INFORMATIONAL

Administrative Supts. Memo. No. 86, dated October 1, 1999, 
and attachments provided you with revised Literary Fund 
documents and a copy of the Regulations Governing Literary 
Loans in Virginia.  Since its distribution, we have been 
made aware of some confusion concerning the requirement 
stated in Section 3.4 as it relates to  projects that are 
bid prior to receipt of the application in the Department 
of Education.  To "Bid" is to issue the Invitation for Bid 
(IFB) (as defined in 11.37 of the Code of Virginia).  The 
issuance date is the date when the project is advertised to 
the public.  Section 3.4 of the Literary Fund regulations 
requires the receipt of the Literary Loan Application by 
the Department of Education prior to the advertisement of 
bids.  The Board of Education does not have authority to 
waive this requirement.  It is recommended that Literary 
Loan applications be submitted to the department as soon as 
possible after a project is identified, preferably at least 
several months before the construction documents are 
completed, so approval of your project will not be delayed.

In addition, please note that 22.1-140 of the Code of 
Virginia states that school divisions are required to send 
the Department of Education  (1) an approval letter from 
the division superintendent; (2) a letter from the 
architect/engineer that the plans and specifications are in 
compliance with the School Building Regulations and Uniform 
Statewide Building Code; and, (3) a complete set of final plans
and specifications.  Your application will not be  placed on the 
Waiting List until the final plans and  specifications have been
received by the department. Please submit this information to the 
department as soon as  it is available.

Administrative Supts. Memo. No. 86, dated October 1, 1999, 
also provided guidance for reimbursement from the Literary 
Fund for previously paid capital expenditures.  The memo 
stated that the reimbursement resolution must be adopted 
not later than 60 days after the initial expenditure is 
paid in order for the expenditure to qualify for 
reimbursement.  Please note that exceptions are available 
for certain "preliminary expenditures" (such as 
architectural and engineering fees), certain de minimis 
amounts, expenditures by "small issuers" (based on the year 
of issuance and not the year of expenditure) and 
expenditures for construction projects of at least 5 years.  
Please consult with your bond counsel for more specific 
guidance on reimbursing yourself.

If you have any questions regarding this memorandum, please 
contact Dan Timberlake, June Eanes, or Brian Logwood at 
(804) 225-2025.

PDS:ya/bkl
 
.