COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 145

September 12, 2003

INFORMATIONAL

TO:

Division Superintendents

 

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

 

SUBJECT:

Direct Aid to Public Education Payment Schedule and Program Classification Structure for Fiscal Year 2004

 

The purpose of this memorandum is to provide you with information regarding the projected fiscal year 2004 Direct Aid to Public Education payment schedule (state funds only) and the fiscal year 2004 Program Classification Structure (see Attachments B and C). The information in this memorandum is based on the projected fiscal year 2004 entitlements presented in Administrative Superintendents Memorandum Number 30, dated June 6, 2003. Attachment A provides summary information on each Direct Aid account for fiscal year 2004 regarding payment schedules, local match and certification/application requirements, and other account information. Fiscal year 2004 began on July 1, 2003, and ends on June 30, 2004.

 

 

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 2004.

 

Accounts paid through semi-monthly EFTs (funds deposited on the sixteenth and the last day of each month beginning in July 2003):

 

        Basic Aid

        Retirement - Virginia Retirement System (VRS) (instructional portion only which includes the Retiree Health Care Credit beginning in fiscal year 2003)

        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

        Textbooks

        At-Risk

        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 2004 due to the premium holiday in effect for the year. As a result, school divisions will not be charged by the Virginia Retirement System (VRS) for group life insurance in fiscal year 2004.

 

Please note that, beginning in fiscal year 2003, the instructional VRS Retirement (which includes the Retiree Health Care Credit) and Social Security payments were based only on the per pupil amount. The fixed-cost non-instructional portion of these benefits is now included as a portion of the Basic Aid per pupil payment and is no longer a component of the instructional retirement and Social Security payments. Also, please note that the June 2003 rollover payment (that is paid in July and accrued back to fiscal year 2003) for fringe benefits was deposited on July 11, 2003.

 

With the exception of sales tax, all of the above accounts will be adjusted after actual March 31, 2004, Average Daily Membership (ADM) is received and finalized. Current projections of March 31, 2004, ADM will be recalculated this fall based on actual March 31, 2003, ADM and actual September 30, 2003, 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 communicated and 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, 2004, ADM is received. Until such time as fiscal year 2004 payments are finalized for actual March 31, 2004, ADM or the fiscal year 2004 semi-monthly payments are recalculated based on ADM projections updated for the latest actual ADM and fall membership data, Direct Aid payments for fiscal year 2004 will be made using the projected entitlements enclosed with Administrative Superintendents Memorandum Number 30, dated June 6, 2003.

 

Payments Based on Average Daily Membership (ADM)

 

Following the collection of actual March 31, 2004, ADM, payments for the following accounts will be recalculated using actual adjusted or unadjusted ADM data as indicated below:

 

Accounts calculated on adjusted ADM:

 

        Basic Aid

        Gifted Education SOQ

        VRS Retirement

        Social Security

        Textbooks

        Enrollment Loss

        Lottery

 

Please note that, beginning in fiscal year 2003, the Retiree Health Care Credit entitlement is paid as part of the VRS retirement payment. Beginning in fiscal year 2003, divisions began paying the VRS directly for the cost of this benefit. The entitlement for Enrollment Loss will be distributed in one payment in the spring of 2004 after actual March 31, 2004, ADM is received and finalized.

 

Accounts calculated on unadjusted ADM:

 

        Vocational Education SOQ

        Special Education SOQ

        Remedial Education SOQ

        At-Risk

 

Payments Based on Fall Membership

 

The following accounts are paid on the basis of fall membership and will be adjusted after September 30, 2003, fall membership is received and finalized:

 

        Early Reading Intervention

        SOL Algebra Readiness

        SOL Remediation

        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, 2004, EFT)

        English as a Second Language This entitlement will be distributed in two equal payments, one in December 2003 and one in April 2004, 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, 2003, 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 September 2003.

 

        Lottery Guidance on the required certification will be included in a separate Superintendents Memorandum in September 2003. 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 30, 2003, EFT (pending an approved application for 2003-2004 and final report for 2002-2003), the October 31, 2003, EFT, and the February 28, 2004, EFT (pending an approved interim report for 2003-2004). In order to be paid on these dates, divisions must submit the required documentation in a timely fashion; 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 2004 will be based on actual enrollment submitted to the department in the interim report in the fall of 2003. Guidance on the fiscal year 2004 application process was included in Informational Superintendents Memorandum Number 73, dated April 25, 2003.

 

        School Construction Fifty percent of school construction funds will be distributed in December 2003, pending receipt and approval of the required certification form. The remaining 50 percent will be distributed in May 2004. Guidance on the required certification will be included in a separate Superintendents Memorandum in September 2003.

 

        Early Reading Intervention Fifty percent of the entitlement will be paid in December 2003, pending receipt and approval of the required certification form. The remaining 50 percent will be paid in February 2004, following the submission of a report on the number of children identified and served in the program in fiscal year 2004. Details on this program are outlined in Informational Superintendents Memorandum Number 77, dated May 2, 2003.

 

        SOL Algebra Readiness and SOL Remediation These entitlements will be paid in two equal payments in November 2003, after the department receives and approves the required certifications, and in March 2004, after the department updates the payments for actual 2003 fall membership. Guidance on the required certifications will be included in a separate Superintendents Memorandum in September 2003.

 

        K-3 Primary Class Size Reduction Guidance on the required data collection and certification process will be included in a separate Superintendents Memorandum in September 2003 as part of the September 30th Fall Membership data collection. After the department receives and approves the certification, recurring payments based on qualifying schools will begin on the sixteenth and the last day of each month beginning on or about the January 16, 2004, EFT.

 

        Remedial Summer School One-third of the Remedial Summer School payment will be paid in September 2003 based on estimated enrollment, and the balance will be paid in October 2003 after actual summer school enrollment is received for the summer 2003 program. Guidance on the fiscal year 2003 reimbursement process is included in Administrative Superintendents Memorandum Number 44, dated July 25, 2003.

 

        Student Achievement Grants (new payment for fiscal year 2004) The Student Achievement Grants payment will be made in one distribution upon receipt and approval of the required certification by the department. The certification will include an assurance that the funds will be spent as permitted by the appropriation act and that the required local match is provided. Guidance on the required certification was included in Administrative Superintendents Memorandum Number 49, dated August 29, 2003. The project and revenue source codes for this account are not yet established; they will be communicated to you when available.

 

        Compensation Supplements (new payment for fiscal year 2004) Guidance on the required certification will be included in a separate Superintendents Memorandum in September 2003. After the department receives the certification, Compensation Supplement funds will be paid on a semi-monthly recurring basis on the 16th and the last day of each month beginning with the December 16, 2003, EFT. The project and revenue source codes for this account are not yet established; they will be communicated to you when available.

 

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

 

        Electronic Classroom

 

        School Nutrition

 

        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 2004)

 

Other categorical account payment schedules (in most cases, a separate communication will be sent to provide specific guidance for each account):

 

        Career and Technical Education Categorical The Occupational Prep and Adult entitlements are projected to be paid in one payment in March 2004. The Career and Technical Education Equipment component is paid on a reimbursement basis. The data collection process to calculate the Occupational Prep and Adult payments and the equipment reimbursement process will be communicated through two separate Superintendents Memoranda.

 

        Special Education Homebound One payment is projected to be made in the fall of 2003 upon receipt of prior year (fiscal year 2003) 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 2003 reimbursement is paid in the fall of 2003; the fall 2003 reimbursement is paid in the spring of 2004).

 

        Special Education in Local Jails Please note that, beginning with fiscal year 2003, the fourth quarter reimbursement for this account is paid in the subsequent fiscal year (i.e., the fourth quarter fiscal year 2003 reimbursement is paid in the first quarter of fiscal year 2004). School divisions will be reimbursed quarterly according to the following schedule:

 

4th quarter fiscal year 2003 (expenses for April 1-June 30, 2003) - reimbursement form due to the department by July 10, 2003 (paid in state fiscal year 2004);

 

1st quarter fiscal year 2004 (expenses for July 1-September 30, 2003) reimbursement form due to the department by October 10, 2003;

 

2nd quarter fiscal year 2004 (expenses for October 1-December 31, 2003) - reimbursement form due to the department by January 10, 2004;

 

3rd quarter fiscal year 2004 (expenses for January 1-March 31, 2004) - reimbursement form due to the department by April 10, 2004;

 

4th quarter fiscal year 2004 (expenses for April 1-June 30, 2004) - reimbursement form due to the department by July 10, 2004 (paid in state fiscal year 2005).

 

        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 2004 based upon qualifying foster care students served in the prior year and the local operational cost per pupil from the prior year. The local operational cost per pupil from the prior year will be based on data submitted on the 2002-2003 Annual School Report.

 

        Individual Student Alternative Education Plan

Program (ISAEP) As indicated in Informational Superintendents Memorandum Number 82, dated May 2, 2003, the fiscal year 2004 ISAEP payments will be made to school divisions in one payment following the submission and approval of the fiscal year 2004 applications. It is anticipated that all payments will be made no later than October 2003, pending all division applications being submitted and approved. School divisions will not be required to submit reimbursement request forms in fiscal year 2004.

 

 

Section 2: Program Classification Structure for Fiscal Year 2004

 

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 2004 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 of 1000; state funding is designated by the codes of 0100, 0200, 0400, 0700, or 0900.

 

Column (5) - Revenue Source Code (State) or Catalog of Federal Domestic Assistance (CFDA) Code The five-digit (CFDA) and six-digit (state) codes in the Department of Education chart of accounts used for reporting state and federal revenues on electronic data interchange (EDI) notices, locality ledger reports, and the Annual School Report. The five-digit CFDA code (with 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 2004 A denotes that the project code is in active payment status for fiscal year 2004, while I denotes inactive payment status for fiscal year 2004.

 

If you have any questions regarding this memorandum, or need additional information, please contact budget office staff at (804) 225-2025.

 

JLD/kcd

 

Attachments

 

/administrators/superintendents_memos/2003/inf145a.pdf

/administrators/superintendents_memos/2003/inf145b.pdf

/administrators/superintendents_memos/2003/inf145c.pdf