COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P. O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO. NO. 54
July 9, 1999

ADMINISTRATIVE

TO: Division Superintendents
FROM: Paul D. Stapleton
Superintendent of Public Instruction
SUBJECT: 1998-99 Annual School Report
Enclosed are the instructions, forms, and a diskette for 
reporting the 1998-99 Annual School Report (ASR).   The 
modified accrual basis of accounting is to be used for 
preparing the financial section of the report.

In keeping with the Commonwealth's goal of efficiency in 
government, the Department of Education is requiring school 
divisions to submit the financial section on the enclosed 
diskette and also to provide a printed copy of the 
diskette.  The diskette contains a reporting template 
created in an EXCEL spreadsheet format.  Submitting the 
financial section on diskette will reduce processing time 
substantially.  Complete instructions are included in this 
package.

Please read the revised instructions carefully as there 
have been substantial changes made to the 1998-99 ASR.  
These changes include:

^ New Revenue Codes Added

Lottery                                         2402330
Lottery Hold Harmless                           2402510
SOLRemediation                                  2402740
SOL Teacher Training                            2402160 
Composite Index Transition                      2402130 
Additional Teachers                             2402670
School Health Incentive Funds                   2402470
School Construction                             2403060
Retiree Health Care Credit                      2402340
E-Rate                                          3302150 


^ Revenue Codes Deleted

Homework Assistance                             2402820         
Educational Technology                          2402760

^ Category for reporting Educational Technology Grants
 (VPSA Technology Grants - 4104050) has been moved to
 Other State Funds but the revenue code has not changed.

^ "Total Capital Outlay From Federal Funds" where
  localities need to report capital outlay paid from
  federal funds has been moved to page 26.

^ Please note the change in formatting.  For the Revenue,
  FTE, and Recapitulation sections of the ASR, and  Schedules
  A through G, data should be typed into the gray  shaded cells
  only. Expenditure formatting has not been  changed.  Other 
  cells are automatically updated by  formula.

^ Please note that Schedules A through G have been included
  on your diskette.  Please include completed schedules
  with your ASR submission.

^ Please note that the Regional Program Percent of service 
recapitulation has been moved to separate schedules 
(Schedule F & G).  All localities that pay tuition or 
receive tuition payments for a Regional Program(s) should 
report their % of service here.  Percent of service 
should be reported based on revenues received from 
participating localities.

^ All tuition payments paid to Vocational Education  Technical
Centers and Special Education Regional Programs  should be
reported under object code 7000 on pages 8  through 19 (where
applicable).  All other payments (other  than tuition payments)
to Vocational Education Technical  Centers and Special Education
regional Programs should be  reported under object code 3810 on
pages 8 through 19  (where applicable).

^ For all localities participating in a Vocational  Education
Technical Center and/or Special Education  Regional Program,
the total on Schedule G should equal  the total expenditures
reported under object code 7000.   Please note the verification
at the bottom of Schedule G.

^ All tuition revenues received by Vocational Education 
Technical Centers and Special Education Regional Programs 
should be reported under revenue code 1901010 on page 4  of the
ASR template.  All other revenues received by  Vocational
Education Technical Centers and Special  Education Regional
Programs should be reported under  revenue code 1901020 on page
4 of the ASR template.

^ For all Vocational Education Technical Center and/or  Special
Education Regional Programs, the total on  Schedule F should equal
the total revenues reported under  revenue code 1901010.  Please
note the verification at  the bottom of Schedule F.

^ The General Assembly passed legislation during the 1999 
session allowing school divisions to carry over state  funds for
School Construction, Lottery, SOL Remediation,  SOL Teacher
Training and planning grants for Governor's  Schools.  On page
27, the carryover funds for your end of  year balances must be
broken out as indicated.

^ School divisions using EXCEL 97 will be able to review  the
"comments" included in various sheets.  These  "comments" are to
assist divisions in locating the  correct data for reporting.
Divisions using EXCEL 95  will not be able to review these notes.

^ Pupil Transportation reports have been mailed under  separate
cover.  Divisions must continue to complete the  information
required under function 63000 of the Annual  School Report.

The Locality Ledger, Sales Tax Cash and Modified Accrual 
Basis spreadsheets, Fringe Benefit Accruals, and Basic Aid 
Distribution Sheet necessary to complete the report will be 
sent to school divisions during the first part of August.  
The printout for Retiree Health Care Credit will be sent 
the second week in August.  The Departmental information 
represents payments made to localities from state and 
federal funds and should be reconciled to the school 
division accounting records prior to preparing the 1998-99 
Annual School Report.

The 1998-99 Annual School Report is due by September 15, 
1999, as required by Section 22.1-81, Code of Virginia.  
The report should be submitted in the EXCEL format provided 
unless prior approval is obtained from the Department. 
Questions relating to the Annual School Report and 
supplemental schedules should be directed to the 
individuals listed in the instructions. 

Please send the diskette and a printed copy of the report 
to:
Mrs. June F. Eanes
Budget Director
Department of Education
P. O. Box 2120
Richmond, Virginia  23218-2120

Questions on the ASR Financial Section may be addressed to 
June Eanes, Kent Dickey, or Brian Logwood at (804) 225-
2025.  You may e-mail the report to: 
jeanes@mail.vak12ed.edu, blogwood@mail.va.k12ed.edu, or 
kdickey@mail.vak12ed.edu, but please mail a hard copy of 
the report to the Department.  

PDS:je

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