Current through August 26, 2024
(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.
118.60(4) and
119.23(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 48.03(3) or the new
private school participation information submitted under ss.
PI 35.04(2) and 48.04(2).
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) or the new
private school participation information submitted under ss.
PI 35.04(2) and 48.04(2).
(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.
118.60(4) and
119.23(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 48.06(8).
2. The summer school payment based on the
school's summer school count report filed under ss.
118.60(4) (a) and
119.23(4) (a), Stats.
(1r) MAY 1 REQUIREMENTS. By May 1 of the
school year immediately preceding the first school year in which a first time
participant school intends to participate in the choice program, a first time
participant shall participate in a fiscal management training program approved
by the department and fulfill the requirements under sub. (3) or (4).
(3) BUDGET REQUIREMENT. A school that selects
the budget and cash flow report option shall submit to the department all of
the following:
(a) A budget and cash flow
report, on a form provided by the department, for the following school year
that contains all of the following:
1.
Anticipated enrollments for all pupils enrolled in the school.
2. Anticipated enrollments for choice program
pupils.
3. Estimated total revenues
and costs.
4. Estimated amounts
required under s.
PI 35.10(3)
(a).
5. A schedule of anticipated beginning and
ending net assets.
6. A schedule of
monthly cash flows.
6m. Anticipated
beginning and ending reserve balance.
7. The contingent funding sources the school
will use if actual enrollments are less than expected and evidence of the
availability of the funding sources.
8. A statement of whether the school has any
past due amounts, interest, or penalties due to the U.S. internal revenue
service, the Wisconsin department of workforce development, or the Wisconsin
department of revenue. An amount must be disclosed even if it is in dispute. If
a school has past due amounts, interest, or penalties due to a government
entity, the school shall do all of the following:
a. Disclose to the department the outstanding
amount owed.
b. Submit to the
department statements or other correspondence from the government entity
stating the amount the government entity claims is due, the amount in dispute,
and nature of the amount due.
(b) Examples of each type of written document
used to satisfy the requirements under s.
PI 35.13(4)
(a).
(c) A schedule of the pay dates for the
school.
Note: A budget and cash flow report form may be
obtained at no charge from the Wisconsin department of public instruction's
webpage at http://dpi.wi.gov/sms/choice-programs.
(4) BOND REQUIREMENT. A
school that selects the surety bond option shall annually submit a bond payable
to the state of Wisconsin equal to 25 percent of the initial expected payment
until the school meets all of the requirements in sub. (7).
(5) Revised bond. A school that submitted a
bond under sub. (4) shall provide a revised bond if the difference between the
initial expected payment and the revised expected payment is at least $50,000.
The revised bond shall be equal to 25 percent of the revised expected payment.
A school shall file the revised bond with the department by the first weekday
in November.
(6) BOND CALL
PROVISIONS. The department may call a bond submitted by a school under this
section for any of the following reasons:
(a)
The school failed to timely file a report required under s.
118.60 or
119.23,
Stats., this chapter, or ch. PI 48.
(b) The school failed to timely refund the
department any amount certified due from the school under ss.
PI 35.07(4) or
PI 48.07(4).
(c) The school failed to timely refund the
department the reserve balance as prescribed under s.
118.60 or
119.23,
Stats., this chapter, or ch. PI 48.
(d) The school failed to timely refund the
department any other money owed to the department for any other reason under s.
118.60 or
119.23,
Stats., this chapter, or ch. PI 48.
(7) BOND REMOVAL REQUIREMENTS. A school that
selected the surety bond option the first school year it participated in the
choice program must submit a bond by May 1 annually until all of the following
apply:
(a) The school provides a standard
financial audit prepared at the consolidated level as required by generally
accepted accounting principles that meets all of the following requirements:
1. The financial statements are two-year
comparative financial statements that include the audit of the full-year
financial information for both school years.
2. The net asset balance for both school
years is positive.
3. The net
current obligation for both school years is positive.
4. The school meets one of the following
requirements:
a. The change in net assets is
positive for both school years.
b.
The change in net assets for both school years is greater than or equal to
negative $25,000, the net asset balance for both school years is greater than
$50,000, and the net current obligation for both school years is greater than
$50,000.
5. The school's
financial audit does not contain an emphasis of matter or an expression of the
auditor's doubt as to the school's ability to continue as a going
concern.
(b) The
school's fiscal and internal control practices report for the most recent
school year included in the financial audit in par. (a) and the subsequent
school year, and any other information available to the department, indicates
that the school has complied with all of the following:
1. The school paid all amounts owed to the
U.S. internal revenue service, Wisconsin department of revenue, and Wisconsin
department of workforce development on a timely basis. This requirement shall
not be considered met if the school had either of the following for the school
years included in the financial audit in par. (a):
a. Any wage claims with the Wisconsin
department of workforce development.
b. Any past due amounts, interest, and
penalties with the U.S. internal revenue service, Wisconsin department of
revenue, or Wisconsin department of workforce development.
2. The school has paid all vendors as
required by ss.
PI 35.13(3) and 48.13(3). An amount in
dispute shall not be an indicator that the school does not meet the
requirements to remove the bond if all of the following are true:
a. The school provided the department with
written correspondence between the school and the vendor evidencing that the
amount is in dispute.
b. The school
has sufficient cash available to pay the amount in dispute.
c. The disputed amount is included in the
financial audit as a current liability.
3. The school has paid all employees as
required by ss.
PI 35.13(4) and 48.13(4).
(8) REQUIRED AUDIT
BALANCES AND ACTIVITY. An audit that only includes school-only balances and
activity shall not be sufficient to meet the requirement in sub. (7)
(a).
(9) ASSET BALANCE. The asset
balance used for the determinations under sub. (7) (a) may only include pledge
receivables or other receivables for which the school received cash payments
within one year of the date pledged or within one year of the date the amount
is included as a receivable.
(10)
REVENUE. The revenue used for the determinations under sub. (7) (a) may only
include revenue for which the school receives cash payments within one year of
the date pledged or within one year of the date the school includes the amount
as revenue.
(11) INSURANCE AND
FIDELITY BOND EVIDENCE. A first time participant shall file with the department
a certificate of insurance or other evidence of having obtained the required
insurance under s.
PI 35.13(7) and the fidelity bond under
s.
PI 35.13(11). A first time participant
shall file the information required under this subsection with the department
by the first weekday in August if the school does not provide summer school
under this chapter or ch. PI 48. A first time participant shall file the
information required under this subsection with the department by the first
weekday in May of the school year immediately preceding the first school year
in which a first time participant intends to participate in the choice program
if the school provides summer school under this chapter or ch. PI 48.
A budget and cash flow report form may be obtained at no
charge from the Wisconsin department of public instruction's webpage at
http://dpi.wi.gov/sms/choice-programs.
