PI 49.10(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 49.10(1)(c)(c) The responsibilities of the school and the auditor in meeting the requirements of this chapter.

PI 49.10(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 49.10(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. 115.7915, Stats., and this chapter.

PI 49.10(2)(2) Financial accounting system. A school shall use a double entry financial accounting system organized in a manner that enables preparation of the financial audit and financial audit supplemental schedule. A school shall balance the financial accounting system and provide the auditor with a trial balance of the account balances.

PI 49.10(3)(3) Adjusting entries. Adjustments to the school’s trial balance recommended by a school’s auditor shall be approved by the school before the entries are recorded in the school’s financial accounting system.

PI 49.10(4)(4) Records retention. A school shall retain all financial and pupil records relating to the enrollment audits under s. PI 49.07 and the audit required under ss. PI 49.08 and PI 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 school retain the records for more than 5 years.

PI 49.10(5)(5) Records availability. A school shall furnish all financial and pupil records the auditor considers necessary to provide the audit opinion or agreed upon procedure reports. Upon request by the department, a school shall provide the department access and copies to the records referenced in the auditor’s working papers.

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 HistoryHistory: 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(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)(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(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.