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<div class="WordSection1">
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Gothic","sans-serif";color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Century Gothic","sans-serif";color:black">A message from Lorrie Germann, State eRate Coordinator:<o:p></o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p> </o:p></span></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#003366">Good Afternoon E-Rate Community,</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:#003366"><br>
</span><i><span style="font-family:"Calibri","sans-serif";color:#003366"> </span></i><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:#003366">
</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify">
<span style="font-family:"Calibri","sans-serif";color:#003366">Starting with FY 2015, E-Rate rules permit applicants to purchase Category 2 equipment as early as April 1 prior to the start of the funding year. Schools and libraries that are taking advantage
of this new rule should be aware of the additional requirements and steps that come with Category 2 funding. It is assumed that the school or library making the early purchase understands that it is
<u>not</u> contingent on E-Rate funding and that the school or library plans to pay for the equipment in full, and seek E-Rate reimbursement after the Funding Commitment Decision Letter arrives.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify">
<span style="font-family:"Calibri","sans-serif";color:#003366"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:10.0pt;text-align:justify">
<span style="font-family:"Calibri","sans-serif";color:#003366">The following are Category 2 rules and reminders:</span><span style="color:black"><o:p></o:p></span></p>
<ul type="disc">
<li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;margin-bottom:6.0pt;text-align:justify;mso-list:l2 level1 lfo1">
<span style="font-family:"Calibri","sans-serif";color:#003366">Engage in the purchase of equipment prior to receipt of the E-Rate Funding Commitment Decision Letter (FCDL) only if the school or library’s budget supports payment in full without E-Rate funding.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;margin-bottom:6.0pt;text-align:justify;mso-list:l2 level1 lfo1">
<span style="font-family:"Calibri","sans-serif";color:#003366">In the event of an early C2 purchase, and the E-Rate FCDL is received prior to July 1, 2015, the earliest that the Form 472 BEAR can be submitted is July 1 (the start of the FY 2015 E-Rate funding
year). The Form 486 may be submitted only <i>after</i> the FCDL arrives, but before the Form 472 BEAR is submitted.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;margin-bottom:6.0pt;text-align:justify;mso-list:l2 level1 lfo1">
<span style="font-family:"Calibri","sans-serif";color:#003366">If there is a purchase of
<i>some</i> of the equipment on an FRN <i>before</i> receiving the FCDL and other equipment
<i>after</i> you receive your FCDL, the same payment method must be used for the entire funding request. In other words, if the payment method is the BEAR reimbursement process for some of the equipment in the FRN, the remainder of the purchase must also use
the BEAR reimbursement process for the equipment on that FRN. The USAC invoicing system does not allow two different billing methods on a single FRN.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;margin-bottom:6.0pt;text-align:justify;mso-list:l2 level1 lfo1">
<span style="font-family:"Calibri","sans-serif";color:#003366">It is advisable to have a separate purchase order for each FRN. If possible the purchase order should also note the Form 471 number and reference Funding Year 2015.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li></ul>
<ul type="disc">
<li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l4 level1 lfo2">
<span style="font-family:"Calibri","sans-serif";color:#003366"> Verify that the equipment you order matches
<i>exactly</i> what you requested on the FRN(s) in the Form 471. If there is a need to substitute functionally equivalent equipment, a
<a href="http://www.usac.org/sl/applicants/before-youre-done/service-substitutions.aspx">
service substitution</a> must be submitted.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li></ul>
<ul type="disc">
<li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;margin-bottom:6.0pt;text-align:justify;mso-list:l0 level1 lfo3">
<span style="font-family:"Calibri","sans-serif";color:#003366">When the equipment order arrives, label each piece of equipment with "FY 2015, FRN xxx" listing the FRN number. USAC’s on-site auditors will ask to see the installed equipment. Labeling each piece
of equipment purchased with E-Rate funding at the time of the purchase/installation satisfies the asset tracking program requirements and will assist in responding to audit inquiries in a timely manner.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify;mso-list:l0 level1 lfo3">
<span style="font-family:"Calibri","sans-serif";color:#003366">Record each piece of equipment in your school or library's asset (inventory) register or create an E-Rate asset register (recommended). The asset register must contain the following information:</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li></ul>
<ul type="square">
<ul type="disc">
<li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l3 level2 lfo4">
<span style="font-family:"Calibri","sans-serif";color:#003366">Make & model</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l3 level2 lfo4">
<span style="font-family:"Calibri","sans-serif";color:#003366">Serial number (if available)</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l3 level2 lfo4">
<span style="font-family:"Calibri","sans-serif";color:#003366">Physical location of equipment (building/room number)</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l3 level2 lfo4">
<span style="font-family:"Calibri","sans-serif";color:#003366">Date installed</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l3 level2 lfo4">
<span style="font-family:"Calibri","sans-serif";color:#003366">Funding Year</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l3 level2 lfo4">
<span style="font-family:"Calibri","sans-serif";color:#003366">Funding Request Number</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;margin-bottom:6.0pt;mso-list:l3 level2 lfo4">
<span style="font-family:"Calibri","sans-serif";color:#003366">Purchase order #</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li></ul>
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<span style="font-family:"Calibri","sans-serif";color:#003366">Use the USAC Sample
<a href="http://www.usac.org/_res/documents/sl/pdf/samples/samples-checklist-inventory-list.pdf">
Asset Inventory</a> worksheet to create an Excel file that lists the required data for the E-Rate funded equipment. It is always better to have more detailed information than required. Detailed records of the purchase, installation and payment of the equipment
avoid the need to gather the information after-the-fact when the USAC auditors request it. Timely data input also avoids errors.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify;mso-list:l1 level1 lfo5">
<span style="font-family:"Calibri","sans-serif";color:#003366">Equipment must stay at the location indicated on the Form 471 for a period of three years after the date of purchase. After that, the equipment can be transferred to other eligible entities. If
a location closes within the first three years, equipment from that closed location can be transferred to another eligible entity; however, USAC must be notified of such equipment transfers. After five years from the date of installation, equipment can be
disposed of, sold, transferred, or traded with no notification required to USAC. If equipment is sold, no funding is required to be returned to USAC.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""><o:p></o:p></span></li></ul>
<p><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:#003366">I know it's a lot of information to take in. If you have questions, please do not hesitate to contact me.</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:#003366">Sincerely,</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:#003366">Lorrie</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Monotype Corsiva";color:#003366">Lorrie Germann</span></b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#003366"><br>
</span><span style="font-family:"Calibri","sans-serif";color:#003366">State E-Rate Coordinator<br>
Ohio Collaborative Services Consortium<br>
<a href="mailto:lgermann@ohiocsc.org">lgermann@ohiocsc.org</a> <b>or<br>
</b><a href="mailto:lorrie.germann@education.ohio.gov">lorrie.germann@education.ohio.gov</a><b><br>
</b><span style="background:white">Office: 740-223-2420</span><br>
Cell: 740-253-1153</span><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
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