Schools and Libraries (E-Rate) Program Frequently Used Terms

E-RATE PROGRAM Company (USAC), the organization focused on high-speed broadband The common term used in place of the charged with administering connectivity to schools and libraries Schools and Libraries Program. The universal service. Companies (FCC 14-99). E-rate Program provides discounts make contributions to universal LOWEST CORRESPONDING to schools and libraries for eligible service based on revenues from PRICE (LCP) products and services. providing international and interstate The lowest price that a service telecommunications services. FUNDING YEAR (FY) provider charges to non-residential The funding year is a time during TOOLS AND SYSTEMS customers who are similarly situated which program support is being to a particular E-rate Program provided. The FY begins July 1 and DATA RETRIEVAL TOOL (DRT) applicant (school, library, or ends June 30 of the following calendar A web-based USAC tool used to access consortium) for similar services. year. information related to applications, funding commitments, and LIBRARY SERVICES AND NEWS BRIEF disbursements. TECHNOLOGY ACT (LSTA) A weekly newsletter that provides The LTSA, 20 U.S.C. Section 9121 et up-to-date program information, E-CERTIFICATION (E-CERT) seq., (1996) provides the statutory including important dates, tips Process that allows applicants to definition of a library. regarding the application process, and certify and submit forms online, NO CHILD LEFT BEHIND ACT other breaking news. eliminating the need for a paper form with an original signature. The No Child Lef Behind Act, 20 U.S.C. SCHOOLS AND LIBRARIES Section 7801 et seq., provides the PROGRAM (SL) E-FILE statutory definition of elementary and One of the four universal service USAC’s online forms submission secondary schools. programs administered by USAC. tool for service providers, available at https://forms.universalservice.org. NOTICE OF PROPOSED RULE UNIVERSAL SERVICE MAKING (NPRM) Universal service is the principle that E-RATE PRODUCTIVITY CENTER An announcement issued by the FCC all Americans should have access to (EPC) to detail proposed changes to FCC communications services. Universal EPC is the account and application rules and policies and seek public service is also the name of a fund and management portal for the Schools comment on the changes. the category of FCC programs and and Libraries (E-rate) Program. PUBLIC NOTICE (PN) policies to implement this principle. Applicants, consultants, and service providers participating in the E-rate A notice issued by the FCC to notify UNIVERSAL SERVICE Program use this tool to manage the public of an action taken, a change ADMINISTRATIVE COMPANY (USAC) program processes and to submit made, or an upcoming event. An independent, not-for-profit questions. corporation created by the FCC in ROLES WITHIN AND AROUND 1997 to administer the four universal FEDERAL ACTS, ORDERS, AND THE PROGRAM service programs which help NOTICES 498 COMPANY OFFICER provide communities across the CHILDREN’S INTERNET PROTECTION The oficer of a service provider country with access to afordable company who is authorized to certify telecommunications services. ACT (CIPA) A law that mandates certain that data set forth in the FCC Form UNIVERSAL SERVICE FUND (USF) internet safety policy and filtering 498 is true, accurate, and complete. Money collected from requirements for recipients of E-rate The 498 Company Oficer would telecommunications companies Program discounts for services other typically be president, vice president and dedicated to fulfilling the goals than telecommunications services. of operations, vice president of of universal service. Under the finance, comptroller, treasurer, or a authority of the 1996 Telecom Act, E-RATE MODERNIZATION ORDER comparable position. the FCC created the USF as well as The FCC Report and Order that the Universal Service Administrative modernized the E-rate Program and

Page 1 usac.org/sl 499 COMPANY OFFICER CONSORTIUM FEDERAL COMMUNICATIONS A person who occupies a position A consortium (plural consortia) is a COMMISSION (FCC) specified in the corporate by-laws (or group of entities that apply together The U.S. government agency that partnership agreement), and would for funding. regulates interstate and international typically be president, vice president communications and oversees the CONSULTANT for operations, vice president for Universal Service Fund. A company or individual (non- finance, comptroller, treasurer, or a employee of the entity) selected to GENERAL ACCOUNTING comparable position. perform certain activities related to the OFFICE (GAO) ACCOUNT ADMINISTRATOR application process on behalf of the An agency that studies and reports on An EPC user who can manage users, applicant or service provider for a fee. the programs and expenditures of the permissions, and related entities for an A Letter of Agency (LOA) or consultant federal government. It studies how the organization such as a school, library, agreement must be in place before the federal government spends taxpayer service provider, or consulting firm. consultant undertakes these activities. dollars, evaluates federal programs, audits expenditures and issues legal ADMINISTRATIVE AUTHORITY CONTRIBUTOR opinions. The relevant authority with A company that, based on the revenue responsibility for administration of reported on the FCC Forms 499-A/Q, is GENERAL CONTACT the eligible school or library who required to pay contributions directly The employee of a service provider must certify the status of the entity’s to the Universal Service Fund. company who filled out the FCC Form compliance with the Children’s 498. DELEGATED USERS Internet Protection Act (CIPA) in order The employee(s) of a service provider GENERAL FINANCIAL CONTACT to receive universal service support. company authorized to enter and A person who is authorized by the APPLICANT modify company information on FCC applicant to retrieve the FCC Form 498 The entity applying for universal Forms 498 and 499 through the E-File information and obtain access to EPC. service support. In the Schools and application. They are able to complete but not Libraries Program the entity is a certify updates to the FCC Form 498. EDUCATIONAL SERVICE school, library, consortium, or other AGENCY (ESA) HEAD START eligible entity that files program forms. A regional public multi-service A comprehensive child development BILLED ENTITY agency authorized by state statute program that serves preschool-age The entity that receives the bill and to develop, manage, and provide children and their families. Head Start pays for the supported service. A services or programs to its component facilities in some states are eligible for Billed Entity may be diferent from the school districts. In some states, E-rate Program funding. physical location being supported. ESAs are called Educational Service INTERNET SERVICE PROVIDER Units (ESUs), Local Educational BOARD OF DIRECTORS (ISP) Agencies (LEAs), Board of Cooperative USAC Board of Directors A company that provides internet Educational Services (BOCES), or other access service (also referred to as a CLIENT SERVICE BUREAU (CSB) similar designations. service provider). A helpline available to assist ELIGIBLE ENTITY applicants and service providers. You OFFICE OF MANAGEMENT AND An entity that meets the requirements can call CSB toll free at (888) 203-8100. BUDGET (OMB) for eligibility to participate in the Part of the Executive Ofice of the COMMISSION program. President, Ofice of Management The short name for the Federal FCC FORM 498 COMPANY OFFICER and Budget (OMB) reviews and Communications Commission (FCC). See “498 Company Oficer.” approves FCC forms that are used by See “FCC.” universal service contributors and FCC FORM 498 DELEGATED universal service program participants, COMMON CARRIER USERS contributors and service providers. An organization recognized by a See “Delegated Users.” regulatory authority (such as a state PREPARER public utility commission) to provide FCC FORM 498 GENERAL The employee of company that filed telecommunications services to all CONTACT an FCC Form 499-A/Q. requesting parties, or an organization See “General Contact.” that holds itself out to provide such services generally to the public for a fee.

Page 2 usac.org/sl SCHOOL OR LIBRARY OFFICIAL FSCS CODE SPIN – SERVICE PROVIDER 498 ID A person who occupies a position An identifying code for public See “FCC Form 498” or “Service of authority for the applicant libraries issued by the Federal- Provider Identification Number.” (typically a superintendent, assistant State Cooperative System (FSCS), a STUDY AREA CODE (SAC) superintendent, principal, assistant cooperative program between the A unique number that USAC assigns to principal, library director, assistant federal government and the states. eligible telecommunications carriers library director, county administrator, FSCS data on public libraries is (ETCs) that uniquely identifies that district administrator, or state received from The Institute of Museum company based on its service area. education department or state library and Library Services (IMLS). Companies must have at least one SAC lead). Must be authorized to certify FUNDING REQUEST NUMBER (FRN) per state in which they operate, but that the information provided in A unique number that USAC assigns to can have more than one SAC within the FCC Form 498 is true, accurate, each funding request in an FCC Form a state if they have more than one and complete. This role cannot be 471. service area. assigned to a consultant. LETTER OF AGENCY (LOA) SERVICE PROVIDER ELIGIBLE SERVICES A Letter of Agency (LOA) authorizes A company that participates in the a consortium leader to apply for BASIC MAINTENANCE OF Schools and Libraries Program program support on behalf of each INTERNAL CONNECTIONS (BMIC) and provides telecommunications consortium member or a consultant to A Category Two service type on or internet services, equipment, conduct specified activities on behalf the Eligible Services List. Basic hardware, or sofware. of an applicant or service provider. Maintenance of Internal Connections TELECOMMUNICATIONS services cover the repair and upkeep CARRIER NCES CODE of eligible products. Common carrier, as defined by An identification code for public BUNDLED SERVICES COST the FCC, is an entity that provides schools issued by the National Center ALLOCATION telecommunications service including for Education Statistics (NCES), the Beginning with FY2015, E-rate Program interexchange carriers, wireless primary federal entity for collecting recipients must cost allocate non- carriers, and competitive local and analyzing data related to ancillary ineligible components that exchange carriers (also referred to as education. Private schools may also are bundled with eligible products or service providers). request NCES codes. services, such as handsets included NON-INSTRUCTIONAL with telephone service or netbooks TERMS TO KNOW BEFORE FACILITY (NIF) APPLYING bundled with internet access, A school building without classrooms including those components that BILLED ENTITY NUMBER (BEN) or a library building without public previously would have fallen within A unique number assigned by USAC areas. Examples of school NIFs include the scope of components not requiring to each billed entity (school, library, or administrative buildings, bus barns, cost allocation as described in the consortium) that pays for services. and cafeteria facilities. Examples of 2010 Clarification Order. library NIFs include administrative CONSULTANT REGISTRATION buildings, bookmobile garages, and CATEGORY ONE SERVICES NUMBER (CRN) interlibrary loan facilities. Services used to connect broadband A unique eight-digit identification or internet to eligible locations, number assigned by USAC to PERSONAL IDENTIFICATION or services that provide the basic consultants. NUMBER (PIN) conduit access to the internet. Data A code assigned to a specific Transmission Services and Internet CORES ID authorized person at a specific billed Access, and Voice Services are A 10-digit number that the FCC assigns entity to allow online form certification Category One services. to a business or individual that (see e-certification). registers with the FCC. It is associated with an entity’s Taxpayer Identification SERVICE PROVIDER IDENTIFICATION Number (TIN) and is required before NUMBER (SPIN) A unique number that USAC assigns to filing FCC Forms 499-A/Q. each service provider once that service FCC REGISTRATION NUMBER provider has submitted the FCC Form (FCC RN) 498 to USAC. See “CORES ID.”

Page 3 usac.org/sl CATEGORY TWO SERVICES Internal Connections services are DISCOUNTS Internal connections services needed eligible products, such as routers, to enable high-speed broadband switches, hubs, and wiring. ALTERNATIVE DISCOUNT MECHANISMS connectivity and broadband internal Eligible products are located at the Schools that choose not to use the connections components. Category applicant site and must be considered National School Lunch Program Two includes local area networks/ a necessity to transport information (NSLP) participation numbers to wireless local area networks (LAN/ to classrooms or publicly accessible calculate their E-rate Program WLAN), internal connections areas of a library. discounts may use certain federally- components, basic maintenance of LOCAL AREA NETWORK (LAN) approved alternative mechanisms internal connections components, and A voice, data, and/or video network instead. These alternative discount managed internal broadband services. that provide connections generally mechanisms cannot be less stringent DATA TRANSMISSION SERVICES AND within an eligible school or library to than the same measure of poverty INTERNET ACCESS other locations within the school or established for the NSLP. A Category One service type on library. the Eligible Services List. Includes CATEGORY TWO BUDGET broadband connectivity and basic MANAGED INTERNAL BROADBAND Starting with FY2015, applicants conduit access to the internet. This SERVICES (MIBS) applying for Category Two services will does not include charges for content, A category of service on the Eligible be limited to a five year pre-discount equipment purchases, or other Services List. Services provided budget for those services. by a third party for the operation, services beyond basic conduit access COMMUNITY ELIGIBILITY management, and monitoring of to the internet. This service type also OPTION (CEO) internal connections components. covers lit or dark fiber and, in special See “Community Eligibility Provision E-rate support is limited to eligible circumstances, self-provisioning of (CEP).” dark fiber. expenses or portions of expenses that directly support and are necessary for COMMUNITY ELIGIBILITY DEMARCATION OR DEMARC the broadband connectivity within PROVISION (CEP) A demarcation refers to the point schools and libraries. An alternative provision to the where a service provider’s network normal requirements for annual MANAGED WI-FI ends and where an applicant’s local determinations of eligibility for free See “Managed Internal Broadband area network (LAN) begins. and reduced price meals under the Services (MIBS)” DIRECT CONNECTIONS National School Lunch Program. Direct connections allow rural schools VOICE OVER INTERNET Schools must have at least 40 percent and libraries to share access to high- PROTOCOL (VOIP) of their students directly certified to speed broadband services. A technology that allows users to qualify for CEP. make phone calls using the same line DISCOUNT CALCULATIONS DISTRICT-WIDE DISCOUNT as an internet connection RATES Discounts in the program can be found Starting with FY2015, all funding VOICE SERVICES in the discount matrix, by using the requests for any school or A Category One service type on the percentage of students eligible for the combination of schools within a Eligible Services List. Telephone National School Lunch Program or an school district qualify for a single services, such as Centrex, local equivalent measure of poverty and school-district-wide discount rate. and long distance, POTS, wireless the rural or urban status of the school telephone service, VoIP, etc. are voice district or library system. ELIGIBLE SERVICES services. Starting with FY2015, support NATIONAL SCHOOL LUNCH Products and services that are eligible for voice services will be reduced by 20 PROGRAM (NSLP) for universal service support. percentage points a year until support This federal program provides school ends in FY2019. ELIGIBLE SERVICES LIST (ESL) lunches to eligible students at a free or An FCC-released annual list of the WIDE AREA NETWORK (WAN) reduced rate. products and services approved for A voice, data, and/or video network funding by the FCC under the Schools that provides connections from within and Libraries Program. an eligible school or library to other locations beyond the school or library. INTERNAL CONNECTIONS A Category Two service type on the Eligible Services List. Page 4 usac.org/sl NON-DISCOUNT PORTION that service providers submit to to or cancellations of approved FRNs The non-discount portion (also called request reimbursement for discounted and/or changes to reported Service non- discount share) is the applicant’s eligible services already provided Start Dates or Contract Expiration share of the cost of the eligible E-rate to the schools or libraries on their Dates, to request a service delivery Program products and services, i.e., customer bills. extension for non-recurring services, the cost to be paid by the applicant or to notify USAC of an allowable FCC FORM 479 afer the E-rate Program discount is equipment transfer. The Certification by Administrative applied. Authority to Billed Entity of RECEIPT ACKNOWLEDGMENT URBAN/ RURAL STATUS Compliance with the Children’s LETTER (RAL) Every school or library in the United Internet Protection Act Form is an A RAL is issued by USAC to both the States is located in either a rural or an FCC form that consortium members applicant and service provider to urban area, based on U.S. Census data. (the administrative authority for indicate that a filed FCC Form 471 has CIPA purposes) submit to their been certified before the close of the PROGRAM FORMS AND consortium leader to certify that filing window. CORRESPONDING LETTERS they are in compliance with the SPAC – FCC FORM 473 Children’s Internet Protection Act. BEAR – FCC FORM 472 See “FCC Form 473” See “FCC Form 472” Afer all FCC Forms 479 are collected, the consortium leader can accurately SPI – FCC FORM 474 BEAR NOTIFICATION LETTER complete the FCC Form 486. See “FCC Form 474” A BEAR (FCC Form 472) Notification Letter is sent to the service provider FCC FORM 486 APPLICATION PREPARATION and the applicant afer a BEAR form The Receipt of Service Confirmation AND REVIEW has been processed by USAC. and Children’s Internet Protection Act Certification Form is an FCC form that 28-DAY WAITING PERIOD FCC FORM 470 schools and libraries file to inform The minimum time period an The Description of Services Requested USAC that services have begun, and applicant is required to wait afer and Certification Form is an FCC form of their CIPA compliance. posting the FCC Form 470 before that schools and libraries complete entering into any contract with a to request services and establish FCC FORM 486 service provider. eligibility. NOTIFICATION LETTER This letter is issued by both the ALLOWABLE CONTRACT FCC FORM 471 applicant and service provider to DATE (ACD) The Services Ordered and Certification indicate that an FCC Form 486 has The Allowable Vendor Selection/ Form is an FCC form that schools and been successfully processed. Contract Date is the earliest date on libraries use to report services ordered which an applicant can sign a contract and discounts requested for those FCC FORM 498 for contracted services or enter into an services. The Service Provider and Billed Entity arrangement for tarifed (T) or month- Identification Number and General to-month (MTM) services with a service FCC FORM 472 (BEAR) Contact Information Form issued provider. The Billed Entity Applicant to collect contact, remittance, and Reimbursement Form is an FCC form payment information from service BID that schools and libraries submit to providers and applicants receiving A response from a service provider USAC afer paying for services in full, universal service support. Service (bidder) to a request for services. to request reimbursement for the providers must fill out this form to COMPETITIVE BIDDING discount on those services. participate in any of the universal PROCESS service programs. As of July 1, 2016, FCC FORM 473 (SPAC) The process conducted by an applicants who choose the Billed The Service Provider Annual applicant to select a service provider Entity Applicant Reimbursement Certification Form is an FCC form that and order products and/or services. (BEAR) payment method will need to service providers file annually to certify This process must be a fair and open file this form to receive an ID number that they will comply with program competitive procurement. (498 ID) for reimbursement payments. rules and guidelines. This must be filed CONTRACT AWARD DATE (CAD) before USAC will pay invoices. FCC FORM 500 The date the contract is awarded to The Funding Commitment Adjustment FCC FORM 474 (SPI) The Service the service provider. Request Form is filed by schools and Provider Invoice Form is an FCC form libraries to notify USAC of reductions Page 5 usac.org/sl CONTRACT EXPIRATION DATE (CED) these are errors applicants make on STATE MASTER CONTRACT (SMC) The date the contract between the FCC Forms 470 or 471 that can be A contract that is competitively applicant and service provider ends. corrected afer the forms are certified. bid and implemented by a state government which can be used by CORRECTIVE SPIN CHANGE PRICING TRANSPARENCY eligible entities within the state to A change to the SPIN featured on Provides greater visibility into pricing procure products or services, or both. one or more FRNs that corrects a and technology choices by applicants. data entry error, reflects a merger or Information and pricing regarding STATE REPLACEMENT CONTRACT acquisition, or fixes some other type of the specific services and equipment A state master contract, filed pursuant error. It is not the result of a change to purchased by schools and libraries to a state-filed FCC Form 470, which the actual service provider. shall be publicly available on USAC’s can replace an existing state master website. contract that expires before the end of EVALUATION the upcoming funding year. A mechanism for assessing and PROGRAM INTEGRITY choosing a service provider from ASSURANCE (PIA) WAVE incoming bids. Note that the price The compliance review process of FCC This term is used for a group of of the eligible products and services Forms 471 that must be completed funding commitment notifications that must be included as a factor in the before funding commitments are USAC issues to applicants and service evaluation and that factor must be made by USAC. providers on a given date. Waves are weighted more heavily than any other usually issued weekly. REQUEST FOR PROPOSAL (RFP) single factor. A form of solicitation for products POST-COMMITMENT AND FCC FORM 471 FILING WINDOW or services that provides detailed PROGRAM VIOLATIONS The period generally between mid- information regarding those products January and mid-March (prior to or services and any additional details 1ST DEMAND LETTER the start of the funding year) when necessary for potential bidders to The initial letter sent by USAC to forms filed are treated as having been respond. Program applicants may recover funds from applicants or received on the same day and are issue RFPs in addition to filing the FCC service providers who have committed considered for funding before any Form 470. program rule violations. other forms filed afer the window SELECTIVE REVIEW 2ND DEMAND LETTER closes. A separate component of the A follow-up letter to a 1st Demand FUNDING COMMITMENT DECISION Program Integrity Assurance (PIA) Letter sent by USAC in an attempt LETTER (FCDL) review process that follows up on to recover funds from applicants or A letter that contains USAC’s funding certifications that applicants make service providers who have committed decisions on an applicant’s funding on their FCC Forms 471 about the program rule violations. requests. competitive bidding process and the APPEAL necessary resources to make efective LEGALLY BINDING AGREEMENT An appeal is a request to reconsider a use of requested services. A written ofer from a service provider USAC decision. and acceptance from the applicant SELECTIVE REVIEW INFORMATION AUDIT that includes all the material terms REQUEST (SRIR) A review of documentation and and conditions and is legally binding. The request for information sent to resources that verify the state of applicants when they have been MINI-BID compliance with program rules. chosen for Selective Review. An evaluation process used by BENEFICIARY AND CONTRIBUTOR applicants when a state files an FCC SERVICE END DATE AUDIT PROGRAM (BCAP) Form 470 and signs state master The date that services will end for an Run by USAC, and carried out by contracts with more than one service FRN. USAC may adjust this date if a auditors trained in universal service provider. The applicant must evaluate program violation is identified or a and program audit requirements, all eligible state master contracts and deadline is missed. these audits of beneficiaries and demonstrate why the service provider SERVICE START DATE contributors serve to identify it chooses is the most cost-efective The date that services will start for noncompliance with program rules solution. an FRN. USAC may adjust this date if and amounts of recoverable funds. MINISTERIAL AND CLERICAL a program violation is identified or a ERRORS deadline is missed. Sometimes known as M&C errors, Page 6 usac.org/sl COMMITMENT ADJUSTMENT OPERATIONAL SPIN CHANGE REMAND (COMAD) A change to the SPIN featured on one Action taken by the FCC to return The process by which a funding or more FRNs made as a result of a applications to USAC for further commitment is reduced because of change to the actual service provider. review. program rule violations. PAYMENT QUALITY ASSURANCE SERVICE SUBSTITUTION COMMITMENT ADJUSTMENT (PQA) PROGRAM A change in the products and/or LETTER (CAL) A USAC program which assesses services originally requested in an This letter notifies both the applicant specific payments made to FRN. and the service provider of a COMAD. beneficiaries in all four programs to WHISTLE BLOWER ALERT/ It contains a Funding Commitment determine if these payments were “CODE 9 CALL” Report which lists the Funding Request made in accordance with FCC rules. This hotline allows members of the Numbers (FRNs) afected by the Using results of these assessments, public to report suspected violations COMAD. USAC calculates estimates of improper of program rules to USAC. These payment rates and provides this DETAILED AUDIT FINDING reports can be made anonymously information to the FCC. WORKSHEET (DAF) and toll free by calling (888) 203-8100. A worksheet that contains background QUARTERLY DISBURSEMENT information and notes the basis of an REPORT exception during an audit. A report issued by USAC to the applicant detailing all invoicing activity DOCUMENT RETENTION (BEARs and SPIs) for all funding years Applicants and service providers must that occurred during the previous retain documentation related to the quarter. application for, receipt, and delivery of discounted services for at least 10 REVISED FUNDING COMMITMENT years from the last date of service DECISION LETTER (RFCDL) delivery. A letter issued by USAC to applicants and service providers when post- INVOICE commitment changes occur to a A statement or document that funding commitment. (1) service providers submit to USAC afer they have provided or completed RECOVERY OF IMPROPERLY service to the applicant or (2) DISBURSED FUNDS (RIDF) applicants submit to USAC afer they An RIDF is required when there has have paid for services in full. Invoices been a COMAD but funds have already are submitted using FCC Form 474 been disbursed in excess of the revised (service providers) or FCC Form 472 commitment amount. (applicants). RED LIGHT RULE INVOICE EXTENSION A requirement that the FCC withholds A single, one-time 120-day extension action on an application, payment, of the deadline to submit an invoice and/or other requests for benefits – FCC Form 472 (BEAR Form) or FCC when the universal service program Form 474 (SPI Form). The extension participant is delinquent in non-tax must be requested on or before the debts owed to the FCC or other federal invoice deadline. governmental agencies. INVOICE STATUS REPORT (ISR) RED LIGHT STATUS A USAC-generated report sent to An entity is considered in Red Light service providers upon receipt of the status when the Red Light Rule goes service provider’s invoices. The report into efect (the entity is delinquent). identifies which invoice line items USAC will not make any disbursements were accepted and denied. until the delinquency has been satisfied or payment arrangements are made.

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