INFORMATIONAL

TO:

Division Superintendents

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

SUBJECT:

Establishment of Contingency Reserves as a Classification of School Funds

On April 2, 2002, Governor Warner approved Senate Bill 604 (enacted as Chapter 470, 2002 Acts of Assembly), which amends Section 22.1-115 of the Code of Virginia by adding contingency reserves as an additional classification for appropriation and expenditure of school funds.

This bill is effective July 1, 2002, and may affect school division appropriations and expenditures (as specified in Section 22.1-94, Code of Virginia), as well as Annual School Report (ASR) submissions, beginning with fiscal year 2003. The function-object code structure to be used on the fiscal year 2003 ASR for this new category will be provided in a later memorandum.

Additional information on this legislation, including the full text of Senate Bill 604, is available through the General Assemblys Legislative Information System at the Web address below:

http://leg1.state.va.us/lis.htm

When you get to this website, click on Bills and Resolutions:, type SB604 in the search engine, and then press Enter.

Questions regarding the establishment of the contingency reserve classification may be directed to Dan Timberlake,

assistant superintendent for finance, or budget office staff at (804) 225-2025.

JLD/sed