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.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(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)(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)3.3. The net current obligation for both school years is positive. 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(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 HistoryHistory: 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 48.15PI 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)(d)(d) The school failed to be current with filings, payments, or withholdings payments required under s. PI 48.13 (6). PI 48.15(1)(e)(e) The audit reports required under s. PI 48.13 (6) (f) contain questioned costs or compliance findings that may affect the school’s ability to continue. PI 48.15(1)(f)(f) The school has a negative net asset balance in its financial audit or in a financial audit submitted under s. 115.7915, Stats. PI 48.15(1)(g)(g) The school has a negative net current obligation in its financial audit, in a financial audit submitted under s. 115.7915, Stats., or in the budget and statement of cash flows required under s. PI 48.13 (2) or 48.14 (3). The net current obligation shall be calculated as the current assets less the current liabilities. PI 48.15(1)(h)(h) The school has a net loss or negative change in net assets in its financial audit or in a financial audit submitted under s. 115.7915, Stats. PI 48.15(2)(2) Information to be submitted. A school shall submit to the department any information the department requires to determine the ability of the school to continue financially, including an audit of the school’s legal operating organization prepared in accordance with generally accepted accounting principles. The school shall provide the department authority to speak directly to the U.S. internal revenue service, the Wisconsin department of revenue, or the Wisconsin department of workforce development to determine the school’s compliance with the requirements under s. PI 48.13 (6). PI 48.15(3)(3) Notification of financial impairments. The school shall promptly notify the department in writing of impairments in the school’s ability to finance its operations. PI 48.15(4)(4) Notification of ceasing operations. A school participating in the choice program shall notify the department immediately of a decision to cease educational program operations. PI 48.15(5)(5) Training. Upon the request of the department, a school that has one or more of the indicators in sub. (1) shall attend a fiscal management training approved by the department. PI 48.15(6)(6) Financial viability review and surety bond requirement. PI 48.15(6)(a)(a) The state superintendent shall review information submitted under s. 118.60, Stats., and this chapter and determine whether a school is financially viable. PI 48.15(6)(b)(b) If the state superintendent determines that a school is not financially viable, the state superintendent may require a school to immediately obtain a surety bond. The surety bond shall be made payable to the state of Wisconsin. The purpose of the bond shall be to protect the department and the taxpayers of Wisconsin against loss in the event of any of the following: PI 48.15(6)(c)(c) The amount of the bond required under par. (b) shall be equal to 25 percent of the total current school year payment amount as determined under s. 118.60 (4) and (4m), Stats. PI 48.15(6)(d)(d) The bond shall remain in force until all of the following occur: PI 48.15(6)(d)1.1. The school has a positive net asset balance for two consecutive school years, as indicated in the school’s financial audit. The net asset balance used for this determination may only include pledge receivables or other receivables for which the school receives cash payments within one year of the date pledged or within one year of the date the amount is included as a receivable. PI 48.15(6)(d)2.2. The school has a positive net current obligation for two consecutive school years, as shown by the school’s financial audit. The net current obligation shall be calculated as the current assets less the current liabilities. The asset balance used for this determination 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 48.15(6)(d)3.3. The school has net income for two consecutive school years, as indicated in the school’s financial audit. The net income used for this determination 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 48.15(6)(d)4.4. The school pays all amounts owed to the U.S. internal revenue service, Wisconsin department of revenue, and Wisconsin department of workforce development on a timely basis for two consecutive school years, including full payment of any wage claims and past due amounts, interest, and penalties. The school shall submit to the department a letter from each of these entities indicating compliance with this requirement and provide the department the authority necessary to speak directly to these agencies to confirm compliance. PI 48.15(6)(d)6.6. 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 for two consecutive school years. PI 48.15(6)(d)7.7. If the school’s financial audit does not include all revenues, expenditures, assets, and liabilities of the legal operating organization of the school, the school shall submit to the department financial statements for the school’s legal operating organization prepared in accordance with generally accepted accounting principles that meet all of the following requirements: PI 48.15(6)(d)7.a.a. The financial statements do not contain a qualified audit opinion or an expression of the auditor’s doubt as to the organization’s ability to continue as a going concern. PI 48.15(6)(d)7.b.b. The financial statements are two-year comparative financial statements that include the audit of the full-year financial information for the school years in which the requirements in subds. 1. to 6. are satisfied. PI 48.15(6)(d)7.c.c. The financial statements show that the legal operating organization of the school also meets the requirements under subds. 1. to 5. PI 48.15(6)(e)(e) If the school is unable to complete the requirements in par. (d) within 5 years from the date the department initially requires a surety bond or if the school’s financial position worsens, the department may terminate the school from the choice program. PI 48.15(6)(f)(f) Upon the request of the department, a school that is required to provide a surety bond under par. (b) shall do all of the following: PI 48.15(6)(f)2.2. Submit to the department budget and cash flow reports and turnaround plans as prescribed by the department. PI 48.15 HistoryHistory: EmR1608: emerg. cr. eff. 1-30-16; CR 16-006: cr. Register July 2016 No. 727, eff. 8-1-16; correction in (1) (intro.), (2) made under s. 35.17, Stats., Register July 2016 No. 727; correction in (1) made under s. 13.92 (4) (b) 7., Stats., Register December 2018 No. 756; CR 19-121: am. (1) (intro.), (a), (b), (f), (g), (h), (6) (title), (c), (d) 4. to 6., (e) Register May 2020 No. 773, eff. 6-1-20; correction in (6) (d) 5. made under s. 35.17, Stats., Register May 2020 No. 773. PI 48.16PI 48.16 Administrator, teacher and teacher aide requirements. PI 48.16(1)(a)(a) “Accredited institution of higher education” means an institution that is listed on the U.S. Department of Education Database of Accredited Postsecondary Institutions and Programs. PI 48.16(1)(d)(d) “Teacher aide” means any individual assisting with educational programming who is not a teacher or volunteer. PI 48.16(2)(2) Administrator and teacher requirements. Except as provided under s. 118.60 (2) (c), Stats., all administrators and teachers at a school shall comply with the requirements under s. 118.60 (2) (a) 6., Stats., whether they are a paid employee, substitute, independent contractor, or uncompensated volunteer. PI 48.16(3)(3) Teacher aide requirements. All teacher aides at the school shall comply with the requirements under s. 118.60 (7) (b) 3., Stats., whether they are a compensated or uncompensated employee, substitute, or independent contractor. PI 48.16(4)(4) Foreign degree transcript evaluation. If an individual requires a bachelor’s degree under s. 118.60 (2) (a) 6., Stats., and has a degree or educational credential from a foreign institution, the individual shall have the degree or educational credential, transcripts, and pattern of training evaluated by one of the following professional evaluation services to determine if the degree or credential is equivalent to a bachelor’s degree from an accredited institution of higher education in the United States: PI 48.16(4)(b)(b) Academic and Credential Records Evaluation and Verification Service. PI 48.16(4)(c)(c) American Association of Collegiate Registrars and Admissions Officers. PI 48.16(4)(d)(d) Any other organization members of the National Association of Credential Evaluation Services or the Association of International Credentials Evaluators. PI 48.16(5)(5) Required documentation. A school shall obtain and retain the following documentation to demonstrate that each administrator and teacher has the credentials required under s. 118.60 (2) (a) 6. a. and b., Stats.: PI 48.16(5)(a)(a) A copy of the degree or diploma or an official transcript that states the month and year the degree was earned. PI 48.16(5)(b)(b) If the administrator or teacher has a degree or educational credential from a foreign institution, the school shall obtain a copy of the evaluation report required under sub. (4) and ensure it indicates the individual has the equivalent of a bachelor’s degree or higher from an accredited institution of higher education in the United States. PI 48.16(5)(c)(c) A copy of the license issued by the department and verification that the license is current from the department website.
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