(1) ELIGIBLE
EDUCATION EXPENSES. The eligible education expenses included in the financial
audit supplemental schedule shall comply with all of the following:
(a) Eligible education expenses may only
include those expenses that already have or will result in a cash
disbursement.
(b) Eligible
education expenses may only include the following:
1. In a standard financial audit, expenses
that are in the statement of activities, except for the cost of land. The
amount that the school paid for land shall be included in the first year the
land is used for educational programming using an allocation method under par.
(d), if applicable.
2. In a
modified financial audit, expenses that would be included in the statement of
activities for the school year based on generally accepted accounting
principles except for the following:
a. The
amount that the school paid for land shall be included in the first year the
land is used for educational programming using an allocation method under par.
(d), if applicable.
b.
Post-retirement benefits may be included as an eligible education expense based
on the amount expended for the post-retirement benefits in the school
year.
(c) An
expense may only be included as an eligible education expense one
time.
(d) If an expense or
government assistance revenue is partially related to educational programming,
the school shall use an allocation method to determine the portion that is
related to educational programming. The allocation methods shall be included in
the school's policy established under s.
PI 35.13(5)
(h).
(e) The following may not be included in
kindergarten through grade 12 eligible education expenses:
1. Contributed services, fixed assets, or
goods.
2. Scholarship awards and
financial support for pupils to attend the private school, including payments
to parents or others on behalf of pupils.
3. Daycare expenses except expenses for
before or after school care for kindergarten through grade 12 pupils that are
enrolled in educational programming at the school.
4m. Special needs scholarship program
excluded expenses.
5. Expenses for
pupils who are enrolled in the public school district and attending the private
school.
(2)
AUDITOR REVIEW OF ELIGIBLE EDUCATION EXPENSES. An auditor shall ensure the
eligible education expenses a school included in the supplemental schedule
comply with the requirements under sub. (1), s.
PI 35.09(1)
(c), and the policy established under s.
PI 35.13(5)
(h).
(3) SUPPLEMENTAL SCHEDULE CALCULATIONS. The
supplemental schedule shall calculate all of the following:
(a) Net eligible education expenses for all
pupils as follows:
1. Determine the amount of
eligible education expenses. This amount shall not include special needs
scholarship program excluded expenses.
2. Subtract all government assistance
revenues received for eligible education expenses. This amount shall not
include government assistance revenues subtracted in s.
PI 49.09(3)
(a) 2. or in the statements provided under s.
115.7915(4c).
3. Subtract the lesser of the following:
a. Fundraising revenue.
b. The non-administrative fundraising
expenses included in the expenses in subd. 1. In this subdivision,
administrative expenses include expenses for school personnel, copying,
mailing, or fixed assets used for other school purposes.
4. Subtract all insurance proceeds received
for eligible education expenses. This amount shall not include insurance
proceeds subtracted in s.
PI 49.09(3)
(a) 4.
(b) The net eligible education expenses for
pupils participating in a program under ss.
118.60 and
119.23,
Stats., as follows:
1. Calculate the
percentage of pupils at the school participating in a program under ss.
118.60 and
119.23,
Stats., as the full-time equivalent for the pupils participating in a program
under ss.
118.60 and
119.23,
Stats., compared to the all pupil full-time equivalent. The full-time
equivalents shall be based on the average of the full-time equivalents
determined in the enrollment audits under ss.
PI 35.07 and 48.07.
2. Multiply the amount
calculated under par. (a) by the percentage under subd. 1.
(c) The reserve balance as follows:
1. Determine the total revenue received under
ss.
118.60 and
119.23,
Stats. Summer school revenue received under ss.
118.60 and
119.23,
Stats., shall be included in the school year it is received.
2. Add the prior year reserve balance, if
any.
3. Subtract the amount
determined under par. (b).
4.
Subtract any reserve amount repaid to the department.
(d) The school's cash and investment balance
that shall be maintained under sub. 4 as follows:
1. Determine 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 subdivision shall not include depreciation for leased right of use
assets.
2. Subtract the amount
under subd. 1. from the amount under par. (c).
(3m) PAYCHECK PROTECTION PROGRAM LOANS.
Notwithstanding sub. (3) (a) 2., the forgiven portion of Paycheck Protection
Program loans administered by the U.S. small business administration under
15 USC 636 may
not be included as offsetting government assistance revenue in the supplemental
schedule.
(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).
(5) 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. 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:
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.
(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 as specified under s.
PI 35.19(5).
