Register January 2018 No. 745
Chapter PI 14
SCHOOL FINANCE
PI 14.001   Definitions.
PI 14.01   Official enrollment.
PI 14.02   Minimum uniform provisions for contracts between 2 or more school districts under s. 66.0301, Stats.
PI 14.03   Minimum standards for audit and standard school district audit contract.
PI 14.001 PI 14.001Definitions. In this chapter:
PI 14.001(1) (1) “Department" means the Wisconsin department of public instruction.
PI 14.001(2) (2) “Fiscal year" means the school year as defined under s. 115.001 (13), Stats.
PI 14.001(3) (3) “School board" means the school board in charge of the schools of the district.
PI 14.001(4) (4) “School district" has the meaning described in s. 115.01 (3), Stats.
PI 14.001 History History: Cr. (intro.), (1) to (4) renum. from PI 14.03 (1) (c), (d), (f) and (g), Register, June, 1988, No. 390, eff. 7-1-88.
PI 14.01 PI 14.01Official enrollment.
PI 14.01(1) (1) A resident pupil may be included in the official enrollments of the schools of a district as of the dates specified in s. 121.05 (1) (a), Stats., only if:
PI 14.01(1)(a) (a) The pupil is in attendance on the date specified; or
PI 14.01(1)(b) (b) The pupil is absent on the date specified but has attended at least one day during the current school year prior to the date specified and attends at least one day after the date specified and remained a resident of the district during the period of absence; or
PI 14.01(1)(c) (c) In the event a pupil has been absent all days during the school year prior to and on the date specified, if either of the following occurs:
PI 14.01(1)(c)1. 1. An application has been made for formal homebound instruction as of the date specified and documentation exists to support this application.
PI 14.01(1)(c)2. 2. A group and foster home membership report has been submitted by a school board of a school district in which a foster or group home that is not exempt from property taxation under s. 70.11, Stats., is located as provided for under s. 121.05 (4), Stats.
PI 14.01(1)(c)3. 3. If a pupil is included in the official enrollment as a result of a report filed under subd. 2., the school district in which the pupil was previously enrolled shall file a group and foster home membership report representing a corresponding decrease in their official enrollment upon request by the department.
PI 14.01 Note Note: The Group and Foster Home Membership Report may be obtained at no charge by writing to the Wisconsin Department of Public Instruction, School Financial Services, P.O. Box 7841, Madison, WI 53707-7841.
PI 14.01(2) (2) If a pupil who is eligible to be included in the official enrollment under sub. (1) (b) returns following the filing of the specified membership report, an amended report shall be filed.
PI 14.01 History History: Cr. Register, April, 1979, No. 280, eff. 5-1-79; am. Register, July, 1982, No. 319, eff. 8-1-82; correction in (2) made under s. 13.93 (2m) (b) 4., Stats., Register, May, 1987, No. 377; am. (1) (c), cr. (1) (c) 2. and 3., Register, August, 1995, No. 476, eff. 9-1-95.
PI 14.02 PI 14.02Minimum uniform provisions for contracts between 2 or more school districts under s. 66.0301, Stats.
PI 14.02(1)(1)Definitions. In this section:
PI 14.02(1)(a) (a) “Cooperative program" means the program operated in accordance with an agreement under this section.
PI 14.02(1)(b) (b) “Municipality" has the meaning set forth in s. 66.0301 (1) (a), Stats.
PI 14.02(2) (2)Minimum uniform contract provisions. Section 66.0301 (2), Stats., permits any municipality to contract with other municipalities for the receipt or furnishing of services or the joint exercise of any power or duty required or authorized by law. This section sets forth minimum uniform contract requirements for agreements between 2 or more school districts under s. 66.0301, Stats., except that this section does not apply to agreements entered into under s. 120.25, Stats. Any cooperative program between 2 or more school districts under this section shall meet all of the following requirements:
PI 14.02(2)(a) (a) The school board of each participating school district shall approve the contract by adoption of a resolution.
PI 14.02(2)(b) (b) The contract shall provide for and describe the cooperative program being entered into under s. 66.0301, Stats., and this section.
PI 14.02(2)(c) (c) The contract shall specify one participating school district to be the operator and fiscal agent of the cooperative program, and shall require the fiscal agent to do all of the following:
PI 14.02(2)(c)1. 1. Establish and maintain records in accordance with the uniform financial accounting system prescribed by the department under s. 115.28 (13), Stats.
PI 14.02(2)(c)2. 2. File all required financial reports with the department.
PI 14.02(2)(c)3. 3. Upon request of the department, file a copy of the contract and the plan of operation with the department.
PI 14.02(2)(d) (d) The contract shall specify that pupil membership, for state aid purposes, shall be counted by each pupil's school district of residence.
PI 14.02(2)(e) (e) The annual budget for the cooperative program shall be approved by the school board of each participating school district prior to the beginning of the fiscal year. The annual budget shall include all of the applicable direct instructional costs, and all applicable support service and non-program costs, such as administrative salaries and services, audit costs, fiscal services, custodial services, utilities, maintenance services, space rental, and building administration.
PI 14.02(2)(f) (f) The contract shall specify that the proration of costs to each participating school district shall be determined prior to June 30 each year. The proration of costs to each participating school district in cooperative programs which provide services directly to pupils shall be based on the number of pupils from each school district participating in the cooperative program. The proration of costs to each participating school district in cooperative programs which do not provide services directly to pupils, or which provide services directly to pupils but on a specified time basis in each of the school districts, shall be made on a basis which is fair and equitable to each participating school district, such as the percentage of employee time spent in or on behalf of each school district. The contract shall provide that state aid reimbursements shall be prorated to the participating school districts on the same basis as the proration of costs.
PI 14.02(2)(g) (g) Unless transportation is included in the cooperative program, any transportation of pupils shall be furnished by the school district of residence and the applicable transportation state aid shall be claimed by the school district of residence.
PI 14.02(2)(h) (h) The contract shall provide that prior approval from the school board of each participating school district shall be required prior to any budget variations.
PI 14.02(2)(i) (i) The contract shall be signed and dated by the president and clerk of the school board of each participating school district.
PI 14.02 History History: Cr. Register, February, 1979, No. 278, eff. 3-1-79; am. (1), (2) (d), (i) and (l), Register, June, 1983, No. 330, eff. 7-1-83; r. and recr. Register, June, 1988, No. 390, eff. 7-1-88; am. (2) (g), Register, April, 2001, No. 544, eff. 5-1-01; corrections in (1) (b), (2) (intro.) and (b) made under s. 13.93 (2m) (b) 7., Stats., Register October 2001 No. 550.
PI 14.03 PI 14.03Minimum standards for audit and standard school district audit contract.
PI 14.03(1) (1)Definitions. In this section:
PI 14.03(1)(a) (a) “Auditor" means the licensed accountant employed by the school board to perform the audit.
PI 14.03(1)(b) (b) “Licensed accountant" means a person licensed as a certified public accountant or a public accountant by the accounting examining board under ch. 442, Stats.
PI 14.03(1)(c) (c) “Uniform grants guidance” means the provisions of the United States office of management and budget, uniform administrative requirements, cost principles, and audit requirements for federal awards under 2 CFR, part 200.
PI 14.03(2) (2)Minimum standards for audit.
PI 14.03(2)(a)(a) Under s. 120.14 (1), Stats., at the close of each fiscal year, the school board of each common or union high school district shall employ a licensed accountant to audit the school district accounts and certify the audit. The minimum requirements for the audit are as follows:
PI 14.03(2)(a)1. 1. The auditor shall conduct an examination of the basic financial statements including the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the school district for the fiscal year.
PI 14.03(2)(a)2. 2. The auditor's examination shall be made in accordance with all applicable federal laws and regulations and Wisconsin Statutes and administrative rules, including the following:
PI 14.03(2)(a)2.a. a. Generally accepted auditing standards as required under s. Accy 1.202. For purposes of the contract under sub. (3), the procedures necessary to comply with the generally accepted auditing standards shall include the applicable procedures outlined by the American institute of certified public accountants in the industry audit guide, audits of state and local governmental units and by the department in the Wisconsin school district audit manual.
PI 14.03(2)(a)2.b. b. The standards for financial and compliance audits contained in the standards for audits of governmental organizations, programs, activities, and functions, issued by the comptroller general of the United States.
PI 14.03(2)(a)2.c. c. Uniform grants guidance.
PI 14.03(2)(a)3. 3. The financial statements presented in the auditor's report shall comply with generally accepted accounting principles, as promulgated by the governmental accounting standards board, and shall conform to the accounting system prescribed by the department under s. 115.28 (13), Stats.
PI 14.03(2)(a)4. 4. The auditor shall express an opinion on the financial statements of all funds covered in the scope of the audit. If the auditor is unable to express an unqualified opinion, the auditor shall state fully the reasons for qualification or disclaimer of opinion. The school district shall correct any deficiency which results in a qualification or disclaimer of opinion.
PI 14.03(2)(b) (b) Independence. The auditor shall maintain independence with respect to the financial statements and the opinion.
PI 14.03(2)(c) (c) Timing, location and conduct of audit work.
PI 14.03(2)(c)1.1. The school district shall be responsible for the proper recording of transactions in the books of account, for the safeguarding of assets, and for the substantial accuracy of the financial statements. The school district officers shall close and balance all accounts and have the financial statements for all funds and account groups prepared prior to examination by the auditor.
PI 14.03(2)(c)2. 2. The audit shall be conducted on school district premises.
PI 14.03(2)(c)3. 3. The auditor shall observe on school district premises the adequacy of the systems of internal control for all funds of the school district, including those concerned with maintaining compliance with legal provisions related to finance. If material weaknesses are noted, the auditor shall review appropriate recommendations with the appropriate administrator and shall include them in a separate letter to the school board.
PI 14.03(2)(c)4. 4. The auditor shall retain the audit workpapers and reports for at least 3 years from the date of the audit report, unless the auditor is notified in writing by the department or by the United States department of education to extend the retention period. The auditor shall respond directly to inquiries from the department or from the United States department of education, and permit these agencies, upon written request, to review audit workpapers. The auditor shall notify the school board of any such inquiries or requests and of the auditor's response.
PI 14.03(2)(d) (d) Reports. The auditor shall submit to the school board the following reports and shall supply copies for transmittal to the department and other agencies as may be required under applicable statutes or rules:
PI 14.03(2)(d)1. 1. Auditor's report on the school district's financial statements prepared according to generally accepted accounting principles, as promulgated by the governmental accounting standards board, with supplemental information as required by the department or requested by the district.
PI 14.03(2)(d)2. 2. Financial audit statement for the fiscal year.
PI 14.03(2)(d)3. 3. Management letter, commenting on material weaknesses in internal control and identifying possible noncompliance with any legal provisions related to finance with appropriate recommendations.
PI 14.03(2)(d)3m. 3m. Auditor's communication with those charged with governance, including any significant findings or issues from the audit.
PI 14.03(2)(d)4. 4. Federal program audit reports and schedules, as appropriate.
PI 14.03(2)(d)5. 5. State program audit reports and schedules, as appropriate.
PI 14.03(2)(d)6. 6. Membership agreed upon procedures report, prepared in accordance with standards for attestation engagements promulgated by the American institute of certified public accountants, if required by the department under s. 115.28 (18), Stats.
PI 14.03 Note Note: The following forms are available at no charge from the Department of Public Instruction, School Financial Services Team, P.O. Box 7841, Madison, WI 53707:
PI 14.03 Note PI 1506 Financial Audit Statement
PI 14.03(3) (3)Standard school district audit contract. The school board may utilize the standard school district audit contract format prescribed by the department in the appendix to this chapter. If the school board does not utilize the format prescribed by the department, it shall ensure that the contract contains all of the provisions in sub. (2) and all of the following provisions:
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.