FINANCIAL ACCOUNTING SYSTEM. A school
participating in the choice program shall use a double entry financial
accounting system organized in a manner that enables preparation of the audit
under ss. PI 35.09
and 35.10 and contains any other information necessary to
fiscally manage the school. The accounting system shall identify all sources of
funding a school uses in the school's operation. The accounting system shall
identify all of the following if the school receives revenue from the specified
(a) Revenue from pupils participating
in the choice program.
from parents or other privately paid tuition pupils.
(c) Revenue from the school district in which
the school is located for instruction of pupils enrolled in the
(d) Revenue from the school
district in which the school is located for transportation of the school's
(e) Revenue from federal,
state, and local governments.
SCHOOL BUDGET. A school shall complete
all of the following:
Annually by June 30,
a budget for the following school year that contains all of the following:
1. Anticipated enrollments for all pupils
enrolled in the school.
Anticipated enrollments for choice program pupils.
3. Estimated total revenues and
5. A schedule of anticipated beginning and
ending net assets.
Identification of the contingent funding sources the school will use should
actual enrollments be less than expected.
7. Anticipated beginning and ending reserve
school's actual third Friday in September enrollment for all pupils or for
choice program pupils varies by 20 percent or 20 pupils, whichever is less,
from the anticipated enrollments the school used in the budget required under
par. (a), the school shall, annually by November 1, complete a revised budget
containing all of the following:
information required in par. (a) that reflects revenues resulting from the
school's actual third Friday in September enrollment.
2. Any other required budget changes related
to the change in revenues resulting from the school's actual third Friday in
EXPENSE PAYMENT. A school shall pay in
full all of the following as required by the written agreement or, if there is
no written agreement, within 90 days of the receipt of the invoice or payment
(a) Amounts owed to
(b) Reimbursements to
employees and other persons for expenses incurred on behalf of the school. A
school may only reimburse an employee or other person if the employee or other
person submits receipts supporting the reimbursement to the school and the
request for reimbursement is made within the time period specified in the
school's written policy for reimbursement. The school shall retain a record of
all reimbursements, including supporting receipts.
EMPLOYEE COMPENSATION. A school shall do
all of the following:
(a) Have a signed,
written agreement for each employee stating the employee's compensation. The
agreement shall be signed by the employee and a representative of the school
before the school makes the first payment to the employee for the school
(b) Provide each employee
with a document that states the dates that the school will pay the employee.
The school shall provide a copy of this document to the employee before the
school makes the first payment required by the document.
Provide a written document to the
employee specifying any changes to a document under par. (a) or (b) before any
change is effective. The written notification does not need to be signed. If
the change is to the compensation for the employee, the written notification
shall include all of the following:
dollar amount of the compensation change or how the compensation change will be
2. If the compensation
change is a one time amount that will be paid to the employee, the written
notification shall specify when the one time compensation payment will be
3. If the compensation change
is an ongoing change, the written notification shall specify the date the
ongoing compensation change is effective.
(d) Make payments to employees based on the
documents in pars. (a) to (c).
FINANCIAL INTERNAL CONTROL SYSTEM. A
school shall have an adequate system of financial internal controls which
requires a school to do all the following:
Deposit all receipts and pay all disbursements from a depository account
maintained solely for the school's purposes unless the operating organization's
financial accounting system separately identifies the school's transactions and
account balances. The depository account the school or its operating
organization uses for school purposes shall be located in the state of
documentation as to the nature and source of all cash receipts.
(c) Use pre-numbered checks for all
non-electronic school disbursements except those from a petty cash
(d) Maintain invoices and
payment requests supporting disbursements.
(e) Ensure that no checks or other
withdrawals are denied due to insufficient funds.
(f) Authorize electronic fund transfers by
the school in accordance with a policy established by the school.
(g) Reconcile the school's bank accounts on a
(h) Establish a
policy indicating what expenses will be included in eligible education expenses
and the methods that will be used to allocate any expenses or government
assistance revenues that are related to eligible education expenses and other
GOVERNMENT AGENCY FILINGS AND PAYMENTS. A school shall be current with all of
(a) Filing, payments, and
withholdings payment requirements of the U.S. internal revenue
(b) Filing, payments, and
withholdings payment requirements of the Wisconsin department of
(c) Filing and payment
requirements of the Wisconsin department of workforce development.
(d) Filing and payment requirements of the
Wisconsin department of financial institutions.
(e) Filing requirements of the Wisconsin
department of safety and professional services.
(f) Auditing requirements of federal, state,
and local government entities. The school shall submit to the department a copy
of audit reports issued or revisions of such reports within 30 days of
submission to the requiring government agency.
LIABILITY INSURANCE. A school shall have
insurance coverage provided by an insurance company licensed to do business in
the state of Wisconsin or by a non-profit, tax exempt mutual protective
organization covering risks of schools of, and controlled by, a religious
denomination. All coverage shall be on an occurrence form or a claims made
basis. A school's minimum insurance coverage shall be as follows:
(a) Worker's compensation insurance as
specified in ch. 102, Stats.
Commercial general liability insurance in the following amounts unless the
coverage amounts are based on a written recommendation of a risk or insurance
1. For each occurrence, minimum
coverage in the amount of $1,000,000.
2. Personal injury coverage of not less than
excess liability insurance with an aggregate limit minimum coverage of
$5,000,000, unless the coverage amount is based on a written recommendation of
a risk or insurance consultant.
Auto liability insurance with a combined single limit minimum coverage of
$1,000,000 for each accident unless the coverage amount is based on a written
recommendation of a risk or insurance consultant.
(e) Errors and omissions insurance for school
management with an aggregate limit minimum coverage of $1,000,000 unless the
coverage amount is based on a written recommendation of a risk or insurance
(f) Sexual misconduct
liability insurance with an aggregate limit minimum coverage of $1,000,000
unless the coverage amount is based on a written recommendation of a risk or
SCHOOL BUS. If a school operates or
contracts for the operation of school buses with an organization other than a
Wisconsin school district, the school or the contracted operator shall have
school bus insurance as required under s. 121.53
, Stats., and complete the
inspections required under s. Trans 300.87
. The school may not contract for the
school bus operation with an organization other than a Wisconsin school
district unless the operator has provided the school with a certificate of
insurance meeting the requirements of s. 121.53
, Stats., and has completed the
inspection report required under s. Trans 300.87
(9) ALTERNATIVE VEHICLE PUPIL TRANSPORTATION.
Any motor vehicle, other than school buses, used by a school to provide pupil
transportation shall comply with the conditions specified in s. 121.555,
(a) In this subsection, "license" means a
valid license issued by the department under ch. PI 34.
Schools shall conduct criminal background
investigations of all employees by completing one of the following:
1. Conduct a criminal background check prior
to employing any individual at the school and every 5 years after the date of
the previous background check.
Complete all of the following procedures for an individual with a license:
a. Obtain and retain a copy of the
b. Annually determine that
the individual has a license in advance of the employee working for the school
requirements under par. (b) shall be completed for all individuals defined as
employees under s. 108.02(12)
, Stats., who are directly or indirectly related
to educational programming. For the purposes of this paragraph, an individual
shall be determined to be directly or indirectly related to educational
programming if any of the following apply:
Any compensation for the individual is included as an eligible education
expense in a financial audit submitted under s. 115.7915, 118.60, or 119.23,
2. The individual interacts
3. The individual
performs financial, administrative, or academic duties for the
A school may
not employ any of the following individuals:
1. Individuals who have engaged in immoral
conduct as defined under s. 115.31(1) (c), Stats.
2. Individuals who are not eligible for a
teaching license under s. 118.19(4), Stats.
(11) FIDELITY BOND. A school shall have a
fidelity bond indemnifying the school against loss resulting from dishonesty,
malfeasance, or neglect by owners, officers, and employees.
EMPLOYEE EDUCATION. A school shall
ensure all teachers, administrators, and teacher aides meet the requirements of
s. 119.23(2) (a) 6. and (7) (b) 3
, Stats., and s. PI 35.16
, unless a teacher
or administrator is exempt under s. 119.23(2) (c)
MANAGEMENT LETTER REVIEW. An auditor
shall review the management letter required under s. 119.23(7) (am) 2m
Stats., and determine whether a school has properly remediated any concerns
raised by the auditor in the letter. If the auditor determines a concern has
not been properly remediated by the school, the auditor shall include the
following in the report:
(a) The concern that
has not been properly remediated.
(b) The action the school has taken to
remediate the concern.
potential impact of not resolving the concern.
(d) Recommendations for resolving the
INTERNAL CONTROL PRACTICES REPORT. A school shall engage an auditor to submit a
report to the department by December 15 attesting to the school's compliance or
non-compliance with the fiscal and internal control practices required in this
section. The report shall meet all of the following requirements:
(a) The report shall be prepared in
accordance with professional standards and identify the procedures agreed upon
by the auditor and the department that were used in determining compliance or
non-compliance. In making such a determination, the auditor shall not rely on
oral or written representations of the school's management or staff.
(b) If the auditor determines that the school
has not complied with the fiscal and internal control practices in subs. (1) to
(12), the report shall include a letter from the school describing the reasons
for noncompliance and the corrective action the school is taking.