Wis. Admin. Code Department of Public Instruction § PI 35.10 - Financial audit supplemental schedule

Current through November 29, 2021

(1) ELIGIBLE EDUCATION EXPENSES. The eligible education expenses included in the financial audit supplemental schedule shall comply with all of the following:
(a) Eligible education expenses may only include those expenses that already have or will result in a cash disbursement.
(b) Eligible education expenses may only include the following:
1. In a standard financial audit, expenses that are in the statement of activities, except for the cost of land. The amount that the school paid for land shall be included in the first year the land is used for educational programming using an allocation method under par. (d), if applicable.
2. In a modified financial audit, expenses that would be included in the statement of activities for the school year based on generally accepted accounting principles except for the following:
a. The amount that the school paid for land shall be included in the first year the land is used for educational programming using an allocation method under par. (d), if applicable.
b. Post-retirement benefits may be included as an eligible education expense based on the amount expended for the post-retirement benefits in the school year.
(c) An expense may only be included as an eligible education expense one time.
(d) If an expense or government assistance revenue is partially related to educational programming, the school shall use an allocation method to determine the portion that is related to educational programming. The allocation methods shall be included in the school's policy established under s. PI 35.13(5) (h).
(e) The following may not be included in kindergarten through grade 12 eligible education expenses:
1. Contributed services, fixed assets, or goods.
2. Scholarship awards and financial support for pupils to attend the private school, including payments to parents or others on behalf of pupils.
3. Daycare expenses except expenses for before or after school care for kindergarten through grade 12 pupils that are enrolled in educational programming at the school.
4m. Special needs scholarship program excluded expenses.
5. Expenses for pupils who are enrolled in the public school district and attending the private school.
(2) AUDITOR REVIEW OF ELIGIBLE EDUCATION EXPENSES. An auditor shall ensure the eligible education expenses a school included in the supplemental schedule comply with the requirements under sub. (1), s. PI 35.09(1) (c), and the policy established under s. PI 35.13(5) (h).
(3) SUPPLEMENTAL SCHEDULE CALCULATIONS. The supplemental schedule shall calculate all of the following:
(a) Net eligible education expenses for all pupils as follows:
1. Determine the amount of eligible education expenses. This amount shall not include special needs scholarship program excluded expenses.
2. Subtract all government assistance revenues received for eligible education expenses. This amount shall not include government assistance revenues subtracted in s. PI 49.09(3) (a) 2. or in the statements provided under s. 115.7915(4c).
3. Subtract the lesser of the following:
a. Fundraising revenue.
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.
4. Subtract all insurance proceeds received for eligible education expenses. This amount shall not include insurance proceeds subtracted in s. PI 49.09(3) (a) 4.
(b) The net eligible education expenses for pupils participating in a program under ss. 118.60 and 119.23, Stats., as follows:
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.
2. Multiply the amount calculated under par. (a) by the percentage under subd. 1.
(c) The reserve balance as follows:
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.
2. Add the prior year reserve balance, if any.
3. Subtract the amount determined under par. (b).
4. Subtract any reserve amount repaid to the department.
(d) The school's cash and investment balance that shall be maintained under sub. 4 as follows:
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.
2. Subtract the amount under subd. 1. from the amount under par. (c).
(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).
(5) FINANCIAL AUDIT SUBMISSION.
(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:
1. The net eligible education expenses shall be multiplied by 25 percent if the school was only eligible for the September payment.
2. The net eligible education expenses shall be multiplied by 50 percent if the school was only eligible for the September and November payments.
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.
(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.
(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).

Notes

Wis. Admin. Code Department of Public Instruction § PI 35.10
Adopted by, CR 16-004: cr. Register July 2016 No. 727, eff. 8/1/2016 Amended by, 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. 6/1/2020

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