2012 Service Provider Training

InvoicingMay 2012 I Los Angeles

and Atlanta

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• 2011 Statistics• Invoice Types• Review• Payment Resolution• Deadlines

AGENDA

Invoicing

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Invoicing

2011 Statistics

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$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000 $2,264,210,276

Dollars Paid Out

2011 Statistics

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% Paid Within 30 Days

2011 Statistics

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-1194.0%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

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Invoice Lines Processed

2011 Statistics

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

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Days to Payment

2011 Statistics

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

100000

200000

300000

400000

500000

600000

0

5

10

15

20

25

30

28

14

10

13

18

26

12

5

88

12

65

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Rejection Rates

2011 Statistics

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-110.0%

5.0%

10.0%

15.0%

20.0%

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Average Rejection Rates

2011 Statistics

Rejected9.4%

Paid90.6%

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Top 10 Reasons for Rejection

2011 Statistics

41%

11%10%

10%

7%

7%

6%

3%3% 3% Duplicate invoice

Total commitment paid

No Form 486 filed

Billed out of Fund Year

Past deadline

Billed prior to Form 486 service start date

SPIN not registered

Incorrect discount

Ship date after invoice date

Invalid 471/FRN

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Online 69%

Paper31%

BEAR (Form 472)

2011 Statistics

20122011

Online66%

Paper34%

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Invoicing

Invoice Types

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• Reimburse (FCC Form 472 – aka BEAR)– Applicant pays 100% – Self retrieval of discounts– Paid to service provider to forward on to

applicant• Discount (FCC Form 474 – aka SPI)– Direct discount on customer bill

FCC Form 472/474 – Invoice (Reimburse/Discount)

Invoice Types

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• Electronic submission• On-Line submission• Paper Submission

How To File

Invoice Types

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• Electronic submission– Only applies to FCC Form 474, Service

Provider Invoice (SPI)– Contact Client Service Bureau (CSB)

• (888) 203-8100 • Include the SPIN and email address

How To File

Invoice Types

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• Electronic submission– Email attachment (address specified in the instructions)– Comma delimited format– PGP (optional)

How To File

Invoice Types

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• Electronic submission– Receipt of confirmation from USAC– Error file [with an *.EIN extension]– Invoice Status Report

How To File

Invoice Types

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• Online submission– Applies to FCC Form 474, Service Provider

Invoice (SPI)– Applies to FCC Form 472, Billed Entity

Applicant Reimbursement (BEAR)

How To File

Invoice Types

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• Online submission for FCC Form 474– http

://www.slforms.universalservice.org/form474/menu.aspx

– USAC.org/Resources & Tools/Forms/FCC Form 474/File Online

How To File

Invoice Types

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• Online submission for FCC Form 472– Step 1 (for applicants):

– http://www2.sl.universalservice.org/bear/login.aspx– USAC.org/Resources & Tools/Forms/FCC Form 472/

File Online – Step 2 (for service providers):

– http://www2.sl.universalservice.org/bear/login.aspx– USAC.org/Resources & Tools/Forms/FCC Form 472/

File Online

How To File

Invoice Types

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• Paper submission– FCC Form 474 (filed by service provider)– http://www.usac.org/sl/tools/forms.aspx– USAC.org/Resources & Tools/Forms/FCC

Form 474

How To File

Invoice Types

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• Paper submission– FCC Form 472 (filed by applicant)– http://www.usac.org/sl/tools/forms.aspx– USAC.org/Resources & Tools/Forms/FCC

Form 472– FCC Form 472 certified by service provider– Returned to applicant for mailing to USAC

How To File

Invoice Types

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Invoicing

Review

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• FCC Form 472/474 (Reimburse/Discount)– Review– Service Certification– Customer bills from SP to Applicant– Payment of beneficiary portion

What’s Next

Invoice Types

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• The overall objective of the Invoice Review process is to ensure that funds are disbursed only for products and services:– delivered and billed to school/library for which

the school/library has paid their share– eligible and approved on the 471– within the eligible service delivery window

Review

Review

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• Verify services by obtaining detailed bills from the applicant and/or service provider

• Verify services were requested and approved on Form 471 using Item 21 attachments

• Review notes and documentation used during 471 review

• Check for service substitutions if not a match

Service Certification

Review

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• Verify services• Compare services to Item 21 attachments• Review delivery location• Review billed party• Review service provider• Review date of service delivery• Review location of service delivery

Customer bills from SP to applicant

Review

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• Obtain copy of check (front and back)–Microcoding– Referential integrity – such as bank account #

• Copy from bank website – Demonstrate legitimacy

• Provided or verified by applicant

Payment of Beneficiary Portion

Review

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Invoicing

Payment Resolution

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• Monitor reports of applicants not receiving checks from service providers– Establish case– Contact service provider– Issue Dunning Letter and record in case– Ensure receipt of funds– Close case and document results– Refer to FCC Enforcement where necessary

Dunning

Payment Resolution

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• Good Samaritan – Service provider cannot or will not pass BEAR payments– Establish case– Work with applicant to provide Telecom Provider

willing to serve as Good Samaritan– Send letters of agreement– Review BEAR submitted– Approve reviewed invoices

Bankruptcy or out of business conditions

Payment Resolution

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Invoicing

Deadline Extensions

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• Missed Deadline– Invoice

• FCDL• Form 486• Service Delivery

– Form 500• Need more time to provide services– Non-recurring services

Why File

Deadline Extensions

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• Invoice Deadline Extensions– Within 120 days of invoice deadline

• Service Delivery Extensions– Automatic• Late FCDL, SPIN Changes, Service

Substitutions (March 1 key date)– By September 30 for non-recurring services

When To File

Deadline Extensions

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• Documentation requirements that necessitate third-party contact or certification

• Natural or man-made disasters that prevent timely filing of invoices

• Circumstances beyond the service provider's control

What To File

Deadline Extensions

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Comments or Questions?

Questions?

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Thank you!