SUPTS. MEMO. NO. 202
October 29, 1999
|FROM:||Paul D. Stapleton
Superintendent of Public Instruction
|SUBJECT:||Additional Guidance For Literary Fund Loans|
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 .