(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). SECTION 75. PI 35.10 (5) is renumbered PI 35.10 (5) (a) (intro.) and amended to read:
PI 35.10 (5) Final 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. 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.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: SECTION 76. PI 35.10 (5) (a) 1., 2., 3., and (b) are created to read:
PI 35.10 (5) (a) 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.
SECTION 77. PI 35.10 (6) is amended to read:
PI 35.10 (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. The school shall make the refund within 30 days of the date of the closure payment letter sent to the school by the department.as specified under s. PI 35.19 (5). SECTION 78. PI 35.11 (6) is amended to read:
PI 35.11 (6) School responsibility. An auditor's failure to completely or properly perform the responsibilities set forth in s. 119.23, Stats., or this chapter is not a defense to any determination the department makes that there is an amount due from a school or to a school under s. PI 35.07 (4) or 35.10 (6).under this chapter or s. 119.23, Stats. SECTION 79. PI 35.12 (5) is amended to read:
PI 35.12 (5) Auditor peer review report. An auditor completing any of the audits and agreed upon procedure reports under s. 119.23, Stats., or this chapter shall submitfile the auditor's peer review required under s. 442.087, Stats., towith the department within 30 days of the report's issuance. SECTION 80. PI 35.13 (2) (intro.) is amended to read:
PI 35.13 (2) Continuing schoolSchool budget. A school that is not a first time participant shall complete all of the following:
SECTION 81. PI 35.13 (2) (a) 7. is created to read:
PI 35.13 (2) (a) 7. Anticipated beginning and ending reserve balance.
SECTION 82. PI 35.13 (2) (b) (intro.) and (4) (a) are amended to read:
PI 35.13 (2) (b) If a school's actual third Friday in September enrollment for all pupils or for choice program pupils varies by 20%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:
(4) (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 year.
SECTION 83. PI 35.13 (4) (c) is renumbered PI 35.14 (4) (c) (intro.) and amended to read:
PI 35.13 (4) (c) 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:
SECTION 84. PI 35.13 (4) (c) 1., 2., and 3. are created to read:
PI 35.13 (4) (c) 1. The dollar amount of the compensation change or how the compensation change will be calculated.
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 paid.
3. If the compensation change is an ongoing change, the written notification shall specify the date the ongoing compensation change is effective.
SECTION 85. PI 35.13 (10) is repealed.
SECTION 86. PI 35.13 (10m) is created to read:
PI 35.13 (10m) Background checks. (a) In this subsection, “license” means a valid license issued by the department under ch. PI 34. (b) 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.
2. Complete all of the following procedures for an individual with a license:
a. Obtain and retain a copy of the license.
b. Annually determine that the individual has a license in advance of the employee working for the school term.
(c) The 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: 1. Any compensation for the individual is included as an eligible education expense in a financial audit submitted under ss. 115.7915, 118.60, or 119.23, Stats. 2. The individual interacts with pupils.
3. The individual performs financial, administrative, or academic duties for the school.
(d) 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. SECTION 87. PI 35.13 (14) (b) is amended to read:
PI 35.13 (14) (b) If the auditor determines that the school has not complied with the fiscal and internal control practices required in this sectionsubs. (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.
SECTION 88. PI 35.14 (1g) is created to read:
PI 35.14 (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. 119.23 (4) and 118.60 (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 PI 48.03 (3). 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). (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. 119.23 (4) and 118.60 (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 PI 48.06 (8).
