COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 089

April 20, 2007

INFORMATIONAL

TO:

Division Superintendents

 

FROM:

Billy K. Cannaday, Jr.

Superintendent of Public Instruction

 

SUBJECT:

State Direct Aid to Public Education Funds Permitted to be Carried Forward from Fiscal Year 2007 to Fiscal Year 2008

 

Section 22.1-100, Code of Virginia, requires school divisions to return unexpended state funds at the close of each fiscal year to the commonwealth; however, the current appropriation act for the 2006-2008 biennium (Chapter 847, 2007 Acts of Assembly) permits school divisions to carry forward to fiscal year 2008 certain state funds that are unexpended as of June 30, 2007. School divisions may carry forward to fiscal year 2008 the unexpended June 30, 2007, balances of state funds in the following Direct Aid to Public Education accounts only:

 

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

2.           Lottery (revenue source code 240233)

3.           Additional Lottery (revenue source code 240237)

4.           Competitive Leadership Grant (revenue source code 240294)

5.           Textbooks (revenue source code 240214).

 

State funds received by school divisions in fiscal year 2007 for the School Construction Grants Program and Lottery/Additional 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.

 

School divisions that received a Competitive Leadership Grant in fiscal year 2006 are allowed to retain any unspent balances and are permitted to spend any remaining balances for the intended purposes during the ensuing two fiscal years (during fiscal years 2007 and 2008). School divisions that received a Competitive Leadership Grant in fiscal year 2007 are allowed to retain any unspent balances and are permitted to spend any remaining balances for the intended purposes during the ensuing two fiscal years (during fiscal years 2008 and 2009).

 

Please note that the carry forward provision for SOL Algebra Readiness program funds has been eliminated for fiscal years 2007 and 2008 based on language changes adopted in the Chapter 847 budget. Consequently, any state funds received by school divisions for the SOL Algebra Readiness program in fiscal year 2007 or fiscal year 2008 must be spent by June 30, 2007, or June 30, 2008, respectively, or these unspent state funds must be returned to the department.

 

Except for the five accounts listed above, all other state Direct Aid to Public Education funds received by school divisions in fiscal year 2007 must be expended by June 30, 2007; otherwise, any state funds received in fiscal year 2007 that have unexpended balances as of June 30, 2007, are subject to the reversion requirement of Section 22.1-100, Code of Virginia, and must be returned to the department.

 

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

 

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