Page 5 - E-Rate 2020-21 Workbook

How Does the E-Rate Program Work?

How does the program work?
Special Rules
E-Rate
FCC Form 470 and optional RFP—Competitive Bidding Period:
Filing of FCC Form 470 starts the mandatory 28-day period for ac- Assistance TRANSFERABILITY. E-rate equip-
Category 1 cepting proposals based on the applicant’s (school/library) request 1. Register with the FCC: ment must be used at the particu-
Services needed to support for proposal (RFP). Kellogg & Sovereign® Each entity must have a FCC registration number: www.fcc.gov lar location, for the specified pur-
broadband connectivity to FCC Form 471: “Services Ordered and Certification” form. Consulting’s team of pose for a period of three years.
schools and libraries. trusted and experienced E- 2. Comply with the Children’s Internet Protection Act (CIPA): Equipment may be transferred
The FCC sets the Form 471 filing window closing date which is usual-
Rate professionals are Applicants must have a technology protection measure and Internet policy that addresses after 3 years (exception if school
ly in March prior to the funding year for discounts beginning in July. available to assist your
Examples: specific issues regarding minors. The applicant MUST discuss CIPA at a public hearing or or library is closed) and disposed
The Form 471 is the application for funding. Forms 471 received school or library with every
Internet Access, DSL, ATM, after the filing deadline are designated as “Out of Window.” step of the process. From board meeting. They also must conduct programs that educate minors about appropriate of or sold after 5 years.
Fiber, Ethernet, Cable initial planning and the online behavior, including interacting with other individuals on social networking websites
Modem, T-1, Wireless Funding Commitment Decision Letter (FCDL): USAC issues the FCDL competitive bidding ASSET REGISTER. Recipients of E-
services (microwave) to announce its decisions on funding requests. process to funding and in chat rooms and, cyber bullying awareness and response. www.kelloggllc.com/ rate funding for Internal connec-
FCC Form 486: “Receipt of Service Confirmation Form.” Notifies approval and receipt of E- cipa.aspx tions MUST maintain asset and
rate funding.
No Longer Eligible: USAC that services have started and certifies that the applicant is in 3. Secure resources to support the use of the inventory records of equipment
Web hosting, voice mail, compliance with the Children’s Internet Protection Act (CIPA). KSLLC works with you to services and equipment provided by E-rate purchased with E-rate discounts
email, paging, data plans, text Consortiums certify receipt of Forms 479 (certification of compli- ensure the schools and funding: sufficient to verify the actual loca-
messaging, telephone ance with CIPA) from their members. libraries you represent
components receive every last dollar. Applicants are responsible for providing addi- tion of the equipment for a peri-
FCC Forms 472 and 473: od of ten years after purchase.
tional resources, such as end-user equipment,
After services are received, USAC is invoiced for the discounted Thank you in advance for
Category 2 hardware and software, professional develop- TEN YEAR RECORD RETENTION
funds by either the applicant (Form 472) or by the service provider your trust in our firm. We
Discounts for the internal (Form 473) who files on behalf of the applicant. will take excellent care of ment, electrical capacity, and the other ele- REQUIREMENT. Both applicants
connections equipment or your E-rate filing needs. ments necessary to realize the objectives of E-rate supported connectivity. and service providers must retain
services necessary to bring FCC Form 498: Both applicants and
broadband into, and provide service providers must complete FCC P. 580.332.1444 records related to E-rate for a
it throughout, schools and Form 498 to register their organiza- erate@kelloggllc.com period of ten years from the last
libraries. www.kelloggllc.com date of service delivered for a
tions with USAC. Since all payments How Discounts are Collected
Connections are limited to: are made by EFT, participants must particular funding year.
 broadband connections provide secure banking information. The applicant (school or library) can
used for educational CATEGORY 2 BUDGET. Each
purposes on a school choose to either have their service school or library entity may re-
campus or library branch provider apply discounts to bills ceive C2 funding each year up to
(Service Provider Invoice “SPI” meth-
 basic maintenance of their budgeted amount less funds
these connections od) or the applicant can pay their bill spent in the prior 4 years.
in full then apply for reimbursement
 services that manage Schools receive $159.67/student
and operate owned or (Billed Entity Applicant Reimburse-
leased broadband ment “BEAR” method). adjusted for inflation each year.
internal connections
MANAGED INTERNAL BROAD-
SPI method: the service provider BAND SERVICES (MIBS) provided
Examples: will apply credits to the applicant’s by a third party for the operation,
bill and invoice USAC for the E-rate
Wireless access points,
portion. management and/or monitoring
cabling, caching, firewalls,
of eligible broadband internal
switches, routers, UPS, racks
supporting eligible BEAR method: Payments are re- connections components are
components, and WLAN mitted by USAC via electronic funds eligible as a Category 2 service.
controllers transfer directly to the applicant.
USAC Payment USAC Payment
via EFT directly via EFT directly FCC Form 498 must be completed
to Applicant to Service Provider
and certified online by the applicant

(one time set up) to provide USAC
with banking information.
®
© May, 2019 Kellogg & Sovereign Consulting, LLC © May, 2019 Kellogg & Sovereign Consulting, LLC
®