PI 35.07(3)(d)(d) Complete testing of the pupil enrollment software using one of the following: PI 35.07(3)(d)2.2. A pupil enrollment software test plan developed by the auditor. The auditor shall annually file the plan with the department for approval. The auditor shall not use the test plan until it is approved by the department. PI 35.07(3)(f)(f) Verify that the total number of pupils attending the school on the official attendance records match the total number of pupils based on the pupil count report under s. PI 35.06 (8) (a) for each grade category. PI 35.07(3)(g)(g) Verify the enrollment for all choice program pupils reported on the pupil count report under s. PI 35.06 (8) (a) using the school’s official attendance records. PI 35.07(3)(j)1.1. Pupils for whom the school is receiving a childcare payment for all day care. PI 35.07(3)(k)(k) Reconcile tuition revenues and pupils for whom tuition is waived with the school’s records from the student information system that identify pupils who do not participate in the choice program. If the school charges a choice program pupil tuition, ensure the school obtained documentation indicating the pupil meets the requirements of s. 119.23 (3m) (b), Stats. PI 35.07(3)(L)(L) Select a sample of at least 60 pupils not participating in the choice program from original classroom records and verify the school included the selected pupils in the official attendance records. The sample shall include pupils from each classroom. If the pupils are in different classrooms during the day, the auditor may select one period and select pupils from each classroom for that period. If the auditor identifies an auditing exception, the auditor shall increase the sample size in increments of 60 pupils until the auditor finds no additional exceptions or until the auditor verifies that all pupils have been properly included in reported enrollments. If the school has an enrollment of fewer than 60 pupils who did not participate in the choice program, the auditor shall examine records for all pupils who did not participate in the choice program. PI 35.07(3)(m)(m) Reconcile the enrollment the school reported to the department under s. 115.30 (3), Stats., with the official attendance records of the school. PI 35.07(3)(n)(n) Verify that the applications for pupils participating in the choice program and pupils on the choice program waiting list meet the requirements of s. PI 35.05. PI 35.07(3)(o)(o) Verify that any pupils in 4-year-old kindergarten, 5-year-old kindergarten, or first grade meet the age requirements in s. 118.14 (1), Stats. PI 35.07(3)(p)(p) If the school operated a summer school program, review all school documentation to support the summer school report the school filed with the department under s. PI 35.08 (5). The review shall be part of the third Friday in September enrollment audit. PI 35.07(3)(q)(q) Perform other auditing procedures as agreed upon by the auditor and the department. PI 35.07(3)(r)(r) Verify that the choice program waiting list pupils reported on the pupil count report required under s. PI 35.06 (8) (a) 4. match the pupils on the school’s choice program waiting list. PI 35.07(4)(a)(a) Upon review of the enrollment audits, the department shall certify an amount due from a school or an amount due to the school. If a school fails to file an enrollment audit with the department, the department may determine that all choice pupils are ineligible. PI 35.07(4)(b)(b) A school shall refund to the department the amount certified as due to the department as specified under s. PI 35.19 (5). PI 35.07(4)(c)(c) The department shall pay any additional amount due to a school for qualifying pupils within 60 days of the date of the certification letter. PI 35.07 NoteNote: The enrollment audit form and department’s pupil enrollment software test 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 35.07 HistoryHistory: CR 16-004: cr. Register July 2016 No. 727, eff. 8-1-16; correction in (3) (b) under 13.92 (4) (b) 7., Stats., Register December 2016 No. 732; CR19-120: am. (1) (intro.), (a), (b), r. (c), am. (2), (3) (d) 2., r. (3) (e), am. (3) (f), (g), r. (3) (h), am. (3) (k), (L), (n), cr. (3) (r), am. (4) (a), a. (4) (b) (intro.) to (4) (b) and am., r. (4) (b) 1., 2. Register May 2020 No. 773, eff. 6-1-20. PI 35.08PI 35.08 Summer school attendance and payment. PI 35.08(1)(1) Definition. In this section, “academic purposes” means summer school learning experiences that are related to or similar to instruction the school offers during the regular school term or for which credit toward graduation is given. PI 35.08(2)(2) List of classes. Annually by the first weekday in May, a school shall file with the department a list of academic summer school classes and laboratory periods that the school will provide in the following summer. The department shall annually review the list to ensure the classes are for academic purposes. PI 35.08(3)(3) Program requirements. A school may count any of the following as instruction for academic purposes: PI 35.08(3)(bm)(bm) Swimming instruction programs, if taught or directed by a teacher at the site of the instruction. PI 35.08(3)(cm)(cm) Field trips if accompanied by a teacher and if all pupils have equal access to the field trips regardless of a pupil’s ability to pay. PI 35.08(4)(4) Pupil attendance requirements. A school may include a pupil in its summer school report if the pupil was in the choice program on the second Friday in January during the school term immediately preceding the summer for which the school seeks payment, or the school has accepted the pupil’s choice program application for the school term immediately following that summer. PI 35.08(5)(5) Report. A school counting pupils for choice summer school payment purposes shall file a summer school report with the department, using the online application system or other manner specified by the department, listing the choice program pupils who attended summer school and the number of days the pupils attended. PI 35.08 HistoryHistory: CR 16-004: cr. Register July 2016 No. 727, eff. 8-1-16; CR 19-120: am. (1), (2), renum. (3) (a) (intro.), 1., 2., 3. to (3) (intro.), (am), (bm), (cm) and, as renum., am. (3) (intro.), (bm), r. (3) (b), renum. (4) (intro.) to (4) and am., r. (4) (a), (b), am. (5), cr. (6) Register May 2020 No. 773, eff. 6-1-20. PI 35.09(1)(1) Financial audit requirement. Annually by October 15, a school shall submit a financial audit and financial audit supplemental schedule to the department. The financial audit shall comply with all of the following: PI 35.09(1)(a)(a) The financial audit shall either include the school-only balances and activity or shall be prepared at the consolidated level as permitted by generally accepted accounting principles. PI 35.09(1)(b)(b) A school may submit a financial audit that includes a modified audit opinion due to fixed assets purchased prior to the school’s participation in a program under ss. 115.7915, 118.60, and 119.23, Stats., not being included in the financial audit. PI 35.09(1)(c)(c) The school shall have support for the original purchase price for the fixed assets and evidence that the school paid for the fixed asset purchases in order for the depreciation expense to be an eligible education expense. If any fixed assets are included in the statement of financial position that do not meet these requirements, the financial audit shall include a footnote disclosure that includes the fixed asset amount, accumulated depreciation, and current year depreciation expense for the fixed assets that do not meet the requirements to be included as an eligible education expense. PI 35.09(1)(d)(d) Except as provided under par. (b) and sub. (4) (b), a financial audit that includes a modified audit opinion does not meet the requirements under s. 119.23 (7) (am) 2m. a., Stats., and this chapter unless the modification is approved by the department. PI 35.09(2)(2) Compliance with American Institute of Certified Public Accountants requirements. As provided under s. 119.23 (7) (am) 2m. a., Stats., an auditor engaged by a school to provide the audit opinion in this section shall comply with the auditing standards established by the American Institute of Certified Public Accountants, including all of the following: PI 35.09(2)(a)(a) The auditor shall develop written audit programs identifying the steps and procedures to be followed in conducting the audit, including establishing the planning materiality that the auditor will use for the audit. PI 35.09(2)(b)(b) The auditor shall trace all entries on the financial audit and financial audit supplemental schedule to the trial balance provided by the school under s. PI 35.11 (2). PI 35.09(2)(c)(c) The auditor shall obtain sufficient appropriate audit evidence to conclude that the financial statements do not contain misstatements the effect of which, when aggregated with misstatements in other accounts and transactions, exceeds the planning materiality and results in a material misstatement in the financial statements or in the school’s net eligible education expenses. The auditor shall determine sufficient appropriate audit evidence based on the requirements of the American Institute of Certified Public Accountants. PI 35.09(3)(a)(a) The standard financial audit shall be prepared in accordance with generally accepted accounting principles. PI 35.09(3)(b)(b) Except as provided under par. (c), the standard financial audit shall include 2-year comparative financial statements containing all of the statements required by generally accepted accounting principles, including a statement of financial position, a statement of activities, and a statement of cash flows. Both years of the financial statements shall be audited. PI 35.09(3)(c)(c) The first year a school completes a standard financial audit for the choice program, the statement of activities and statement of cash flows may only include the current school year. PI 35.09(4)(a)(a) The modified financial audit shall include an audited one-year statement of financial position prepared as required by generally accepted accounting principles. PI 35.09(4)(b)(b) A school may submit a modified financial audit that includes a modified audit opinion due to post-retirement benefits being excluded from the statement of financial position. PI 35.09(5)(a)(a) Any letter issued under the American Institute of Certified Public Accountants Statement on Auditing Standards 114. PI 35.09(5)(b)(b) Any letter issued under the American Institute of Certified Public Accountants Statement on Auditing Standards 115. PI 35.09(5)(c)(c) Any other letter to management communicating significant deficiencies or material weaknesses in the internal controls. PI 35.09 HistoryHistory: CR 16-004: cr. Register July 2016 No. 727, eff. 8-1-16; CR 19-120: r. and recr. (1), cr. (3) to (5) Register May 2020 No. 773, eff. 6-1-20. PI 35.10PI 35.10 Financial audit supplemental schedule. PI 35.10(1)(1) Eligible education expenses. The eligible education expenses included in the financial audit supplemental schedule shall comply with all of the following: PI 35.10(1)(a)(a) Eligible education expenses may only include those expenses that already have or will result in a cash disbursement. PI 35.10(1)(b)(b) Eligible education expenses may only include the following: PI 35.10(1)(b)1.1. In a standard financial audit, expenses that are in the statement of activities, except for the cost of land. The amount that the school paid for land shall be included in the first year the land is used for educational programming using an allocation method under par. (d), if applicable. PI 35.10(1)(b)2.2. In a modified financial audit, expenses that would be included in the statement of activities for the school year based on generally accepted accounting principles except for the following: PI 35.10(1)(b)2.a.a. The amount that the school paid for land shall be included in the first year the land is used for educational programming using an allocation method under par. (d), if applicable. PI 35.10(1)(b)2.b.b. Post-retirement benefits may be included as an eligible education expense based on the amount expended for the post-retirement benefits in the school year. PI 35.10(1)(c)(c) An expense may only be included as an eligible education expense one time. PI 35.10(1)(d)(d) If an expense or government assistance revenue is partially related to educational programming, the school shall use an allocation method to determine the portion that is related to educational programming. The allocation methods shall be included in the school’s policy established under s. PI 35.13 (5) (h). PI 35.10(1)(e)(e) The following may not be included in kindergarten through grade 12 eligible education expenses: PI 35.10(1)(e)2.2. Scholarship awards and financial support for pupils to attend the private school, including payments to parents or others on behalf of pupils. PI 35.10(1)(e)3.3. Daycare expenses except expenses for before or after school care for kindergarten through grade 12 pupils that are enrolled in educational programming at the school. PI 35.10(1)(e)5.5. Expenses for pupils who are enrolled in the public school district and attending the private school. PI 35.10(2)(2) Auditor review of eligible education expenses. An auditor shall ensure the eligible education expenses a school included in the supplemental schedule comply with the requirements under sub. (1), s. PI 35.09 (1) (c), and the policy established under s. PI 35.13 (5) (h). PI 35.10(3)(3) Supplemental schedule calculations. The supplemental schedule shall calculate all of the following: PI 35.10(3)(a)(a) Net eligible education expenses for all pupils as follows: PI 35.10(3)(a)1.1. Determine the amount of eligible education expenses. This amount shall not include special needs scholarship program excluded expenses. PI 35.10(3)(a)2.2. Subtract all government assistance revenues received for eligible education expenses. This amount shall not include government assistance revenues subtracted in s. PI 49.09 (3) (a) 2. or in the statements provided under s. 115.7915 (4c). PI 35.10(3)(a)3.b.b. The non-administrative fundraising expenses included in the expenses in subd. 1. In this subdivision, administrative expenses include expenses for school personnel, copying, mailing, or fixed assets used for other school purposes. PI 35.10(3)(a)4.4. Subtract all insurance proceeds received for eligible education expenses. This amount shall not include insurance proceeds subtracted in s. PI 49.09 (3) (a) 4. PI 35.10(3)(b)(b) The net eligible education expenses for pupils participating in a program under ss. 118.60 and 119.23, Stats., as follows: PI 35.10(3)(b)1.1. Calculate the percentage of pupils at the school participating in a program under ss. 118.60 and 119.23, Stats., as the full-time equivalent for the pupils participating in a program under ss. 118.60 and 119.23, Stats., compared to the all pupil full-time equivalent. The full-time equivalents shall be based on the average of the full-time equivalents determined in the enrollment audits under ss. PI 35.07 and 48.07. PI 35.10(3)(c)1.1. Determine the total revenue received under ss. 118.60 and 119.23, Stats. Summer school revenue received under ss. 118.60 and 119.23, Stats., shall be included in the school year it is received.
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