September 1 following a school year of operation under the choice program, a
private school participating in the Milwaukee parental choice program shall
submit, on a form provided by the department, a financial information report
identifying the operating nature of the private school as required under s.
and accompanied by the auditor's opinion
statement required under s.
containing the following information for
the previous school year:
(a) Revenues and
expenditures for all programs of the private school and the amount attributable
to kindergarten through grade 12 educational programs.
(b) A statement of net choice program assets
at the start and end of the school year.
Enrollment and full-time equivalent
membership for all pupils and for pupils participating in the Milwaukee
parental choice program based on audited enrollments required under s.
(d) A statement of cash flows.
(e) Such other information necessary for the
fair determination of educational programming cost.
(f) Per pupil cost related to kindergarten
through grade 12 educational programming computed on a full-time equivalent
adjustment amount resulting from the private school's participation in the
Milwaukee parental choice program during the previous school year. The payment
adjustment amount shall be determined as follows:
The private school's educational
programming cost shall be reduced by the following offsetting revenues:
a. Fees charged pupils for books and supplies
used in classes and programs.
Rentals for school buildings.
Food service revenues.
Governmental financial assistance revenues.
e. Interest earnings and other income
resulting from investment of debt proceeds.
2. The private school's per pupil cost shall
be determined by dividing the net eligible educational programming cost
determined under subd. 1. by the membership for all pupils enrolled in
kindergarten through grade 12 educational programs.
The private school's membership of pupils
participating in the Milwaukee parental choice program shall be multiplied by
the lesser of the amount determined under s.
2, Stats., or the private school's per
pupil cost under s.
1, Stats. If the result is greater than
the amount of the choice program payments retained by the school, an adjustment
payment shall be made to the private school within 60 days of the financial
information report certified by the department. If the result is less than the
amount of the choice program payments retained by the private school, the
private school shall refund the amount of any overpayment to the department
within 60 days of notification.
Note: The Financial Reporting Form may be obtained at no charge
from the Department of Public Instruction, Milwaukee Parental Choice Program,
P.O. Box 7841, Madison, WI 53707-7841.
The accrual basis of accounting shall be
used in reporting the information required under this section except as
(a) Debt proceeds are included in
revenue when received.
Long-term debt principal and interest payments are included in expenditures
when payments are due.
school program revenues and expenditures are reported in the fiscal year
corresponding to the pupil membership used for program payment
(d) Withdrawals as salary
compensation by individuals with a proprietary interest in the private school
shall be included in expenditures only when identified as such on the private
school's records and made by check on or before June 30.
(e) Acquisition of capital outlay items are
reported in expenditures when acquired.
Costs requiring allocation between kindergarten through grade 12 educational
programming and other programs of the private school shall be made using one or
more of the following allocation bases the private school considers most
1. Instruction costs may be
allocated based on either pupil full-time equivalency or time spent.
2. Student support service costs may be
allocated based on either pupil full-time equivalency or time spent.
3. Administration costs may be allocated
based on direct program expenditures, time spent, or full-time equivalent
4. Accounting costs may
be allocated based on either the number of transactions or time
5. Facility operation and
maintenance costs may be allocated based on floor space operated, space
occupied over time, or labor hours.
6. Pupil transportation costs may be
allocated based on miles driven, pupil miles driven or driver hours.
The following may not be
included in kindergarten through grade 12 educational programming cost:
1. Contributed services.
2. Fund raising.
3. Scholarship awards and financial support
for pupils to attend the private school, including payments to parents or
others on behalf of pupils.
principal and interest payments to the private school's owners, sponsoring
organization, or another related party as a result of internal financing from
other funds of the school or other less-than-an-arms-length transaction.
Borrowing from an endowment fund or from individuals serving on a board of
directors or in an advisory capacity who do not have a proprietary interest in
the school are not subject to the requirements under this subdivision. The
interest rate on such borrowings may not exceed the published prime rate on the
All loans from
an individual to the private school must result in a cash deposit to the
school's or operating organization's depository account required under s.
. Unpaid reimbursements due related
parties or employees of the private school shall not be considered a
The private school shall, for the purpose
of computing per pupil cost, charge off non-debt financed capital outlay
expenditures as follows:
school shall annually make an irrevocable election to either charge off all
expenditures in each of the following categories entirely as a school year cost
or amortize the expenditure over future periods as follows:
a. Media may be amortized over 5 years or 20%
annually. Under this subparagraph, media includes consumable instructional and
administrative items that are expected to serve their principal purposes for
more than a year and includes text and reference books, audio-visual materials,
and computer software.
and furnishings may be amortized over 5 years or 20% annually. Under this
subparagraph, furnishings includes desks, chairs, and freestanding lockers.
Only the additional cost difference between the allowance granted for equipment
traded in and the value of new equipment acquired shall be eligible for
inclusion in cost calculation.
Buildings, sites and improvements may be amortized over 16 years or 6.25%
annually. Under this subparagraph improvements include sidewalks, installed
playground equipment, landscaping and building components such as lighting
fixtures, built-in lockers, heating, ventilating and wiring systems. Only the
difference between the amount previously included in cost and the value of the
new building acquired shall be eligible for inclusion in cost calculation, if
buildings are replaced.
Leasehold improvements may be amortized over the remaining lease
2. A private
school may elect to charge off in accordance with par. (a), the fair market
value of existing items in each category as of July 1, 1996, or at the date
first participating in the program or re-entering the program. The value of
items not so elected to be charged off as a cost may not be eligible for
inclusion in cost in future fiscal periods.
(b) Capital outlay items previously included
in cost computations may not again be included as a cost by successor ownership
of the school, nor upon purchase by or transfer to other private schools
participating in the Milwaukee parental choice program.
(c) The private school shall maintain,
indefinitely, documentation regarding capital outlay values, expenditures and
their use in per pupil cost computation.
(5) A private school participating in the
Milwaukee parental choice program for the first time may include in cost
calculations start-up costs incurred prior to the start of the fiscal
Wis. Admin. Code Department of Public Instruction § PI 35.045
Emerg. cr. eff. 8-5-98;
cr. Register, February, 1999, No. 518, eff. 3-1-99; emerg. am. (1) (e) 3., eff.
1-4-00; am. (1) (e) 3., Register, July, 2000, No. 535, eff. 8-1-00; reprinted
to correct error in (1) (e) (intro.), Register, January, 2001, No. 541; emerg.
am. (1) (intro.), (c), (e) (intro.) and 3., (4) (b) and (5), eff. 1-28-02; CR
02-023: am. (1) (b), (2) (b) 2., 3., 4., and 6., Register August 2002 No. 560,
eff. 9-1-02; CR 04-076: am. (1) (intro.), (b), (c), and (3) (b) 4., renum. (1)
(d) and (e) to be (1) (f) and (g) and am. (1) (g) 3., cr. (1) (d), (e) and (3)
(b) 5. Register October 2005 No. 598, eff.