P.O. BOX 2120

July 20, 2001

TO: Division Superintendents
FROM: Jo Lynne DeMary
Superintendent of Public Instruction
SUBJECT: Direct Aid to Public Education Payment Schedule and Program Classification Structure for Fiscal Year 2002

The purpose of this memorandum is to provide you with information regarding the fiscal year 2002 Direct Aid to Public Education payment schedule (state funds only) and the fiscal year 2002 Program Classification Structure (Attachment B). Attachment A provides information on each Direct Aid account for fiscal year 2002 regarding local match and certification/application requirements. For purposes of this memorandum, fiscal year 2002 begins on July 1, 2001, and ends on June 30, 2002.

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 2002.

Accounts paid through semi-monthly EDIs (funds deposited on the 16th and the last day of each month beginning in July 2001):

With the exception of Sales Tax, all of the above accounts will be adjusted after actual March 31, 2002, Average Daily Membership (ADM) is received and finalized. Please note that the June 2001 rollover payment for fringe benefits that is paid in July was scheduled to be deposited by EDI on July 9, 2001.

Current projections of March 31, 2002, ADM will be recalculated this fall based on actual September 30, 2001, fall membership. If the revised ADM projections differ significantly from the current ADM 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, 2002, ADM is received. Until such time as a change is made for actual March 31, 2002, ADM or ADM projections are revised based on 2001 fall membership, Direct Aid payments for fiscal year 2002 will be made using the projected entitlements as enclosed with Administrative Superintendentís Memorandum Number 25, dated May 25, 2001.

Following the collection of actual March 31, 2002, ADM, payments for the following accounts will be recalculated using actual adjusted or unadjusted ADM data as indicated below:

Accounts calculated on adjusted ADM: Basic Aid, Gifted Education (SOQ), Retirement, Social Security, Group Life, Retiree Health Care Credit, Textbooks, Enrollment Loss, Maintenance Supplement, Salary Supplement, Lottery, Standards of Learning (SOL) Instructional Materials, and SOL Teacher Training. Please note that the Retiree Health Care Credit entitlement is paid directly to the Virginia Retirement System (VRS) on behalf of school divisions. The entitlement for Enrollment Loss will be distributed in one payment after actual March 31, 2002, ADM is received and finalized.

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

The following accounts are paid on the basis of Fall Membership and will be adjusted after September 30, 2001, Fall Membership is received and finalized:

The following accounts require either an application or superintendentís certification in order to receive state 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): Program (ISAEP) (previously labeled as "GED") -- Payments will be made periodically throughout the year based on reimbursement information submitted by divisions.
Section 2: Program Classification Structure for Fiscal Year 2002

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 2002 for public education and for services provided under the Comprehensive Services Act. 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 appropriated funds by activity.

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 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. The six- digit CFDA code (including the period) will be used to identify federal funds.

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