COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO NO. 115
August 23, 2002
Jo Lynne DeMary
Superintendent of Public Instruction
Direct Aid to Public Education Payment Schedule and Program Classification Structure for Fiscal Year 2003
The purpose of this memorandum is to provide you with information regarding the fiscal year 2003 Direct Aid to Public Education payment schedule (state funds only) and the fiscal year 2003 Program Classification Structure (Attachments B and C). The information in this memorandum is based on the projected fiscal year 2003 entitlements presented in Regulatory Superintendents Memorandum Number 1, dated March 15, 2002. Attachment A provides summary information on each Direct Aid account for fiscal year 2003 regarding payment schedules, local match and certification/application requirements, and other information. Fiscal year 2003 began on July 1, 2002, and ends on June 30, 2003.
SECTION 1: Direct Aid Payment Schedule (State Funds Only)
This section lists the payment schedule for those Direct Aid to Public Education accounts that will be paid by electronic funds transfer (EFT) on a recurring (i.e., semi-monthly), non-recurring, or reimbursement-based payment schedule in fiscal year 2003.
Accounts paid through semi-monthly EFTs (funds deposited on the sixteenth and the last day of each month beginning in July 2002):
Retirement - Virginia Retirement System (VRS) (instructional portion only beginning in fiscal year 2003 including the Retiree Health Care Credit)
Social Security (instructional portion only beginning in fiscal year 2003)
Vocational Education - Standards of Quality (SOQ)
Remedial Education - SOQ
Special Education - SOQ
Gifted Education - SOQ
Sales Tax (paid by the Virginia Department of Accounts to the local treasurer or finance officer of the locality)
No semi-monthly payment for instructional Group Life will be made in fiscal year 2003 due to the premium holiday in effect for the year. Likewise, school divisions will not be charged by the Virginia Retirement System (VRS) for group life insurance in fiscal year 2003. For fiscal year 2003, the only payment school divisions will receive for Group Life is the June rollover payment made in July for non-instructional Group Life.
Beginning in fiscal year 2003, the instructional VRS Retirement (including the Retiree Health Care Credit) and Social Security payments will be based only on the per pupil amount. The fixed-cost non-instructional portion of these benefits will be included as a portion of the Basic Aid per pupil payment and will no longer be a component of the instructional retirement payment. Also, please note that the June 2002 rollover payment for fringe benefits that is paid in July was deposited on July 9, 2002.
With the exception of sales tax, all of the above accounts will be adjusted after actual March 31, 2003, Average Daily Membership (ADM) is received and finalized. Current projections of March 31, 2003, ADM will be recalculated this fall based on actual March 31, 2002, ADM and actual September 30, 2002, fall membership. If the revised ADM projections differ significantly from the current ADM projections, affected accounts will be recalculated using the revised projections, and updated semi-monthly entitlements will be paid to divisions. If necessary, these adjusted payments would begin about mid-year. If the revised projections do not differ significantly from current projections, payments will continue to be made on the current projections until actual March 31, 2003, ADM is received. Until such time as a change is made for actual March 31, 2003, ADM or ADM projections are revised based on the latest actual ADM and fall membership data, Direct Aid payments for fiscal year 2003 will be made using the projected entitlements enclosed with Regulatory Superintendents Memorandum Number 1, dated March 15, 2002.
Payments Based on ADM
Following the collection of actual March 31, 2003, ADM, payments for the following accounts will be recalculated using actual adjusted or unadjusted ADM data as indicated below:
Accounts calculated on adjusted ADM:
Gifted Education SOQ
Please note that for fiscal year 2003 the Retiree Health Care Credit entitlement is paid as part of the VRS retirement payment. Beginning in fiscal year 2003, divisions will pay the VRS directly for the cost of this benefit. The entitlement for Enrollment Loss will be distributed in one payment in the spring of 2003 after actual March 31, 2003, ADM is received and finalized.
Accounts calculated on unadjusted ADM:
Vocational Education SOQ
Special Education SOQ
Remedial Education SOQ
School Health Incentive Fund
Payments Based on Fall Membership
The following accounts are paid on the basis of fall membership and will be adjusted after September 30, 2002, fall membership is received and finalized:
Early Reading Intervention
SOL Algebra Readiness
K-3 Primary Class Size Reduction (note: K-3 Primary Class Size Reduction will be paid on a semi-monthly recurring basis beginning on or about the January 16, 2003, EFT)
English as a Second Language This entitlement will be distributed in two equal payments, one in December 2002 and one in April 2003, after the division count of Limited English Proficient (LEP) students is available from the fall membership data collection.
The following accounts require either an application or superintendents certification to be submitted to the department in order to receive state funds (where certifications or applications are not submitted and approved in time for payments to be made according to the schedules stated below, payments will be made as soon as possible after the certifications or applications are submitted):
At-risk Although this account will be set-up as a semi-monthly recurring payment beginning on the July 16, 2002, EFT, divisions are required to submit a certification form to the Department of Education. Guidance on the required certification will be included in a separate Superintendents Memorandum in August 2002.
Lottery Guidance on the required certification will be included in a separate Superintendents Memorandum in August 2002. Semi-monthly payments on the sixteenth and the last day of each month will begin after the department receives and approves the certification.
At-Risk Four-Year-Olds (Virginia Preschool Initiative) The entitlement will be paid in three equal installments: on the September 16, 2002, EFT (pending an approved application for 2002-2003 and final report for 2001-2002), the October 31, 2002, EFT, and the January 31, 2003, EFT (pending an approved interim report for 2002-2003). In order to be paid on these dates, divisions must submit the required documentation; otherwise, divisions will be paid on the next semi-monthly payment date following the submission of required documentation. The final entitlement amount for fiscal year 2003 will be based on actual enrollment submitted to the department in the interim report in the fall of 2002. Guidance on the fiscal year 2003 application process was included in Informational Superintendents Memorandum Number 53, dated April 5, 2002.
School Health Incentive Fund Fifty percent of this entitlement will be paid using projected ADM, after the department approves the grant application. The remaining 50 percent will be paid after actual March 31, 2003, ADM is received and finalized. Guidance on the application process will be included in a separate Superintendents Memorandum.
School Construction Fifty percent of school construction funds will be distributed in December 2002, pending receipt and approval of the required certification form. The remaining 50 percent will be distributed in May 2003. Guidance on the required certification will be included in a separate Superintendents Memorandum in August 2002.
Early Reading Intervention Fifty percent of the entitlement will be paid in December 2002, pending receipt and approval of the required certification form. The remaining 50 percent will be paid in February 2003, following the submission of a report on the number of children identified and served in the program in fiscal year 2003. Details on this program are outlined in Informational Superintendents Memorandum Number 54, dated April 5, 2002.
SOL Algebra Readiness and SOL Remediation These entitlements will be paid in two equal payments in November 2002, after the department receives and approves the required certifications, and in March 2003, after the department updates the payments for actual 2002 fall membership. Guidance on the required certifications will be included in separate Superintendents Memoranda.
K-3 Primary Class Size Reduction Guidance on the required certification will be included in a separate Superintendents Memorandum in fall 2002. After the department receives and approves the certification, recurring payments will begin on the sixteenth and the last day of each month beginning on or about the January 16, 2003, EFT.
Remedial Summer School One-third of the Remedial Summer School payment will be paid in September 2002 based on estimated enrollment, and the balance will be paid in October 2002 after actual summer school enrollment is received for the summer 2002 program. Guidance on the fiscal year 2003 reimbursement process is included in Administrative Superintendents Memorandum Number 50, dated July 26, 2002.
Dropout Prevention Fifty percent of this entitlement will be paid after the department receives and approves the required application. The remaining 50 percent will be paid after the department receives and approves the final report. Guidance on the required application and final report will be included in a separate Superintendents Memorandum.
Technology Resource Assistants Fifty percent of this entitlement will be paid after the department receives and approves the required certification. The remaining 50 percent will be paid in February 2003. Guidance on the required certification will be included in a separate Superintendents Memorandum in August 2002.
Categorical Accounts Listed below is information on the payment schedule for various categorical accounts.
Categorical accounts paid on a reimbursement basis are as follows (in most cases, a separate communication will be sent to provide specific guidance for each account):
Special Education State-operated Programs (i.e., Hospitals, Clinics, and Detention Homes) quarterly or semi-annual reimbursement
Regional Alternative Education Programs
Governors Schools (academic year program reimbursements will be paid in two installments following the submission of reimbursement information to the department in January and May 2003)
Other categorical account payment schedules (in most cases, a separate communication will be sent to provide specific guidance for each account):
Vocational Education Categorical The Occupational Prep and Adult entitlements are projected to be paid in one payment in February 2003. The Vocational Education Equipment component is paid on a reimbursement basis.
Special Education Homebound One payment is projected to be made in the fall of 2002 upon receipt of prior year (fiscal year 2002) reimbursement data.
Special Education Regional Tuition Payment is made twice a year; entitlements are paid in the semester that follows the one in which the expense was incurred (i.e., the spring 2002 reimbursement is paid in the fall of 2002; the fall 2002 reimbursement is paid in the spring of 2003).
Special Education in Local Jails School divisions will be reimbursed quarterly according to the following schedule:
1st quarter (July 1-September 30, 2002) reimbursement form due to the department by October 10, 2002
2nd quarter (October 1-December 31, 2002) - reimbursement form due to the department by January 10, 2003
3rd quarter (January 1-March 31, 2003) - reimbursement form due to the department by April 10, 2003
4th quarter (April 1-June 30, 2003) - reimbursement form due to the department by July 10, 2003
Please note that, beginning with fiscal year 2003, the fourth quarter reimbursement for this account will be paid in the subsequent fiscal year (i.e., the fourth quarter fiscal year 2003 reimbursement will be paid in the first quarter of fiscal year 2004).
Adult Education A mid-year and year-end payment will be made after the department receives the reimbursement information from divisions.
Foster Care One payment is projected to be made for regular education and special education foster care in the spring of 2003 based upon qualifying foster care students served in the prior year and the local operational cost per pupil from the prior year.
Individual Student Alternative Education Plan
Program (ISAEP) (previously titled GED) Payments will be made periodically throughout the year based on reimbursement information submitted by divisions.
Attachments B and C outline the Program Classification Structure that will be used by the Department of Education to distribute funding to school divisions and local governments in fiscal year 2003 for public education (Attachment B) and for services provided under the Comprehensive Services Act (Attachment C). The Catalog of Federal Domestic Assistance (CFDA) code will be used as the revenue source code for federal funds (fund 1000).
The following describes the content of the columns contained in Attachments B and C:
Column (1) - Program, subprogram, and element The coding structure used in the state budget for identifying appropriated funds by activity.
Column (2) - Project code The coding structure used by the Department of Education in the Chart of Accounts to identify activity- specific expenditure information.
Column (3) - Description The label description of the corresponding program, subprogram, element, or project code.
Column (4) - Fund source The source of funding (i.e., state general, state nongeneral, federal). Federal funding is designated by the code 1000; state funding is designated by the codes 0100, 0200, 0400, 0700, or 0900.
Column (5) - Revenue/CFDA code The six-digit code in the Department of Education Chart of Accounts used for the purpose of reporting state and federal revenues on electronic data interchange (EDI) notices, locality ledger reports, and the Annual School Report. The six-digit CFDA code (including the period) will be used to show federal funds on EDI notices and locality ledger reports; however, the period is dropped from CFDA codes shown in the revenue section of the Annual School Report.
Column (6) - Current payment status for FY 2003 A denotes that the project code is currently in active payment status for fiscal year 2003, while I denotes inactive payment status for fiscal year 2003.
If you have any questions regarding this memorandum, or need additional information, please contact budget office staff at (804) 225-2025.