Current through August 26, 2024
(1) A private school under this chapter shall
use a double entry financial accounting system that is organized in such a
manner that it will enable preparation of the report required under s.
PI 35.045(1) and provide such other
information to fiscally manage the private school. The accounting system shall
identify all the sources of funding used in the private school's operation
specifically identifying all of the following:
(a) Revenue for pupils participating in the
choice program.
(b) Revenue for
parent or other private-paid tuition pupils.
(c) Revenue from payments made to or due the
private school from the school district for instruction provided pupils
enrolled in the private school.
(d)
Revenue from payments made to or due the private school from the school
district for transportation of the private school's pupils.
(e) Revenue from federal, state and local
governments for instructional programs, food service and facility
acquisition.
(2)
(a) Except as specified under par. (b),
annually, prior to the start of the private school's fiscal period, the
administrator of the private school shall prepare a budget for the ensuing
fiscal period showing anticipated enrollments for all pupils enrolled in the
school and for choice program pupils, estimated revenues and costs, and a
schedule of anticipated beginning and ending net choice program assets. The
budget shall identify contingent funding sources the private school will use
should actual enrollments be less than expected.
(b) A private school filing an initial notice
of intent to participate in the choice program under s.
PI 35.03(1) shall, by the following May
1, submit to the department the information required in par. (a) along with a
schedule of monthly cash flow requirements on a form provided by the
department.
(c) A private school
that participated in the program under this chapter in the immediately
preceding school year shall revise the information required in par. (a) to
reflect revenues resulting from the school's actual third Friday in September
enrollment and related required budget changes if the actual third Friday in
September enrollment for all pupils or for choice program pupils varies by 20%
or 20 pupils, whichever is less, from the anticipated enrollments used in the
budget required under par. (a).
(d) A private school filing an initial notice
of intent to participate in the choice program under s.
PI 35.03(1), shall submit to the
department by the following November 1, on a form provided by the department, a
budget as required in par. (a) reflecting the school's actual third Friday in
September enrollments and any related changes in revenues, costs and monthly
cash flow requirements.
(3) A private school shall make payment of
all the following within 90 days of receipt of invoice or payment request or as
per written agreement:
(a) Payments to
vendors for services provided.
(b)
Reimbursements to employees and other individuals for expenses incurred on
behalf of the private school. The employee or related party shall request
reimbursement within the time period specified by the private school's written
policy for such reimbursement. All reimbursements shall be made on the basis of
original receipts that shall be retained by the private school in support of
the paid reimbursement.
(4) A private school shall make payments to
employees based on written documents specifying compensation and dates for
payment. The private school shall provide this information to any employee
requesting it.
(5) A private school
shall have an adequate system of financial internal controls that includes all
of the following:
(a) Depositing all receipts
and paying all disbursements from a depository account or accounts maintained
solely for the private school's purposes unless the operating organization's
financial accounting system provides for separate identification of the private
school's revenue and expenditure transactions. The depository account or
accounts used by the private school or those used by its operating organization
for school purposes shall be located within the state of Wisconsin.
(b) Maintaining documentation as to the
nature and source of all cash receipts.
(c) Depositing intact and separate from all
other receipts of the school, payments received for choice program pupils. The
private school shall maintain a record of the deposit date for all individual
payments received for the choice program pupils.
(d) Using pre-numbered checks for all school
disbursements, except those from a petty cash fund.
(e) Maintaining on file original invoices and
payment requests supporting disbursements.
(f) Using internal control practices
recommended in previous fiscal practices reports required under sub.
(13).
(6) A private
school or its operating organization shall be current with all of the
following:
(a) Filing and with holdings
payment requirements of the federal internal revenue service. If the private
school or its operating organization is required to file annual information
return form 990 or form 990-EZ, a copy of the information in the filed return
identified as available for public inspection by the federal internal revenue
service shall be provided to the department by the private school within 30
days after filing.
(b) Filing and
with holdings payment requirements of the Wisconsin department of
revenue.
(c) Filing requirements of
the Wisconsin department of workforce development.
(d) Filing requirements of the Wisconsin
department of financial institutions.
(e) Filing requirements of the Wisconsin
department of safety and professional services.
(f) Auditing requirements of federal, state
and local government agencies. The private school shall provide the department
with a copy of audit reports issued or revisions within 30 days of submission
to the requiring government agency.
(7) A private school shall have worker's
compensation coverage and shall have liability and errors and omissions
insurance coverage for incidents resulting from omissions or actions of the
private school's owners, directors or employees. Coverage shall be provided by
an insurance company licensed to do business in the State of Wisconsin or by a
non-profit, tax exempt mutual protective organization covering risks of schools
of, and controlled by, a religious denomination. All coverage shall be on an
occurrence form or a claims made basis. Minimum coverage shall be as follows:
(a) Worker's compensation as specified under
ch. 102, Stats.
(b) Commercial
general liability in the following amounts unless the coverage amounts are
based on a written or documented verbal recommendation of a risk or insurance
consultant.
1. For each occurrence, minimum
coverage in the amount of $1,000,000.
2. Personal injury, minimum coverage in the
amount of $1,000,000.
(c) Umbrella excess liability, an aggregate
limit minimum coverage of $5,000,000, unless the coverage amounts are based on
a written or documented verbal recommendation of a risk or insurance
consultant.
(d) Auto liability, a
combined single limit minimum coverage of $1,000,000 for each accident unless
the coverage amount is based on a written or documented verbal recommendation
of a risk or insurance consultant.
(e) Errors and omissions for school leaders,
an aggregate limit minimum coverage of $1,000,000 unless the coverage amount is
based on a written or documented verbal recommendation of a risk or insurance
consultant.
(f) Sexual misconduct
liability, an aggregate limit minimum coverage of $1,000,000 unless the
coverage amount is based on a written or documented verbal recommendation of a
risk or insurance consultant.
(8) If a private school operates or contracts
for the operation of school buses with an organization other than a Wisconsin
school district, the private school or the contracted operator shall have
school bus insurance as required by s.
121.53,
Stats. The private school may not contract for the school bus operation with an
organization other than a Wisconsin school district unless the operator has
provided the private school with a certificate of insurance meeting the
requirements of s.
121.53,
Stats.
(9) If a private school is
providing or contracting for pupil transportation in vehicles other than school
buses as permitted by s.
121.555,
Stats., the private school shall determine that any motor vehicle so used
complies with the conditions specified under s.
121.555,
Stats.
(10) A private school shall,
at least once every 3 years, have a written risk management and insurance
evaluation by a risk or insurance consultant.
(11) A private school shall have a fidelity
bond indemnifying the private school against loss resulting from dishonesty,
malfeasance, or neglect by owners, officers or employees.
(11m) A private school shall ensure all
teachers employed by the private school have a bachelor's degree from an
accredited institution of higher education or a temporary, nonrenewable waiver
under s.
PI 35.07(2), all administrators have at
least a bachelor's degree from an accredited institution of higher education
and all teacher aides have graduated from high school, been granted a
declaration of equivalency of high school graduation or been issued a general
educational development certificate of high school equivalency. If a waiver has
been granted to a teacher under s.
PI 35.07(2), the private school shall
ensure the teacher has made progress with the plan and, if applicable, the
teacher has submitted an updated waiver form to reflect any changes made to the
five-year plan submitted to the department under s.
PI 35.07(2)
(b).
(12) The administrator of a private school
filing an initial notice of intent to participate in the choice program under
s.
PI 35.03(1) shall, by the following May
1, participate in a fiscal management training program approved by the
department and shall provide the following on a notarized statement on a form
provided by the department:
(a)
Identification of the operating nature of the private school as one of the
following:
1. Non-profit
corporation.
2. Affiliation with
religious organization with non-profit status.
3. For profit corporation.
4. For profit limited partnership
5. For profit partnership.
6. Sole ownership.
7. Specified other.
(b) Identification of how the private school
will implement an accounting system that complies with the requirements of sub.
(1).
(c) A statement that the
private school shall have a written policy as required by sub. (3) (b) for
expenses incurred on behalf of the private school.
(d) Identification of the written documents
on which employee compensation will be based as required by sub. (4).
(e) A statement that the private school will
have a system of financial internal controls as required by sub. (5).
(f) A statement that the administrator of the
private school and the operating organization of the private school are current
with filings and with holdings payments under sub. (6).
(g) A statement that the private school will
have the minimum insurance coverage as specified under sub. (7) unless a
different amount is recommended based on the written recommendation of a risk
or insurance consultant. The private school shall provide the department with a
certificate of insurance or other evidence of having obtained the required
insurance by August 1 or prior to May 1 if the private school begins initial
participation in the program with operating a summer school.
(h) A statement that the private school shall
comply with the requirements of subs. (8) and (9) prior to providing or
contracting for pupil transportation.
(i) A statement that the private school shall
obtain the risk management and insurance evaluation as required by sub.
(10).
(j) A statement that the
private school shall have a fidelity bond as required by sub. (11) by August 1
or prior to May 1 if the private school begins initial participation in the
program with operating a summer school.
(13) A private school shall engage an auditor
to provide a report to the department by December 15 attesting to the private
school's compliance or non-compliance with the fiscal and internal control
practices required by this section. The internal audit staff of an organization
affiliated with the private school may, with prior approval of the department,
provide the report required by this subsection if the internal audit staff
meets independence standards identified in generally accepted government
auditing standards. The report under this subsection shall meet all of the
following requirements:
(a) The report shall
be prepared in accordance with professional standards and identify the
procedures agreed upon by the auditor and the department that were used in
determining compliance or non-compliance. In making such a determination, the
auditor may not rely on oral or written representations of the school's
administration or staff.
(b) The
report shall contain the private school's response as to its reasons for
non-compliance with the requirements of this section and corrective action the
school is taking.
The Milwaukee parental choice program budget and anticipated
cash flow form may be obtained from the Wisconsin Department of Public
Instruction's website at
www.dpi.state.wi.us/dpi/dfm/sms/finrpt.htmlor
is available at no charge by writing to the Wisconsin Department of Public
Instruction, School Management Services, P.O. Box 7841, Madison, WI 53707-7841.
