AB21-ASA1,1049,12 118.60 (7) (am) 2m. Each private school participating in the program under this section is subject to uniform financial accounting standards established by the department. Annually by September 1 October 15 following a school year in which a private school participated in the program under this section, the private school shall submit to the department all of the following:

AB21-ASA1,1050,17 a. An independent financial audit of the private school conducted by an independent certified public accountant, accompanied by the auditor's statement that the report is free of material misstatements and fairly presents pupil costs under sub. (4) (bg). The audit under this subdivision shall be limited in scope to those records that are necessary for the department to make payments under subs. (4) and (4m) the private school's eligible education expenses, and beginning in the 2nd school year a private school participates in the program under this section, a copy of a management letter prepared by the auditor. The audit shall be prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets acquired before 2014. The audit shall include a calculation of the private school's net eligible education expenses and a calculation of the balance of the private school's fund for future eligible education expenses. The auditor shall conduct his or her audit, including determining sample sizes and evaluating financial viability, in accordance with the auditing standards established by the American Institute of Certified Public Accountants. The department may not require an auditor to comply with standards that exceed the scope of the standards established by the American Institute of Certified Public Accountants. If a private school participating in a program under this section is part of an organization and the private school and the organization share assets, liabilities, or eligible education expenses, the private school may submit an audit of the private school or of the organization of which it is a part. If a private school that is part of an organization with which it shares assets, liabilities, or eligible education expenses submits an audit of only the private school, the independent auditor shall use his or her professional judgment to allocate any shared assets, liabilities, and eligible education expenses between the organization and the private school. If a private school participating in the program under this section also accepts pupils under s. 119.23, the private school may submit one comprehensive financial audit to satisfy the requirements of this subdivision and s. 119.23 (7) (am) 1 2m. The private school shall include in the comprehensive financial audit the information specified under s. 119.23 (7) (am) 1 2m.

AB21-ASA1,1051,3 b. Evidence of sound fiscal and internal control practices, as prescribed by the department by rule. An independent auditor engaged to evaluate the private school's fiscal and internal control practices shall conduct his or her evaluation, including determining sample sizes, in accordance with attestation standards established by the American Institute of Certified Public Accountants. The independent auditor engaged to evaluate the private school's fiscal and internal control practice shall also review any concerns raised in the private school's management letter submitted under subd. 2m. a. The fact that a private school reports a negative reserve balance alone is not evidence that the private school does not have the financial ability to continue operating or that the private school does not follow sound fiscal and internal control practices.

AB21-ASA1,3355e Section 3355e. 118.60 (7) (am) 1m. of the statutes is created to read:

AB21-ASA1,1051,13 118.60 (7) (am) 1m. In this paragraph, "eligible education expenses" means all direct and indirect costs associated with a private school's educational programming for pupils enrolled in grades kindergarten to 12 that are reasonable for the private school to achieve its educational purposes, as determined by the governing body of the private school and reviewed by an independent auditor. "Eligible education expenses" include expenses related to management, insurance, transportation, extracurricular programming and activities, facility and equipment costs, development expenses, and programming that provides child care services before school, after school, or both before and after school.

AB21-ASA1,3355g Section 3355g. 118.60 (7) (am) 2m. c. of the statutes is created to read:

AB21-ASA1,1051,21 118.60 (7) (am) 2m. c. If an independent auditor engaged to evaluate the private school's fiscal and internal control practice determines that the governing body of the private school has not taken reasonable actions to remedy any concerns raised in the management letter submitted under subd. 2m. a. in the previous school year, a report prepared by the independent auditor that includes the auditor's findings related to the governing body's actions to remedy any concerns raised in the management letter for the previous school year.

AB21-ASA1,3355m Section 3355m. 118.60 (7) (an) of the statutes is created to read:

AB21-ASA1,1052,3 118.60 (7) (an) If a private school participating in the program under this section has a cash or investment reserve balance that is greater than 50 percent of the total amount the private school received under this section in the previous school year, the governing body of the private school shall approve a plan for how it will use the amount of the cash or investment reserve that exceeds 50 percent of the total amount the private school received under this section in the previous school year.

AB21-ASA1,3355r Section 3355r. 118.60 (7) (b) 3. of the statutes is amended to read:

AB21-ASA1,1052,12 118.60 (7) (b) 3. Ensure that any teacher's aide employed by the private school has graduated from high school, been granted a declaration of equivalency of high school graduation, been granted a high school diploma by the administrator of a home-based private educational program, or been issued a general educational development certificate of high school equivalency, or has obtained a degree or educational credential higher than a high school diploma, declaration of equivalency of high school graduation, or general educational development certificate of high school equivalency.

AB21-ASA1,3355s Section 3355s. 118.60 (7) (d) 1. b. of the statutes is amended to read:

AB21-ASA1,1053,2 118.60 (7) (d) 1. b. A copy of the school's current certificate of occupancy issued by the municipality within which the school is located. If the private school moves to a new location, the private school shall submit a copy of the new certificate of occupancy issued by the municipality within which the school is located to the department before the attendance of pupils at the new location and before the next succeeding date specified in s. 121.05 (1) (a). If the municipality within which the private school is located does not issue certificates of occupancy, the private school may submit a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy or a letter or form from the municipality within which the private school is located that explains that the municipality does not issue certificates of occupancy. A temporary certificate of occupancy does not meet the requirement of this subdivision. This subdivision applies only to a private school located in an eligible school district.

AB21-ASA1,3355t Section 3355t. 118.60 (7) (dr) of the statutes is created to read:

AB21-ASA1,1053,9 118.60 (7) (dr) A private school participating in the program under this section may elect to maintain an electronic copy of any application submitted on behalf of and any correspondence to or about a pupil attending the private school under this section instead of a paper copy of the application and correspondence. The private school shall maintain electronic copies of pupil applications and correspondence for a period of at least 5 years.

AB21-ASA1,3356 Section 3356. 118.60 (7) (e) of the statutes is amended to read:

AB21-ASA1,1053,15 118.60 (7) (e) Each private school participating in the program under this section shall administer the examinations required under s. 118.30 (1t) or examinations permitted under s. 118.301 (3) to pupils attending the school under the program. The private school may administer additional standardized tests to such pupils.

AB21-ASA1,3357 Section 3357. 118.60 (8) of the statutes is repealed.

AB21-ASA1,3358 Section 3358. 118.60 (10) (a) 3. of the statutes is amended to read:

AB21-ASA1,1053,20 118.60 (10) (a) 3. Failed to refund to the state any overpayment made under s. 118.60 (4) (b), 2011 stats., or s. 118.60 (4) (bg), 2011 stats., or under sub. (4) (bg) or (4m) by the date specified by department rule.

AB21-ASA1,3358am Section 3358am. 118.60 (11) (bm) of the statutes is created to read:

AB21-ASA1,1054,5 118.60 (11) (bm) No later than 90 days after receiving a financial audit under sub (7) (am), certify the financial audit. During the 90-day period between receipt and certification, the department's contact with the auditor shall be limited to a single written communication. The department's single written communication to the auditor may include only matters that individually impact the private school's financial statement by an amount that is greater than 1 percent of the total amount the private school received under this section for the previous school year. An auditor who receives a written communication under this paragraph shall respond to the department within 15 days of receiving the written communication.

AB21-ASA1,3358b Section 3358b. Subchapter I of chapter 119 [precedes 119.01] of the statutes is created to read:

AB21-ASA1,1054,8 CHAPTER 119

AB21-ASA1,1054,9 subchapter i

AB21-ASA1,1054,10 FiRST CLASS CITY school DISTRICT

AB21-ASA1,3358d Section 3358d. 119.02 (1) of the statutes is amended to read:

AB21-ASA1,1054,14 119.02 (1) "Board" means the board of school directors in charge of the public schools of a city of the 1st class other than those public schools transferred to the opportunity schools and partnership programs under s. 119.33 or subch. II.

AB21-ASA1,3358f Section 3358f. 119.02 (2g) of the statutes is created to read: