SPRING 2013 IN E-RATE LAND!

E-Rate Funding Cap Increase

The FCC released its notice of inflation-adjusted increase to the E-Rate fund for July 1, 2013-June 30, 2014. Below is a table showing the history of the E-Rate funding since the Sixth Report and Order on January 3, 2011 that allows the fund to be annually indexed to inflation. 

Cap:  FY 2009 and prior years: $2,250,000,000
Cap:  FY 2010:  $2,270,250,000 (Amount of increase:  $20,250,000 (.9% inflation adjustment)
Cap:  FY 2011:  $2,290,682,250 (Amount of increase:  $20,432,250 (.9% inflation adjustment)
Cap:  FY 2012:  $2,338,786,577 (Amount of increase:  $48,104,327 (2.1% inflation adjustment)
Cap:  FY 2013:  $2,380,314,485 (Amount of increase:  $41,527,908 (1.8% inflation adjustment)

The total increase since 2010 the adjustment is a little over $130 million dollar increase since the rule change to allow indexing the cap to inflation.

TECHNOLOGY PLANS FOR JULY 1, 2013-2016

Only libraries that plan to file for Priority 2 services are required to have an approved written Technology Plan on file at the State Library. This includes libraries that file for "Internal Connections" and "Basic Maintenance of Internal Connections" reimbursement from E-rate funds.

Libraries that only file for "Basic Telephone Service" and/or "Internet Services" categories of E-rate reimbursement are not required to have a written and approved Technology Plan on file at the State Library. A technology plan is a good tool for libraries and the Missouri State Library is happy to read, request edits, and approve a technology plan from any Missouri public library. The State Library will also hold a copy in our file in event a library needs a copy of the most current approved technology plan.

E-RATE JULY 1, 2012-JUNE 30, 2013

Some libraries file for discounted telephone bills, while others file Form 472 (BEAR) forms to receive reimbursements periodically. Usually, annually or semi-annually. If a library files semi-annually, the BEAR forms are usually filed in February through April timeframe. There is no deadline on the BEAR forms, nor is there any requirement to file semi-annually, but if a library does file semi-annually, it is time to file the BEAR forms for reimbursement of the July 1, 2012 through December 31, 2013 telephone bills.

E-RATE JULY 1, 2013- JUNE 30, 2014

Since the filing window for Form 471 for July 1, 2013 through June 30-2014 is over, next, libraries will receive the Form 471 Receipt Acknowledgment Letter (RAL) in the mail from USAC.

PIA REVIEW:

The next step is Program Integrity Assurance (PIA) review. During this time, reviewers at USAC examine the Form 470, 471, and Item 21 Attachments to ensure that they are complete and error free. PIA reviewers may contact the library to verify or correct information on these forms over the next several months.

Tips for PIA contact:

• Always list the contact preference as e-mail. Print and keep all e-mail contact and documents shared with the year's paperwork for the year to which it was requested.
  
• If a PIA reviewer calls, ask for an e-mail that lists all items discussed, requested, and responses to the request so the library has clarification in writing on all agreements made by telephone.
  
• A reviewer may ask for a copy of a specific month's telephone bill from a specific company, only provide that particular bill, no additional bills and no additional telephone company bills. After reviewing the bill, the reviewer can  increase or decrease in the commitment based on the information on the bill.
• A reviewer may ask for a copy of the documentation upon which the library determined its percentage of discount to prove the discount percent source was valid. If no documentation is provided, the reviewer can change the percent to match what is available from free and reduced lunch data.

After data on the Form 471 has been verified, the filing moves to the next level-review. Progress through the review and award process can be watched by using the "View Form 471 Status" Tool. The Library's entity number is required to view the current status.

FUNDING COMMITMENTS:

The first commitments usuallly come out between mid-May and July 1, which is a wide span of time, but is dependent upon the FCC's examination of the planned commitments and potential changes in procedures between the FCC and USAC. Commitments will be released and consecutively numbered as "Wave 1", then weekly after the first wave.

Historically, many of the Missouri library telecommunications commitments will be awarded in Wave 1. Watch for commitment notices to come out from MOREnet weekly as the award season continues.

Use the Funding Commitment tool to review commitments by state or library. Instructions on how to use this tool is on the "Documents" page of Missouri's E-Rate Funding site.

FILING FOR FUNDS:

When libraries have received commitment letters, it is time to work with service providers to determine if the funds will be reimbursed after full payment (BEAR) or discounted monthly (SPI). Once that has been decided, an E-Rate Form 486 is filed.

1.Contact your telephone company if you want your funds received as discounts and they will work with you to set up discounts on your telephone bills (they will file a Service Provider Invoice (SPI) form for you and will discount the bills that you receive for the remainder of the year. OR

2. Wait until after you have paid your telephone bills tthen file the BEAR Form 472 to receive reimbursement. If you have chosen the Form 472 "BEAR" form for reimbursements, remember it is best to request your funds quarterly, semi-annually, or annually.

RETURNING FUNDS:

Form 500 is used to "reduce" the award in order to return excess funds after all invoices have been reimbursed or discounted. If you overestimated and have a significant amount left at the end of the year that you cannot collect, you can complete a Form 500 to immediately release this money back into the fund for redistribution.

Since it takes approximately 1.5 hours to fill out a Form 500, only do so if the amount you did not collect is several hundred dollars of what was awarded to your library. It will eventually roll back into the fund for redistribution in a few years.

QUESTIONS??:

Have a question about E-rate and how it applies to Missouri libraries? Contact Chris Schneider at MOREnet schneider@more.net (573) 882-8429 or Jean Morrison at the State Library Jean.Morrison@sos.mo.gov. (573) 751-0159 for assistance.