PI 49.09(3)(b)2. 2. Subtract all government assistance revenues received for eligible education expenses. This amount shall not include government assistance revenues subtracted in par. (a) 2. or in the statements provided under s. PI 49.13 (7).

PI 49.09(3)(b)3. 3. Subtract the lesser of the following:

PI 49.09(3)(b)3.a. a. Fundraising revenue.

PI 49.09(3)(b)3.b. b. The non-administrative fundraising expenses included in the expenses in subd. 1. In this subdivision, administrative expenses include expenses for school personnel, copying, mailing, or fixed assets used for other school purposes.

PI 49.09(3)(b)4. 4. Subtract all insurance proceeds received for eligible education expenses, excluding eligible education expenses in par. (a).

PI 49.09(3)(c) (c) The net eligible education expenses for special needs scholarship program pupils as follows:

PI 49.09(3)(c)1. 1. Calculate the percentage of pupils at the school participating in the special needs scholarship program as the full-time equivalent for the special needs scholarship program pupils 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 s. PI 49.07. The full-time equivalent for the special needs scholarship program pupils shall exclude pupils that received a payment under s. PI 49.13 (7) in that school year.

PI 49.09(3)(c)2. 2. Multiply the amount calculated under par. (b) by the percentage under subd. 1.

PI 49.09(3)(c)3. 3. Add the net eligible education expenses under par. (a) and costs included as eligible in any statements provided under s. PI 49.13 (7) incurred in that school year.

PI 49.09(3)(c)4. 4. Subtract government assistance revenue related to that school year that is subtracted in the statements provided under s. PI 49.13 (7).

PI 49.09(3)(d) (d) The reserve balance as follows:

PI 49.09(3)(d)1. 1. Determine the total scholarships received for the school year being audited and any adjustments for the school year under s. PI 49.07 (4). This amount shall include summer school revenue received under s. 115.7915 (4p), Stats., for the immediately preceding summer.

PI 49.09(3)(d)2. 2. Add the prior year reserve balance, if any.

PI 49.09(3)(d)3. 3. Subtract the amount determined under par. (c).

PI 49.09(3)(e) (e) The school’s cash and investment balance that must be maintained under sub. (4) as follows:

PI 49.09(3)(e)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 49.09(3)(e)2. 2. Subtract the amount under subd. 1. from the amount under par. (d).

PI 49.09(3m) (3m) Paycheck Protection Program loans. Notwithstanding sub. (3) (a) 2., (b) 2., and (c) 4., 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 49.09(4) (4) Maintain reserve balance. The school shall maintain the reserve balance, if positive, for future eligible education expenses for special needs scholarship program pupils. The school’s cash and investment balance shall be at least as much as the amount calculated under sub. (3) (e), if positive. If the school is participating in a program under s. 118.60 or 119.23, Stats., the cash and investment balance shall be at least as much as the reserve calculated under this chapter and chs. PI 35 and 48 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.

PI 49.09(5) (5) Financial audit submission.

PI 49.09(5)(a) (a) If a school ceases to participate or is barred from participation in the special needs scholarship program under s. 115.7915, Stats., it shall submit to the department the financial audit for the final school year in which it participated. The net eligible education expenses under sub. (3) (c) shall be multiplied by the percent of the school year the school participated in the special needs scholarship program if the school was not eligible for all of the payments under s. PI 49.13. This percentage shall be calculated as follows:

PI 49.09(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 49.09(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 49.09(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 49.09(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 49.09(6) (6) Refund of the reserve. If a school ceases to participate or is barred from participating in the special needs scholarship program under s. 115.7915, Stats., and the school’s reserve is positive, the school shall refund the reserve balance to the department as specified under s. PI 49.13 (6).

PI 49.09 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) made under s. 35.17, Stats., Register October 2016 No. 730; EmR1630: emerg. renum. (3) (a) 3. to (3) (a) 3. (intro.) and am., cr. (3) (a) 3. a., b., renum. (3) (b) 3. to (3) (b) 3. (intro.) and am., cr. (3) (b) 3. a., b., am. (5) (title), renum. (5) to (5) (a), (b), eff. 11-1-16; CR 16-066: renum. (3) (a) 3. to (3) (a) 3. (intro.) and am., cr. (3) (a) 3. a., b., renum. (3) (b) 3. to (3) (b) 3. (intro.) and am., cr. (3) (b) 3. a., b., am. (5) (title), renum. (5) to (5) (a), (b) Register April 2017 No. 736, eff. 5-1-17; EmR1815: emerg. am. (1) (e) 1., (3) (d) 1., (e) 1., (4), eff 7-1-18; EmR1911: emerg. renum. (1) (b) to (1) (b) (intro.) and am., cr. (1) (b) 2., am. (1) (e) 1., (2), (3) (a) (intro.), 1., 2., 3. b., 4., (b) 1., 2., 3. b., (c) 1., 3., cr. (3) (c) 4., am. (3) (d) 1., (e) 1., (4), renum. (5) (a) to (5) (a) (intro.) and am., cr. (5) (a) 1. to 3., am. (6), eff. 7-1-19; CR 19-095: renum. (1) (b) to (1) (b) (intro.) and am., cr. (1) (b) 2., am. (1) (e) 1., (2), (3) (a) (intro.), 1., 2., 3. b., 4., (b) 1., 2., 3. b., (c) 1., 3., cr. (3) (c) 4., am. (3) (d) 1., (e) 1., (4), renum. (5) (a) to (5) (a) (intro.) and am., cr. (5) (a) 1. to 3., am. (6) Register March 2020 No. 771, eff. 4-1-20; EmR2117: emerg. cr. (3m), eff. 6-12-21; CR 21-046: cr. (3m) Register February 2022 No. 794, eff. 3-1-22.

PI 49.10 PI 49.10 School financial requirements.

PI 49.10(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: