Guest Viewpoint: When applying for the e-rate, submit the right forms
By Donald Dietrich
12/24/02 - School districts across the nation are preparing to secure their piece of the 2003 e-rate pie. The government, through the Federal Communication Commission's Schools and Libraries Division (SLD), has created the e-rate mechanism to help districts obtain affordable telecommunications and Internet access. Some $2.25 billion will be available.
These funds are awarded based on discounts ranging from 20 percent to 90 percent of the cost of eligible services. Discount rates depend on a district's level of poverty as defined by subsidized lunch numbers and the urban/rural status of the population served. The funds are available for any eligible school, school district, and library.
While many districts have been successful in securing these funds, a large number of school leaders have been unable to weed their way through the tedious application process. They send in the wrong forms, forget to include the right information, or simply fail to apply on time.
Millions of dollars in potential discounts are thus left "on the table," resulting in lost funds that could have been used to upgrade districts' telecommunications systems.
Sure, the e-rate process can be confusing, but it need not be a lost cause. Following are several tips learned from working with dozens of school districts over the past several years to help make your e-rate effort both productive and profitable:
• Use proper forms and instructions. This sounds easy but these forms change every year. A number of districts send in the incorrect form causing their schools to be automatically rejected.
It's also a good practice to send your form in early, at least two weeks before the deadline. The SLD receives some 30,000 applications annually. You want to make sure your form gets to the right place on time. The proper form can be found online at www.sl.universalservice.org.
• Complete all three required forms.
Form 470 is the notification of the services desired. This is where you describe the services you need to get the best rate. It must be completed by the entity that will negotiate with potential service providers. However, it cannot be completed by a service provider who will participate in the competitive bidding process.
Once Form 470 is received, it will be posted on the SLD Web site for 28 days where vendors can see it and decide if they want to contact you for bids.
After the form is posted, you will receive a Form 470 Receipt Notification Letter indicating the earliest date you can execute a contract, select a service provider, and sign and submit the next piece of paperwork - Form 471.
Form 471 is your actual request for funding. It is used to calculate the discount percentage to which the applicant is entitled.
The minimum discount is 20 percent, and the maximum is 90 percent. The discount a school or district is eligible for is based on the percent of the student population eligible for free or reduced-price school lunches.
This form is also where you list the vendors that will be used, the services provided, the costs, and the actual school locations involved in the proposal.
Schools, of course, are required to pay the non-discounted portion of the services for which they receive discounts. The funding necessary to pay this portion must be budgeted and approved before Form 471 can be submitted.
Form 486 indicates to the SLD that delivery of services has begun. It lists each separate funding request, the aligned service, and tells the SLD the applicant's technology plan has been approved. It also informs the SLD that the district is in compliance with the Children's Internet Protection Act.
• "Priority One" and "Priority Two" requests should be filed separately. Priority One needs are funded first. These include telecommunications and Internet services - basically local and long-distance and monthly Internet-service type fees.
Once all Priority One requests have been satisfied, the SLD will then fund additional requests for equipment, such as servers, routers, and switches, as the budget allows, for the neediest schools. This equipment is classified as a Priority Two request.
The neediest districts did receive funding for Priority Two requests during the 2002 grant period. Districts filing for Priority Two funding should file a second 471 form, separately listing their poorest schools to speed the approval process.
• Enlist a high-level executive to take charge of the process. One of the biggest mistakes districts make is to assign the tedious e-rate process to low-level staff.
Often low-level staff members don't understand how to complete the necessary forms or become involved in other activities and fail to get the paperwork in on time. They often are reassigned to other positions or leave for another job outside the school system. Thus there is no continuity.
The process works best when a high-level district executive takes charge and makes sure all forms are filled out as required and are filed on deadline.
That person is also less likely to leave or change duties. Schools without a high-level staff person to execute the process can outsource it to a consulting firm.
• Ensure your technology plan is approved annually. Your plan must be approved by your state or governing body. Certification of approval, including the name of the approval authority, is required.
The plan should include everything you can possibly file for including local and long-distance services, Internet service, and infrastructure, such as wiring costs, local and wide area network equipment, and servers. List anything that can be tied to the educational process.
• Work with vendors to receive your funds. Instead of sending one complete bill to the SLD each quarter for reimbursement, have your vendors do the heavy lifting for you.
Some vendors will easily track your expenses and then bill the SLD for their portion. Your district will still be billed by each vender for your portion of the expense, but this is a lot easier than sending a total bill to the SLD, waiting for payment, and then distributing individual checks.
One word to the wise, however: Not all vendors will automatically do this. These types of arrangements must be set up in advance. A planning meeting with selected vendors is a good place to start.
• Maintain written records for five years. The SLD performs random audits each year. Districts need to keep thorough records of requests for proposals, board resolutions, certified letters, and cancelled checks. Make sure all changes are kept on file. Your records should be kept in an accessible location.
School leaders with questions about this process can contact their state e-rate coordinator or visit the SLD Web site, www.sl.universalservice.org.
Donald Dietrich is vice-president of Dietrich Lockard Group, a consulting firm specializing in telecommunications and e-rate funding.
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| Reproduced with permission from the Dec. 24, 2002, issue of School Board News. Copyright © 2002, National School Boards Association. Opinions expressed in this newspaper do not necessarily reflect positions of NSBA. This article may be printed out and photocopied for individual or educational use, provided this copyright notice appears on each copy. This article may not be otherwise transmitted or reproduced in print or electronic form without the consent of the Publisher. For more information, call (703) 838-6789. |