P. O. BOX 2120


June 30, 2000


TO: Division Superintendents
FROM: Jo Lynne DeMary
Superintendent of Public Instruction
SUBJECT: Fiscal Year 2001 Direct Aid Payment Schedule and Program Classification Structure

The purpose of this memorandum is to provide you with information regarding the fiscal year 2001 Direct Aid to Public Education payment schedule (state funds only) and the fiscal year 2001 Program Classification Structure (Attachment B). Attachment A provides information on each Direct Aid account for fiscal year 2001 regarding local match and certification/application requirements. For purposes of this memorandum, fiscal year 2001 begins on July 1, 2000, and ends on June 30, 2001.

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 data interchange (EDI) on a recurring (i.e., semi-monthly) or non-recurring (i.e., reimbursement basis) payment schedule in fiscal year 2001.

Accounts paid through semi-monthly EDIs on the 15th & 30th of each month beginning July 2000:

With the exception of Sales Tax, all of the above accounts will be adjusted after actual March 31, 2001, Average Daily Membership (ADM) is received.

Current projections of March 31, 2001, ADM will be recalculated this fall based on actual September 30, 2000, Fall Membership. If the revised projections differ significantly from the current projections, affected accounts will be recalculated using the revised projections. If necessary, this adjustment would occur around 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, 2001, ADM is received. Until such time as a change is made for actual March 31, 2001, ADM or ADM projections are revised based on 2000 Fall Membership, Direct Aid payments for fiscal year 2001 will be made using the projected entitlements as enclosed with Regulatory Supts. Memo. No. 1, dated March 17, 2000.

Following the collection of actual March 31, 2001, ADM, payments for the following accounts will be recalculated using actual adjusted or unadjusted ADM data:

Accounts calculated on adjusted ADM: Basic Aid, Gifted Education, Retirement, Social Security, Group Life, Textbooks, Enrollment Loss, Maintenance Supplement, Salary Supplement, Lottery, SOL Materials, and SOL Teacher Training. The entitlement for Enrollment Loss will be distributed in one payment after actual March 31, 2001, ADM is received.

Accounts calculated on unadjusted ADM: Vocational Education (SOQ), Special Education (SOQ), Remedial Education, At-Risk, and Health Incentive Fund.

The following accounts are paid on the basis of Fall Membership, and therefore, will be adjusted after September 30, 2000, Fall Membership is received:

The following accounts require either an application or superintendentís certification in order to receive funds: Categorical Accounts -- Listed below is information on the payment schedule for various categorical accounts.

Categorical accounts paid on a reimbursement basis are as follows:

Other categorical account payment schedules (in most cases, a separate Superintendentís Memorandum will be sent to provide specific guidance for each account): Section 2: Program Classification Structure

Attachment B outlines 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 2001 for public education and for services provided under the Comprehensive Services Act. As you will note, revenue source codes now contain six digits. The final zero has been dropped from the state revenue source codes. The six digit Catalog of Federal Domestic Assistance (CFDA) code (including the period) will be used as the revenue source code for federal funds.

The following describes the content of the columns contained in Attachment B:

Column (1) - Program, subprogram, and element -- The coding structure used in the state budget for identifying activities and services.

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 -Ė 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 non-general, federal). Federal funding is always designated by the code 1000; state funding is designated by the codes 0100, 0200, 0400, 0700, or 0900.

Column (5) - Revenue/CFDA Code -- The six digit code used in the Department of Education Chart of Accounts coding structure for the purpose of reporting state revenues on the Annual School Report. A change has been made in the reporting of federal funds for fiscal year 2001. The six digit CFDA code (including the period) will be used to identify federal funds instead of the revenue source codes formerly used by the Department.
Please note that the final fiscal year 2001 locality ledger, to be distributed in August 2001 for Annual School Report reconciliation purposes, will reflect the attached structure.

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