PI 35.04 History
History: Cr.
Register, May, 1991, No. 425, eff. 6-1-91; emerg. r. and recr. eff. 8-5-98; r. and recr.
Register, February, 1999, No. 518, eff. 3-1-99; emerg. am. (1), renum. (2) to (5) to be (4) to (7) and am. (4), (5) (intro.), (a) and (6) (c), cr. (2) (3) and (8), eff. 1-4-00; am. (1), renum. (2) to (5) to be (4) to (7) and am. (4), (5) (intro.), (a) and (6) (c), cr. (2), (3) and (8),
Register, July, 2000, No. 535, eff. 8-1-00; corrections in (7) made under s. 13.93 (2m) (b) 7., Stats.,
Register, July, 2000, No. 535; emerg. am. (1), (2), (5) (a) and (b), (6) (a) to (c), (7) (a) 2. and (8), eff. 1-28-02;
CR 02-023: am. (1), (2), (5) (a) and (b), (6) (a) to (c), (7) (a) 2., and (8), cr. (4m);
Register August 2002 No. 560, eff. 9-1-02; emerg. am. (2) and (6) (c), eff. 8-1-05; emerg. am. (2) and (6) (c), eff. 8-9-05;
CR 04-076: am. (4) and (7) (a) 2., cr. (9)
Register October 2005 No. 598, eff. 11-1-05.
PI 35.043
PI 35.043
Summer school enrollment and payment. PI 35.043(1)(a)
(a) "Academic purposes" means summer school learning experiences that are related or similar to instruction that is offered during the rest of the school year or for which credit toward graduation is given.
PI 35.043(1)(b)
(b) "Enrollment" or "pupils enrolled" in summer school means the sum of the first day of attendance, last day of attendance and the days in between the pupil was either in attendance or had an excused absence but was still enrolled in the program.
PI 35.043(1)(c)
(c) "Membership" for summer school payments means the school's total minutes of enrollment of eligible choice program pupils in academic summer classes or laboratory periods necessary for academic purposes.
PI 35.043(2)
(2) A private school under this chapter may count pupils for aid membership that are enrolled in those academic summer classes or laboratory periods that are necessary for academic purposes as defined under
sub. (1) (a). A private school counting pupils for aid membership under this section, shall annually, by no later than October 15 following summer school, submit to the department a summer school membership report listing the choice program pupils that were enrolled in summer school and the daily minutes each of those pupils were enrolled. The department shall provide the membership form.
PI 35.043(3)
(3) A private school under this chapter may include a pupil in its membership report required under
sub. (2) if either of the following applies:
PI 35.043(3)(a)
(a) The pupil was enrolled in the Milwaukee parental choice program on the 2nd Friday of January in the school term immediately preceding that summer.
PI 35.043(3)(b)
(b) The pupil's application has been accepted into the Milwaukee parental choice program at that private school in the school term immediately following that summer.
PI 35.043(4)
(4) The summer school payment due to the private school shall be calculated according to s.
119.23 (4m), Stats. To determine payment, the private school shall divide the school's total summer school minutes of enrollment for their choice program pupils by 48,600; round that quotient to the nearest whole number; multiply the resulting whole number by the voucher amount calculated under s.
119.23 (4) (b) 2., Stats., for the school year immediately following the summer school; and multiply the result by 40%.
PI 35.043(5)
(5) Summer school courses necessary for academic purposes include all of the following:
PI 35.043(5)(b)
(b) Swimming instruction programs, if taught or directed on-site.
PI 35.043(5)(c)
(c) Up to 270 minutes of instructional time per pupil, per day, including field trips if accompanied by a teacher and if all pupils have equal access to field trips regardless of their ability to pay.
PI 35.043(6)
(6) Summer school courses necessary for academic purposes do not include any of the following:
PI 35.043(6)(b)
(b) Performances, including band, orchestra, parades and plays.
PI 35.043(6)(d)
(d) Participation in fairs or expositions by pupil organizations, such as future farmers of America.
PI 35.043(6)(e)
(e) Any offering not provided by or directed on-site by a teacher.
PI 35.043 Note
Note: The pupil count report and summer school membership report may be obtained at no charge from the Department of Public Instruction, Milwaukee Parental Choice Program, P.O. Box 7841, Madison, WI 53707-7841.
PI 35.043 History
History: Emerg. cr., eff. 4-1-00; cr.,
Register, July, 2000, No. 535, eff. 8-1-00. emerg. am. (1) (c), (3) (a) and (b) and (4), eff. 1-28-02;
CR 02-023: am. (1) (c), (3) (a) and (b) and (4),
Register August 2002 No. 560, eff. 9-1-02.
PI 35.045
PI 35.045
Financial reporting requirements and determining costs. PI 35.045(1)(1) Annually, by 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. PI 35.047 (12) (a) and accompanied by the auditor's opinion statement required under
s. PI 35.046 (1) (a) containing the following information for the previous school year:
PI 35.045(1)(a)
(a) Revenues and expenditures for all programs of the private school and the amount attributable to kindergarten through grade 12 educational programs.
PI 35.045(1)(b)
(b) A statement of net choice program assets at the start and end of the school year.
PI 35.045(1)(c)
(c) 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. PI 35.04 (9).
PI 35.045(1)(e)
(e) Such other information necessary for the fair determination of educational programming cost.
PI 35.045(1)(f)
(f) Per pupil cost related to kindergarten through grade 12 educational programming computed on a full-time equivalent membership basis.
PI 35.045(1)(g)
(g) The payment 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:
PI 35.045(1)(g)1.
1. The private school's educational programming cost shall be reduced by the following offsetting revenues:
PI 35.045(1)(g)1.a.
a. Fees charged pupils for books and supplies used in classes and programs.
PI 35.045(1)(g)1.e.
e. Interest earnings and other income resulting from investment of debt proceeds.
PI 35.045(1)(g)2.
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.
PI 35.045(1)(g)3.
3. 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.
119.23 (4) (b) 2., Stats., or the private school's per pupil cost under s.
119.23 (4) (b) 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.
PI 35.045 Note
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.
PI 35.045(2)
(2) The accrual basis of accounting shall be used in reporting the information required under this section except as follows:
PI 35.045(2)(b)
(b) Long-term debt principal and interest payments are included in expenditures when payments are due.
PI 35.045(2)(c)
(c) Summer school program revenues and expenditures are reported in the fiscal year corresponding to the pupil membership used for program payment purposes.
PI 35.045(2)(d)
(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.
PI 35.045(2)(e)
(e) Acquisition of capital outlay items are reported in expenditures when acquired.
PI 35.045(3)(a)(a) 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 appropriate:
PI 35.045(3)(a)1.
1. Instruction costs may be allocated based on either pupil full-time equivalency or time spent.
PI 35.045(3)(a)2.
2. Student support service costs may be allocated based on either pupil full-time equivalency or time spent.
PI 35.045(3)(a)3.
3. Administration costs may be allocated based on direct program expenditures, time spent, or full-time equivalent employees.
PI 35.045(3)(a)4.
4. Accounting costs may be allocated based on either the number of transactions or time spent.
PI 35.045(3)(a)5.
5. Facility operation and maintenance costs may be allocated based on floor space operated, space occupied over time, or labor hours.
PI 35.045(3)(a)6.
6. Pupil transportation costs may be allocated based on miles driven, pupil miles driven or driver hours.
PI 35.045(3)(b)
(b) The following may not be included in kindergarten through grade 12 educational programming cost:
PI 35.045(3)(b)3.
3. Scholarship awards and financial support for pupils to attend the private school, including payments to parents or others on behalf of pupils.
PI 35.045(3)(b)4.
4. Debt 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 borrowing date.
PI 35.045(3)(b)5.
5. 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. PI 35.047 (5) (a). Unpaid reimbursements due related parties or employees of the private school shall not be considered a loan.
PI 35.045(4)(a)(a) The private school shall, for the purpose of computing per pupil cost, charge off non-debt financed capital outlay expenditures as follows:
PI 35.045(4)(a)1.
1. The private 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:
PI 35.045(4)(a)1.a.
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.
PI 35.045(4)(a)1.b.
b. Equipment 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.
PI 35.045(4)(a)1.c.
c. 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.
PI 35.045(4)(a)1.d.
d. Leasehold improvements may be amortized over the remaining lease period.
PI 35.045(4)(a)2.
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.
PI 35.045(4)(b)
(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.
PI 35.045(4)(c)
(c) The private school shall maintain, indefinitely, documentation regarding capital outlay values, expenditures and their use in per pupil cost computation.
PI 35.045(5)
(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 period.
PI 35.045 History
History: 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. 11-1-05.
PI 35.046
PI 35.046
Financial audit requirements. PI 35.046(1)
(1) A private school under this chapter shall do all of the following:
PI 35.046(1)(a)
(a) Annually by September 1 following a school year in which the private school participated in the choice program, the private school shall submit to the department an independent financial audit of the private school conducted by a certified public accountant accompanied by the auditor's opinion statement that the financial information report required under
s. PI 35.045 is free from material misstatement and the private school's per pupil cost and any payment adjustment is fairly presented. The audit under this subdivision shall be limited in scope to those records that are necessary for the department to make payments under s.
119.23 (4) and
(4m), Stats.
PI 35.046(1)(b)
(b) Have a written engagement agreement, a copy of which shall be provided to the department upon request, with any auditor providing services required by this chapter. The written agreement shall contain all of the following:
PI 35.046(1)(b)1.
1. A statement that the auditor shall comply with generally accepted auditing standards and the requirements of this chapter. The written agreement shall also specify that the auditor shall comply with generally accepted governmental auditing standards if required by other government agencies providing funds to the private school.
PI 35.046(1)(b)2.
2. The responsibilities of the private school and the auditor in meeting the requirements of this chapter.
PI 35.046(1)(b)3.
3. Any other services in addition to those required by this chapter that the auditor is providing to the private school.
PI 35.046(1)(b)4.
4. The auditor's acknowledgement that the auditor is aware that the department will rely on the work of the auditor in fulfilling its requirements under this chapter.
PI 35.046(1)(b)5.
5. The auditor's compensation for the services the auditor is providing the private school.
PI 35.046(1)(c)
(c) Balance the financial accounting system required under
s. PI 35.047 (1) and provide the auditor with a trial balance of account balances.
PI 35.046(1)(d)
(d) Furnish all other financial and pupil records the auditor considers necessary to provide the audit opinion statement.
PI 35.046(1)(e)
(e) Approve adjusting entries recommended by the auditor recorded in the private school's financial accounting records.
PI 35.046(1)(f)
(f) Retain all financial records relating to the report required under
s. PI 35.045 for at least 3 years from the date of the department's certification of the financial information report under
s. PI 35.045 (1) (g) 3. unless required to retain such records longer by the department or a law enforcement agency.
PI 35.046(1)(g)
(g) Provide the department access to original records referenced in the auditor's working papers and provide copies as requested by the department.
PI 35.046(2)
(2) The auditor engaged by the private school to provide the opinion statement under
sub. (1) shall develop a written audit program identifying the steps and procedures followed in conducting the audit. The audit program shall include all the procedures specified in
sub. (3) and such other procedures agreed upon by the auditor and the department, and any other procedures the auditor considers necessary to fulfill professional responsibilities. The auditor shall retain working papers relating to audits under this section at least 3 years from the date of the department's certification of the financial information report under
s. PI 35.045 (1) (g) 3. unless requested to retain the working papers longer by the department or a law enforcement agency.
