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Home > Rules & Legislation > Letters from the Commissioner > Administrative Letter 010

Notice of Withholding Subsidy for Late Reporting

ADMINISTRATIVE LETTER:  10
POLICY CODE:   DB

TO: Superintendents of Schools

FROM: Susan A. Gendron, Commissioner

DATE: August 25, 2008

SUBJECT: Notice of Withholding Subsidy for Late Reporting

Notice of withholding of subsidy pursuant to 20-A MRSA 6801-A:

A current list of those school administrative units for which subsidy will be withheld, beginning with the September 2008 subsidy check, due to late reporting of data is available at the following Department of Education Reporting Missing Reports website:

http://portalx.bisoex.state.me.us/pls/doe/eddev.formscheckin.searchmissingreports (At this website click on “Subsidy Checks To Be Withheld Based on Missing Financial and/or Enrollment Reports”)

If the missing report(s) on this website has been completed and submitted to the Department of Education at least two days prior to the monthly subsidy payment date then that unit’s subsidy will not be withheld. However, this list does not include “incomplete” reports. If we find, after submission of the data, that the data are not complete or are missing information, you will be notified that the data are incomplete and that subsidy will be withheld until the data are complete.

Opportunity for hearing pursuant to 20-A MRSA 6801-A:

In accordance with statute, we offer you an opportunity for a hearing or to submit written testimony in lieu of hearing. Please submit the enclosed form by September 8, 2008 indicating whether you are requesting to be heard at a hearing to be scheduled in September or whether you are providing written testimony with this form in lieu a hearing. A hearing date will be set once the number of participants is determined.

As a condition of the hearing or written testimony, you must provide the following information with the enclosed form for each school administrative unit:

  • A written explanation of why the report(s) have not been submitted by the required due date.
  • A written statement of corrective action that shows how the school administrative unit will meet reporting deadlines in the future especially for those reports that have not been submitted by their due date.
  • A written statement of why withholding subsidy would have an adverse impact on the school administrative unit.
  • A current cash-flow statement showing a comparison of monthly revenues and expenditures for the school administrative unit to demonstrate any adverse impact claimed as a result of the anticipated subsidy withholding.

 

Reminder of new law on payments of withheld subsidy and penalties for late submission of data:

Public Law 2007, Chapter 539 was enacted by the legislature and signed by Governor Baldacci on March 31, 2008. Part C of this recently enacted law strengthens the statutes regarding withholding subsidy payments and establishes new language regarding a penalty for late submission of required data. For more detailed information regarding these changes to statute, see Administrative Letter #2 dated 7/9/08. Following are two important changes to the statutes enacted in Chapter 539:

  • If the school administrative unit files the information in the specified format, the Department of Education shall include the payment of the withheld subsidy in the next regularly schedule monthly subsidy payment.
  • If a school administrative unit has not filed the required data pursuant to 20-A MRSA section 15689-B subsection 7 within 3 months of the due date, a penalty equal to 1% of the unit’s monthly subsidy check times the number of months past due is assessed. (Note: This penalty is in addition to the withholding of subsidy.)

 

If you have any questions, please contact any of the following staff by email:
Suzan Beaudoin at suzan.beaudoin@maine.gov
Joanne Allen at joanne.allen@maine.gov
Karla Miller at karla.miller@maine.gov

State of Maine
Department of Education
Due Date: September 8, 2008

 

Name of School Administrative Unit:_______________________________________________
(Town, S.A.D. or C.S.D. – each town in a Union must submit a separate certification form)

Request for opportunity for hearing OR to submit written testimony in lieu of hearing – choose one:

 

  • I will attend the hearing to be scheduled in September.
  • I will not attend the hearing to be scheduled in September. In lieu of attending that hearing, enclosed is my written testimony.

 

___________________

(Date)

_______________________________________________

(Signature – Superintendent of Schools)
 

 

_______________________________________________

(Print Name – Superintendent of Schools)

The following information must accompany this form:

  • A written explanation of why the report(s) have not been submitted by the required due date.
  • A written statement of corrective action that shows how the school administrative unit will meet reporting deadlines in the future, especially for those reports that have not been submitted by their due date.
  • A written statement of why withholding subsidy would have an adverse impact on the school administrative unit.
  • A current cash-flow statement showing a comparison of monthly revenues and expenditures for the school administrative unit to demonstrate any adverse impact claimed as a result of the anticipated subsidy withholding.

 

Please mail to:
School Finance & Operations
Department of Education
23 State House Station
Augusta, ME 04333-0023

Or fax to:
207-624-6791