Chapter PI 49

PI 49.10(6) (6) School responsibility. An auditor’s failure to completely or properly perform the responsibilities set forth in s. 115.7915, Stats., or this chapter is not a defense to any determination the department makes under this chapter or s. 115.7915, Stats.

PI 49.10(7) (7) Auditor bar. A school participating in the special needs scholarship program may not engage an auditor who the department bars under s. PI 35.12 (7), PI 48.12 (7), or PI 49.11 (7) until such time as the auditor provides evidence acceptable to the department that the auditor has made procedural changes and has successfully completed professional development training that enables the auditor to comply with the requirements of this chapter, chs. PI 35 and 48, and ss. 115.7915, 118.60, and 119.23, Stats.

PI 49.10 History History: EmR1619: emerg. cr., eff. 6-2-16; CR 16-005: cr., Register October 2016 No. 730, eff. 11-1-16; correction in (7) made under s. 35.17, Stats., Register October 2016 No. 730; EmR1815: emerg. am. (6), eff 7-1-18; EmR1911: emerg. am. (6), eff. 7-1-19; CR 19-095: am. (6) Register March 2020 No. 771, eff. 4-1-20.

PI 49.11 PI 49.11 Auditor requirements.

PI 49.11(1) (1) Independence requirements. An auditor engaged by a school to meet the requirements under this chapter and s. 115.7915, Stats., shall comply with the standards of the American Institute of Certified Public Accountants, including all of following:

PI 49.11(1)(a) (a) An auditor shall comply with the requirements of s. Accy 1.101.

PI 49.11(1)(b) (b) An auditor shall obtain the school’s trial balance if completing compilation or review services.

PI 49.11(1)(c) (c) Except as provided in par. (d), an auditor may not post or prepare for posting typical reoccurring financial transactions to the school’s general ledger, including cash receipts and disbursements, invoices or billings for services, billings from vendors and suppliers, and payroll activity.

PI 49.11(1)(d) (d) An auditor shall obtain written approval of the school’s management prior to posting adjusting, correcting, and closing journal entries to the school’s general ledger. An auditor’s working papers shall document evidence of management approval for all such entries resulting from a financial statement compilation, review, or audit.

PI 49.11(1)(e) (e) If an auditor assists in the preparation of a school’s budget, the auditor shall do all of the following:

PI 49.11(1)(e)1. 1. Comply with s. Accy 1.201 (1) (e), regarding forecasts.

PI 49.11(1)(e)2. 2. Identify that such assistance was provided, if required by the department.

PI 49.11(2) (2) Inquiries. An auditor shall promptly respond to inquiries or requests made by the department. The auditor shall notify the school of any inquiries or requests made by the department and the auditor’s response.

PI 49.11(3) (3) Working papers retention. An auditor shall retain working papers relating to the enrollment audits under s. PI 49.07 and the audit required under ss. PI 49.08 and 49.09 for at least 5 years from the due date of the financial audit for each school year, unless the department or a law enforcement agency requests that the auditor retain working papers for more than 5 years.

PI 49.11(4) (4) Working papers review. An auditor shall permit the department to review audit working papers prepared in support of the enrollment audits under s. PI 49.07 and the audit required under ss. PI 49.08 and 49.09. An auditor shall promptly provide copies of working papers the department requests.

PI 49.11(5) (5) Auditor peer review reports. An auditor completing any of the audits and agreed upon procedure reports under s. 115.7915, Stats., or this chapter shall file the auditors peer review required under s. 442.087, Stats., with the department within 30 days of the report issuance.

PI 49.11(6) (6) License requirements.

PI 49.11(6)(a) (a) The auditing firm that is engaged by a school to complete the audits and agreed upon procedure reports under this chapter or s. 115.7915, Stats., shall be licensed as a certified public accounting firm by the accounting examining board under ch. 442, Stats.

PI 49.11(6)(b) (b) The individual auditor who signs the engagement letter for the audits and agreed upon procedure reports under this chapter or s. 115.7915, Stats., shall be a licensed certified public accountant by the accounting examining board under ch. 442, Stats.

PI 49.11(7) (7) Auditor bar.

PI 49.11(7)(a) (a) The department may bar an auditor who fails to timely and properly fulfill the auditing and reporting requirements of this chapter or s. 115.7915, Stats.

PI 49.11(7)(b) (b) An auditor who is barred under par. (a) shall not complete accounting, auditing, or other reporting requirements for any schools participating in the special needs scholarship program or in a program under s. 118.60 or 119.23, Stats., until such time as all of the following occur:

PI 49.11(7)(b)1. 1. The auditor files with the department evidence acceptable to the department that the auditor has made procedural changes to the manner in which the auditor conducts an audit.

PI 49.11(7)(b)2. 2. The auditor successfully completes professional development training that will enable the auditor to comply with the requirements of this chapter, chs. PI 35 and 48, and ss. 115.7915, 118.60, and 119.23, Stats.

PI 49.11 History History: EmR1619: emerg. cr., eff. 6-2-16; CR 16-005: cr., Register October 2016 No. 730, eff. 11-1-16; correction in (3), (4), (7) (b) made under s. 35.17, Stats., Register October 2016 No. 730; EmR1911: emerg. am. (5), renum. (7) (b) to (7) (b) (intro.) and am., eff. 7-1-19; CR 19-095: am. (5), renum. (7) (b) to (7) (b) (intro.) and am. Register March 2020 No. 771, eff. 4-1-20.

PI 49.12 PI 49.12 Quarterly reporting to parent. A school shall report to the parent of a pupil participating in the special needs scholarship program at least quarterly using a form provided by the department. The report shall describe the implementation of the child’s individualized education program or services plan, as modified by agreement between the school and the child’s parent, and the pupil’s academic progress.

PI 49.12 Note Note: The record of implementation and progress form may be obtained at no charge from the Wisconsin department of public instruction’s webpage at http://dpi.wi.gov/sms/special-needs-scholarship.

PI 49.12 History History: EmR1619: emerg. cr., eff. 6-2-16; CR 16-005: cr., Register October 2016 No. 730, eff. 11-1-16.

PI 49.13 PI 49.13 State aid payment calculation. The state superintendent shall make the payments under s. 115.7915 (4m) and (4p), Stats., to schools participating in the special needs scholarship program. The state superintendent may withhold payment from a school under s. 115.7915 (4m) and (4p), Stats., if the school violates this chapter or s. 115.7915, Stats. The state superintendent shall make the payments as follows:

PI 49.13(1) (1) September payment. The September payment shall be based on the number of special needs scholarship program pupils at the school reported under s. PI 49.06 (4). The state superintendent shall calculate the September payment as 25% times the total of all of the following:

PI 49.13(1)(a) (a) The full-time equivalent for full scholarship pupils multiplied by the per pupil payment amount determined under s. 115.7915 (4m) (a), Stats.

PI 49.13(1)(b) (b) The full-time equivalent for partial scholarship pupils, as reported under s. PI 49.06 (4) (b), multiplied by the per pupil payment amount determined under s. 115.7915 (4m) (e), Stats.

PI 49.13(1)(c) (c) The prior year actual cost for pupils, as reported by the school under sub. (7), and as calculated under s. 115.7915 (4m) (a) 3. and (cm), Stats.

PI 49.13(2) (2) November payment. The November payment shall be based on the number of special needs scholarship program pupils reported in the school’s pupil count report for the third Friday in September required under s. PI 49.06 (5) (b), unless a pupil is determined ineligible by the department. The state superintendent shall calculate the November payment as 50 percent times the amount owed for eligible pupils less the September payment received. The state superintendent shall calculate the amount owed for eligible pupils as the total of all of the following:

PI 49.13(2)(a) (a) The full-time equivalent for full scholarship pupils multiplied by the per pupil payment amount determined under s. 115.7915 (4m) (a), Stats.

PI 49.13(2)(b) (b) The full-time equivalent for partial scholarship pupils, as reported under s. PI 49.06 (4) (b), multiplied by the per pupil payment amount determined under s. 115.7915 (4m) (e), Stats.

PI 49.13(2)(c) (c) The prior year actual cost for pupils, as reported by the school under sub. (7), and as calculated under s. 115.7915 (4m) (a) 3. and (cm), Stats.

PI 49.13(2m) (2m) Summer school payment. The November payment shall include any payments due to the school for summer school instruction of special needs scholarship pupils in the immediately preceding summer as indicated in the report filed under s. 115.7915 (6) (k), Stats., unless otherwise determined ineligible by the department.

PI 49.13(3) (3) February and may payments. The February payment and May payment shall each be based on the number of special needs scholarship program pupils reported in the school’s pupil count report for the second Friday in January required under s. PI 49.06 (5) (b), unless a pupil is determined ineligible by the department. The state superintendent shall calculate the February and May payments as 25 percent times the total of all of the following:

PI 49.13(3)(a) (a) The full-time equivalent for full scholarship pupils multiplied by the per pupil payment amount determined under s. 115.7915 (4m) (a), Stats.

PI 49.13(3)(b) (b) The full-time equivalent for partial scholarship pupils, as reported under s. PI 49.06 (4) (b), multiplied by the per pupil payment amount determined under s. 115.7915 (4m) (e), Stats.

PI 49.13(3)(c) (c) The prior year actual cost for pupils, as reported by the school under sub. (7), and as calculated under s. 115.7915 (4m) (a) 3. and (cm), Stats.

PI 49.13(4) (4) Ceased instruction. The state superintendent may not make a September, November, or February payment to a school that has ceased instruction prior to the payment date.

PI 49.13(5) (5) Ending a school term early. The state superintendent may not make a May payment to a school that has ceased instruction prior to the end of its scheduled school term unless the school obtained prior written approval from the department to end the school term early.

PI 49.13(6) (6) Amount due to department. A school shall refund an amount due to the department under this chapter or s. 115.7915, Stats., as follows:

PI 49.13(6)(a) (a) If the school is currently eligible to receive special needs scholarship program payments, the department shall reduce the payments made under s. 115.7915 (4m) and (4p), Stats., by the amount owed. If reducing a payment made under s. 115.7915 (4m) and (4p), Stats., is insufficient to pay the amount owed, the school shall pay the remaining amount within 60 days of the date of the notice to the school of the amount due.

PI 49.13(6)(b) (b) If the school is not currently eligible to receive special needs scholarship program payments, the school shall refund the department within 60 days of the date of the notice to the school of the amount due.

PI 49.13(7) (7) Statement of actual cost.

PI 49.13(7)(a) (a) By the third Friday in July, a school may submit a statement of actual costs on a form provided by the department for a special needs scholarship program pupil. The statement of actual costs shall calculate the actual costs for the pupil as the costs for the pupil under par. (b) less any government assistance revenue received for educational programming for the pupil. Government assistance revenue under this paragraph shall include the forgiven portion of Paycheck Protection Program loans administered by the U.S. small business administration under 15 USC 636 if the amount is forgiven by October 15 following the school year the expenses were incurred. If the payment amount for the pupil based on the statement of actual costs is less than the payment amount calculated under s. 115.7915 (4m) (a) 2. b., Stats., the payment for the pupil shall be calculated as specified under s. 115.7915 (4m) (a) 2. b., Stats.

PI 49.13(7)(b) (b) The statement of actual cost may only include costs that meet at least one of the following criteria:

PI 49.13(7)(b)1. 1. The cost was incurred to provide the services identified in the pupil’s individualized education program or services plan.

PI 49.13(7)(b)2. 2. The cost was incurred to provide specially designed instruction, regardless of where the instruction is conducted, that is provided to meet the unique needs of a child with a disability, including instruction in physical education.

PI 49.13(7)(b)3. 3. The cost was incurred to provide aids, services and other supports that are provided in regular education classes or other education-related settings to enable a child with a disability to be educated with nondisabled children to the maximum extent appropriate.

PI 49.13(7)(b)4. 4. The cost was incurred to provide transportation or such developmental, corrective, and other supportive services as may be required to assist a child with a disability to benefit from special education, including all of the following:

PI 49.13(7)(b)4.a. a. Speech-language pathology and audiology services.

PI 49.13(7)(b)4.b. b. Interpreting services.

PI 49.13(7)(b)4.c. c. Psychological services.

PI 49.13(7)(b)4.d. d. Physical and occupational therapy.

PI 49.13(7)(b)4.e. e. Recreation, including therapeutic recreation.

PI 49.13(7)(b)4.f. f. Social work services.

PI 49.13(7)(b)4.g. g. School nursing services designed to enable a child with a disability to receive an education as described in the agreement of services required under s. 115.7915 (6) (h) 1., Stats.

PI 49.13(7)(b)4.h. h. Counseling services, including rehabilitative counseling.

PI 49.13(7)(b)4.i. i. Orientation and mobility services.

PI 49.13(7)(b)4.j. j. Medical services for diagnostic and evaluative purposes only.

PI 49.13(7)(b)4.k. k. The early identification and assessment of disabling conditions in children.

PI 49.13(7)(b)5. 5. The cost was incurred to provide services or activities for school personnel to meet the unique needs of a child with a disability.

PI 49.13(7)(c) (c) Notwithstanding par. (b) 4., the cost of a medical device that is surgically implanted or the replacement of such a device may not be included in the statement of actual cost.

PI 49.13(7)(d) (d) The statement of actual costs may only include costs that meet the eligible education expense requirements under s. PI 49.09 (1).

PI 49.13(7)(e) (e) The statement of actual costs may only include costs for a pupil incurred after the pupil is accepted into the special needs scholarship program at the school under s. PI 49.05 (5) (c) 2. or (7r).

PI 49.13(7)(f) (f) Only the school that submitted the statement of actual costs under par. (a) may receive the per pupil payment based on the actual cost in the statement in the subsequent school year under subs. (1), (2), and (3).

PI 49.13 Note Note: The statement of actual cost may be obtained at no charge from the Wisconsin department of public instruction’s webpage at http://dpi.wi.gov/sms/special-needs-scholarship.

PI 49.13 History History: EmR1619: emerg. cr., eff. 6-2-16; CR 16-005: cr., Register October 2016 No. 730, eff. 11-1-16; EmR1815: emerg. am. (intro.), (2) (intro.), cr. (2m), (6), (7), eff 7-1-18; EmR1911: emerg. am. (intro.), cr. (1) (c), am. (2) (intro.), cr. (2) (c), (2m), am. (3) (intro.), cr. (3) (c), (6), (7), eff. 7-1-19; CR 19-095: am. (intro.), cr. (1) (c), am. (2) (intro.), cr. (2) (c), (2m), am. (3) (intro.), cr. (3) (c), (6), (7) Register March 2020 No. 771, eff. 4-1-20; correction in (7) (c) made under s. 35.17, Stats., Register March 2020 No. 771; correction in (7) (e) made under s. 13.92 (4) (b) 7., Stats., Register January 2021 No. 781; EmR2117: emerg. am. (7) (a), eff. 6-12-21; CR 21-046: am. (7) (a) Register February 2022 No. 794, eff. 3-1-22.

PI 49.14 PI 49.14 Department authority.

PI 49.14(1) (1) Inquiries. The department may make inquiries to ascertain the accuracy and completeness of information contained in audits or reports required under s. 115.7915, Stats., or this chapter. Schools and auditors shall promptly respond to inquiries made by the department.

PI 49.14(2) (2) Training. The department may provide training to school staff and auditors. The department may charge a reasonable fee for providing training under this subsection.

PI 49.14(3) (3) Pupil confidentiality. The department shall maintain pupil confidentiality at all times.

PI 49.14(4) (4) Order to bar. The department may issue an order barring a private school from participating in the special needs scholarship program if the department determines that the school has done any of the following:

PI 49.14(4)(a) (a) Failed to submit the financial audit or financial audit supplemental schedule in two or more years by the date specified in s. PI 49.08.

PI 49.14(4)(b) (b) Submitted a financial audit or financial audit supplemental schedule that does not comply with the requirements under s. PI 49.08 or 49.09 in two or more instances in the same year or in different years.

PI 49.14(4)(c) (c) Excluded liabilities, whether or not the school disputes the amount owed, from the financial information required under s. 115.7915 (6) (f) 2., Stats., and s. PI 49.04 (1m) (b).

PI 49.14(4)(d) (d) Included assets in the financial information filed under s. 115.7915 (6) (f) 2., Stats., and s. PI 49.04 (1m) (b) that exceed the assets of the school.

PI 49.14(4)(e) (e) Failed to file a bond required under s. PI 49.04 for 3 consecutive months after the date the bond is due.

PI 49.14(4)(f) (f) Failed to conduct background checks required under s. PI 49.03 (4) for two or more individuals.

PI 49.14(4)(g) (g) Employed an individual in violation of s. PI 49.03 (4) (d) 1. or 2.

PI 49.14 History History: EmR1619: emerg. cr., eff. 6-2-16; CR 16-005: cr., Register October 2016 No. 730, eff. 11-1-16; correction in (4) (b), (g) made under s. 35.17, Stats., Register October 2016 No. 730l; EmR1815: emerg. am. (4) (c), (d), (g), eff 7-1-18; EmR1911: emerg. am. (4) (a) to (e), (g), eff. 7-1-19; CR 19-095: am. (4) (a) to (e), (g) Register March 2020 No. 771, eff. 4-1-20.

PI 49.15 PI 49.15 Right to a request a hearing.

PI 49.15(1) (1) Who may request. A person or school adversely affected by an action of the department under this chapter or s. 115.7915, Stats., may request a contested case hearing on that action. A request for a contested case hearing shall be filed with the office of legal services within 14 days of the date of the department’s action.

PI 49.15 Note Note: See s. 227.42, Stats. A request for a contested case hearing may be filed with the office of legal services at the following address:

PI 49.15 Note Office of Legal Services