1999-2000 Annual School Report

COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P. O. BOX 2120
RICHMOND, VIRGINIA 23218-2120 SUPTS. MEMO NO. 40
July 14, 2000 ADMINISTRATIVE

TO:	Division Superintendents
FROM:	Jo Lynne DeMary Superintendent of Public Instruction
SUBJECT:	1999-2000 Annual School Report

Enclosed are the instructions and forms for submitting information for the 1999-2000 Annual School Report (ASR)(Attachment C). Similar to last year’s ASR, the Department is requesting that school divisions submit the financial section using an Excel template. The Excel template for the 1999-2000 ASR is located on the Department’s website. Download the template from the following address:

http://www.pen.k12.va.us/VDOE/Finance/Budget/asr.html

If you do not have access to the Internet, the Department provides free access through VA.PEN (Virginia’s Public Education Network). To obtain a VA.PEN account, please contact Jean Gray at (804) 371-7524. If you do not have access to the Department’s website or have not had your Internet account activated in time to complete the ASR, please contact budget staff at (804) 225-2025 and a diskette with the Excel template will be sent to you.

Instructions for completing the ASR using the Excel template are included in this package. Please read these instructions carefully as several changes have been made for fiscal year 1999-2000. The following information highlights some of these changes.

New For 1999-2000 ASR:

Downloading "ASRFINnnn99.xls": The ASR template may be downloaded from the following Internet address:

http://www.pen.k12.va.us/VDOE/Finance/Budget/asr.html See page 9 of the ASR instructions for complete details on how to download the ASR template.

Enabling Macros: When you first open the Excel template, a dialog box will warn you that the workbook contains macros and you will be prompted to either "disable" or "enable" the macros. In order for the template to operate correctly, you must click on the "ENABLE MACROS" button.

Contact Information: The first sheet in your ASR workbook, titled "Contact Information," has been enhanced to allow you to select your division name and number using a drop-down box. Simply click on the down arrow next to "Select Division," scroll down the list and then click on the appropriate division name. Excel will automatically insert your division number and the contact information for the person(s) who completed the ASR last year. If the contact information inserted by Excel needs to be changed, simply key the correct information into the appropriate cell(s). If you do make changes or add information to this sheet, you must follow the formatting conventions that appear in the comment boxes on the "Contact Information" sheet.

Superintendent’s Certification: The Superintendent’s Certification form has been added to the ASR template. This sheet, titled "Supt. Certification," is the last visible sheet in the ASR workbook.

Ten error checks have been incorporated into the certification form to provide assistance in correcting common errors prior to submitting the file to the Department. These error checks are located in rows 8 through 17 of the certification form. Once you have entered all the appropriate data into the ASR template, please review the error checks in the "Supt. Certification" sheet to make sure that all checks read "Complete." If any do not read "Complete," other than Schedule F or G reading "N/A," please check the section that triggered the error and make all necessary corrections.

After you have completed the ASR and all error checks read "Complete," click on the gray bar titled "Click Here to Produce Final ASCII File." This process produces the final ASCII file which must be e-mailed, along with a copy of the Excel file, to the Department at the e-mail address shown on page nine of this memo. Complete instructions on how to run the error check process and produce the final ASCII file are located in the "Supt. Certification" sheet of the ASR template.

After you have produced the ASCII file without error, return to the "Supt. Certification" sheet and print off a copy of the certification for the division superintendent to sign. Return the signed certification along with a hardcopy of the completed template via U.S. mail to the Department using the address provided in the attached instructions.

New Revenue/Expenditure/FTE Codes added for 1999-2000:

Revenue: Code:

Prior Year Lottery 240235

Expenditure:

Retiree Health Care Credit 2750

Prepaid Tuition to Joint Operations 7050

Deferred Tuition to Joint Operations 7060

Expenditure object codes 6020 (Textbooks) and 6030 (Instructional Materials) have been added to the following functions and cost centers: 61100 (cost center 9), 61210 (cost centers 2 and 3), 61230 (cost centers 2 and 3), and 61320 (cost centers 2 and 3).

FTEs:

As noted in Informational Superintendent’s Memorandum Number 201 dated October 29, 1999, several FTE classification descriptions have been revised and/or added. Attachment A to this memo is a copy of the FTE revisions provided to you in Informational Superintendent’s Memorandum Number 201.

Please note that a new FTE classification has been created for "Technical/Computer Specialists" (object code 1152). You should report those FTEs who maintain computer systems in a technical capacity under this category. If you have an FTE that spends part of his/her time instructing students in the use of technology in addition to maintaining computer systems, prorate this portion of time and report it as a partial FTE under a classroom instruction FTE category (1120). All full-time classroom technology instructors should be reported under object code 1120 as well.

Technology Schedule H: The General Assembly passed legislation during the 2000 session requiring the Department of Education to collect data on local educational technology expenditures, including hardware, software, and required infrastructure modifications, as part of the ASR beginning with the 1999-2000 school year. Schedule H of the ASR template is provided for the collection of this data for 1999-2000. As noted in the "General Notes and Instructions" section of Schedule H, the expenditure and full-time equivalent (FTE) position data reported must also be reported on the main ASR report template by object and function, so that total expenditures and FTEs are accurately reflected for fiscal year 2000. This requirement will only apply to the 1999-2000 ASR. Please refer to pages 8 and 9 of this memo for more information on how technology expenditure data will be collected for the 2000-2001 ASR.

End-Of-Year Balances and Escrow Funds: The General Assembly passed legislation during the 2000 session allowing school divisions to carry over state funds from fiscal year 2000 into fiscal year 2001 for the School Construction Grants Program, SOL Remediation, and SOL Teacher Training.

In addition, pursuant to Chapter 635 (previously HB903) and Chapter 693 (previously SB244), 2000 Acts of Assembly, school divisions are allowed to carry unspent balances forward from the nonrecurring portion of Lottery revenues from fiscal year 2000 into fiscal year 2001; however, the legislation requires localities to deposit any lottery funds carried forward into an escrow account. Therefore, no lottery carryover funds should be reported in the "End-Of-Year Carryover" section of the "Recapitulation" sheet. Instead, include lottery escrow funds in the "Escrow Funds" section of the "Recapitulation" sheet. Any amounts from Lottery proceeds that were deposited into an escrow fund must also be reported as a miscellaneous fund transfer (function 67200, object code 5800) on the "District 67000" sheet. In order for your ASR to balance, the amount reported under "Lottery Escrow Fund" in Section 1 of the "Recapitulation" sheet and the amount reported under miscellaneous fund transfers on the "District 67000" sheet must balance.

Regional Alternative Education Programs and Regional Academic Year Governor’s Schools: Beginning with 1999-2000, Regional Alternative Education programs and Regional Academic Year Governor’s Schools are required to complete the ASR. The report may be prepared by the regional center or by the fiscal agent on behalf of the regional program. Report activities associated with Regional Alternative Education programs under "special" programs; report activities associated with Regional Academic Year Governor’s Schools under "gifted and talented" programs.

Average FTE Salary Check Spreadsheets: Three new sheets have been added to the 1999-2000 ASR to calculate the average salary for each position classification at the elementary, secondary, and district levels. The formulas in these sheets calculate average salaries based on the amount of expenditures reported for each classification divided by the number of FTE positions reported for each classification. These calculations are provided only as a way to alert the person(s) completing the ASR that expenditures and reported FTEs may not agree. For example, if $2 million were reported as total personal service expenditures for a particular classification with only one corresponding FTE reported, the message would prompt you to review the reported expenditure and reported FTEs based on the resulting average salary of $2 million. Except to alert you to possible errors in expenditure or FTE data, these calculations are not used to judge the appropriateness of salary averages at the local level.

Please note, however, that the average salaries calculated in the Excel template may differ from those reported to you in the Superintendent’s Verification Report after your ASR has been processed by the Department. This is in part because of the way that FTE codes are combined across similar reporting categories in the verification report. IMPORTANT REMINDERS:

For the Revenue, FTE, and Recapitulation sections of the ASR, as well as Schedules A through H and the

Superintendent’s Certification, data should be typed into the gray-shaded cells only. Formatting in the Expenditure sections has not changed from the 1998-1999 ASR.

Tuition Payments: All tuition payments for fiscal year 2000 that were paid to Regional Vocational Education Technical Centers, Regional Special Education programs, Regional Alternative Education programs, and Regional Academic Year Governor’s Schools should be reported under object code 7000 on pages 8 through 19 of the ASR (where applicable).

In addition, there are two new object codes that affect tuition reporting beginning with fiscal year 2000. Any tuition that was paid in fiscal year 2000 for fiscal year 2001 (i.e., prepaid tuition) must be reported under object code 7050 and any tuition that was paid in fiscal year 2000 for fiscal year 1999 (i.e., deferred tuition) must be reported under object code 7060. All other payments (other than tuition payments) to these programs must be reported under object code 3810 on pages 8 through 19 of the ASR (where applicable).

For all localities participating in a Regional Vocational Education Technical Center, Regional Special Education program, Regional Alternative Education program, and/or Regional Academic Year Governor’s School, the total on Schedule G must equal the sum of the expenditures reported under object codes 7000, 7050, and 7060. Please note the verification information at the bottom of Schedule G.

All tuition revenues received by Regional Vocational Education Technical Centers, Regional Special Education programs, Regional Alternative Education programs, and Regional Academic Year Governor’s Schools must be reported under revenue code 1901010 in the Revenue section of the ASR template. All other revenues received by these programs must be reported under revenue code 1901020 on the "Other Payments Worksheet" of the ASR template. The total on Schedule F must equal the total revenues reported under revenue code 1901010 for these programs. Please note the verification information at the bottom of Schedule F.

Any Mental Health/Mental Retardation payments and/or tuition payments for the Schools for the Deaf and the Blind made by the Department on behalf of the locality

must be reported under Function 61100 (Classroom Instruction), object code 3000 (Purchased Services).

Driver’s Education Adjustment: Payments received for Driver’s Education adjustments should be recorded under Function 61100 (Classroom Instruction), cost center 9 (Districtwide), object code 5800 (Miscellaneous).

Pupil Transportation: The Pupil Transportation annual reports have been mailed under separate cover. Divisions must continue to complete the information required under the pupil transportation function (63000) of the ASR.

Districtwide (Function 61100, Cost Center 9) FTEs: For school division employees who work additional hours outside regular job hours, calculate the additional hours of service as a percent of an FTE using 1,100 hours as the number of hours worked annually by one FTE. This is necessary in order to offset any compensation paid for working additional hours with a corresponding partial FTE. (An FTE of 1,100 hours is based on a 200-day contract multiplied by 5.5 hours of instruction per day.)

Debt Service: Debt service payments made by the local governing body on behalf of school divisions (i.e., the funding is not appropriated to the school division budget) should not be reported as debt service payments

on the ASR. Only the debt service/capital funds appropriated to and paid directly by the school division should be reported.

Small school division assistance payments: For divisions receiving small school division assistance payments (Highland County and Norton City), report this revenue under revenue code 2404000 "Other State Funds."

Prorating expenditures and FTEs between Elementary and Secondary: Expenditures and FTEs should be prorated between K-7 (as Elementary) and 8-12 (as Secondary).

Financial Reports: The following reports will be sent to school divisions during the first part of August:

Locality Ledger, Sales Tax Cash and Modified Accrual Basis spreadsheets, Fringe Benefit Accruals, Retiree Health Care Credit allocations, and Basic Aid Distribution Sheet. This information represents payments made to or on behalf of localities from state and federal funds and should be reconciled to school division accounting records prior to preparing the 1999-2000 Annual School Report.

Changes planned for the 2000-2001 Annual School Report: As noted above, Chapter 1073, 2000 Acts of Assembly (the 2000-2002 appropriation act), requires the Department to collect data on local technology expenditures as part of the ASR. A separate schedule (Schedule H) is provided for the purpose of collecting this data for the 1999-2000 ASR. For next fiscal year (2000-2001), new function codes, 68100 through 68900, will be created to capture this data. In addition, new object codes have been created to capture technology-specific expenditures and FTEs. Please refer to Attachment B for more detail on how the new function and object codes will be structured. The new object codes for 2000-2001 are as follows:

Expenditures: Code:

Telecommunications 5001

Technology - Software/On-line Content 6040

Technology - Hardware 8300

Technology - Infrastructure 8400

Expenditures and FTEs:

Technology – Administrative 1110

Technology – Instructional 1120

Technology – Technical Development 1130

Technology – Technical Support 1140

Technology – Clerical 1150

Please note that, although expenditures and FTE related to technology are to be reported on both Schedule H and in the expenditure section of the 1999-2000 ASR, they must be accounted for only within the new 68000 function code beginning with the 2000-2001 ASR.

The following FTE Codes will be deleted for the 2000-2001 Annual School Report:

Technical/Computer Specialist – (61100 – 1152) (CC 2,3) Admin. Tech./Computer Specialist – (62100 – 1140) (CC 9)

As noted in Informational Superintendent’s Memorandum Number 131, dated June 30, 2000, revenue codes for state funds for fiscal year 2001 will be comprised of six digits instead of seven (the ending zero has been removed from all of the state revenue codes). The six-digit Catalog of Federal Domestic Assistance (CFDA) code (including the period) will be used as the revenue code for federal funds. This memorandum also announced that the revenue code for sales tax will be changed to 240308 for fiscal year 2001.

In addition, several revenue codes will be added to the 2000-2001 ASR to accommodate programs that will be funded in fiscal year 2001. These include:

Administrative Software Support 240309

Composite Index Transition Payments 240213

Elementary Alternative Ed. Pilots 240272

Year-Round School Pilots 240276

The 1999-2000 ASR is due to the Department of Education by September 15, 2000, as required by Section 22.1-81, Code of Virginia. The report should be submitted using the Excel format provided unless prior approval is obtained from the Department. It is imperative that the report is submitted on time in order to assist the Joint Legislative Audit and Review Commission (JLARC) with their study of state education funding. Questions relating to the ASR Financial Section and supplemental schedules should be directed to the individuals listed in the attached instructions.

Following the instructions on page 14 of the attached instruction document, please email the Excel and ASCII files to (mailto:k12budget@hp05.vak12ed.edu). Also, please mail a hardcopy of the final report and the signed Superintendent’s Certification to:

Department of Education
Attn: Budget Office
P. O. Box 2120
Richmond, Virginia 23218-2120

Questions concerning the ASR Financial Section may be addressed to June Eanes, Kent Dickey, Kelly Richards, or Brian Logwood, budget office staff, at (804) 225-2025.

JLD:kd

Attachments

/administrators/superintendents_memos/2000/adm040a.pdf

/administrators/superintendents_memos/2000/adm040b.pdf

/administrators/superintendents_memos/2000/adm040c.pdf