January 15, 2009
CTN Contractor Invoicing Process

Payment Sources:

  1. FCC/USAC - will pay 85 % of charges eligible under RHCPP directly to the Contractor.
  2. CTN-C - will pay 15% of charges eligible under RHCPP directly to the Contractor.
  3. CTN-C - will pay 100 % of all charges ineligible under RHCPP or CTF directly to the Contractor.
  4. California Public Utilities Commission, California Teleconnect Fund Program (CTF), will pay 50% of all charges eligible under the CTF Program, directly to Contractor, after all other payments by other programs have been received and credited by Contractor. Through ongoing discussions with CPUC, CTN-C has preliminarily established that the entire 15% CTN component of charges eligible under the RHCPP will be considered eligible charges by CTF. Consequently, we anticipate the CTF will pay a resultant 7.5% of charges eligible under RHCPP and initially paid by CTN to the Contractor.

CTN-C anticipates that no services ineligible under the RHCPP will be submitted to CTF for additional reimbursement. Consequently, Bidders should take particular note of the italicized statement above. The net effect of these terms is that after Contractor has invoiced respectively, CTN and USAC, Contractor will have received 100% reimbursement for all services eligible under the RHCPP and all services ineligible under either RHCPP and CTF. At this point, Contractor will invoice CTF for those services eligible under CTF, regardless of whether 100% payment in aggregate, has already been received from CTN and/or USAC. CTF will pay contractor 50% of CTN-C’s component of charges that are eligible under the CTF (7.5% of total charges eligible under RHCPP). Upon receipt of payment from CTF, Contractor will credit CTN and proactively apply credits against future invoiced amounts.

Step-By-Step Invoicing Process:

Step-by-Step process for incremental submission of invoices and partial payments by CTN, USAC and CTF.

  1. Contractor submits a monthly invoice to CTN. The invoice must contain the following information for each site
    1. CTN site identification:
      1. Site Name
      2. Address
      3. USAC 465 App Number (format: 17211-01-XXXX)_(Site ID)
      4. Additional designations as specified by USAC and/or CTN
    2. Date range during which services were provided.
    3. Description of Services and category of service provided :
      1. Eligible Services – those services that are reimbursable under the FCC RHCPP program. Service descriptions of Eligible Services on the invoice must contain standardized descriptions that will be provided by USAC and made available to Contractor.
      2. Ineligible Services – those services that are not reimbursable under the FCC RHCPP program.
  2. CTN reviews Contractor’s invoice and prepares a standardized USAC Invoice Report:
    1. CTN uploads a copy of Contractor’s original Invoice to USAC.
    2. CTN prepares a USAC Invoice Report, based upon Contractor Invoice.
    3. CTN representative signs the Invoice Report
    4. CTN submits Invoice Report to Contractor and submits payments:
      1. 15% payment of Eligible Expenses
      2. 100%  payment of Ineligible Expenses
    5. Contractor completes the Contractor portion of Invoice Report:
      1. Certifies receipt of the CTN 15% payment.
      2. Contractor representative signs Invoice Report
    6. Contractor submits Invoice Report to USAC by FAX or email attachment (email submission preferred by USAC).
  3. USAC processes Invoice Report and issues payment to Contractor.
  4. Contractor submits invoice to California Teleconnect Fund:
    1. Certifies that 15% payment has been received from CTN for Eligible Expenses
    2. Certifies that  85% payment has been received from USAC
    3. (No Ineligible expenses will be submitted to CTF)
  5. CTF reviews updated Contractor Invoice:
    1. Validates payment of 15% by CTN.
    2. Validates payment of 85% by USAC
  6. CTF issues payment to Contractor:
    1. CTF will pay 50% of CTN obligation – 7.5%
  7. Contractor issues credit to CTN:
    1. Credit to be applied against subsequent monthly invoices to CTN/USAC.
    2. Subsequent monthly Contractor Invoices must clearly indicate the application of credit amounts.