(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.
(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.
4. 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) and s.
PI 49.08(1)
(c).
(3) SUPPLEMENTAL SCHEDULE CALCULATIONS. The
supplemental schedule shall calculate all of the following:
(a) Net eligible education expenses incurred
primarily for special needs scholarship program pupils as follows:
1. Determine the amount of primarily special
needs scholarship program expenses. The amount included as an eligible
education expense shall be determined using an allocation method specifically
related to the expense being allocated. This amount may not include costs
included as eligible in any statements provided under s.
PI 49.13(7).
2. Subtract all government assistance
revenues received for primarily special needs scholarship program
expenses.
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 primarily special needs scholarship program expenses.
(b) Net eligible education expenses for all
pupils as follows:
1. Determine the amount of
eligible education expenses, excluding eligible education expenses in par. (a)
and costs included as eligible in any statements provided under s.
PI 49.13(7) incurred in that school year. If an expense
is included under par. (a) that is not 100 percent related to special needs
scholarship program pupils, the total expense prior to applying the allocation
percentage shall be excluded under this subdivision.
2. Subtract all government assistance
revenues received for eligible education expenses. This amount shall not
include government assistance revenues subtracted in par. (a) 2. or in the
statements provided under s.
PI 49.13(7).
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, excluding eligible education expenses in par.
(a).
(c) The net
eligible education expenses for special needs scholarship program pupils as
follows:
1. Calculate the percentage of pupils
at the school participating in the special needs scholarship program as the
full-time equivalent for the special needs scholarship program pupils 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 s.
PI 49.07. The
full-time equivalent for the special needs scholarship program pupils shall
exclude pupils that received a payment under s.
PI 49.13(7) in that school
year.
2. Multiply the amount
calculated under par. (b) by the percentage under subd. 1.
3. Add the net eligible education expenses
under par. (a) and costs included as eligible in any statements provided under
s.
PI 49.13(7) incurred in that school
year.
4. Subtract government
assistance revenue related to that school year that is subtracted in the
statements provided under s.
PI 49.13(7).
(d) The reserve balance as follows:
1. Determine the total scholarships received
for the school year being audited and any adjustments for the school year under
s.
PI 49.07(4). This amount shall include
summer school revenue received under s.
115.7915(4p),
Stats., for the immediately preceding summer.
2. Add the prior year reserve balance, if
any.
3. Subtract the amount
determined under par. (c).
(e) The school's cash and investment balance
that must 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. (d).
(3m) PAYCHECK PROTECTION PROGRAM LOANS.
Notwithstanding sub. (3) (a) 2., (b) 2., and (c) 4., 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 special needs scholarship program pupils. The
school's cash and investment balance shall be at least as much as the amount
calculated under sub. (3) (e), if positive. If the school is participating in a
program under s.
118.60 or
119.23,
Stats., the cash and investment balance shall be at least as much as the
reserve calculated under this chapter and chs. PI 35 and 48 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.
(5) FINANCIAL
AUDIT SUBMISSION.
(a) If a school ceases to
participate or is barred from participation in the special needs scholarship
program under s.
115.7915,
Stats., it shall submit to the department the financial audit for the final
school year in which it participated. The net eligible education expenses under
sub. (3) (c) shall be multiplied by the percent of the school year the school
participated in the special needs scholarship program if the school was not
eligible for all of the payments under s.
PI 49.13. 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 the special needs scholarship program under s.
115.7915,
Stats., and the school's reserve is positive, the school shall refund the
reserve balance to the department as specified under s.
PI 49.13(6).
