PI 49.04(2)(2) Financial information review. The department shall review the financial information filed by a school under sub. (1m) (b) and any other information available to the department to determine if the school meets the requirements under s. 115.7915 (6) (f) 2., Stats. In making a determination, the department shall remove the special needs scholarship program revenue from the school’s budget to determine if any of the following indicators exist: PI 49.04(2)(a)(a) The school has inadequate revenues and other financial resources to fund current operations in the budget filed under sub. (1m) (b). PI 49.04(2)(c)(c) The school has a negative net asset balance in the financial audit, or in a financial audit submitted under s. 118.60 or 119.23, Stats., or in the budget filed under sub. (1m) (b). PI 49.04(2)(d)(d) The school has a negative net current obligation in the financial audit, or in a financial audit submitted under s. 118.60 or 119.23, Stats., or in the budget filed under sub. (1m) (b). The net current obligation shall be calculated as the current assets less the current liabilities. PI 49.04(2)(e)(e) The school has a net loss or negative change in net assets in the financial audit, or a financial audit submitted under s. 118.60 or 119.23, Stats., or in the budget filed under sub. (1m) (b). PI 49.04(2)(f)(f) The audit opinion statement included in the financial audit, or a financial audit submitted under s. 118.60 or 119.23, Stats., contains a qualification as to the school’s ability to continue as a going concern. PI 49.04(2)(g)(g) The school failed to make payments to vendors as required by written agreement or, if there is no written agreement, within 90 days of invoice or payment request. The department shall consider this an indicator even if the school has entered into a payment plan with the vendor to pay the past due amount. PI 49.04(2)(h)(h) The school has past due amounts with government agencies, including payment of employee withholdings. The department shall consider this an indicator even if the school has entered into a payment plan with the government agency to pay the past due amount. PI 49.04(2)(i)(i) The school failed to pay its employees as required by ch. 109, Stats., or by written agreement with the employee. PI 49.04(3)(a)(a) Except as provided under par. (b), the department shall determine that a school does not meet the requirements under s. 115.7915 (6) (f) 2., Stats., if any of the indicators under sub. (2) exist. PI 49.04(3)(b)(b) An amount in dispute identified under sub. (2) (g) shall not be considered an indicator under sub. (2) (g) if all of the following are true: PI 49.04(3)(b)1.1. The school provided the department with written correspondence between the school and the vendor evidencing that the amount is in dispute. PI 49.04(3)(b)2.2. The school has sufficient cash available to pay the amount in dispute. PI 49.04(3)(b)3.3. The disputed amount is included in the budget as a current liability and paid in the first month of the budget. PI 49.04(3)(c)(c) A school that does not meet the requirements under s. 115.7915 (6) (f) 2., Stats., shall file a surety bond with the department that meets the requirements under sub. (1m) (a) by the first weekday in June prior to the school year. PI 49.04(4)(4) Bond call provisions. The department may call a bond filed by a school under this section for any of the following reasons: PI 49.04(4)(b)(b) The school failed to timely refund the department any amount certified due from the school under s. PI 49.07 (4). PI 49.04(4)(c)(c) The school failed to timely refund the department the reserve balance as prescribed under s. PI 49.09. PI 49.04(4)(d)(d) The school failed to timely refund the department any other money owed to the department for any other reason under this chapter or s. 115.7915, Stats. PI 49.04(5)(5) Revisions to number of available scholarships. PI 49.04(5)(a)(a) A school that filed a bond under sub. (1m) (a) that the department determined met the requirements under s. 115.7915 (6) (f) 1., Stats., may revise the number of scholarships available as follows: PI 49.04(5)(a)1.1. The school shall file with the department a school information update form with the revised number of scholarships available. The school information update form shall include the expected summer school payment for pupils participating in the special needs scholarship program based on the expected number of special needs scholarship program pupils that will participate in summer school identified in the school’s notice of intent to participate filed under s. PI 49.03 (3). PI 49.04(5)(a)2.2. A school may not accept more special needs scholarship program pupils than indicated on its notice of intent to participate under s. PI 49.03 (3) until the school information update form is filed with the department. PI 49.04(5)(a)3.3. The school shall file with the department a revised bond if the expected payment increases and the difference between the initial expected payment and the revised expected payment based on the number of scholarships available under subd. 1 is at least $50,000. The revised bond shall be equal to 25 percent of the revised expected payment based on the number of scholarships available under subd. 1. This bond shall be filed with the department by the first weekday in November. PI 49.04(5)(a)4.4. After the third Friday in September, a school may not increase the number of scholarships available under this paragraph if either of the following apply: