 days from last date to
  receive services or 120 days after 486
  Notification letter, whichever is later

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Invoicing

• Service Delivery Periods For FY2003
• (Current Fund Year)
• Recurring
• 7/1/03 to 6/30/04
• Non-Recurring
• 7/1/03 to 9/30/04
• 7/1/03 to 9/30/05 Extended

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Invoicing

• Service Delivery Periods For FY2004
• Recurring
• 7/1/04 to 6/30/05
• Non-Recurring
• 7/1/04 to 9/30/05

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Invoicing
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Invoicing

• Helpful Hint   
•     
• Dates in contracts should allow for extended
  delivery of non-recurring services eg. 9/30/05
  -- in case that becomes necessary

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Invoicing

• Invoices
• Deadlines
• Forms

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Invoicing

• Form 486
• Which Date Do I Use?
• Earliest date for services to start for this
  funding year
• Not before July 1 of the Funding Year

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Invoicing

• The Form 486 must be postmarked no later than
• 120 calendar days after the Service Start Date
  featured on the Form 486
• OR
• 120 calendar days after the date of the Funding
  Commitment Decision Letter
• WHICHEVER IS LATER

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Invoicing

• Form 486
• Deadline Examples

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Invoicing

•  
• Note contract dates for delivery of non-recurring
  services in case that becomes necessary
• May need to inform USAC of changes to contract
  dates or service delivery dates via Form 500

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Invoicing

• Form 500
• Used to adjust certain features of FRN
• Service Start Date
• Contract Expiration Date
• Cancel FRN
• Reduce FRN

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Invoicing

• Form 500
• Used to adjust certain features of FRN
• Service Start Date cannot be used to adjust
  date prior to Adjusted Service Start Date
• ASSD found on 486 Notification Letter (CIPA)
• Contract Expiration Date does not extend
  service delivery dates

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Invoicing

• Form 500
• Service Delivery Extension request (is not Form
  500)
• If Service Delivery Extension is granted then
  file Form 500
• Not used to request Service Delivery Extension
• Only used to inform USAC of contract expiration
  date
• Invoices will not be paid for services delivered
  or installed after Contract End Date or Funding
  Year End dates

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Invoicing

• Form 500
• Cancel FRN allows funds to be recommitted to
  other eligible entities
• Reduce FRN allows funds to be recommitted to
  other eligible entities

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Invoicing

• Form 500 Helpful Hint
• Complete only one Item in block 2
• Featuring a Service Start Date AND Contract
  Expiration Date could potentially reset Adjusted
  Service Start Date

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Invoicing

• Form 473
• Service Provider Annual Certification (SPAC)
• Required for BEARs and SPIs
• ! BEAR Requirement is new to FY2002 and forward !

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Invoicing

• Invoices must be postmarked no later than
• 120 days after the last date to receive service
• OR
• 120 days after the date of the 486 Notification
  Letter
• WHICHEVER IS LATER

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Invoicing
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Invoicing

• Form 472 (BEAR)
• Updated form to be released within the year
• Optional fields for fax number and email address
  added
• Column titles on form clarified
• Recurring Services (Col 12) First Month of the
  reimbursement period covered by each line
• Non-Recurring Services (Col 13) Delivery Date
  for the reimbursement covered by each line
• Do NOT put entries in BOTH columns for the same
  FRN on the same line

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Invoicing

• Form 472 (BEAR)
• Increased time for the service provider to
  forward payments to the applicants - from 10 to
  20 days per FCC Second Order reflected
• Certifications strengthened to align with Form
  473 and in accordance with recommendations from
  FCC

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Invoicing

• Form 472 (BEAR)
• Instructions
• The instructions will be updated for the
  following
• Filing requirements clarified
• Invoice deadline information inserted
• Minimum Processing Standards  (MPS) inserted

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Invoicing

• Form 474 (SPI)
• Updated form to be released within the year
• Column titles on form clarified
• Date of the form changed

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Invoicing

• Form 474
• Instructions
• The instructions have also been updated
• Clarified the requirements
• Inserted invoice deadline information

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Invoicing

• In case of erroneous payments, payments before
  service delivered, or payments to incorrect
  provider
• Must indicate 471 number and FRN(s)
• Funds need to be returned to USAC
• Letter explaining reason for return should
  accompany payment

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Invoicing

• Send to
• USAC Returned Funds
• 135 S. LaSalle
• Department 1259
• Chicago, Illinois 60674-1259

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Dunning

• Dunning is an attempt to collect overdue funds
• Dunning is applicable if the service provider
  cashed a BEAR check but hasnt made reimbursement
  to applicant
• In most cases, USACs follow-up contact with the
  service provider results in payment by the
  service provider
• Some cases require legal action
• Applicant has to sue to recover funds
• Applicant may have claim in Bankruptcy

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Good Samaritan Process

• Applicable if BEAR has NOT yet been signed, or if
  signed, not yet paid
• Original SP may be out of business or unable to
  process BEARs
• Requires a Telecom Provider as the Good Sam

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Good Sams (contd)

• 2 step process
• Approval of request
• Special BEAR notification
• USAC recognizes that Good Sam receiving funds
  only as a pass through and not as provider of
  service

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Bankruptcy

• Usually, in Chapter 11, company continues to
  operate
• BEARs can be processed with a special agreement
• Bankruptcy courts giving credence to agreement
• USAC monitors only if company is a contributor to
  the USF

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Bankruptcy (contd)

• Chapter 7 is a liquidation of assets company is
  going out of business
• BEST solution is for successor company to pick up
  customer accounts
• Applicants should track notices from company
  about changes in name/address

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Invoicing

• ?
• ? QUESTIONS ?
• ?