DEPARTMENT OF EDUCATION
SUPTS. MEMO NO. 014
April 20, 2007
Billy K. Cannaday, Jr.
Superintendent of Public Instruction
The Virginia Public School Authority (VPSA) is conducting the seventh sale of equipment notes, Series VII. 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:
The VPSA is planning to sell the spring 2007 Educational Technology Notes, Series VII, on May 2, 2007, and to close on the notes deal on May 24, 2007. Proceeds of the Series VII notes will be made available for reimbursement of qualifying expenditures to localities following the scheduled closing on May 24, 2007.
There are a limited number of business days between the notes issuance date and the end of fiscal year 2007. Therefore, to ensure sufficient time to process the requests for payment, reimbursements that need to be received by school divisions by June 30, 2007, must be received by the Department of Education electronically and the original signature page sent to the department by June 15, 2007. 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 VII VPSA note
issue. Grants to school divisions for
the Series VII notes are based on $26,000 per eligible school and $50,000 per
school division. Eligible schools
include those reporting fall membership as of September 30, 2006, as well as
division and regional vocational, special education, and alternative education
centers, academic year Governors Schools, and the two
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 VII 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 VII 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 VII 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 on to the regional center.
The Series VII reimbursement request form is a downloadable Excel template. This file is available on the Department of Educations website at:
The Series VII 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 violates any of the stated provisions.
Divisions are not required to submit copies of supporting reimbursement documentation to the Department of Education because the reimbursement request form incorporates the certification provisions. 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 VII notes issue must be made using the above-referenced Series VII 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 VII notes will be approved until all of the divisions grant allocations from notes Series V and VI (Spring 2005 and Spring 2006) are spent. Please see Attachments B and C to this memorandum that provides the Series V and VI 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 Notes proceeds to the school division or regional program.
Attachment F to this memo provides the SNAP VPSA Technology Notes Withdrawal Instructions form. If you need to make changes to wire instructions previously submitted to SNAP, please complete and sign Attachment F 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 F, please contact Nelson Bush or Stacy Lutz of SNAP at 1-800-570-SNAP.
Proceeds from the Series V, VI, and VII 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 V, VI, and VII 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:
The School Readiness Certification workbook is a downloadable Excel template. This file is available on the Department of Educations website at:
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 VII requests for reimbursement using the Series VII reimbursement request form referenced above. E-mail your completed request to Richard Schley at VPSA@doe.virginia.gov. In addition, please mail a signed copy of the reimbursement form to the following address:
Office of Instructional Technology
No requests for reimbursement will be processed until the Department of Education has received both the electronic Series VII form and your signed hardcopy Series VII form with each certification initialed.
Educational Technology Notes, Series VI (Spring 2006):
As initially announced in Administrative Supts. Memo No. 18, dated May 12, 2006, the Series VI notes were sold by the VPSA in May 2006. Proceeds of the Series VI notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of May 25, 2006. For grant allocations of Series VI VPSA notes, see Attachment A to Administrative Supts. Memo No. 18, dated May 12, 2006. These proceeds continue to be available to divisions for reimbursement of qualifying expenditures for 18 months from the Series VI closing date. All reimbursement forms for the Series VI issue must be submitted to the department no later than September 15, 2007. No reimbursement requests for the Series VII notes will be approved until the divisions Educational Technology Notes Series V and Series VI note proceeds are spent. Attachment C to this memorandum provides a status of the Series VI grant balances.
For divisions and regional programs that have not completed reimbursement of expenditures from the Series VI VPSA notes, the procedures outlined in Administrative Supts. Memo No. 18, dated May 12, 2006, should be followed, and the Series VI reimbursement request form should be used. The Series VI reimbursement request form is a downloadable Excel template available on the Department of Educations website located at:
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. 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:
Educational Technology Notes, Series VIII (Spring 2008):
The current 2006-2008 biennial budget (Chapter 847, 2007 Appropriation Act) includes funding to continue the educational technology notes program in fiscal year 2008 with debt service paid through the Literary Fund. The current budget includes Virginia Public Schools Authority (VPSA) equipment notes totaling approximately $59.0 million in fiscal year 2008 to be issued in the spring of 2008.
The fiscal year 2008 budget maintains grant amounts at $26,000 per eligible 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 fiscal year 2008 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 was increased by $312,000 in fiscal year 2008 based on an anticipated increase in the number of reported schools in fiscal year 2007. Attachment D to this memorandum lists the estimated local grant allocations for the Series VIII note issue.
School divisions that have spent all of their Series V, VI and Series VII note proceeds and that have adopted a reimbursement resolution for the Series VIII (Spring 2008) notes issue may make purchases in support of the Web-based SOL Technology Initiative to be reimbursed from Series VIII proceeds; 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 2008. 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 qualifying expenditures. This must be done through a reimbursement resolution adopted by the local school board. A sample resolution is provided as Attachment E 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.
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.