Wis. Admin. Code Department of Public Instruction § PI 35.14 - First time participant financial requirements

Current through November 29, 2021

(1g) DEFINITIONS. In this section:
(a) "Initial expected payment" means a school's expected payment amount calculated as the total of the following:
1. The full-time equivalent for pupils participating in a program under ss. 118.60 and 119.23, Stats., multiplied by the per pupil payment amount determined under ss. 118.60(4) and 119.23(4), Stats. The full-time equivalent for the pupils in this subdivision shall be based on the available seats in each program under ss. 118.60 and 119.23, Stats., in a school's notice of intent to participate filed under ss. PI 35.03(3) and 48.03(3) or the new private school participation information submitted under ss. PI 35.04(2) and 48.04(2).
2. The expected summer school payment for pupils participating in a program under ss. 118.60 and 119.23, Stats., based on the expected number of choice program pupils that will participate in summer school identified in the school's notice of intent to participate filed under ss. PI 35.03(3) and 48.03(3) or the new private school participation information submitted under ss. PI 35.04(2) and 48.04(2).
(b) "Revised expected payment" means a school's expected payment amount calculated as the total of the following:
1. The full-time equivalent for pupils participating in a program under ss. 118.60 and 119.23, Stats., multiplied by the per pupil payment amount determined under ss. 118.60(4) and 119.23(4), Stats. The full-time equivalent for the pupils in this subdivision shall be based on the pupils participating in a program under ss. 118.60 and 119.23, Stats., reported in the school's pupil count report for the third Friday in September required under ss. PI 35.06(8) and 48.06(8).
2. The summer school payment based on the school's summer school count report filed under ss. 118.60(4) (a) and 119.23(4) (a), Stats.
(1r) MAY 1 REQUIREMENTS. By May 1 of the school year immediately preceding the first school year in which a first time participant school intends to participate in the choice program, a first time participant shall participate in a fiscal management training program approved by the department and fulfill the requirements under sub. (3) or (4).
(3) BUDGET REQUIREMENT. A school that selects the budget and cash flow report option shall submit to the department all of the following:
(a) A budget and cash flow report, on a form provided by the department, for the following school year that contains all of the following:
1. Anticipated enrollments for all pupils enrolled in the school.
2. Anticipated enrollments for choice program pupils.
3. Estimated total revenues and costs.
4. Estimated amounts required under s. PI 35.10(3) (a).
5. A schedule of anticipated beginning and ending net assets.
6. A schedule of monthly cash flows.
6m. Anticipated beginning and ending reserve balance.
7. The contingent funding sources the school will use if actual enrollments are less than expected and evidence of the availability of the funding sources.
8. A statement of whether the school has any past due amounts, interest, or penalties due to the U.S. internal revenue service, the Wisconsin department of workforce development, or the Wisconsin department of revenue. An amount must be disclosed even if it is in dispute. If a school has past due amounts, interest, or penalties due to a government entity, the school shall do all of the following:
a. Disclose to the department the outstanding amount owed.
b. Submit to the department statements or other correspondence from the government entity stating the amount the government entity claims is due, the amount in dispute, and nature of the amount due.
(b) Examples of each type of written document used to satisfy the requirements under s. PI 35.13(4) (a).
(c) A schedule of the pay dates for the school.

Note: A budget and cash flow report form may be obtained at no charge from the Wisconsin department of public instruction's webpage at http://dpi.wi.gov/sms/choice-programs.

(4) BOND REQUIREMENT. A school that selects the surety bond option shall annually submit a bond payable to the state of Wisconsin equal to 25 percent of the initial expected payment until the school meets all of the requirements in sub. (7).
(5) Revised bond. A school that submitted a bond under sub. (4) shall provide a revised bond if the difference between the initial expected payment and the revised expected payment is at least $50,000. The revised bond shall be equal to 25 percent of the revised expected payment. A school shall file the revised bond with the department by the first weekday in November.
(6) BOND CALL PROVISIONS. The department may call a bond submitted by a school under this section for any of the following reasons:
(a) The school failed to timely file a report required under s. 118.60 or 119.23, Stats., this chapter, or ch. PI 48.
(b) The school failed to timely refund the department any amount certified due from the school under ss. PI 35.07(4) or PI 48.07(4).
(c) The school failed to timely refund the department the reserve balance as prescribed under s. 118.60 or 119.23, Stats., this chapter, or ch. PI 48.
(d) The school failed to timely refund the department any other money owed to the department for any other reason under s. 118.60 or 119.23, Stats., this chapter, or ch. PI 48.
(7) BOND REMOVAL REQUIREMENTS. A school that selected the surety bond option the first school year it participated in the choice program must submit a bond by May 1 annually until all of the following apply:
(a) The school provides a standard financial audit prepared at the consolidated level as required by generally accepted accounting principles that meets all of the following requirements:
1. The financial statements are two-year comparative financial statements that include the audit of the full-year financial information for both school years.
2. The net asset balance for both school years is positive.
3. The net current obligation for both school years is positive.
4. The school meets one of the following requirements:
a. The change in net assets is positive for both school years.
b. The change in net assets for both school years is greater than or equal to negative $25,000, the net asset balance for both school years is greater than $50,000, and the net current obligation for both school years is greater than $50,000.
5. The school's financial audit does not contain an emphasis of matter or an expression of the auditor's doubt as to the school's ability to continue as a going concern.
(b) The school's fiscal and internal control practices report for the most recent school year included in the financial audit in par. (a) and the subsequent school year, and any other information available to the department, indicates that the school has complied with all of the following:
1. The school paid all amounts owed to the U.S. internal revenue service, Wisconsin department of revenue, and Wisconsin department of workforce development on a timely basis. This requirement shall not be considered met if the school had either of the following for the school years included in the financial audit in par. (a):
a. Any wage claims with the Wisconsin department of workforce development.
b. Any past due amounts, interest, and penalties with the U.S. internal revenue service, Wisconsin department of revenue, or Wisconsin department of workforce development.
2. The school has paid all vendors as required by ss. PI 35.13(3) and 48.13(3). An amount in dispute shall not be an indicator that the school does not meet the requirements to remove the bond if all of the following are true:
a. The school provided the department with written correspondence between the school and the vendor evidencing that the amount is in dispute.
b. The school has sufficient cash available to pay the amount in dispute.
c. The disputed amount is included in the financial audit as a current liability.
3. The school has paid all employees as required by ss. PI 35.13(4) and 48.13(4).
(8) REQUIRED AUDIT BALANCES AND ACTIVITY. An audit that only includes school-only balances and activity shall not be sufficient to meet the requirement in sub. (7) (a).
(9) ASSET BALANCE. The asset balance used for the determinations under sub. (7) (a) may only include pledge receivables or other receivables for which the school received cash payments within one year of the date pledged or within one year of the date the amount is included as a receivable.
(10) REVENUE. The revenue used for the determinations under sub. (7) (a) may only include revenue for which the school receives cash payments within one year of the date pledged or within one year of the date the school includes the amount as revenue.
(11) INSURANCE AND FIDELITY BOND EVIDENCE. A first time participant shall file with the department a certificate of insurance or other evidence of having obtained the required insurance under s. PI 35.13(7) and the fidelity bond under s. PI 35.13(11). A first time participant shall file the information required under this subsection with the department by the first weekday in August if the school does not provide summer school under this chapter or ch. PI 48. A first time participant shall file the information required under this subsection with the department by the first weekday in May of the school year immediately preceding the first school year in which a first time participant intends to participate in the choice program if the school provides summer school under this chapter or ch. PI 48.

Notes

Wis. Admin. Code Department of Public Instruction § PI 35.14
Adopted by, CR 16-004: cr. Register July 2016 No. 727, eff. 8/1/2016 Amended by, CR 19-120: renum. (1) (intro.), (a) to (c) to (1r), (3) (a) to (c) and, as renumbered, am. (1r), cr. (1g), r. (2), cr. (3) (intro.), (a) 6m., (4) to (11) Register May 2020 No. 773, eff. 6-1-20; correction in (1g) (a) 1., (b) 1. made under s. 35.17, Stats., Register May 2020 No. 773, eff. 6/1/2020

A budget and cash flow report form may be obtained at no charge from the Wisconsin department of public instruction's webpage at http://dpi.wi.gov/sms/choice-programs.

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