COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 18

May 12, 2006

ADMINISTRATIVE

TO:

Division Superintendents

 

FROM:

Patricia I. Wright

Acting Superintendent of Public Instruction

 

SUBJECT:

Virginia Public School Authority (VPSA) Educational Technology Notes Series III, Series IV, Series V, Series VI and Series VII

 

 

The Virginia Public School Authority (VPSA) has sold the spring 2006 Educational Technology Notes, Series VI. The proceeds from these notes provide the next installment of funds in the educational technology grant program, which provides support for school divisions to develop and implement the Standards of Learning (SOL) Web-based Technology Initiative. Funding for this program is targeted to achieve the following four goals:

 

  1. Provide student access to computers at a ratio of one computer for every five students;

 

  1. Create Internet-ready local area network capability in every school;

 

  1. Assure adequate high-speed, high-bandwidth capability for instructional, remedial, and testing needs, and;

 

  1. Establish a statewide Standards of Learning test delivery system.

 

The VPSA sold the spring 2006 Educational Technology Notes, Series VI, on May 2, 2006, and is planning to close the notes deal on May 25, 2006. Proceeds of the Series VI notes will be made available for reimbursement of qualifying expenditures to school divisions following the scheduled closing on May 25, 2006.

 

Due to the limited number of business days between the notes issuance date and the end of fiscal year 2006, reimbursements that need to be received by school divisions by June 30, 2006, must be received by the Department of Education electronically and the original signature page sent to the department, as indicated below, by June 16, 2006, to ensure sufficient time to process the requests for payment. Please note that no requests for reimbursement may be processed until the note proceeds have officially been issued.

 

Attachment A to this memorandum lists the local grant allocations for the Series VI VPSA note issue. Grants to school divisions for the Series VI notes are based on $26,000 per school and $50,000 per school division. Eligible schools include those reporting fall membership as of September 30, 2005, as well as division and regional vocational, special education, and alternative education centers, regular school year Governors Schools, and the two Virginia Schools for the Deaf and the Blind in the cities of Staunton and Hampton. Localities are required to provide a match of funds equal to 20 percent of the total grant amounts provided to the school division. At least 25 percent of the local match must be used for teacher training in the use of this technology. Regional centers and the two schools for the deaf and blind are not required to provide a 20 percent match to their grant amount.

 

Consistent with previous VPSA notes, payments to school divisions and regional centers will be on a reimbursement basis only. School divisions and regional centers must first complete payments for the qualifying equipment purchased and then file a Series VI reimbursement request with the Department of Education. School divisions and regional centers that adopted a reimbursement resolution and made expenditures prior to the issuance of the Series VI notes are required to certify that all reimbursements are qualifying reimbursements. School divisions and regional centers may not be reimbursed for qualifying expenditures incurred more than 60 days prior to the adoption of a reimbursement resolution. Please note that reimbursements for the Series VI issue for regional vocational, regional special education, Governors Schools, and regional alternative education centers may be made directly to the regional centers. School divisions will not be required to deposit the regional centers share of the note proceeds in their account and then pass those proceeds to the regional center.

 

The Series VI reimbursement request form is a downloadable Excel template. This file is available on the Department of Educations website at:

 

http://www.doe.virginia.gov/VDOE/Technology/soltech/docs/Reimburse
Spr06Series6.xls
.

 

The Series VI reimbursement form includes certification provisions that incorporate federal and state requirements regarding capital expenditures that qualify for reimbursement. School divisions are primarily responsible for determining whether requests for reimbursement are permissible under federal and state requirements. School division officials should carefully read and initial the certification provisions to ensure that none of their reimbursement requests violate any of the stated provisions.

 

Because the reimbursement request form incorporates the certification provisions, divisions are not required to submit copies of supporting documentation to the Department of Education; however, copies of all supporting documents (invoices, work orders, statements, etc.) for which reimbursement is to be made must be retained by the school division for at least five years in the event an audit is required. All reimbursement requests for the VPSA Series VI notes issue must be made using the above-referenced Series VI form. The Department of Education will review the reimbursement request and, when approved, file the request on behalf of the school division with the Virginia State Non-Arbitrage Program (SNAP), which serves as the investment and account manager for the note proceeds. Please note that no reimbursement requests for the Series VI notes will be approved until all of the divisions grant allocations from notes Series III, IV, and V (Spring 2003, Spring 2004, and Spring 2005) are spent. Please see Attachments B, C, and D to this memorandum which provide the Series III, IV, and V allocation balances for each school division and regional program.

 

To improve information security, the department changed the reimbursement process for the VPSA Technology Notes beginning with the spring 2005 issuance. Earlier versions of the VPSA Technology reimbursement form provided a section for localities to enter their bank routing number and account number each time they requested a reimbursement. This section has been removed and all school divisions and regional programs will need to provide their bank routing number and account number directly to the State Non-Arbitrage Program (SNAP) before SNAP executes the actual payment of proceeds from VPSA to the school division or regional program.

 

Attachment G to this memo provides the SNAP VPSA Technology Notes Withdrawal Instructions form. If you have not completed this form or if you need to make changes to wire instructions previously submitted to SNAP, please complete and sign Attachment G and return the form to SNAP prior to requesting any further reimbursements. The completed form should be faxed to Nelson Bush or Stacy Lutz, SNAP representatives, at 1-800-252-9551. If you have not completed this form, the Department of Education will hold all requests for reimbursements until SNAP confirms receipt of your certified bank account information. SNAP will maintain all bank information and, if needed, will assist divisions who need to amend such information. If you have any questions regarding Attachment G, please contact Nelson Bush or Stacy Lutz of SNAP at 1-800-570-SNAP.

 

Proceeds from the Series IV, V, and Series VI issues may not be used for middle schools until all high schools in your division have achieved Stage 2 High School Readiness Certification. See Administrative Supts. Memo No. 27, dated May 17, 2002, for additional information on certification procedures. Also, the proceeds of the Series IV, V, and Series VI notes may not be used for elementary schools until all middle schools in your division have achieved Stage 2 Middle School Readiness Certification. Procedures for achieving all levels of school readiness certification are explained in the following document:

 

http://www.doe.virginia.gov/VDOE/Technology/soltech/docs/School_Readiness_
Doc.pdf
.

 

The School Readiness Certification workbook is a downloadable Excel template. This file is available on the Department of Educations website at:

 

http://www.doe.virginia.gov/VDOE/Technology/soltech/docs/School_Readiness_
Cert.xls
.

 

If expenditures for middle or elementary schools are submitted prior to achieving the appropriate certifications, those expenditures cannot be reimbursed until after the readiness certifications have been achieved.

 

Please submit all Series VI requests for reimbursement using the Series VI reimbursement request form referenced above. E-mail your completed request to Richard Schley at ISSUE6@doe.virginia.gov. In addition, please mail a signed copy of the reimbursement form to the following address:

 

Richard Schley

Office of Instructional Technology

Virginia Department of Education

James Monroe Building 22nd Floor

101 North 14th Street

Richmond, VA 23219

 

No requests for reimbursement will be processed until the Department of Education has received both the electronic Series VI form and your signed hardcopy Series VI form with each certification initialed.

 

Educational Technology Notes, Series V (Spring 2005):

 

As initially announced in Administrative Supts. Memo No. 15, dated April 1, 2005, the Series V notes were sold by the VPSA in May 2005. Proceeds of the Series V notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of May 25, 2005. For grant allocations of Series V VPSA notes, see Attachment A to Administrative Supts. Memo No. 15, dated April 1, 2005, (also included with Attachment B to this memorandum). These proceeds continue to be available to divisions for reimbursement of qualifying expenditures for 18 months from the Series V closing date. All reimbursement forms for the Series V issue must be submitted to the department no later than September 15, 2006. No reimbursement requests for the Series V or VI notes will be approved until the divisions Educational Technology Notes, Series III and IV note proceeds are spent. Attachment B to this memorandum provides a status of the Series V grant balances.

 

For divisions and regional programs that have not completed reimbursement of expenditures from the Series V VPSA notes, the procedures outlined in Administrative Supts. Memo No. 15, dated April 1, 2005, should be followed, and the Series V reimbursement request form should be used. The Series V reimbursement request form is a downloadable Excel template available on the Department of Educations website located at:

 

http://www.doe.virginia.gov/VDOE/Technology/soltech/docs/ReimburseSpr05Serie
s5.xls
.

 

Educational Technology Notes, Series IV (Spring 2004):

 

As initially announced in Administrative Supts. Memo No. 16, dated May 21, 2004, the Series IV notes were sold by the VPSA in June 2004. Proceeds of the Series IV notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of June 24, 2004. Attachment C to this memorandum provides the status of the Series IV grant balances. No reimbursement requests for the Series IV, V, or VI notes will be approved until the divisions Educational Technology Notes, Series III note proceeds are spent and reimbursed.

 

For divisions and regional programs that have not completed reimbursement of expenditures from the Series IV VPSA notes, the procedures outlined in Administrative Supts. Memo No. 16, dated May 21, 2004, should be followed, and the Series IV reimbursement request form should be used. The Series IV reimbursement request form is a downloadable Excel template available on the Department of Educations website located at:

 

http://www.doe.virginia.gov/VDOE/Technology/soltech/docs/ReimburseSpr04Serie
s4.xls
.

 

Please note that the Department of Education has set a deadline of September 15, 2006, to complete all reimbursements from the Series IV notes. Series IV note proceeds allocated to school divisions and regional programs that have not been reimbursed from SNAP by September 15, 2006, will be used by the Department of Treasury to pay debt service on the notes and will no longer be available to reimburse the school divisions and regional programs. In order to accomplish all reimbursements by the September 15, 2006, deadline, requests for reimbursement from the Series IV proceeds must be received by the department electronically and the original signature page sent to the department, as indicated below, by September 8, 2006, to ensure sufficient time to process the requests.

 

Division superintendents and regional program directors with unspent Series 2004 proceeds will be notified in writing by the department and asked to acknowledge the September 8, 2006, deadline to complete reimbursements from the Series IV notes as provided on Attachment C or forfeit the remaining balances.

Educational Technology Notes, Series III (Spring 2003):

 

As initially announced in Administrative Supts. Memo No. 12, dated March 14, 2003, the Series III notes were sold by the VPSA in May 2003. Proceeds of the Series III notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of May 28, 2003. Attachment D to this memorandum provides the status of the Series III allocation balance. No reimbursement requests for the Series IV, V, or VI notes will be approved until the divisions Educational Technology Notes, Series III note proceeds are spent and reimbursed.

 

For regional programs that have not completed reimbursement of expenditures from the Series III notes, the procedures outlined in Administrative Supts. Memo No. 12, dated March 14, 2003, should be followed, and the Series III reimbursement request form should be used. The Series III reimbursement request form is a downloadable Excel template available on the Department of Educations Web site located at:

 

http://www.doe.virginia.gov/VDOE/Technology/soltech/docs/ReimburseSpr03Serie
s3.xls
.

 

Please note that the Department of Education has set a deadline of September 15, 2006, to complete all reimbursements from the Series III notes. Series III note proceeds allocated to regional programs that have not been reimbursed from SNAP by September 15, 2006, will be used by the Department of Treasury to pay debt service on the notes and will no longer be available to reimburse the regional programs. In order to accomplish all reimbursements by the September 15, 2006, deadline, requests for reimbursement from the Series III proceeds must be received by the department electronically and the original signature page sent to the department, as indicated below, by September 8, 2006, to ensure sufficient time to process the requests.

 

Regional program directors with unspent Series 2003 proceeds will be notified in writing by the department and asked to acknowledge the September 8, 2006, deadline to complete reimbursements from the Series III notes as provided on Attachment D or forfeit the remaining balances.

Educational Technology Notes, Series VII (Spring 2007):

 

The Governors Introduced 2006-2008 biennial budget includes funding to continue the educational technology notes program in fiscal years 2007 and 2008 with debt service paid through the Literary Fund. The Governors 2006-2008 budget includes Virginia Public Schools Authority (VPSA) equipment notes totaling approximately $58.9 million in fiscal year 2007 and $59.0 million in fiscal year 2008 to be issued in the spring of 2007 and spring of 2008. Please note that the proposed spring of 2007 and spring of 2008 VPSA equipment notes are subject to final approval by the General Assembly.

 

The 2006-2008 introduced biennial budget maintains grant amounts at $26,000 per school (for K-12 schools reporting fall membership and for various division and regional programs) and $50,000 per school division. A required local match is maintained at 20 percent of the state grant amount, and 25 percent of the required local match must be used for teacher training. The continuation of the VPSA initiative is intended to increase school divisions capability for Web-based instruction, remediation, and testing of the Standards of Learning.

 

The proposed budget also updates the number of schools eligible for funding under the VPSA technology grants. Funding to school divisions for the VPSA technology grant program has been increased by $312,000 in fiscal year 2007 and by $624,000 in fiscal year 2008 based on an anticipated increase in the number of reported schools. Attachment E to this memorandum lists the estimated local grant allocations for the Series VII note issue.

 

School divisions that have spent all of their Series III, IV, V, and Series VI note proceeds and that have adopted a reimbursement resolution for the Series VII (Spring 2007) notes issue may make purchases in support of the Web-based SOL Technology Initiative; however, please be aware that the note proceeds will not be available for reimbursement until after the closing of the notes sale, which will likely be in late spring 2007. Please be aware that, prior to incurring any costs, the local school board must state its intention to use the proceeds of the equipment notes to reimburse that payment. This must be done through a reimbursement resolution adopted by the local school board. A sample resolution is provided as Attachment F to this memorandum. Please note that divisions may not reimburse themselves for project-related expenditures incurred more than 60 days prior to the adoption of the resolution. Again, please note that the proposed spring of 2007 and spring of 2008 VPSA equipment notes are subject to final approval by the General Assembly. Any changes in the notes issue as proposed will be communicated to you in a subsequent superintendents memorandum.

 

If you have questions relating to the financing or determination of qualifying reimbursements, please call the budget staff at (804) 225-2025. If you have questions relating to qualifying equipment that may be purchased from the VPSA note proceeds (i.e., hardware, software), please call Richard Schley in the Office of Instructional Technology at (804) 371-6882.

 

PIW/bkl/keo 

 

Attachments

 

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/adm018a.pdf

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/adm018b.pdf

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/adm018c.pdf

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/adm018d.pdf

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/adm018e.pdf

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/adm018f.pdf

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/adm018g.pdf