State Direct Aid to Public Education Funds Permitted to be Carried Forward from Fiscal Year 2004 to Fiscal Year 2005

COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 96

May 7, 2004

INFORMATIONAL

TO:

Division Superintendents

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

SUBJECT:

State Direct Aid to Public Education Funds Permitted to be Carried Forward from Fiscal Year 2004 to Fiscal Year 2005

Section 22.1-100, Code of Virginia, requires state funds that are unexpended at the close of any fiscal year to be reverted by school divisions to the commonwealth; however, the final appropriation act for the 2002-2004 biennium (Chapter 943) permits school divisions to carry forward to fiscal year 2005 certain state funds received in fiscal year 2004 that are unexpended as of June 30, 2004. School divisions may carry forward to fiscal year 2005 the unexpended June 30, 2004, balances of state funds in the following Direct Aid to Public Education accounts:

1. SOL Remediation (revenue source code 240274)

2. SOL Algebra Readiness (revenue source code 240405)

3. School Construction Grants Program (revenue source code 240306)

4. Lottery (revenue source code 240233)

To carry forward state funds to fiscal year 2005 in the four accounts listed above, the school division must have actually received the state funds in fiscal year 2004. State funds received by school divisions in fiscal year 2004 for the School Construction Grants Program and Lottery may also be paid into escrow accounts pursuant to Sections 22.1-175.5 and 22.1-100.1, Code of Virginia, respectively, and carried forward indefinitely.

Except for the four accounts listed above, all other state Direct Aid to Public Education funds received by school divisions in fiscal year 2004 should be expended by June 30, 2004; otherwise, any state funds received in fiscal year 2004 that have unexpended balances as of June 30, 2004, are subject to the reversion requirement of Section 22.1-100, Code of Virginia.

If you have any questions regarding this information, please contact Dan Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.

JLD/kcd