Chapter PI 48

PI 48.13(8) (8) School bus. If a school operates or contracts for the operation of school buses with an organization other than a Wisconsin school district, the school or the contracted operator shall have school bus insurance as required under s. 121.53, Stats., and complete the inspections required under s. Trans 300.87. The school may not contract for the school bus operation with an organization other than a Wisconsin school district unless the operator has provided the school with a certificate of insurance meeting the requirements of s. 121.53, Stats., and has completed the inspection report required under s. Trans 300.87.

PI 48.13(9) (9) Alternative vehicle pupil transportation. Any motor vehicle, other than school buses, used by a school to provide pupil transportation shall comply with the conditions specified in s. 121.555, Stats.

PI 48.13(10m) (10m) Background checks.

PI 48.13(10m)(a) (a) In this subsection, “license” means a valid license issued by the department under ch. PI 34.

PI 48.13(10m)(b) (b) Schools shall conduct criminal background investigations of all employees by completing one of the following:

PI 48.13(10m)(b)1. 1. Conduct a criminal background check prior to employing any individual at the school and every 5 years after the date of the previous background check.

PI 48.13(10m)(b)2. 2. Complete all of the following procedures for an individual with a license:

PI 48.13(10m)(b)2.a. a. Obtain and retain a copy of the license.

PI 48.13(10m)(b)2.b. b. Annually determine that the individual has a license in advance of the employee working for the school term.

PI 48.13(10m)(c) (c) The requirements under par. (b) shall be completed for all individuals defined as employees under s. 108.02 (12), Stats., who are directly or indirectly related to educational programming. For the purposes of this paragraph, an individual shall be determined to be directly or indirectly related to educational programming if any of the following apply:

PI 48.13(10m)(c)1. 1. Any compensation for the individual is included as an eligible education expense in a financial audit submitted under s. 115.7915, 118.60, or 119.23, Stats.

PI 48.13(10m)(c)2. 2. The individual interacts with pupils.

PI 48.13(10m)(c)3. 3. The individual performs financial, administrative, or academic duties for the school.

PI 48.13(10m)(d) (d) A school may not employ any of the following individuals:

PI 48.13(10m)(d)1. 1. Individuals who have engaged in immoral conduct as defined under s. 115.31 (1) (c), Stats.

PI 48.13(10m)(d)2. 2. Individuals who are not eligible for a teaching license under s. 118.19 (4), Stats.

PI 48.13(11) (11) Fidelity bond. A school shall have a fidelity bond indemnifying the school against loss resulting from dishonesty, malfeasance, or neglect by owners, officers, and employees.

PI 48.13(12) (12) Employee education. A school shall ensure all teachers, administrators, and teacher aides meet the requirements of s. 118.60 (2) (a) 6. and (7) (b) 3., Stats., and s. PI 48.16, unless a teacher or administrator is exempt under s. 118.60 (2) (c), Stats.

PI 48.13(13) (13) Management letter review. An auditor shall review the management letter required under s. 118.60 (7) (am) 2m. a., Stats., and determine whether a school has properly remediated any concerns raised by the auditor in the letter. If the auditor determines a concern has not been properly remediated by the school, the auditor shall include the following in the report:

PI 48.13(13)(a) (a) The concern that has not been properly remediated.

PI 48.13(13)(b) (b) The action the school has taken to remediate the concern.

PI 48.13(13)(c) (c) The potential impact of not resolving the concern.

PI 48.13(13)(d) (d) Recommendations for resolving the concern.

PI 48.13(14) (14) Fiscal and internal control practices report. A school shall engage an auditor to submit a report to the department by December 15 attesting to the school’s compliance or non-compliance with the fiscal and internal control practices required in this section. The report shall meet all of the following requirements:

PI 48.13(14)(a) (a) The report shall be prepared in accordance with professional standards and identify the procedures agreed upon by the auditor and the department that were used in determining compliance or non-compliance. In making such a determination, the auditor shall not rely on oral or written representations of the school’s management or staff.

PI 48.13(14)(b) (b) If the auditor determines that the school has not complied with the fiscal and internal control practices in subs. (1) to (12), the report shall include a letter from the school describing the reasons for noncompliance and the corrective action the school is taking.

PI 48.13 Note Note: The fiscal and internal control practices report may be obtained at no charge from the Wisconsin department of public instruction’s webpage at http://dpi.wi.gov/sms/choice-programs.

PI 48.13 History History: EmR1608: emerg. cr. eff. 1-30-16; CR 16-006: cr. Register July 2016 No. 727, eff. 8-1-16; correction in (1), (12) made under s. 35.17, Stats., Register July 2016 No. 727; CR 19-121: am. (2) (title), (intro.), cr. (2) (a) 7., am. (2) (b) (intro.), (4) (a), renum. (4) (c) to (4) (c) (intro.) and am., cr. (4) (c) 1. to 3., am. (8) (title), (9), r. (10), cr. (10m), am. (12), (14) (b) Register May 2020 No. 773, eff. 6-1-20.

PI 48.14 PI 48.14 First time participant financial requirements.

PI 48.14(1g) (1g) Definitions. In this section:

PI 48.14(1g)(a) (a) “Initial expected payment” means a school’s expected payment amount calculated as the total of the following:

PI 48.14(1g)(a)1. 1. The full-time equivalent for pupils participating in a program under ss. 118.60 and 119.23, Stats., multiplied by the per pupil payment amount determined under ss. 119.23 (4) and 118.60 (4), Stats. The full-time equivalent for the pupils in this subdivision shall be based on the available seats in each program under ss. 118.60 and 119.23, Stats., in a school’s notice of intent to participate filed under ss. PI 35.03 (3) and 48.03 (3) or the new private school participation information submitted under ss. PI 35.04 (2) and 48.04 (2).

PI 48.14(1g)(a)2. 2. The expected summer school payment for pupils participating in a program under ss. 118.60 and 119.23, Stats., based on the expected number of choice program pupils that will participate in summer school identified in the school’s notice of intent to participate filed under ss. PI 35.03 (3) and 48.03 (3) or the new private school participation information submitted under ss. PI 35.04 (2) and 48.04 (2).

PI 48.14(1g)(b) (b) “Revised expected payment” means a school’s expected payment amount calculated as the total of the following:

PI 48.14(1g)(b)1. 1. The full-time equivalent for pupils participating in a program under ss. 118.60 and 119.23, Stats., multiplied by the per pupil payment amount determined under ss. 119.23 (4) and 118.60 (4), Stats. The full-time equivalent for the pupils in this subdivision shall be based on the pupils participating in a program under ss. 118.60 and 119.23, Stats., reported in the school’s pupil count report for the third Friday in September required under ss. PI 35.06 (8) and 48.06 (8).

PI 48.14(1g)(b)2. 2. The summer school payment based on the school’s summer school count report filed under ss. 118.60 (4) (a) and 119.23 (4) (a), Stats.

PI 48.14 Note Note: A budget and cash flow report 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 48.14(1r) (1r) May 1 requirements. By May 1 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 participate in a fiscal management training program approved by the department and provide the requirements under sub. (3) or (4).

PI 48.14(3) (3) Budget requirement. A school that selects the budget and cash flow report option shall submit to the department all of the following:

PI 48.14(3)(a) (a) A budget and cash flow report, on a form provided by the department, for the following school year that contains all of the following:

PI 48.14(3)(a)1. 1. Anticipated enrollments for all pupils enrolled in the school.

PI 48.14(3)(a)2. 2. Anticipated enrollments for choice program pupils.

PI 48.14(3)(a)3. 3. Estimated total revenues and costs.

PI 48.14(3)(a)4. 4. Estimated amounts required under s. PI 48.10 (3) (a).

PI 48.14(3)(a)5. 5. A schedule of anticipated beginning and ending net assets.

PI 48.14(3)(a)6. 6. A schedule of monthly cash flows.

PI 48.14(3)(a)6m. 6m. Anticipated beginning and ending reserve balance.

PI 48.14(3)(a)7. 7. The contingent funding sources the school will use if actual enrollments are less than expected and evidence of the availability of the funding sources.

PI 48.14(3)(a)8. 8. A statement of whether the school has any past due amounts, interest, or penalties due to the U.S. internal revenue service, the Wisconsin department of workforce development, or the Wisconsin department of revenue. An amount must be disclosed even if it is in dispute. If a school has past due amounts, interest, or penalties due to a government entity, the school shall do all of the following:

PI 48.14(3)(a)8.a. a. Disclose to the department the outstanding amount owed.

PI 48.14(3)(a)8.b. b. Submit to the department statements or other correspondence from the government entity stating the amount the government entity claims is due, the amount in dispute, and nature of the amount due.

PI 48.14(3)(b) (b) Examples of each type of written document used to satisfy the requirements under s. PI 48.13 (4) (a).

PI 48.14(3)(c) (c) A schedule of the pay dates for the school.

PI 48.14(4) (4) Bond requirement. A school that selects the surety bond option shall annually submit a bond payable to the state of Wisconsin equal to 25 percent of the initial expected payment until the school meets all of the requirements in sub. (7).

PI 48.14(5) (5) Revised bond. A school that submitted a bond under sub. (4) shall provide a revised bond if the difference between the initial expected payment and the revised expected payment is at least $50,000. The revised bond shall be equal to 25 percent of the revised expected payment. A school shall file the revised bond with the department by the first weekday in November.

PI 48.14(6) (6) Bond call provisions. The department may call a bond submitted by a school under this section for any of the following reasons:

PI 48.14(6)(a) (a) The school failed to timely file a report required under s. 118.60 or 119.23, Stats., this chapter, or ch. PI 35.

PI 48.14(6)(b) (b) The school failed to timely refund the department any amount certified due from the school under s. PI 35.07 (4) or 48.07 (4).

PI 48.14(6)(c) (c) The school failed to timely refund the department the reserve balance as prescribed under s. 118.60 or 119.23, Stats., this chapter, or ch. PI 35.

PI 48.14(6)(d) (d) The school failed to timely refund the department any other money owed to the department for any other reason under s. 118.60 or 119.23, Stats., this chapter, or ch. PI 35.

PI 48.14(7) (7) Bond removal requirements. A school that selected the surety bond option the first school year it participated in the choice program must submit a bond by May 1 annually until all of the following apply:

PI 48.14(7)(a) (a) The school provides a standard financial audit prepared at the consolidated level as required by generally accepted accounting principles that meets all of the following requirements:

PI 48.14(7)(a)1. 1. The financial statements are two-year comparative financial statements that include the audit of the full-year financial information for both school years.

PI 48.14(7)(a)2. 2. The net asset balance for both school years is positive.

PI 48.14(7)(a)3. 3. The net current obligation for both school years is positive.

PI 48.14(7)(a)4. 4. The school meets one of the following requirements:

PI 48.14(7)(a)4.a. a. The change in net assets is positive for both school years.

PI 48.14(7)(a)4.b. b. The change in net assets for both school years is greater than or equal to negative $25,000, the net asset balance for both school years is greater than $50,000, and the net current obligation for both school years is greater than $50,000.

PI 48.14(7)(a)5. 5. The school’s financial audit does not contain an emphasis of matter or an expression of the auditor’s doubt as to the school’s ability to continue as a going concern.

PI 48.14(7)(b) (b) The school’s fiscal and internal control practices report for the most recent school year included in the financial audit in par. (a) and the subsequent school year, and any other information available to the department, indicates that the school has complied with all of the following:

PI 48.14(7)(b)1. 1. The school paid all amounts owed to the U.S. internal revenue service, Wisconsin department of revenue, and Wisconsin department of workforce development on a timely basis. This requirement shall not be considered met if the school had either of the following for the school years included in the financial audit in par. (a):

PI 48.14(7)(b)1.a. a. Any wage claims with the Wisconsin department of workforce development.

PI 48.14(7)(b)1.b. b. Any past due amounts, interest, and penalties with the U.S. internal revenue service, Wisconsin department of revenue, or Wisconsin department of workforce development.

PI 48.14(7)(b)2. 2. The school has paid all vendors as required by ss. PI 35.13 (3) and 48.13 (3). An amount in dispute shall not be an indicator that the school does not meet the requirements to remove the bond if all of the following are true:

PI 48.14(7)(b)2.a. a. The school provided the department with written correspondence between the school and the vendor evidencing that the amount is in dispute.

PI 48.14(7)(b)2.b. b. The school has sufficient cash available to pay the amount in dispute.

PI 48.14(7)(b)2.c. c. The disputed amount is included in the financial audit as a current liability.

PI 48.14(7)(b)3. 3. The school has paid all employees as required by ss. PI 35.13 (4) and 48.13 (4).

PI 48.14(8) (8) Required audit balances and activity. An audit that only includes school-only balances and activity shall not be sufficient to meet the requirement in sub. (7) (a).

PI 48.14(9) (9) Asset balance. The asset balance used for the determinations under sub. (7) (a) may only include pledge receivables or other receivables for which the school received cash payments within one year of the date pledged or within one year of the date the amount is included as a receivable.

PI 48.14(10) (10) Revenue. The revenue used for the determinations under sub. (7) (a) may only include revenue for which the school receives cash payments within one year of the date pledged or within one year of the date the school includes the amount as revenue.

PI 48.14(11) (11) Insurance and fidelity bond evidence. A first time participant shall file with the department a certificate of insurance or other evidence of having obtained the required insurance under s. PI 48.13 (7) and the fidelity bond under s. PI 48.13 (11). A first time participant shall file the information required under this subsection with the department by the first weekday in August if the school does not provide summer school under this chapter or ch. PI 35. A first time participant shall file the information required under this subsection with the department 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 if the school provides summer school under this chapter or ch. PI 35.

PI 48.14 History History: EmR1608: emerg. cr. eff. 1-30-16; CR 16-006: cr. Register July 2016 No. 727, eff. 8-1-16; CR 19-121: renum. (1) (intro.), (a) to (c) to (1r), (3) (a) to (c) and, as renumbered, am. (1r), cr. (1g), r. (2), cr. (3) (intro.), (a) 6m., (4) to (11) Register May 2020 No. 773, eff. 6-1-20; correction in (6) (b) made under s. 35.17, Stats., Register May 2020 No. 773.

PI 48.15 PI 48.15 Lack of financial viability and going concern determinations.

PI 48.15(1) (1) Indicators. Any of the following shall be indicators that a school does not have the ability to continue as a going concern or that the school does not meet the financial viability requirements under s. 118.60 (7) (am) 2m. b. or (7m) (c), Stats.:

PI 48.15(1)(a) (a) The budget and statement of cash flows required under s. PI 48.13 (2) or 48.14 (3) show the school has inadequate revenues and other financial resources to fund current operations, has negative cash flows, has a negative net asset balance, or has a net loss.

PI 48.15(1)(b) (b) The audit opinion statement included in the financial audit, or in a financial audit submitted under s. 115.7915, Stats., contains an emphasis of matter regarding the school’s ability to continue as a going concern.

PI 48.15(1)(c) (c) The school failed to make payments as required under s. PI 48.13 (3) or (4).

PI 48.15(1)(d) (d) The school failed to be current with filings, payments, or withholdings payments required under s. PI 48.13 (6).