ADMINISTRATIVE

  Enclosed are the Locality Ledger and spreadsheets that reflect
  the cash basis and the modified accrual basis of accounting
  for sales tax revenue and basic aid payments for the school
  year 1996-97.  This Departmental information represents
  payments made to localities from state and federal funds and
  should be reconciled to  your accounting records prior to
  preparing the 1996-97 Annual School Report.

  Also, enclosed are two (2) sets of forms, a diskette, and
  instructions for compiling data for the Annual School Report. 
  The modified accrual basis of accounting is to be used for
  preparing the financial section.

  Information concerning the receipt of cash, shares of stock,
  or both, as a result of the conversion of Blue Cross and Blue
  Shield of Virginia (Trigon) is not to be reported on the 
  1996-97 Annual School Report.

  Funding for technology, for the 1996-97 school year, was
  provided through the Virginia Public School Authority (VPSA)
  and should be reported under revenue source code 4104050.

  In keeping with the Commonwealth's goal of efficiency in
  government, the Department is requesting school divisions to
  submit the financial section on the enclosed diskette and also
  provide a printed copy of the diskette.  Submitting the 
  financial section on diskette will reduce processing time by
  approximately one-third.  This will allow the Department to
  compile and produce the Annual School Report in less time and
  at a reduced cost.  Complete diskette instructions are
  included in this package.

  The 1996-97 Annual School Report data is due by August 15,
  1997, as required by Section 22.1-81, Code of Virginia.  An
  automatic 15-day extension is granted if needed.  Further
  extensions are precluded by the referenced Code section.

  Please send the diskette and printed copy, or the original
  financial section, as well as all supplemental schedules to:             

                      L. M. Morgan, Jr.
                     Accounting & Finance
                   Department of Education
                       P. O. Box 2120
                Richmond, Virginia  23218-2120

  Questions relating to the Annual School Report and
  supplemental schedules should be directed to the following:

  Financial Section and
  Full-time Equivalent
  (FTE) Positions        Mr. L. M. Morgan, Jr.   (804) 225-2040

  Special Education      Mr. John Mitchell       (804) 225-2704

  School Nurse       
  Health Care Cost       Mr. Kent Dickey         (804) 225-2806

  Pupil Transportation   Dr. Barbara Goodman     (804) 225-2774


  RTL:da

  Enclosures:  A hard copy of this memo and its enclosures
               will be sent to the superintendent's office.