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. PI 35.10(3)(d)(d) The school’s cash and investment balance that shall be maintained under sub. 4 as follows: PI 35.10(3)(d)1.1. Determine the sum of any remaining depreciation on fixed assets used by the school and any land purchases that have not yet been included in eligible cost under sub. (1) (b) that meet the requirements to be included as an eligible education expense. The depreciation under this subdivision shall not include depreciation for leased right of use assets. PI 35.10(3m)(3m) Paycheck Protection Program loans. Notwithstanding sub. (3) (a) 2., the forgiven portion of Paycheck Protection Program loans administered by the U.S. small business administration under 15 USC 636 may not be included as offsetting government assistance revenue in the supplemental schedule. PI 35.10(4)(4) Maintain reserve balance. The school shall maintain the reserve balance, if positive, for future eligible education expenses for choice pupils. The school’s cash and investment balance shall be at least as much as the amount calculated under sub. (3) (d), if positive. If the school is also participating in the program under s. 115.7915, Stats., the cash and investment balance shall be at least as much as the reserve calculated under this chapter and s. PI 49.09 less the sum of any remaining depreciation on fixed assets used by the school and any land purchases that have not yet been included in eligible cost under sub. (1) (b) that meet the requirements to be included as an eligible education expense. The depreciation under this subsection shall not include depreciation for leased right of use assets. If a school fails to maintain a sufficient cash and investment balance, it shall repay the reserve balance to the department as specified under s. PI 35.19 (5). PI 35.10(5)(a)(a) If a school ceases to participate or is barred from participation in all of the programs the school is participating in under ss. 118.60 and 119.23, Stats., it shall submit to the department the financial audit required under s. 119.23 (7) (am) 2m. a., Stats., for the final school year in which it participated. The net eligible education expenses under sub. (3) (a) shall be multiplied by the percent of the school year the school participated in the choice program if the school was not eligible for all of the payments under s. PI 35.19. This percentage shall be calculated as follows: PI 35.10(5)(a)1.1. The net eligible education expenses shall be multiplied by 25 percent if the school was only eligible for the September payment. PI 35.10(5)(a)2.2. The net eligible education expenses shall be multiplied by 50 percent if the school was only eligible for the September and November payments. PI 35.10(5)(a)3.3. The net eligible education expenses shall be multiplied by 75 percent if the school was only eligible for the September, November, and February payments. PI 35.10(5)(b)(b) If a school fails to submit the financial audit, the school’s net eligible education expenses for the year shall be determined to be zero for purposes of determining the school’s reserve balance. PI 35.10(6)(6) Refund of the reserve. If a school ceases to participate or is barred from participating in all of the programs the school is participating in under ss. 118.60 and 119.23, Stats., and the school’s reserve is positive, the school shall refund the reserve balance to the department as specified under s. PI 35.19 (5). PI 35.10 HistoryHistory: CR 16-004: cr. Register July 2016 No. 727, eff. 8-1-16; CR 19-120: renum. (1) (b) to (1) (b) (intro.) and am., cr. (1) (b) 1., 2., am. (1) (e) 1., r. (1) (e) 4., cr. (1) (e) 4m., am. (2), (3) (a) 1., 2., renum. (3) (a) 3. to (3) (a) 3. (intro.) and am., cr. (3) (a) 3. a., b., am. (3) (a) 4., (b) 1., (c) 1., cr. (3) (c) 4., am. (3) (d) 1., (4), renum. (5) to (5) (a) (intro.) and am., cr. (5) (a) 1. to 3., (b), am. (6) Register May 2020 No. 773, eff. 6-1-20; EmR2117: emerg. cr. (3m), eff. 6-12-21; CR 21-046: cr. (3m) Register February 2022 No. 794, eff. 3-1-22. PI 35.11PI 35.11 School financial requirements. PI 35.11(1)(1) Engagement letter. A school shall have a written engagement letter with each auditor providing services required by this chapter. The school or auditor shall provide a copy of the engagement letter to the department upon request. The written engagement letter shall contain all of the following: PI 35.11(1)(a)(a) A statement that the auditor shall comply with generally accepted auditing standards and the requirements of this chapter. PI 35.11(1)(b)(b) A statement that the auditor shall comply with generally accepted governmental auditing standards if other governmental agencies providing funds to the school so require. PI 35.11(1)(c)(c) The responsibilities of the school and the auditor in meeting the requirements of this chapter. PI 35.11(1)(d)(d) The services the auditor provides to the school that are in addition to those audit and attestation services required under this chapter. PI 35.11(1)(e)(e) The auditor’s acknowledgement that the department will rely on the auditor’s work to fulfill the department’s responsibilities under s. 119.23, Stats., and this chapter. PI 35.11(1)(f)(f) The auditor’s compensation for the services the auditor provides to the school.