SB989,,3993991. If the private school annually received a total of at least $100,000 under this section the choice program and ss. s. 115.7915 and 119.23 in any school year, the audit shall be prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets. SB989,,4004002. If the private school has not annually received a total of at least $100,000 under this section the choice program and ss. s. 115.7915 and 119.23 in any school year, the audit shall be prepared as prescribed by the department by rule. SB989,,4014013. The audit shall include a calculation of the private school’s net eligible education expenses and a calculation of the balance of the private school’s fund for future eligible education expenses. SB989,,4024024. The auditor shall conduct his or her the audit, including determining sample sizes and evaluating financial viability, in accordance with the auditing standards established by the American Institute of Certified Public Accountants. The department may not require an auditor to comply with standards that exceed the scope of the standards established by the American Institute of Certified Public Accountants. SB989,,4034035. If a private school participating in a program under this section is part of an organization and the private school and the organization share assets, liabilities, or eligible education expenses, the private school may submit an audit of the private school or of the organization of which it is a part. If a private school that is part of an organization with which it shares assets, liabilities, or eligible education expenses submits an audit of only the private school, the independent auditor shall use his or her professional judgment to allocate any shared assets, liabilities, and eligible education expenses between the organization and the private school. SB989,,4044046. If a private school participating participated in the choice program under this section in the previous school year and also accepts pupils participated in the program under s. 115.7915 or 119.23 in the previous school year, the private school may submit one comprehensive financial audit to satisfy the requirements of this subdivision subsection and ss. s. 115.7915 (6) (e) and 119.23 (7) (am) 2m., whichever are applicable. The private school shall include in the comprehensive financial audit the information specified under s. 119.23 (7) (am) 2m. SB989,156405Section 156. 118.60 (7) (am) 2m. b. of the statutes is renumbered 118.83 (5) (a) and amended to read: SB989,,406406118.83 (5) Fiscal and internal control practices. (a) Evidence A participating private school shall submit evidence to the department of sound fiscal and internal control practices, including evidence that the entity has the financial ability to continue operating, as prescribed by the department by rule. SB989,,407407(b) A private school that participated in the choice program shall submit to the department reports completed by an independent auditor on the private school’s compliance with fiscal and internal control requirements, as required by the department by rule. An independent auditor engaged to evaluate the participating private school’s fiscal and internal control practices shall conduct his or her the evaluation, including determining sample sizes, in accordance with attestation standards established by the American Institute of Certified Public Accountants. The independent auditor engaged to evaluate the private school’s fiscal and internal control practice shall also review any concerns raised in the private school’s management letter submitted under subd. 2m. a. SB989,,408408(c) The fact that a participating private school reports a negative reserve balance alone is not evidence that the participating private school does not have the financial ability to continue operating or that the participating private school does not follow sound fiscal and internal control practices. SB989,157409Section 157. 118.60 (7) (am) 2m. c. of the statutes is repealed. SB989,158410Section 158. 118.60 (7) (am) 3. of the statutes is renumbered 118.83 (3) and amended to read: SB989,,411411118.83 (3) Financial audit review. (a) By no later than February 15 the first weekday in March or 120 days after the date on which the audit under subd. 2m. a. sub. (2) is received by the department, whichever is later, the department shall notify a private school participating that participated in the choice program under this section in the previous school year whether or not additional information is required for the department to complete its review of the audit. Subject to subd. 3. b. par. (b), the department may request that an auditor provide additional information if the request is related to the department reviewing the audit. The department shall determine whether a the private school participating in the program under this section has provided the information and met the requirements required under subd. 2m. a. sub. (2) by the 3rd Friday in April 1 . SB989,,412412(b) Before the 3rd Friday in April 1 , the department may contact the auditor who prepared the audit under subd. 2m. a. sub. (2) only regarding matters that may impact the private school’s financial statement by an amount that is greater than 1 percent of the total amount the private school received under this section the choice program for the previous school year and any items or information the department determines are missing from the audit. SB989,,413413(c) Notwithstanding subd. 3. a. and b. pars. (a) and (b), the department may communicate with an auditor as necessary for the purpose of assessing the financial viability of a participating private school participating in the program under this section. SB989,,414414(d) An auditor who receives a written communication under this subdivision subsection shall respond to the department within 10 school days of receiving the written communication. SB989,159415Section 159. 118.60 (7) (an) of the statutes is renumbered 118.83 (4) and amended to read: SB989,,416416118.83 (4) Reserve balance. (a) A participating private school participating in the program under this section shall maintain a cash and investment balance that is at least equal to its reserve balance. If a participating private school does not maintain a cash and investment balance that is at least equal to its reserve balance, the participating private school shall refund the reserve balance to the department. This subdivision does not apply to a school year that occurs during the public health emergency declared on March 12, 2020, by executive order 72. SB989,,417417(b) If a participating private school participating in the program under this section has a reserve balance that is greater than 50 percent of the total amount the participating private school received under this section the choice program in the previous school year, the governing body of the participating private school shall approve a plan for how it will use the amount of the reserve balance that exceeds 50 percent of the total amount the participating private school received under this section the choice program in the previous school year. SB989,,418418(c) If a private school ceases to participate in or is barred from the choice program under this section and s. 119.23 and the private school’s reserve balance is positive, the private school shall refund the reserve balance to the department. SB989,160419Section 160. 118.60 (7) (b) (intro.) and 2m. of the statutes are repealed. SB989,161420Section 161. 118.60 (7) (b) 1. of the statutes is renumbered 118.80 (6) and amended to read: SB989,,421421118.80 (6) Third grade reading test. Administer Each participating private school shall administer to any pupils attending the 3rd grade in the private school under this section the choice program a standardized reading test developed by the department. SB989,162422Section 162. 118.60 (7) (b) 2. of the statutes is renumbered 118.79 (3) and amended to read: SB989,,423423118.79 (3) Academic standards. Adopt Each participating private school shall adopt the pupil academic standards required under s. 118.30 (1g) (a) 4. SB989,163424Section 163. 118.60 (7) (b) 3. of the statutes is renumbered 118.81 (3) (intro.) and amended to read: SB989,,425425118.81 (3) Teacher’s aide educational requirements. (intro.) Ensure A participating private school shall ensure that any teacher’s aide employed by all of the participating private school has school’s teacher’s aides satisfy at least one of the following: SB989,,426426(a) The individual graduated from high school, been granted. SB989,,427427(b) The individual obtained a declaration of equivalency of high school graduation, been granted.