Chapter PI 48

PI 48.09   Financial audit.

PI 48.10   Financial audit supplemental schedule.

PI 48.11   School financial requirements.

PI 48.12   Auditor requirements.

PI 48.13   Fiscal and internal control practices.

PI 48.14   First time participant financial requirements.

PI 48.15   Lack of financial viability and going concern determinations.

PI 48.16   Administrator, teacher and teacher aide requirements.

PI 48.17   Auditor fee.

PI 48.18   Income limit calculation.

PI 48.19   State aid payment calculation.

PI 48.20   Department authority.

PI 48.21   Request for a hearing on department action.

PI 48.01 PI 48.01 Purpose. Any qualified pupil in grades kindergarten to 12 who meets the requirements under s. 118.60 (2) (a), Stats., may attend any school participating in the Racine parental choice program or Wisconsin parental choice program under s. 118.60, Stats. This chapter establishes approval criteria and requirements for schools participating in the choice programs under s. 118.60, Stats., and requirements for receipt of state aid under s. 118.60 (4) and (4m), Stats.

PI 48.01 History History: EmR1608: emerg. cr. eff. 1-30-16; CR 16-006: cr. Register July 2016 No. 727, eff. 8-1-16.

PI 48.02 PI 48.02 Definitions. In this chapter:

PI 48.02(1) (1) “4-year-old kindergarten outreach activities” means the direct services that a school provides to 4-year-old kindergarten parents and primary caregivers that have an educational component that fulfills the requirements of s. 121.004 (7) (cm), Stats.

PI 48.02(3) (3) “Choice administrator” means the person designated as such on the notice of intent to participate form under s. PI 48.03 (3) or 48.04 (1) (a) or on the form under s. PI 48.04 (2).

PI 48.02(4) (4) “Choice program” means a program established under s. 118.60, Stats.

PI 48.02(5) (5) “Classroom records” means teacher-originated test scores, report cards, progress reports, and attendance records.

PI 48.02(6) (6) “Count date” means the third Friday in September and the second Friday in January except as provided under s. 121.05 (3m), Stats.

PI 48.02(7) (7) “Credit” means the credit given to pupils in grades 9 to 12 for successful completion of a school term of study in one course that meets daily for a normal class period or the equivalent established by the governing body of a school.

PI 48.02(8) (8) “Department” means the Wisconsin department of public instruction.

PI 48.02(9) (9) “Eligible education expenses” has the meaning given in s. 118.60 (7) (am) 1m., Stats.

PI 48.02(10) (10) “Financial audit” means the modified financial audit or standard financial audit, and includes the audit opinion and supplemental schedule, required under ss. 118.60 (7) (am) and 119.23 (7) (am), Stats., and ss. PI 35.10 and 48.10.

PI 48.02(11) (11) “Financially viable” or “financial viability” means the ability of the school to pay for goods and services, make debt service payments, and pay other obligations as they become due.

PI 48.02(12) (12) “First time participant” means a school that meets one of the following criteria:

PI 48.02(12)(a) (a) The school did not participate in a program under s. 118.60 or 119.23, Stats., at the time the school filed a notice of intent to participate in the choice program with the department for the following school year.

PI 48.02(12)(b) (b) The school participated in a program under s. 118.60 or 119.23, Stats., at the time the school filed a notice of intent to participate in the choice program with the department for the following school year but one of the following occurred:

PI 48.02(12)(b)1. 1. The school voluntarily withdrew from participation in a program under s. 118.60 or 119.23, Stats.

PI 48.02(12)(b)2. 2. The state superintendent issued an order terminating or barring the school’s participation in a program under s. 118.60 or 119.23, Stats.

PI 48.02(13) (13) “Generally accepted auditing standards” means the auditing standards prescribed by the accounting examining board under s. Accy 1.202.

PI 48.02(14m) (14m) “Modified financial audit” means the audit required under ss. 118.60 (7) (am) and 119.23 (7) (am), Stats., for a school that received less than $100,000 under ss. 115.7915, 118.60, and 119.23, Stats., in any school year.

PI 48.02(15) (15) “New private school” means a private school that meets either of the requirements in s. 118.60 (1) (bn) 1. a. or b., Stats., for the 12 months immediately preceding either of the dates the school would be required to submit the information under s. PI 48.04 (1) and (2), except as provided under s. 118.60 (1) (bn) 2., Stats.

PI 48.02(16) (16) “Official attendance records” means a listing of all kindergarten through grade 12 pupils enrolled in the school by grade level from the student information system required under s. 115.383 (3) (b), Stats.

PI 48.02(17) (17) “Parent” means a parent listed on the pupil application submitted under s. PI 48.05 who is one of the following:

PI 48.02(17)(a) (a) The pupil’s biological parent, legal guardian, parent by adoption, or step-parent who resides in the same household as the pupil applicant. A parent on military duty is considered to be residing in the household.

PI 48.02(17)(b) (b) If no individual meets the requirements in par. (a), an individual who has the legal authority to make educational decisions for the pupil.

PI 48.02(18) (18) “Professional standards” means all of the following:

PI 48.02(18)(a) (a) Standards established by the accounting examining board under ch. 442, Stats.

PI 48.02(18)(b) (b) Standards issued by the comptroller general of the United States for engagements in which the use of generally accepted governmental auditing standards is required.

PI 48.02(18)(c) (c) Standards issued by the American Institute of Certified Public Accountants.

PI 48.02(19) (19) “Racine parental choice program” means the program established under s. 118.60, Stats., for pupils residing in the Racine Unified School District.

PI 48.02(20) (20) “Reserve” means the difference between the revenue received under ss. 118.60 and 119.23, Stats., and the amount of net eligible education expenses for pupils participating in a program under ss. 118.60 and 119.23, Stats.

PI 48.02(21) (21) “School term” has the meaning given in s. 115.001 (12), Stats.

PI 48.02(22) (22) “School year” has the meaning given in s. 115.001 (13), Stats.

PI 48.02(22g) (22g) “Special needs scholarship program excluded expenses” means eligible education expenses included under s. PI 49.09 (3) (a) and costs included as eligible in any statements provided under s. 115.7915 (4c), Stats., incurred in that school year.

PI 48.02(22r) (22r) “Standard financial audit” means the audit required under ss. 118.60 (7) (am) and 119.23 (7) (am), Stats., for a school that annually received a total of at least $100,000 under ss. 115.7915, 118.60, and 119.23, Stats., in any school year.

PI 48.02(23) (23) “Standardized achievement test” means a published, nationally normed test that provides a valid and reliable measure of a pupil’s present achievement level in comparison with age or grade level cohorts.

PI 48.02(24) (24) “State superintendent” means the state superintendent of public instruction.

PI 48.02(25) (25) “Wisconsin parental choice program” means the program established under s. 118.60, Stats., for pupils who reside in Wisconsin but do not reside in the Racine Unified School District or in the city of Milwaukee.

PI 48.02(26) (26) “Working papers” means the record of the audit procedures performed by the auditor, the relevant audit evidence obtained by the auditor, and the conclusions reached by the auditor.

PI 48.02 History History: EmR1608: emerg. cr. eff. 1-30-16; CR 16-006: cr. Register July 2016 No. 727, eff. 8-1-16; correction in (3) made under s. 35.17, Stats., Register July 2016 No. 727; CR 19-121: r. (2), am. (10), (12) (a), (b) (intro.), r. (14), cr. (14m), am. (15), cr. (22g), (22r) Register May 2020 No. 773, eff. 6-1-20.

PI 48.03 PI 48.03 School requirements.

PI 48.03(1) (1) Private school. A school participating in the choice program shall be a private school as defined in s. 118.165, Stats.

PI 48.03(2) (2) Choice administrator. The choice administrator shall be one of the following:

PI 48.03(2)(a) (a) An owner of the school.

PI 48.03(2)(b) (b) An individual appointed as the school’s choice administrator by the governing body of the organization operating the school.

PI 48.03(3) (3) Notice of intent to participate. Except as provided under s. PI 48.04 (1) for new private schools, annually by January 10, a school that intends to participate in the choice program in the following school year shall file with the department a notice of intent to participate.

PI 48.03(3)(a) (a) The notice shall include all of the following:

PI 48.03(3)(a)1. 1. Except as provided under par. (b), the school’s plan for ensuring it will select pupils on a random basis from a new pool of applicants each school year, as required under s. 118.60 (3) (a), Stats. The school’s plan shall be one of the following:

PI 48.03(3)(a)1.a. a. The plan provided by the department.

PI 48.03(3)(a)1.b. b. A plan provided by the school and approved by the department. A school using this option shall file the plan with the department for approval by January 10. If the school does not provide a plan by January 10 or the plan is not approved by the department by January 31, the school shall use the plan provided by the department. If the school makes a change to the plan in a subsequent school year, the school shall file, with the school’s notice of intent to participate, the revised plan for approval.

PI 48.03(3)(a)2. 2. The number of spaces the school has available for pupils participating in each choice program in which the school participates.

PI 48.03(3)(a)2m. 2m. The expected number of choice program pupils that will participate in summer school under s. PI 48.08.

PI 48.03(3)(a)3. 3. The open application periods during which the school will accept choice program pupil applications. After January 10, a school may not amend the open application periods it selects.

PI 48.03(3)(a)4. 4. For first time participants, the name and location name and location of the accredited institution of higher education from which the choice administrator received at least a bachelor’s degree and the date the degree was received, the number of the choice administrator’s teaching or administrator license issued by the department, or an indication that the administrator is excluded from the requirement under s. 118.60 (2) (c) 2., Stats.

PI 48.03(3)(a)5. 5. The signature and mailing address of the choice administrator.

PI 48.03(3)(b) (b) A school only participating in the Wisconsin parental choice program is not required to file the random selection plan under par. (a) 1. for the school years in which the limitation under s. 118.60 (2) (be) 2., Stats., applies.

PI 48.03 Note Note: The notice of school’s intent to participate form, which includes the department’s random selection plan, may be obtained at no charge from the Wisconsin department of public instruction’s webpage at http://dpi.wi.gov/sms/choice-programs.

PI 48.03(5) (5) Disclosure of information.

PI 48.03(5)(a) (a) By January 10 prior to the school’s initial school year in the choice program, a first time participant shall file with the department the information required under s. 118.60 (6p) (a), Stats., and the mailing addresses for each governing body member on a form provided by the department.

PI 48.03(5)(b) (b) Annually by August 1, a school participating in the choice program that is not a first time participant shall file with the department any changes to the school’s governing body members, including signatures required under s. 118.60 (6m) (c), Stats., and the mailing addresses for each new governing body member on a form provided by the department.

PI 48.03 Note Note: The disclosure of information form and school update form may be obtained at no charge from the Wisconsin department of public instruction’s webpage at http://dpi.wi.gov/sms/choice-programs.

PI 48.03(6) (6) Accreditation requirements. A school participating in the choice program shall be accredited by an accrediting agency under s. 118.60 (1) (ab), Stats. Annually by August 1, a school that is fully accredited under s. 118.60 (2) (a) 7., Stats., shall file with the department a notice from the school’s accrediting agency under s. 118.60 (1) (ab), Stats., stating that the school is accredited as of the date of the notice. The notice shall meet all of the following requirements:

PI 48.03(6)(a) (a) The notice shall include the following information:

PI 48.03(6)(a)1. 1. The school’s name.

PI 48.03(6)(a)2. 2. The school’s address for each location included in the accreditation.

PI 48.03(6)(a)3. 3. The grades accredited by the agency.

PI 48.03(6)(a)4. 4. Notification that the school is accredited at the time the notice is filed.

PI 48.03(6)(b) (b) The notice shall be filed no earlier than the beginning of the school year.

PI 48.03(6)(c) (c) The notice shall be completed by an authorized member of the accrediting agency.

PI 48.03(7) (7) Hours of instruction and annual school board meetings.

PI 48.03(7)(a) (a) By the first weekday in May of the school year immediately preceding the first school year in which a first time participant intends to participate in the choice program, a first time participant shall file with the department the hours of instruction for the upcoming school year on a form provided by the department. The hours of instruction shall comply with the requirements under s. 118.60 (2) (a) 8., Stats., and s. PI 48.06 (6).

PI 48.03(7)(b) (b) Annually by the last weekday in September, as part of the pupil count report for the third Friday in September required under s. PI 48.06 (8) or another manner prescribed by the department, a school shall file all of the following with the department:

PI 48.03(7)(b)1. 1. The school’s start and end date for the current school term.

PI 48.03(7)(b)2. 2. The dates of the two governing body meetings for the current school year required under s. 118.60 (7) (b) 3m., Stats.

PI 48.03(7)(b)3. 3. The hours of instruction for the current school term. The hours of instruction shall comply with the requirements under s. 118.60 (2) (a) 8., Stats., and s. PI 48.06 (6).