Universal Service Administrator Loyola Academy Wilmette .

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CC DOCKET NO. 02-6CC DOCKET NO. 96-45IN THE MATIER OF REQUEST FOR REVIEW BY LOYOLA ACADEMYOF THE DECISION OF THE UNIVERSAL SERVICE ADMINISTRATORColemanGroupMANAGEMENT CONSULTING134 North LaSalle Street, Suite 1400Chicago, Illinois 60602P 312.850.4134 F 312 .893.2038www.colemangroupconsulting.comFCCOffice of the Secretary445 12th Street, SWWashington, DC 20554Attached is an Appeal to the Federal Communications Commission for Loyola Academy [BEN:68605].The purpose of this document is to appeal the Universal Service Administrative Company's decision todeny our original appeal, released May 4th, 2012. In this decision, the Universal ServiceAdministrative Company (USAC) denied Loyola Academy's request to fund the appropriate eligiblecharges from FRN 2230925 for web hosting service from Blackbaud, Inc. on the grounds that 30% ormore of this FRN includes a request for management software, which is an ineligible product/servicebased upon Program rules.The 30% rule subsection of Step 5 ofthe Application Review section ofthe Schools and LibrariesProgram of the USAC website states: IfUSAC finds during application review that an applicant hasincluded ineligible products and services in an FRN, USAC will contact the applicant to determine theexact cost associated with the ineligible items. The applicant can request that USAC either: 1) Removethe ineligible items from the FRN or 2) Create a new FRN and move the ineligible items from theoriginal FRN to the new FRN. If the applicant does not respond, USAC will remove the ineligibleitems from the funding request.Loyola Academy was not notified of any ineligible products I services in the funding request, and adecision was rendered to deny the funding request before Loyola Academy had the opportunity torevise the funding request.Please let me know if you have any questions, or if there is any additional information I can provide.We greatly appreciate your consideration of our appeal. Thank you for your time, effort, patience, andcontinued support of Loyola Academy.Aloy.t.f\- HcJ\ct Stephen Weiss312-850-4134 xl07 (w)630-430-7342 (cl)E',:;; 1s@colemangroupconsulti ng.com

CC DOCKET NO. 02-6IN THE MATIER OF REQUEST FOR REVIEW BY LOYOLA ACADEMYCC DOCKET NO. 96-45OF THE DECISION OF THE UNIVERSAL SERVICE ADMINISTRATORTABLE OF CONTENTSI)Application For Review By The Federal Communications Commission(1) A Statement setting forth Loyola Academy's interest in the matter presented for review. [Page 3](2) A full statement of relevant, material facts with supporting affidavits and documentation. [Pages 3- 5](3) The question presented for review, with reference, where appropriate, to the relevant FederalCommunications Commission rule, Commission order, or statutory provision. [Page 6- 7](4) A statement of the relief sought and the relevant statutory or regulatory provision pursuant to whichsuch relief is sought. [Page 7]II)Documentation of Prior Appeals and Correspondence(1) EXHIBIT 1 [Pages 8- 9]- The contract for services provided to Loyola Academy by Blackbaud, Inc underFRN 2239025.(2) EXHIBIT 2 [Pages 10- 14]- The PIA Review of Loyola Academy conducted by USAC.(3) EXHIBIT 3 [Page 15- 18]- Email Correspondence pertaining to the PIA Review in EXHIBIT 2(4) EXHIBIT 4 [Page 19]- The page from the USAC Schools and Libraries website pertaining to the 30% rule(5) EXHIBIT 5 [Pages 20- 21]- The decision from USAC on Loyola Academy's original appeal released May4th, 2012.

Before theFEDERAL COMMUNICATIONS COMMISSIONWashington, DC 20554In the Matter of)Request for Review by Loyola Academy)Of Decision Of)Universal Service Administrator))Loyola Academy)Wilmette, Illinois))Schools and Libraries Universal Service)CC Docket No. 02-6Support Mechanism)CC Docket No. 96-45(1} A Statement setting forth Loyola Academy's interest in the matter presented for review.In this matter presented for review, Loyola Academy is the sole appellant organization. Loyola Academyis seeking an Appeal to the Federal Communications Commission. Loyola Academy wishes to seekconsideration of the Universal Administrative Service Company's decision to deny our original appeal,released May 4th, 2012.(2} A full statement of relevant, material facts with supporting affidavits and documentation.Appellant I Organization Name:Loyola AcademyContact Person Name: Stephen WeissContact Mailing Address: 134 North LaSalle Street Suite 1400Contact Phone Number:312-850-4134Contact Fax Number: 312-893-2038Contact Email Address: sweiss@colemangroupconsulting.comFunding Year: 2011Date of FCDL Decision: 2/21/2012Billed Entity Name: Loyola AcademyBilled Entity Number: 68605FCC Registration Number: 0015289184Form 471 Application Number: 822163

Funding RequestFunding Request Numbers: 2239025SPIN Code: 143035534Service Provider Name: Blackbaud IncOriginal Commitment Amount: 20,188.42Under the 30% Rule\ if 30 percent or more of the services included on a single funding request areineligible, the funding request will be denied.2Within FRN 2239025 there is one line item in the contract that should be considered eligible. This lineitem is for charges for eligible services related to web hosting for the website and not for themanagement software as follows: Online Community Campus with OLA Subscription- Contract Term (mo) 60 17,000The Online Community Campus Product provides web hosting service for Loyola Academy's DepartmentPages, Online Directories, Athletics Pages, and Calendars.After removing the proportionate amount of the discounts, our revised total annual cost would be asfollows: ( 17,000- ( 22,579* ( 17,000 I 73,050))) 11,745.48. Therefore our revised requestedcommitment amount would be 40%* 11,745.48 4,698.19.Electronic Code of Federal Regulations C.F.R. 47 §1.3 states that The Commission may waive anyprovision of its rules for good cause shown. We will demonstrate (i) special circumstances warrant adeviation from the general rule, and (ii) such deviation will serve the public interest.(i) Special circumstances that warrant a deviation from the general ruleThe 30% Rule for Funding Requests Containing Ineligible Products and Services states as follows:If USAC finds during application review that an applicant has included ineligible products and services inan FRN, USAC will contact the applicant to determine the exact cost associated with the ineligible items.The applicant can request that USAC either:1EXHIBIT 4- The page from the USAC Schools and Libraries website pertaining to the 30% rule2EXHIBIT 2- The contract for services provided to Loyola Academy by Blackbaud, Inc under FRN2239025.

1)Remove the ineligible items from the FRN or2)Create a new FRN and move the ineligible items from the original FRN to the new FRN. If theapplicant does not respond, USAC will remove the ineligible items from the funding request.Loyola Academy was not notified of any ineligible products I services in the funding request during the3PIA Review or subsequent email correspondence4.A decision was rendered to deny the funding requestbefore Loyola Academy had the opportunity to revise the funding request.(ii) Deviation from the general rule will serve the public interest.Founded in 1909, Loyola Academy is a co-educational, private, Catholic, Jesuit college preparatory highschool educating over 2,000 students in and around Chicago and the North Suburban Wilmette &Glenview areas. Loyola is the largest Jesuit college preparatory high school in the United States. Loyola iscommitted to the full development of the whole person. Their curriculum thoughtfully and intentionallyintegrates the academic, spiritual, emotional and physical development of their students with theexperience of service to others.Loyola students are not required to participate in school sponsored service activities; however,approximately 90% of students participate in voluntary service work. Students regularly donate theirtime around the Chicagoland area by: working in retirement communities, tutoring, assisting adults andchildren who have disabilities, working in soup kitchens and food pantries, and working with children inafter-school programs to make sure kids have safe places to go until their parents are home. Over thesummer many students work in camps for children and young adults with illnesses or physical andmental disabilities. Particularly dedicated students work in hospice programs or communities for adultswho have lost their vision, and teach or tutor immigrants their citizenship classes or English as a secondlanguage. At different times in the year students will travel to other cities in the United States for weeksat a time serving the communities in soup kitchens, neighborhood outreach and social service centers.Each year students also travel to various destinations in Central America, focusing on communitybuilding through service, prayer and education. These endeavors listed above are only a cross section ofthe depth of service that students from Loyola Academy contribute to their community.3EXHIBIT 2- The PIA Review of Loyola Academy conducted by USAC.4EXHIBIT 3- Email Correspondence pertaining to the PIA Review in EXHIBIT 2

(3} The question presented for review, with reference, where appropriate, to the relevant FederalCommunications Commission rule, Commission order, or statutory provision.On May 4th 2012 Loyola Academy received the Universal Service Administratorls Decision on Appeal51.The decision states as follows: Your FCC Form 471 application included costs for the following ineligible products and/orservices: Blackbaud web hosting. FCC rules provide that funding may be approved only for eligible products and services. FCCrules further require that if 30% or more of the applicanfs funding request includes ineligibleproducts and/or services] then the funding request must be denied] otherwise the fundingrequest will be reduced accordingly.The 30% rule subsection of Step 5 of the Application Review section of the Schools and LibrariesProgram of the USAC website states: If USAC finds during application review that an applicant hasincluded ineligible products and services in an FRN 1 USAC will contact the applicant to determine theexact cost associated with the ineligible items. The applicant can request that USAC either: 1) Removethe ineligible items from the FRN or 2) Create a new FRN and move the ineligible items from the originalFRN to the new FRN. If the applicant does not respond] USAC will remove the ineligible items from thefunding request.6The FCCs Aiken County Public Schools Order directed USAC to permit the applicant 15 calendar daysfrom the date of receipt of notice in writing by USAC to revise its funding request to remove theineligible services or allow the applicant to provide additional documentation to show why the servicesare eligible.5EXHIBIT 5- The decision from USAC on Loyola Academis original appeal released May 4th 2012.6Aiken County Public Schools Aiken File No. SLD-397612 FCC 07-611

Electronic Code of Federal Regulations C.F.R. 47 §1.3 states that The Commission may waive anyprovision of its rules for good cause shown. The Commission may exercise its discretion to waive a rulewhere the particular facts make strict compliance inconsistent with the public interese. In addition, theCommission may take into account considerations of hardship, equity, or more effective implementation9of overall policy on an individual basis8 . Consistent with precedent , we have demonstrated (i) specialcircumstances that warrant a deviation from the general rule, and (ii) such deviation will serve the publicinterest.(4) A statement of the relief sought and the relevant statutory or regulatory provision pursuant towhich such relief is sought.Loyola Academy seeks relief from the Universal Service Administrator's decision, released May 4th,2012. In this decision, the Universal Service Administrative Company (USAC) denied Loyola Academy'srequest to fund FRN 2239025 on the grounds that 30% or more of this FRN includes a request formanagement software, which is an ineligible product/service based upon Program rules.Loyola Academy seeks relief from this decision pursuant to Electronic Code of Federal Regulations C.F.R.47 §1.3 states that The Commission may waive any provision of its rules for good cause shown. We havedemonstrated (i) special circumstances that warrant a deviation from the general rule, and (ii) suchdeviation will serve the public interest.Thank you once again for taking the time to consider this appeal for Loyola Academy. Please let meknow if you have any questions. Thank you very much for all of your help. We greatly appreciate yourtime, effort, patience and continued support.789Northeast Cellular Telephone Co. v FCC, 897 F.2d 1164, 1168WAIT Radio v. FCC, 418 F.2d 1153, 1159NetworkiP, LLC v. FCC, 548 F.3d 116, 125-12

Blackbaud .2000 Daniel Island DriveCharleston, SC 29492-7541Phone: 800-443-9441 Fax: 843-216-6111March a, 2011AGREEMENT TO PURCHASELoyola Academy11 00 Laramie AveWilmette, IL 60091-1021Ms. Geryl Cemey847-920-2507Loyola Academy hereby agrees to purchase from Blackbaud, Inc. the following:SERVICES:Education Edge - Applications HostingEducation Edge - Consulting ServicesNeteommunity- Consulting ServicesRegistrar's- ConversionRegistrar's - On-SiteServices· SubtotalPrice 10,000.00 14,000.00 5,100.00 6,000.00 7.30o:po 42,400.00SUBSCRIPTIONS:Online Community Campus with OLA Subscription -ContractTerm (mo) 60Learn: Education Edge MoreBB Total School Solution Annual Subscription - ContractTerm (mo) 60 17,000.00Subscriptions - Subtotal 30,650.00SUBTOTAL: 73,050.00LESS DISCOUNTS:TOTAL COST: 2,150.00 11,500.00- 22.579.00 50.471oo- ServicesThe Services listed above are described in the Scope of Work attached hereto, and by signing the Agreement toPurchase you accept the terms contained in the Scope of Work. The Scope of Work is part of your agreementwith Blackbaud.TrainingCancellations, last minute schedule changes, and no-shows may be charged an administrative fee.All credits for purchased training, with the exception of onsite BBNC training, will expire twelve {"! 2) months fromthe date of purchase.All credits for purchased BBNC training will expire twelve (12) months from the date oi purchase, except for onsitetraining which will expire in eighteen {18) months

The individual signing below represents that he/she has the necessary authority to execute the Agreement onbehalf of Loyola Academy, and that his/her signature is sufficient to make this Agreement the binding andenforceable obligation of such party.Blackbaud's Internet Solutions Acceptable Use Policy is available on our website athttp://internet.blackbaud.com/eua/aupolicy.No returns are permitted more than 30 days after the date of invoice. All permitted returns are subject to a 25%cancellation fee and only the unused, paid portion of services, subscriptions and maintenance will be credited. Authorized Signature'#eiVC t:fke;v,w-A.)Print NameTitle.Jb,tftATPID: 473555Page 2 of 2

Universal Service ;\dministrJt!ve CompanySchools and Libraries DivisionDate: January 12, 2012Contact Name: STEPHEN WEISSApplicant Name: LOYOLA ACADEMY- ILContact Phone Number: (312) 850-4134Application Number(s): 822163Response Due Date: January 27, 2012The Program Integrity Assurance (PIA) team is in the process of reviewing all Funding Year 2011 Form471 Applications to ensure that they are in compliance with the rules of the Universal Service program.We are currently in the process of reviewing your Funding Year 2011 Form 471 Application. To completeour review, we need some additional information. The information needed to complete the review is listedbelow.I.Application Number(s): 822163Based upon review of your FY2011 Form 471 application, we were not able to validate your requesteddiscount percentage of 40 % for 68605 LOYOLA ACADEMY. In order to validate this discountpercentage, please provide the appropriate documentation as described in the options listed below.Option 1. If the school participates in the National School Lunch Program (NSLP), please provide asigned copy (preferably by the Principal, Vice-Principal, Superintendent or Director of Food Services)of a Reimbursement Claim Form that the school sends to the state each month as part of theirparticipation in the program. Make sure that the following three items are identified on the claim forma.The entity nameb.The total number of students enrolled at the entityc.The total number of students eligible for participation in the Free or Reduced LunchProgram for the entityIf the school district fills out an aggregate claim form for the school, please provide a signed letteron school letterhead from a school official (preferably the Superintendent or other chief schoolofficial) that lists the enrollment and Free/Reduced information for each school in the district. Theenrollment and Free/Reduced information provided in your letter should match the informationthat appears on the claim form.Option 2. If the discount percentage was determined by information obtained from an income surveyor application (NSLP Lunch Application forms cannot be used as survey or application instruments),please provide the following information on school letterhead signed by a chief school official (suchas the Principal, Vice Principal, Superintendent or Director of Food Services):a.Total number of students enrolled at the schoolb.Total number of surveys/applications sent outSchools and Libraries Division - Correspondence Unit30 Lanidex Plaza West, PO Box 685, Parsippany, NJ 07054-0685Visit us online at: www.usac.org/sl

c.Total number of surveys/applications returnedd.Total number of students qualified for participation in NSLP based upon the informationprovided in the returned surveys/applicationse.Are the surveys/applications and results kept on file? Yesa.f.NoIf so, for how long are they kept on file?A statement that confirms that only students who meet the Income Eligibility Guidelines ofthe National School Lunch Program have been included in Column 5 of Item 9a of Block4 of the Form 471Provide a sample copy of a FILLED OUT SURVEY OR APPLICATION with the child's personalinformation crossed out for confidentiality. Be advised that in order for a survey to beacceptable it must contain the family's name, student's name, the size of the family andthe income level of the family.Option 3: (non-public schools):: If the discount percentage was determined by information obtainedfrom a financial aid form, please provide the following information in wring on school letterheadsigned by a school official (such as the Principal, Vice Principal, Superintendent, or chief schoolofficial:a. Total number of students enrolledb. A statement that confirms "all students have access to financial aid formsc. A statement that confirms that confirms that financial aid applicants are required tosubmit Federal Tax forms to document family incomed. A statement that confirms the number of students who meet the NSLP IncomeGuidelinese. A statement that confirms the number and percentage of eligible students that supportsthe requested E-Rate discount levelf. A statement that confirms the school keeps all completed financial aid application onfile.g. A statement that confirms that only students who meet the Income Eligibility Guidelinesof the National School Lunch Program have been included in Column 5 of Item 9a ofBlock 4 of the Form 471The school must submit one completed financial aid application, with personal information blackened out.The financial aid application must have been completed within two years of the start of the fund year.

Option 4: Provide a letter from your State Department of Education (on state letterhead and signed bya chief official at the State Department of Education) verifying that the total student enrollment andthe free and reduced figures you provided are accurate.Option 5: Provide a letter from your State Food/ or Nutrition Service Authority officials

services: Blackbaud web hosting. FCC rules provide that funding may be approved only for eligible products and services. FCC rules further require that if 30% or more of the applicanfs funding request includes ineligible products and/or services] then the funding request must be denied] o