COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 89

June 21, 2002

INFORMATIONAL

TO:

Division Superintendents

 

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

 

SUBJECT:

Correction for Fiscal Year 2002 Certification of Adequate Budgeted Funds to Meet the Required Local Effort for the Standards of Quality

 

 

Regulatory Superintendents Memorandum No. 2, dated March 29, 2002, provided school divisions with a worksheet to estimate their fiscal year 2002 local operating funds to meet the required local effort for the Standards of Quality. In this memorandum, the following change in required deductions from total expenditures was noted:

 

The department has revised the expenditure items to be excluded on the required local effort worksheet. Beginning with the fiscal year 2002 required local effort certification, operational expenditures in the Facilities function (66000) will no longer be excluded from total expenditures. Therefore, only Capital Outlay (object 8200) across all functions and Debt Service expenditures should be excluded from total expenditures to calculate the total amount of operating expenditures in support of required local effort.

After Regulatory Superintendents Memorandum No. 2 was posted, it was discovered that object code 8100 (Capital Outlay Replacement) in the Facilities function (66000) was erroneously excluded from the list of required deductions to total expenditures. The Standards of Quality funding model defines Capital Outlay Replacement in the Facilities function as a capital expense and should have been deducted from total expenditures for the purpose of calculating local operating expenditures. Any further review by the department of fiscal year 2002 required local effort files that were previously submitted by divisions will exclude all Capital Outlay Replacement expenses reported in the Facilities function. Please review your fiscal year 2002 certification of required local effort based on this correction and notify the department if your revised local expenditures for operations falls below that which is required to meet your required local effort.

 

If you have any questions, please contact budget office staff at (804) 225-2025.

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