ARKANSAS

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ARKANSAS
Work Group (AEWG)
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How do YOU get E-rate ?

• Two choices
• Discounts on bills
• OR
• Reimbursement process
• Must select one or the other for entire year
• Some vendors cannot do discounted bills yet
• After receiving FCDL, call vendor to discuss
  which method you desire
• Or state upfront in contract

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Starting Services / 486Applicants

• Form 486
• Notifies USAC that services have started and
  invoices can be paid
• Certifies that Tech Plan (if required) meets
  program requirements.
• Certifies the status under Childrens Internet
  Protection Act (CIPA).
• Lead members of consortia ARE required to collect
  CIPA certifications from consortium members on a
  separate form (Form 479).

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Starting Services / 486Applicants

• Form 486 Deadline
• 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.
• If the Form 486 is late, the date 120 days before
  the Form 486 online filing or postmark date will
  become the start date for discounted services and
  funding may be reduced.

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Discounted Billing Method

• Discounts appear on applicants bill
• Service providers submit Form 474
• the Service Provider Invoice Form (SPIF)
• Provider should get reimbursed by SL within 60
  days from date of submission
• Applicants do nothing except make sure they are
  getting discounts they deserve on bills.
• Do the math!

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Starting Services / 486Both

• Form 486 Service Start Date
• USAC may adjust the Service Start Date in order
  to comply with program rules
• Form 486 filed after the deadline
• Technology plan approval issues
• CIPA compliance issues
• Conflict with Form 470 allowable contract date
• The adjusted date is the earliest date that
  discounted services may be provided.
• Invoices for services provided before that date
  will not be paid.

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Starting Services / 486Both

• Form 486 Service Start Date
• Cannot be before July 1 of the funding year.
• Can be as early as the date that the service
  provider ships the product to the applicant or
  earlier, depending on the arrangements between
  the applicant and the service provider and/or
  the terms of the contract.

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Starting Services / 486 Both

• Form 486 Notification Letter (486NL)
• Cover page of important reminders
• Provides confirmation that a Form 486 has been
  successfully data entered.
• Reports Service Start Date or Adjusted Service
  Start Date
• USAC will accept invoices from applicants (Form
  472) or service providers (Form 474) once the
  Form 486 is certified.

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Starting Services / 486Applicant Tips

• VERIFY THE SERVICE START DATE YOU REPORT.
• Also verify any adjustment on the 486NL.
• Work with your service provider to file your Form
  486 so that neither you nor the service provider
  is disadvantaged.
• Initiate an Invoice Check if you want to monitor
  the invoices (Forms 474) your service provider
  sends to USAC.

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Starting Services / 486Service Provider Tips

• VERIFY THE (ADJUSTED) SERVICE START DATE ON THE
  486NL.
• Invoices dated before that date will not be paid.
• Invoices for services provided before that date
  will not be paid.
• Work with your applicant to file your Form 486 so
  that neither you nor the applicant is
  disadvantaged.

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Starting ServicesService Providers

• Form 473 Service Provider Annual Certification
  (SPAC) Form
• Service providers are required to file on an
  annual basis.
• USAC will only pay invoices for a funding year if
  a SPAC is on file for that year.
• SPACs are required for both BEARs and SPIs.
• SPIN Search Tool lists funding years for which a
  SPAC is on file.

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Starting Services / 486Applicants

• Childrens Internet Protection Act
• Applicants must certify compliance with
  requirements
• Internet safety policy
• Public notice or meeting
• Technology protection measure (filter)
• CIPA does not apply to Telecommuni-cations
  Services, but applicant must still certify that
  it receives only those services

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Reimbursement Method

• Applicant pays bill in full
• Applicant submits Form 472 BEAR Form for
  reimbursement
• Quarterly, semi-annually, or at end of year
• Complete one BEAR for each SPIN
• Must contain SPIN signature on last page
• Send or fax to SPIN
• SPIN will mail or fax back
• ATT has signed copy on web www.att.com/erate

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Reimbursement Method, cont.

• SL approves BEAR and sends approval letter to
  SPIN and copy of letter to applicant
• SL then sends check to SPIN
• SPIN sends check to applicant within 20 days
• Dont let SPIN simply credit your account if you
  actually want a check.
• If they do credit account, ask them to issue you
  a check for the amount of credit.
• Call USAC if
• You dont get a check in a timely manner after
  receiving approval letter
• SPIN takes too long to sign BEAR

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Which is Better Discounts or
BEARs?

• Applicants are split
• Discounts
• Easy for applicant
• Tough for most vendors
• Be careful on major
• wiring projects

• BEARs
• Easy for vendors
• One more form for applicants
• Provides greater control over payment schedule
  and quality of work
• Cannot forget to file for reimbursement

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CIPA

• Schools and libraries
• Must hold a public hearing and then adopt
  Internet Safety Policy that addresses specified
  issues
• Schools
• Must operate a technology protection measure on
  computers that access the Internet
• Must block or filter visual depictions that are
  obscene, child pornography or harmful to minors
• Filtering software, per se, not eligible for
  support

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Develop a Technology Plan
After Form 470 is posted, wait at least 28 days
before negotiating a contract or agreement
Program Integrity Assurance review
Receive discounts on bills or reimbursement by
check or credit
Problem Resolution (manual filing)
Form 470 Services Requested
Form 471 Services Ordered
Form 486 Services Confirmed
Applicant
AP 486 Ltr
RNL
RAL
FCDL AP Ltr
(AP copy)
BEAR Approval Ltr
Form 472 BEAR Form
FCDL SP Ltr
SP 486 Ltr
OR
Form 474 SP Invoice Form
Service Provider
Form 498 Apply for SPIN
Form 473 Annual Cert
(if not done previously)
Check filed Forms 470, contact applicants and
respond with bids
Negotiate a contract or agreement
Assist with Program Integrity Assurance review
BEAR or SPIF invoice review (correct errors /
resubmit if needed)
Receive USAC remittance statement and payment
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STARTING SERVICES

• Obligation to Pay Non-discount Share
• Applicants are required to pay their share of the
  cost (the non-discount portion or share) this
  share cannot be donated, forgiven or ignored.
• Service providers cannot waive or credit the
  applicants share.
• Offers to reduce price must be incorporated into
  the total pre-discount amount.
• Service provider must bill the applicant for
  non-discount share of services.

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STARTING SERVICES

• Service delivery deadlines
• Recurring Services (June 30)
• Non-recurring Services (September 30)
• Deadline automatically extended to September 30
  of the following year for FCDLs, service
  substitution approvals, and SPIN change approvals
  dated on or after March 1 of the funding year.
• Applicants can also request extensions for
  specific reasons involving difficulties with
  delivery of services by service provider.

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INVOICING / 472

• Invoicing deadlines
• Form 472 or 474 must be filed online or
  postmarked no later than
• 120 days after the last date to receive service
  OR
• 120 days after the date of the 486 NL
• whichever is later.
• If the invoice is late, payment will be denied.
• Extensions of invoicing deadlines may be
  requested under certain conditions.

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Invoicing / 472 or 474 Both

• Quarterly Disbursement Report
• Sent only to applicants
• Authorized person
• Billed Entity (BEN) address.
• Contains all invoice (Form 472 and Form 474)
  payment authorization amounts for the Billed
  Entity for all funding years approved during that
  quarter.

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AppealsBoth

• USAC decisions can be appealed to USAC or to the
  FCC.
• Generally, appeal first to USAC.
• Can appeal to the FCC if USAC does not grant the
  appeal.
• Can be filed electronically or on paper.
• Must be filed electronically or postmarked within
  60 days of the USAC decision.
• Requests for waivers of rules must be filed with
  the FCC.

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DOCUMENT RETENTION

• Remember 5-year retention requirement for all
  documents.
• Good record keeping is ESSENTIAL.
• Keep copies of EVERYTHING.
• Keep these documents with E-rate files, or
  copies, if accounting department keeps its own
  files.

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DOCUMENT RETENTION

• Keep very good records
• Ask for records if you take over job
• If necessary, keep documents of your payments
  (e.g., checks)
• Be prepared for new kinds of questions
• Review of tech plan, bid competitions,
  procurement regs, invoices and payments
• All the things you certified on your applications
• Question auditors if your understanding of rules
  is different from theirs

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E-rate as Part of Your Funding Strategy

• Assess how you are doing
• SLDs tools make it easier to compare yourself
  with other districts
• Compare yourself with peers in size and income
  level
• Are your contracted expenses in line with theirs?
• Are they doing a better job of leveraging?
• But remember To get E-rate money, you must be
  willing to spend money
• Commitments arent the only measure of success
• Are you making good use of your technologyand
  budget?

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RESOURCES

• Schools and Libraries / USAC web site
• Client Service Bureau
• Use the Submit a Question link on the web site
• Fax toll-free at 1-888-276-8736
• Telephone toll-free at 1-888-203-8100
• Form instructions

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RESOURCES

• AEWG E-rate website www.asl.lib.ar.us/arerate/ind
  ex.htm
• AR E-rate list serve
• Subscribe to e_rate_at_lists.state.ar.us
• No Subject
• Message Subscribe Erate
• Arkansas Contacts
• Becky Rains, DIS 501.682.4003 or
  becky.rains_at_arkansas.gov

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Questions?
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