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FAQs
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Question: When should I ask for discounted invoices, and when should I pay full invoices and ask for reimbursement?
Question: What can I use E-Rate reimbursements for?
Answer: As a general rule, for Priority 1 services (monthly invoices that start July 1), pay the invoices in full and get reimbursements; especially if you do not receive a funding commitment before July 1. This will avoid the confusion of “credits” that will need to be applied to future invoices.
For Priority 2 services (invoices for equipment and cabling projects), ask for discounted invoices. There is no need to pay out the full price and file for reimbursement; let the vendor receive their reimbursement from E-Rate.
For Priority 2 Basic Maintenance contracts: If you need the services to start July 1, pay the invoices in full and get reimbursements. If you can’t start the contract until after you receive an approved funding commitment, ask for discounted invoices.
Question: What can I use E-Rate reimbursements for?
Answer: According to the Auditor General’s Memorandum 160, now that Excess Utilities are no longer available to school districts, the funds reimbursed to you from the E-Rate Program can be used for any expense that you want. E-Rate funds do not need to be expensed against the utility accounts that were used to pay for the services.
Question: If my district’s E-Rate discount rate is below 80%, can I still apply for Priority 2 services?
Answer: Generally, funding for Priority 2 projects are available for only the high free/reduced lunch rate entities; schools or districts with E-Rate discount rates that exceed 80%. For the past 5 years, the average E-Rate discount rate that qualified for Priority 2 services is 82.4%. The recent history is as follows:
2006 – 86%
2007 – 81%
2008 – 87%
2009 – 77%
2010 – 81% (So Far)
However, a district that has at least one school with a free/reduced lunch rate of at least 75% can receive Priority 2 services. Additionally, this school can be grouped with another school to create an average between the two schools that is above 80% and thus possibly qualify for Priority 2 E-Rate funding.
Question: How does the “Two in Five Rule” work?
Answer: The Two in Five Rule is applied to each school, not district. Each school will only be able to receive E-Rate support for Internal Connections in two of every five funding years. The five year window is a rolling window, not a static five year period. So as one year drops off of the five year window, a new year is added.
The Two in Five Rule affects funding requests for Internal Connections only. And a year will not count against the school unless E-Rate funding is actually disbursed for the schools benefit.