ORDER OF THE
STATE SUPER
INTENDENT OF PUBLIC INSTRUCTION
ADOPTING
PERMANENT RULES
The scope statement for this rule, SS
072-15
, was published in
Register No. 716A2
, on August 10, 2015, and approved by State Superintendent Tony Evers on August 24, 2015, and modifies SS
086-13
, which was published in
Register No. 691
on July 13, 2013
,
and approved by State Superintendent Tony Evers on August 15, 2013. Pursuant to
Coyne v. Walker
, the Department of Public Instruction is not required to obtain the Governor’s approval for the statement of scope for this rule.
Coyne v. Walker
,
2016 WI 38
.
The State Superintendent of Public Instruction hereby proposes to
repeal and re
create PI
35
,
relating to the parental choice program for
students residing in the city of Milwaukee
.
ANALYSIS BY THE DEPARTMENT OF PUBLIC INSTRUCTION
Statute interpreted:
s.
119.23
, Stats.
Explanation of agency authority:
Under s.
227.11 (2) (a)
,
Stats.,
the DPI “may promulgate rules interpreting the provisions of any statute enforced or administered” by the DPI.
The DPI is explicitly required by statute to create a rule to implement and administer s.
119.23
, Stats. Specifically, s.
11
9
.
23
(11) (a)
provides:
119.23
Milwaukee parental choice program.
(11
)
The department shall do all of the following:
(
a
)
Promulgate rules to implement and administer this section. The department may not by rule establish standards under sub. (7) (
am
) that exceed the standards established by the American Institute of Certified Public Accountants.
Plain language analysis:
The 2013-15 budget,
2013 Wisconsin Act 20
, made several modifications to the Milwaukee Parental Choice Program; the program was further modified by the 2015-17 budget,
2015 Wisconsin Act 55
. The Milwaukee Parental Choice Program allows eligible private schools to receive state aid payments for eligible students. The rules set forth the MPCP program requirements under s.
119.23
,
Stats.,
as modified by
2015 Wisconsin Act 55
and other legislation. The proposed rules and this section of the statutes apply only to private schools that choose to participate in the program. The Department’s proposed rule reflects both statutory changes and changes in practice.
The proposed rule refers to
ch.
PI 48
and
ch.
PI 49
, provisions that are created in separate rule-making orders currently under promulgation. Draft materials of
ch.
PI 48
may be accessed at:
. Draft materials of
ch.
PI 49
may be accessed at:
.
Summary of, and comparison with, existing or proposed federal regulations:
N/A
Comparison with rules in adjacent states:
N/A
Summary of factual data and analytical methodologies:
Section
119.23 (11) (a)
,
Stats.,
requires the DPI to promulgate rules to implement and administer the Milwaukee Parental Choice Program. The 2013-15 budget,
2013 Wisconsin Act 20
, made several modifications to the Milwaukee Parental Choice Program; the program was further modified by the 2015-17 budget,
2015 Wisconsin Act 55
. The rule needs to be updated to reflect statutory changes and changes in practice.
Anticipated costs incurred by private sector:
There is not expected to be a cost to the private sector.
Effect on small business:
The proposed rules will have no economic impact on small businesses, as defined in s.
227.114 (1)
, Stats.
Agency contact person:
(including email and telephone)
Carl Bryan
Budget and Policy Analyst
Wisconsin Department of Public Instruction
(608) 267-9127
Place where comments are to be submitted and deadline for submission:
Comments should be submitted
by March 3, 2016,
to
Carl Bryan
, Department of Public Instruction,
125
S. Webster Street, P.O. Box 7841, Madison, WI 53707-7841 or at
Carl.Bryan@dpi.wi.gov
. The department will publish a hearing notice in the
Administrative Register
that
will provide information on the deadline for the submission of comments.
SECTION 1. PI
35
is created to read:
MILWAUKEE
PARENTAL CHOICE PROGRAM
PI
35
.01
Purpose.
Any qualified pupil in grades kindergarten to 12 who meets the requirements under s.
119.23
(2) (a)
,
Stats.,
may attend any school participating in the
Milwaukee
parental choice program under s.
119.23
, Stats. This chapter establishes approval criteria and requirements for schools participating in the
choice program
under s.
119.23
, Stats., and requirements for receipt of state aid under s.
119.23
(4)
and
(4m)
, Stats.
PI
35
.02
Definitions.
In this chapter:
(1)
“4-year-old kindergarten outreach activities” means the direct services
that
a school provides to 4-year-old kindergarten parents and primary caregivers that ha
ve
an educational component that fulfills the requirements of s.
121.004 (7) (cm)
, Stats.
(
2
)
“
Average attendance rate
”
means the rate obtained by dividing the aggregate number of full-time equivalent days of
a
pupil
’s
actual
attendance by the aggregate number of full-time equivalent days the pupil
w
as
enrolled.
(
3
)
“
Choice administrator
”
means
the person
designated as such on
the
notice of
intent to participate form
under s.
PI 35.03 (3)
or s.
PI 35.04 (1)
(
a
)
or on the form under s.
PI
3
5
.0
4
(
2
)
.
(
4
)
“
Choice program
”
means the
program established under s.
119.23
,
Stats.,
for pupils residing in the city of Milwaukee.
(
5
)
“
Classroom records
”
means teacher
-
originated
test scores, report cards
,
progress reports,
and
attendance records.
(
6
)
“Count date”
means the third Friday in September
and
the
second Friday in January
except as provided under s.
121.0
5
(
3m
)
, Stats
.
(
7
)
“
Credit
”
means the credit given
to pupils
in grades 9
to
12 for successful completion of a school term of study in one course that meets daily for a normal class period or the equivalent established by the governing body
of a school
.
(
8
)
“
Department
”
means the Wisconsin department of public instruction.
(9
)
“Eligible education expenses” has the meaning given in s.
119.23
(7) (am) 1m.
, Stats.
(10
)
“Financial audit” means
the audit of a school required under s.
119.23
(7) (am) 2m. a.
,
Stats
.
,
including the audit opinion.
(
11
)
“
Financially viable
”
or “financial viability
”
means the ability of
the
school to pay for goods and services, make debt service payments, and pay other obligations as they become due.
(12
)
“
First time participant” means a school
that meets one of the following criteria:
(a)
The school did not participate in a program under s.
118.60
or
119.23
,
Stats.,
at the time the school submitted a notice of intent to participate in the choice program for the following school year.
(b)
The
school participated in
a program under s.
118.60
or
119.23
,
Stats.,
at the time the school
submitted a notice of intent to participate in the
choice program for the following school year but one of the following occurred:
1. The school voluntarily withdrew from participation in a program under s.
118.60
or
119.23
, Stats.
2. The state superintendent issued an order terminating or barring the school’s participation in a
program
under s.
118.60
or
119.23
, Stats.
(
1
3
)
“
Generally accepted auditing standards
”
means the auditing standards prescribed by the accounting examining board under s.
Accy
1.202
.
(
1
4
)
“
Grade equivalent
”
means the scaled score
that
corresponds to a pupil
’s
raw score on a standardized achievement test
, as determined by the test
’s
publisher
.
(
1
5
)
“New
private
school” has the meaning given in s.
119.23
(1)
(
ai
)
, Stats.
(
1
6
)
“Official attendance records” means a listing of all kindergarten through grade 12 pupils enrolled in the school by grade level
from the student information system required under s.
115.383 (3) (b)
, Stats
.
(
1
7
)
“
Parent
”
means a
parent listed on the
pupil
application
submitted under s.
PI
35
.05
who
is
one of the following:
(a)
T
he
pupil
’s
biological parent, legal guardian, parent by adoption
,
or step-parent
who
resides in the same household as the
pupil
applicant.
A parent on military duty
is
considered to be residing in the household.
(b)
If no individual meets the requirements in par. (a), an individual who has the legal authority to make educational decisions for the pupil.
(
18
)
“
Professional standards
”
means
all
of the following:
(
a
)
Standards established by the accounting examining board under
ch.
442
, Stats.
(b)
Standards issued by the comptroller general of the United States for engagements in which the use of generally accepted governmental auditing standards is required.
(c)
Standards issued by the American Institute of Certified Public Accountants.
(
19
)
“Reserve” means the
difference between the revenue received under
ss.
118.60
and
119.23
,
Stats.
,
and the amount of
net
eligible education expenses for
pupils participating in a program under
ss.
118.60
and
119.23
, Stats
.
(
2
0
)
“
School term
”
has the meaning given in s.
115.001 (12)
, Stats.
(
2
1
)
“
School year
”
has the meaning given in s.
115.001 (13)
, Stats.
(
2
2
)
“
Standardized achievement test
”
means a published, nationally normed test
that
provides a valid and reliable measure of a pupil
’s
present achievement level in comparison with age or grade level cohorts.
(
2
3
)
“
State superintendent
”
means the state superintendent of public instruction.
(
2
4
)
“Wisconsin
p
arental
c
hoice
program
” means the program established
under
s.
118
.
60
Stats
.,
for
pupils
who
reside in Wisconsin
but do not reside in
the
Racine
Unified School District
or in the city of Milwaukee.
(25
)
“Working papers”
means
t
he record of
the
audit procedures performed
by the auditor
,
the
relevant audit evidence obtained
by the auditor
, and
the
conclusions
reached by
the auditor.
PI
35
.03
School
requirements.
(1)
Private
s
chool
.
A s
chool
participating in the
c
hoice program
shall
be
a private school
as defined in
s.
118.165
, Stats.
(
2
)
C
hoice
administrator
.
The
c
hoice
administrator shall be one of the following:
(a)
A
n owner of the school
.
(b)
A
n
individual appointed as the school
’s
choice administrator by the governing body of the organization operating the school.
(3)
N
otice of
i
ntent to
p
articipate
.
Except as provided under
s.
PI 35.04 (1)
for new private schools
, annually by January 10, a school that intends to participate in
the
choice program in the following school year shall submit to the department a notice of intent to participate.
The notice shall include
all of
the following:
(a)
T
he school
’s
plan for ensuring it will select pupils on a random basis
from a new pool of applicants each school year
,
as required under s.
119.23 (3) (a)
, Stats. The school
’s
plan shall be one of the following:
1
. The plan provided by the department.
2.
A
plan provided by the school
and approved by the department. A school using this option shall submit the plan to the department for approval
by January 10.
If the school does not provide a plan by January 10 or the plan is not approved by the department by January 31, the school shall use the plan provided by the department.
If the school makes a change to the plan in a subsequent school year
, the school shall submit, with the school’s notice of intent to participate, the revised plan to the
department
for approval.
Down
(b)
The number of spaces the school has available for pupils participating in
the
choice program.
(c)
The open application periods during which the school will accept choice program pupil applications.
A
fter January 10,
a
school may not amend the open application periods it select
s
.
(
d
)
The
name and location of the accredited institution of higher education from which the choice administrator received a
t
least a bachelor
’s
degree and the date the degree was received
,
the number of the choice administrator
’s
teaching
or administrator
license issued by the department
, or an indication that the administrator is excluded from the requirement under s.
119.23
(2) (c) 2.
, Stats
.
(
e
)
The signature
and mailing address
of the choice administrator.
Note:
The
n
otice
of
s
chool’s
i
ntent
to
p
articipate
f
orm
, which includes the department’s random selection plan,
may be obtained at no charge from the
Wisconsin department of public instruction
’s
webpage at
http://dpi.wi.gov/sms/choice-programs
.
(4)
Continuing eligibility.
(a)
Annually by October 15, a school participating in the choice program shall submit a report to the department that states
which of the following standards
under s.
119.23 (7) (a)
,
Stats.,
the school intends to meet
:
1.
At least 70% of the choice program pupils attending the school advance one grade level each school year. In this subdivision,
“
advance one grade level
”
means successful completion of at least four credits or the equivalent as approved by the state superintendent during each school year. For pupils in grades kindergarten through 8,
a
school
using this standard
shall ensure each pupil who has advanced one grade level has met one of the following criteria:
a.
Achievement of 70% of the instructional objectives specific to each grade level in reading, mathematics and language arts that are introduced during each semester of the current school year. A school using this criteri
a
shall do all of the following: establish written objectives and performance standards for reading, mathematics and language arts for each grade level in which choice program pupils are enrolled; document written criteria and methodology for evaluating pupil performance for each objective and document each pupil
’s
performance using the evaluation method specified in this subparagraph in a written record; and maintain these records for 5 years.
b.
Achievement of at least
0
.08 grade equivalent increase for each month between the
annual or semi-annual
administration of the standardized achievement test. A school using this criteri
a
shall do all of the following: by October 15,
report
to the department the tests to be administered and the dates on which they will be administered and maintain each pupil
’s
answer sheets and score information for 5 years.
2.
The school
’s
average attendance rate for choice program pupils is at least 90%.
The school shall use the official attendance records to determine attendance.
3.
At least 80% of choice program pupils demonstrate significant academic progress.
In this subdivision, “
s
ignificant academic progress
”
means a pupil demonstrates the following:
PI 35.02(21
)(
a)
a.
Improvement in reading and mathematics in comparison to the pupil’s performance level in the previous
school
year.
PI 35.02(21)(b)
b.
Satisfactory performance on at least 50% of any new instructional concepts in reading and mathematics the
school
introduced during each of the current scho
ol year semesters, and the level of attainment is documented in a
written record of performance at the beginning, mid-point and end of each semester.
4.
At least 70% of the families of choice program pupils meet parental involvement criteria established by the school.
(
b
)
Annually by June 30
,
a
school participating in the choice program shall submit a report
to the department
that establish
es
the school has met
the standard selected
under
par. (
a
)
during
that school year
.
(
c
)
A school
that uses academic achievement test results to meet the requirement under par. (a)
shall
do all of the following:
1. E
nsure that test security is maintained
.
2. P
ay all costs
of
administering
the test
,
scoring
the test,
ensuring test security, and reporting
the
results of
the
test
.
(
5
)
D
isclosure of
i
nformation
.
(a)
Annually by August 1 of the school
’s
initial school year in the
choice program
, a first time participant shall submit to the department
all of the following:
2.
T
he
governing body members’
signatures required
under s.
119.23
(6m) (c)
,
Stats.,
and the mailing addresses
for
each
governing body
member on a form provided by the department
.
(
b
)
Annually by August 1, a school participating in the choice program that is not a first time participant shall submit to the department
all of the following:
2.
T
he
governing
body members’
signatures required
under s.
119.23
(6m) (c)
,
Stats.,
and the mailing addresses
for each
governing body
member
on a form provided by the department
.
(
6
)
Accreditation Requirements.
Annually by January 15,
a
school
that
is
fully accredited under s.
119.23
(2)
(a)
7.
, Stats.
,
shall provide to the department a letter from the school
’s
accrediting agency stating whether the school is accredited as of the date of the letter.
The letter shall meet all of the following requirements:
(
a
)
The letter shall include the following information:
1.
The school
’s
name.
2.
The school
’s
address for each location included in the accreditation.
3
.
The grades accredited.
4
.
A statement that the school is or is not accredited as of the date of the letter.
(
b
)
The letter shall be dated no earlier than
the beginning of the school
year
.
(
c
)
The letter shall be signed by an authorized member of the accrediting agency.
(
7
)
Hours of instruction and
a
nnual
s
chool
b
oard
m
eetings.
(a)
Annually by May 1, a school continuing in the
choice
program shall report to the department
the hours of instruction for the upcoming school year
on a form provided
by the department.
The hours of instruction shall comply with the requirements under s.
119.23
(2) (a)
8.
,
Stats.
(b)
Notwithstanding par. (a), by January 10, a
first time participant
school shall report to the department the hours of instruction for the upcoming school year on a form provided by the department.
(c)
Annually by October 15, a school shall report to the department the first and last dates of its current school term.
(d)
Annually by October 15, a school shall report the dates of the two
governing body
meetings for the current school year required under s.
119.23
(7) (b) 3m.
, Stats.
(
e
)
A school
shall
revise the report
s
in par. (
a
)
or
(
b
)
if
it
changes
its
hours of
instruction
.
The school shall submit revisions to the department
by May 15 of the current school year. A school may not shorten its school
term
after the start of the school
term
without prior written approval from the department.
(
8
)
S
chool
fees
.
(a)
A school may not charge pupils participating in a choice program for
a
field trip if the trip
is required
for a class, is part of the school’s curriculum, or is part of the hours of instruction.
(b)
A school may have a written policy indicating it will charge a fine for lost, damaged, or unreturned school property. The amount of the fine may not exceed the cost of the item.
(c)
A school may not impose any fee or other sanction on a parent or pupil for failure to engage in fund raising.
PI
35
.04
N
ew p
rivate
s
chool
r
equirements
.
(1)
P
receding August 1
r
equirements
.
A new private school shall
participate in a fiscal management training program approved by the department and
submit
all of the following
to the department
by
August 1 of the school year immediately preceding the school year that the school intends to participate in the choice program
:
(a)
A
new private school’s notice of intent to participate
that includes all of the following:
1.
T
he name and location of the accredited institution of higher education from which the choice administrator received at least a bachelor’s degree and the date the degree was received, the number of the choice administrator’s teaching or administrator license issued by the department, or an indication that the administrator is excluded from the requirement under s.
119.23
(2) (c) 2.
, Stats.
2.
The signature and mailing address of the choice administrator.
(c)
The
governing body members’
signatures required
under s.
119.23
.60
(6m) (c), Stat
s., and the mailing addresses for each
governing body
member
on a form provided by the department.
(d)
A
statement to the department
,
in the manner prescribed by the department
,
stating which standard under s.
119.23
(7) (a)
,
Stats.,
the school intends to meet.
(e)
A cashier’s check for t
he auditor fee
required under s.
119.23
(2) (
ag
)
1.
c
.
, Stats.
(
f
)
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.
5
. A schedule of anticipated beginning and ending net assets.
6.
A schedule of monthly cash flows.
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.
Note:
The
n
otice of
s
chool’s
i
ntent to
p
articipate form
for a new school
, disclosure of information for new schools,
and
the
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
.
(2)
N
ew private schools participation information
. A new private school shall submit the following to the department by January 10 of the school year immediately preceding the school year that the school intends to participate in the choice program
.
(a)
The school’s plan for ensuring it will select pupils on a random basis from a new pool of applicants each school year
,
as required under s.
11
9
.
23 (3) (a)
, Stats
. The school’s plan shall be one of the following:
1. The pl
an provided by the department
.
2.
A
plan provided by the school
and approved by the department. A school using this option shall submit the plan to the department for approval
by January 10.
If the school does not provide a plan by January 10 or the plan is not approved by the department by January 31, the school shall use the plan provided by the department.
If the school makes a change to the plan in a subsequent school year
, the school shall submit, with the school’s notice of intent to participate, the revised plan to the
department
for approval.
(b)
The number of spaces the school has available for pupils participating in
the
choice program.
(c)
The open application periods during which the school will accept choice program pupil applications.
After January 10, a school may not amend the open application periods it selects.
(d)
The name and location of the accredited institution of higher education from which the choice administrator received at least a bachelor’s degree and the date the degree was received, the number of the choice administrator’s teaching or administrator license issued by the department, or an indication that the administrator is excluded from the requirement under s.
11
9
.
23
(2) (c) 2.
, Stats.
(e)
The signature and mailing addre
ss of the choice administrator.
Note:
The
new private schools participation information form
, which includes the department’s random selection plan,
may be obtained at no charge from the
Wisconsin department of public instruction’s webpage at
http://dpi.wi.gov/sms/choice-programs
.
(3)
A
uditor Fee Payment Increases
.
If the amount of the auditor fee for the school year in which the school will first participate in the choice program is more than the amount paid in sub. (1) (
e
)
,
the new
private school shall
pay the difference between the amount paid and the amount owed calculated under s.
PI 35.17 (1)
by January 10
of the school year immediately preceding the school year that the school intends to participate in the choice program
. The
school shall pay the
difference
with a
cashier’s check
.
(
4
)
T
hird
p
arty
p
ayroll
p
rovider
. By August 1 of the first school year in which a new private school intends to participate in the choice program, a new private school shall submit to the department an executed contract with a third-party payroll service showing that the payroll service will remit federal and state payroll taxes for each employee of the school.
PI
35
.0
5
Pupil
application requirements.
(1
)
D
efinitions
.
In this section:
(a)
“Continuing
pupil
”
means
an applicant
who participated in the choice program
on the immediately preceding count date
or
participated in the
Wisconsin
p
arental choice program
on one of the count dates in the immediately preceding
school
year
.
(
b
)
“Prior year” means the calendar year prior to the school year for which the applicant is applying.
(
c
)
“Family
s
ize
”
means
the number
of
people who reside together as part of the same household and who are related by birth, marriage, or adoption. Family size includes parents,
pupil
applicants, and other children who share at least one parent by birth, adoption
,
or by a parent
’s
current marriage.
A parent on military duty is considered to be residing in the household.
(
d
)
“Family income”
means
the federal adjusted gross income of the parents included in the family size.
(2)
R
esidency
e
ligibility
.
A
school
shall
obtain
one of the
residency
documents specified by the department
from
an applicant
’s
parent
that
shows
the applicant resides at the address on the application
at the time of application
.
T
he
residency
document shall be
dated no earlier than
3
months prior to
the
start of the open application period in which an applicant applies.
If a school receives
a
lease agreement as
a
residency document, the lease term shall include the date the application was received.
The document shall contain the
parent
name
and match
the
address
on the application
.
(3)
A
ddress
v
erification
.
A school shall
verify
t
hat the address on
a pupil
’s
application is in the
c
ity of Milwaukee
by using the city of
Milwaukee
assessor website
, the state of Wisconsin
’s
Statewide Voter Registration System
or
any other source
permitted by the department.
(4)
I
ncome
e
ligibility
.
A continuing pupil or a pupil on a choice program waiting list in the preceding
school
year is not subject to the income requirements for the
choice
program. A school shall determine if all other applicants
meet the income eligibility requirements under s.
119.23
(2
)(
a)
, Stats., as follows:
(a)
If the parent uses the department of revenue income determination method
under s.
119.23
(2) (a)
b.,
Stats.
,
the school shall input the
parent’s
social security number into the online application system. If the department of revenue is unable to verify family income, the parent shall use the department of public instruction income determination method under par. (b).
(b)
If the parent uses the department of public instruction income determination
method
, the school shall do all of the following:
1.
A school shall obtain the income documentation required by the parent application from the parent. The school shall ensure the information on the income documentation matches the information provided in the online parent application.
2.
A school shall determine whether a pupil is income eligible for the program based on the family size and prior year family income.
3.
A pupil shall be determined ineligible if the application indicates the parent did not receive any income and the application does not contain a sufficient explanation of how basic needs are met.
4.
A pupil shall be determined ineligible if the explanation of how basic needs are met states that income or government assistance was received, but the application states the parent listed on the application did not receive income or participate in government assistance programs.
(5)
A
ge
r
equirement
. In order to be eligible for the choice program, a
4-year-old
kindergarten
pupil, 5-year-old kindergarten pupil
,
and
a
first grade pupil
shall
a
t
tain
the age
s
specified in
s.
118.14
(1)
, Stats.
(
6
)
A
pplication
receipt
.
A
school
may
only
receive
an application during an open application period selected by the school under s.
PI
35
.
03 (
3
) (
c
)
or
s.
PI 35.04
(
2
) (c)
.
Except as provided under sub. (8),
t
he
school
shall
receive all documentation, including the documentation
required under
sub
s
. (
2
) and (4),
during
the same open application period
in which the school receives
the application
.
(7)
I
neligible
applications
.
An application shall be determined ineligible if
any of the following apply:
(a)
The application
do
es not comply with this section
or s.
119.23
,
Stats.,
and a correction of the application under sub. (
8
)
is
not allowable
.
(b)
The
application contains
contradictory information.
(
8
)
C
orrecting Applications
. A school
may
correct an application
only
in the
following
circumstances and manner
:
(a)
The school shall correct an application by December 15 for applications received during an open application period prior to the third Friday in September and by
the due date for the second Friday in January enrollment audit required under s.
PI 35.07 (1)
for applications received during an open application period after the third Friday in September. If the school does not correct the application
as required in this subsection
by the specified date, the application is ineligible.
(b)
The school shall obtain additional residency documentation after the open application period in which the application was received if all of the following apply:
1. The school received
residency
documentation from the parent during the open application period in which the application was received
and the residency documentation
contains the following:
a. An
address
.
b. The parent’s name, even if the name is misspelled, is abbreviated, or is a nickname.
2
. The
additional residency documentation is in the parent
’s
name, contains the parent
’s
correct address, and
meets the requirements in sub
s
.
(2) and
(3).
(c)
The school
shall
obtain a
prior year
tax transcript for each parent on the application showing that the family is income eligible for the program
based on the prior year income
if both of the following apply:
1. The application indicates the parent on the application received income.
2. The income documentation provided by the parent during the open application period in which the application was received is not for the correct year or is not the required document for the type of income included on the application.
(d)
The school
shall
obtain a
prior year
tax transcript for each parent on the application showing a verification of non-filing and support that the parent received the government assistance
in the prior year
that is
identified on the application
,
or a
prior year
tax transcript
showing
the parent did not receive any income
in the prior year
if both of the following apply:
1. The application indicates the parent on the application did not receive income but
participated in government assistance programs.
2. The government assistance programs documentation provided by the parent during the open application period in which the application was received is not for the correct year or is not the required document for the type of government assistance included on the application.
(e)
The school
shall
obtain documentation showing that the pupil participated in kinship or foster care if the application indicates the pupil participated in the kinship or foster care program but the school did not receive documentation that complies with the requirements in sub. (4).
PI
35
.0
6
School year enrollment.
PI 35.04(3
)
(
1
)
A
pplication
acceptance
.
A
school
may not accept pupil applications until the school has completed
all of
the following:
PI 35.04(3
)(
a)
(a)
The school has submitted
to the department
its notice of intent to participate for the following
school year
required under s.
PI
35
.03 (3)
or a new private school has submitted the
information
required
under s.
PI 35.04
(
2
)
.
(b)
The department has approved the school
’s
plan for randomly selecting pupils to participate in the
choice
program or the school has adopted the random selection agreement provided by the department
as set forth under s
.
PI
35
.03 (
3
) (a)
or
s.
PI 35.0
4
(
2
) (a)
.
(2)
A
pplication
eligibility
&
verification
.
A school
shall make
application eligibility determinations
based on the requirements in s.
PI
35
.05
. The determination shall be made
prior to random selection
,
prior to the next application period,
within 60 days
after
the school receives the application
,
or prior to the next
count
date,
whichever
occurs first.
The school shall also verify a
pplications
in the online application system within 60 days
after
the school receives the application or prior to the next
count
date, whichever
occurs first
.
(3)
R
andom
selection
.
A
school
shall accept pupils on a random basis in accordance with the method submitted
to the department
and approved
under s.
PI
35
.03
(
3
)
(a)
or
s.
PI 35.04
(
2
) (a)
.
(
4
)
A
pplication
retention
.
A
school shall retain
the
following
records
for at least 5 years from the
end of the school year
in which the pupil
applied
to the school
unless
the
department or a law enforcement agency requires the school to retain the records for a longer period:
(a)
Electronic or paper copies
of pupil paper applications and
supporting income and residency documentation required under s.
PI
35
.05
for all
accepted an
d
non-accepted
c
hoice pupils
who have
submitted applications to the school
.
(b)
Copies of all notices
to a pupil or pupil
’s
parent
regarding
acceptance and non-acceptance
.
(c)
Any other correspondence related to
a
pupil.
(5)
S
imultaneously
enrolled pupil
.
A pupil
participating in
the
choice program
may
not
receive a choice program payment under s.
119.23
, Stats
.,
and
be simultaneously
enrolled
, in or out of Wisconsin,
in
another
private
school, a home-based private educational program, a charter school under s.
118.40
(2r)
or
(2x)
, Stats., or a public school district
.
A pupil receiving a payment under s.
119.23
,
Stats
.,
may not receive a
payment under s.
11
5.7915 (4m)
or
118.60
, Stats.
(6)
F
ull-
time equivalent
. The amount paid
by the department to a school under s.
119.23
(4)
,
Stats.,
shall be based on the
full-time equivalent
for each pupil
times the payment amount in s.
119.23
(4)
, Stats
.
The
full-time equivalent
shall be determined as follows:
(a)
Pupils i
n grades one through 12 shall be one
full-time equivalent
.
(b)
A kindergarten pupil
shall be one-half
full-time equivalent
except as follows:
PI 35.02(8
)(
c)1.a.
1.
A pupil enrolled in a 5-year-old kindergarten program
that requires
full-day attendance for 5 days a week
, but not on any day of the week that pupils enrolled in other grades in the school do not attend school,
for an entire school
term
shall be
counted as
one
full-time equivalent
.
2
.
The
full-time equivalent
for a
pupil enrolled in a 5-year-old kindergarten program requiring full-day attendance for fewer than 5 days a week for an entire school
term
shall be calculated
as follows:
a.
M
ultiply
the number of hours in each day in which the pupil is enrolled by the total number of days for which the pupil is enrolled
.
b.
D
ivid
e
the result
under
sub
d
.
2.
a
.
by the number of hours of attendance per day required of first grade pupils in the public school district in which the school is located
.
PI 35.02(8
)(
c)2.
PI 35.02(8
)(
d)
3.
A school may count a pupil enrolled in a 4-year-old kindergarten program that provides the required number of hours of direct pupil instruction under s.
121.02 (1) (f)
, Stats., as a 0.6
full-time equivalent
if the program also annually provides at least 87.5 additional hours of 4-year-old kindergarten outreach activities.
4.
For
purposes of
subds
. 1.
and
2.
, "full-day" means the length of the school day required for first grade pupils in the public school district in which a school is operating.
(
7
)
S
eptember 1
application
and
class list submission
.
Annually by September 1, a school shall submit to the department in the online application system or
other
manner specified by the department
all
of the following:
(
a
)
All
accepted applications.
(b)
A class list of all pupils
enrolled
in
the
choice program
at
the school
by grade level.
(
8
)
A
pplication
submission
and
pupil count reports
.
Annually by October 1 and February 1
,
a
school shall submit to the department
,
using the online application system or
other
manner specified by the department
,
all of the following
:
(a)
A
pupil count
report
stating
all of the following:
1. T
he
grade of each pupil participating in
the
choice program on the immediately preceding count date
. In order to be eligible for payment, a 4-year-old kindergarten pupil, 5-year-old kindergarten pupil, and first grade pupil shall attain the age specified in s.
118.14
(1)
, Stats.
2. W
hether each
choice program
pupil meets the requirements
under
sub. (
9
).
3. T
he
total number of pupils in the school on the
immediately preceding
count date
that meet the requirements
under
sub. (
9
)
.
(
b
)
All accepted applications the school received that were not previously reported under sub. (
7
).
(
9
)
C
ount
requirements
.
A school may include a pupil on its
pupil count report
under sub. (
8
)
(
a
)
only if one of following
appl
ies
:
(a)
The pupil is in attendance for instruction on the count date.
(b)
PI 35.04(7
)(
a)2.
The pupil is absent on the
count date
but attended
the school
for instruction at least one day during the school term prior to the
count date
and
at least one day after the
count date
,
and
t
he pupil
w
as not enrolled in a
nother
school in or out of Wisconsin
,
including another
private
school, a home-based educational program, a charter school under s.
118.40
(2r)
or
(2x)
, Stats., or a public school district
,
during the period of absence
from the school
.
PI
35
.
07
Enrollment
a
udits
.
(1)
R
eport
c
ompletion and
s
ubmission
. A school shall engage an auditor to compile the enrollment audit using agreed upon procedures that identify ineligible pupils for whom the school has received payment under s.
119.23
(4)
or
(4m)
, Stats., and additional eligible pupils qualifying the school for a payment.
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
.
A
school shall submit
an
enrollment audit
to the department
for the following
:
(a)
The third Friday in September
enrollment reported under s.
PI 35.06 (8)
.
A
school shall submit its
third Friday in September enrollment audit
by December 15.
(b)
The
second
Friday in
January
enrollment reported under s.
PI 35.06 (8)
.
A
school shall submit its
second Friday in January enrollment audit by May 1
if the school
also participates in a program under s.
118.60
, Stats
.
T
he school shall submit its second Friday in January enrollment audit by
June 30
if the school is not
also
participating in a program under s.
118.60
, Stats
.
(c)
Notwithstanding par. (b), t
he second Friday in January enrollment
audit
shall be submitted to the department
by the following September 1 for the school year ending June 30, 2016.
(
2
)
S
chool
r
ecords
.
A
school shall provide
its
auditor
with
the official attendance records and
the
original classroom records
for the auditor
’s
use in conducting the enrollment
audit
.
The official attendance records shall identify pupils participating in the choice program.
(
3
)
R
equired
p
rocedures
.
An auditor shall complete the procedures specified in the department
’s
audit guide
,
including all of
the following:
(a)
Determine the school
’s
process for preparing attendance records and accepting and reviewing applications.
(b)
If a school counts any
4-year-old kindergarten
pupil as a
0
.6 full-time equivalent
,
as provided under s.
PI 49.06 (6) (b) 3.
, v
erify
that
the
4-year-old kindergarten program
is
providing
at least 87.5 hours of
4-year-old
kindergarten
outreach activities as documented by teacher logs
.
(c)
Complete a fraud risk assessment.
(d)
C
omplete testing of the
pupil enrollment software
using one of the following:
1.
The department’s pupil enrollment software test plan.
2. A pupil enrollment software test plan developed by the auditor. The auditor shall
annually
submit the plan to the department for approval. The auditor shall not use the test plan until it is approved by the department.
(e)
Verify that the total number of pupils part
icipating in the choice program
on the official attendance records match the total number of pupils part
icipating in the choice program based
on the original classroom records for each grade.
(f)
Verify that the total number of pupils attending the school on the official attendance records match the total number of pupils based on the original classroom records for each grade.
(
g
)
Verify
the
enrollment
for all choice program pupil
reported on the
pupil count report
under
s.
PI
35
.0
6
(
8
)
(a)
using
the school
’s
official attendance records.
(
h
)
Verify
all of
the following:
1.
That all
choice program
pupils
the school
include
d
on
its
official attendance records are
also
included on the original classroom records.
2. That all
choice program
pupils
the school
include
d
on the school
’s
original classroom records are
also
included on the official attendance records.
(
i
)
Verify that
the choice program pupils meet the requirements of s.
PI
35
.06
(
9
)
.
(
j
)
Verify that
the school
did not
receive a payment under s.
119.23
(4)
or
(4m)
,
Stats.,
for any of the following:
1.
Pupils
for whom the school is receiving a childcare payment for all day care.
2.
Pupil
s
who are enrolled in a public school district.
3.
Pupils pa
rticipating in
the
program under
s.
11
5
.
7915
, Stats.
(
k
)
Reconcile tuition revenues and pupils for whom tuition is waived with the school
’s
official attendance records that identify pupils who do not participate in the choice program. If
the school charges a
choice program pupil
tuition,
ensure the school obtained documentation indicating the pupil meets the requirements of s.
119.23
(3m)
(b)
, Stats.
(
L
)
Select a sample of at least 60 pupils not participating in the choice program from original classroom records
and verify the school included the selected pupils in
the
pupil count report
under s.
PI
35
.06 (
8
)
. The sample shall include pupils from each classroom.
If the pupils are in different classrooms during the day, the auditor may select one period and select pupils from each classroom for that period.
If the auditor identifies an auditing exception, the auditor shall increase the sample size in increments of 60 pupils until the auditor finds no additional exceptions or until the auditor verifies that all pupils have been properly included in reported enrollments. If the school has an enrollment of fewer than 60 pupils who d
id
not participate in the choice program,
the auditor shall examine
records for all pupils
who did not participate in the choice program
.
(
m
)
Reconcile the enrollment the school reported to the department under s.
115.30 (3)
,
Stats.
,
with the official attendance records
of the school
.
(
n
)
Verify
that
the applications for pupils participating in the choice program
meet the
requirements of
s.
PI
35
.05
.
(
o
)
Verify that
any pupils in 4-year-old kindergarten, 5-year-old kindergarten
,
or first grade meet the age requirements in s.
118.14
(1)
, Stats.
(
p
)
If the school operated a summer school program, review all school documentation to support
the
summer school report the school filed with the department
under s.
PI 35.08 (5)
. The review shall be part of the third Friday in September enrollment audit.
(
q
)
Perform other auditing procedures as agreed upon by the auditor and the department.
(
4
)
C
ertifications
.
(a)
Upon review of the
enrollment audits
, the department shall certify an amount due from
a
school for payments made to the school for ineligible pupils or an amount due
to
the school for
additional eligible
pupils.
If a school fails to provide an
enrollment audit
,
the department
may
determine that all
c
hoice
pupils
are
ineligible.
(
b
)
A
school shall refund
to
the department the amount certified as due
to
the department
as follows:
1.
If the school is currently
eligible to receive
choice
program
payments,
the department shall reduce the
payments made
under s.
119.23
(4)
and
(4m)
,
Stats.,
by the amount owed.
2.
If the school is not currently
eligible to
receiv
e
choice
program
payments, the
school
shall
refund the department
within
30
days of the date
of
the certification letter.
(
c
)
The department shall pay any additional amount due
to
a
school for qualifying pupils
within 60 days of the date of the certification letter
.
Note:
The
e
nrollment
a
udit
form and department’s pupil enrollment software test plan
may be obtained at no charge from the Wisconsin department of public instruction
’s
webpage at
http://dpi.wi.gov/sms/choice-programs
.
PI
35
.
08
Summer school attendance and payment.
(1)
D
efinition
.
In this
section, "academic purposes" means summer school learning experiences that are related or similar to instruction the school offers during the regular school
term
or for which credit toward graduation is given.
(2)
L
ist of
classes
. Annually by May 1, a school shall submit the list to the department of academic summer school classes and laboratory periods
that the school will provide in the following summer
.
The department shall annually review the list to ensure the classes are for academic purposes.
(
3
)
P
rogram
requirements
.
(a)
To be eligible to receive a choice program summer school payment, a school shall
offer no fewer than
19
summer days of instruction during the summer.
Each summer day of
instruction offered by the school shall be comprised of no fewer than 270 minutes of instruction for academic purposes. A school may count any of the following as instruction for academic purposes:
1.
Music programs, lessons, sections
,
or clinics.
2.
Swimming instruction programs, if
taught or directed on the school site.
3.
Field trips if accompanied by a teacher and if all pupils have equal access to the field trips regardless of a pupil
’s
ability to pay.
(b)
A school may not count any of the following as instruction for academic purposes:
1.
Travel time to events, including field trips.
2
.
Performances, including band, orchestra, choir, parade
,
and theatrical performances.
3.
Recreational programs and team sports.
4.
Participation in fairs or expositions by career and technical student organizations
.
5.
5.
Classes taught by a teacher that is funded through Title
I of the
E
lementary and
S
econdary
E
ducation
A
ct
.
6
.
Any offering not provided
or directed
by a teacher.
(
4)
P
upil
attendance requirements
. A school may include a pupil in its sum
mer school report if all of the following apply:
(a)
The pupil was in
the
choice program on the
second
Friday in January during the school term immediately preceding the summer for which the school seeks payment, or the school has accepted the pupil
’s
choice program application for the school term immediately following that summer.
(b)
The pupil attends summer school instruction for academic purposes for at least
15
days.
(5)
R
eport
.
Annually
by October 1 immediately following summer school,
a
school counting pupils for choice summer school payment purposes shall submit to the department a summer school report listing the choice program pupils who attended summer school and the number of days the pupils attended. The school shall report this information on a form provided by the department.
PI
35
.09
Financial
audit
.
(1)
F
inancial
audit requirement
. Annually by October 15,
a
school shall provide a financial audit and financial audit supplemental schedule to the department. The financial audit shall be prepared in accordance with generally
accepted
accounting
principles
and shall comply with all of the following
:
(a)
Except as provided under par. (b), the financial audit shall include
2
year comparative financial statements containing all of the statements r
equired by generally accepted accounting principles, including a
statement
of
financial position
, a
statement
of
activities
,
and a
statement
of
cash flows
.
(b)
The first year a school completes a financial audit for
a program under s.
118.60
or
119.23
,
Stats.
,
the
statement
of
activities
and
statement
of
cash flows
may only include the current school year.
(c)
The financial audit shall either
include
the school-only balances and activity or shall be prepared at the consolidated level as permitted by generally accepted accounting principles.
(d)
A school may provide a financial audit that includes a modified audit opinion due to fixed assets purchased in previous years not being included in the financial audit. A
financial audit that includes a modified audit opinion for any other reason does not meet the requirements under s.
119.23
(7) (am) 2m. a.
,
Stats.,
unless the modification is approved by the department.
(2)
C
ompliance with American Institute of Certified Public Accountants
requirements
. As provided
under
s.
119.23
(7) (am) 2m. a.
,
Stats.,
an
auditor engaged by
a
school to provide the audit opinion in this section shall comply with the auditing standards established by the American Institute of Certified Public Accountants
,
including
all of
the following:
(a)
The auditor shall develop written audit programs identifying the steps and procedures to be followed in conducting the audit, including establishing the planning materiality that the auditor will use for the audit.
(b)
The auditor shall trace all entries on the financial audit
and financial audit supplemental schedule
to the trial balance provided by the school
under s.
PI
35
.11 (2)
.
(c)
The auditor shall obtain sufficient appropriate audit evidence to conclude that the financial statements do not contain misstatements the effect of which, when aggregated with misstatements in other accounts and transactions, exceeds the planning materiality and result
s
in a material misstatement in the financial statements or in the school
’s
net eligible education expenses. The auditor shall determine sufficient appropriate audit evidence based on the requirements of the American Institute of Certified Public Accountants.
PI
35
.10
Financial
audit supplemental schedule
.
(1)
E
ligible
education expenses
. The eligible education expenses included in the
financial audit supplement
al
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 expenses that are in the
s
tatement 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
.
(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, capital 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 that are fully included as eligible
education
expenses under s.
PI 49.09 (
3
)
(a)
.
5.
Expenses for p
upils who are enrolled in the public school district
and attending the private school
.
(2)
A
uditor
review
of
eligible education expenses
.
An
auditor shall ensure the eligible education expenses
a
school included in the supplemental schedule comply with
sub. (1)
and
the policy established
under
s.
PI
35
.13 (5) (h)
.
(3)
S
upplemental
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
, excluding eligible education expenses in s.
PI 49.09 (3) (a)
.
2. Subtract
all
government assistance revenues
received for
eligible education expenses
, excluding eligible education expenses in s.
PI 49.09 (3) (a)
.
3. Subtract
fundraising revenue
, up to the non-
administrative
fundraising
expenses
in
subd
. 1.
In this subdivision, administrative expenses include expenses for school personnel, copying, mailing, or capital assets used for other school purposes.
4. Subtract
all
insurance proceeds
received for eligible education expenses
, excluding eligible education expenses in s.
PI 49.09 (3) (a)
.
(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 s.
PI 35
.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
.
2. Add the prior year reserve balance, if any.
3. Subtract the
amount
determined under par. (b).
(
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
).
2. Subtract the amount
under
subd
. 1. from the
amount
under
par. (
c
).
(
4
)
M
aintain
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
)
.
(
5
)
F
inal
financial audit
.
If a school ceases to participate or is barred from participation in all
of the
programs the school is participating in under s
s
.
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.
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
)
R
efund of the
reserve
.
If a school ceases to participate or is barred from participating in all
of the
programs
the school is participating
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. The school shall make the refund within 30 days of the date of the closure payment letter sent to the school by the department.
PI
35
.11 School financial requirements.
(1)
E
ngagement
l
etter
. A school shall have a written engagement letter with each auditor providing services required by this chapter. The school or auditor shall provide a copy of the engagement letter to the department upon request. The written engagement letter shall contain all of the following:
(a)
A statement that the auditor shall comply with generally accepted auditing standards and the requirements of this chapter.
(b)
A statement that the auditor shall comply with generally accepted governmental auditing standards if other governmental agencies providing funds to the school
so
require.
(c)
PI 35.046(1
)(
b)2.
The responsibilities of the school and the auditor in meeting the requirements of this chapter.
(d)
The services the auditor provides to the school that are in addition to those audit and attestation services required under this chapter.
(e)
The auditor
’s
acknowledgement that the department will rely on the auditor
’s
work to fulfill the department
’s
responsibilities under s.
119.23
,
Stats.,
and this chapter.
(f)
The auditor
’s
compensation for the services the auditor provides to the school.
(2)
F
inancial
a
ccounting
s
ystem
. A school shall balance the financial accounting system required under s.
PI
35
.13 (1)
and provide the auditor with a trial balance of the account balances.
(3)
A
djusting e
ntries
. A
djustments to the school’s trial balance
recommend
ed
by
a
school’s
auditor
shall be approved by the school
before the entries are
recorded in the school
’s
financial accounting
system
.
(4)
R
ecords r
etention
. A school shall retain all financial and pupil records relating to
the enrollment audits under s.
PI
35
.07
, the
audit required
under ss.
PI
35
.
09
and
PI
35
.
10
, and the report on fiscal and internal control practices under s.
PI
35
.13
for at least 5 years from the due date of the financial audit, unless the department or a law enforcement agency requests the school retain the records for more than 5 years.
(5)
R
ecords
availability
.
A school shall furnish all financial and pupil records the auditor considers necessary to provide the audit opinion or agreed upon procedure reports. Upon request by the department, a school shall provide the department access
and copies
to the records referenced in the auditor
’s
working papers.
(6)
S
chool
responsibility
. An auditor
’s
failure to completely or properly perform the responsibilities set forth in s.
119.23
,
Stats.,
or this chapter is not a defense to any determination the department makes that there is an amount due from a school or to a school under s.
PI
35
.07 (4)
or
PI
35
.10 (
6
)
.
(7)
A
uditor
b
ar
. A school participating in the choice program may not engage an auditor who
the department bars
under
s.
PI
35
.12 (7)
,
PI 48.
12 (7)
, or
PI 49.
11
(7)
until such time as the auditor provides evidence acceptable to the department that the auditor has made procedural changes and has successfully completed professional development training that enables the auditor to comply with the requirements of this chapter
,
ch.
PI 48
,
ch.
PI 49
, and ss.
115.7915
,
118.60
, and
119.23
, Stats
.
.
PI
35
.
12
Auditor
r
equirements
.
(1)
I
ndependence
requirements
.
An
auditor
engaged by
a
school
to meet the requirements under this chapter and s.
119.23
, Stats.,
shall comply with the standards of the American Institute of Certified Public
Accountants, including all of
following:
(a)
TheTheThe
An
auditor shall comply with the requirements of s.
Accy
1.101
.
(b)
An
auditor shall obtain the school
’s
trial balance
required
under s.
PI
35
.
1
1
(
2
)
if
the auditor is
completing compilation or review services.
(c)
Except as provided in
par
. (d),
an
auditor
may not
post or prepare for posting
typical reoccurring financial transactions to the school
’s
general ledger, including
cash receipts and disbursements, invoices or billings for services, billings from vendors and suppliers,
and
payroll activity
.
(d)
An
auditor shall obtain written approval of the school
’s
management prior to posting adjusting, correcting, and closing journal entries to the school
’s
general ledger.
An
auditor
’s
working papers shall document evidence of management approval for all such entries resulting from a financial statement compilation, review
,
or audit.
(e)
If
an
auditor assists in the preparation of
a school
’s
budget, the auditor shall
do all of the following:
2.
I
dentify that such assistance was provided
,
if required by the department.
(
2)
I
nquiries
. An auditor shall promptly respond to inquiries
or requests
made by the department. The auditor shall notify the school of any inquiries or requests made
by the department
and the auditor
’s
response.
(3)
W
ork
ing
paper
s
retention
.
An
auditor shall retain working papers relating to
the enrollment audits under s.
PI
35
.07
, the audit
required
under s
s
.
PI
35
.
09
and
PI
35
.
10
, and the report on fiscal and internal
control practices under s.
PI
35
.13
for at least 5 years
from the due date of the
financial audit
, unless the
department or a law enforcement agency requests the auditor
to
retain working papers for more than 5 years
.
(4)
W
ork
ing
paper
s
review
. An auditor shall permit the department to review audit working papers prepared in support of the enrollment audits under s.
PI
35
.07
,
the
audit
required
under
s
s
.
PI
35
.
09
and
PI
35
.
10
,
and the report on fiscal
and internal control
practices under
s.
PI
35
.13
. The auditor shall promptly provide copies of working papers
the department requests.
(
5
)
A
uditor
peer review report
.
An auditor
completing any of the
audits and agreed upon procedure reports
under
s.
119.23
,
Stats.
,
or
this chapter
shall
submit
the auditor
’s
peer review
required under s.
442.087
, Stats.,
to the department within 30 days of
the
report
’s
issuance.
(
6
)
L
icense
requirements
.
(a)
The
auditing firm
that is engaged by a school to complete
the audits
and agreed upon procedure reports
under this
chapter
or s.
119.23
,
Stats.
,
shall be
licensed as a certified public accounting firm by the accounting examining board under
c
h.
442
, Stats.
(b)
The
individual auditor who
signs the engagement letter for the audits and agreed upon procedure reports
under this chapter or s.
119.23
,
Stats.,
shall be a licensed certified public accountant
by the accounting examining board under
c
h.
442
, Stats.
(7)
A
uditor
bar
.
(a)
The department may bar
PI 35.05(2)(c)
PI 35.05(2)(d)
a
n
auditor who fails to timely and properly fulfill the auditing and reporting requirements of this chapter or
11
9.23
,
Stats.
(b)
An auditor who is barred under par. (a)
shall
not complete accounting, auditing
,
or other reporting requirements for any school participating in
a program under ss.
115.7915
,
118.60
,
and
119.23
, Stats.,
until such time as the auditor
submits
to the department
evidence acceptable to the department that the auditor has made procedural changes
to the manner in which the auditor conducts an audit
and has
successfully completed
professional development training that will enable the auditor to comply with the requirements of this chapter
,
ch.
PI
48
,
ch.
PI 49
, and ss.
115.7915
,
118.60
, and
119.23
, Stats
.
PI
35
.13
Fiscal and internal control practices.
(1)
Financial
a
ccounting
s
ystem
.
A school
participating in
the
choice program
shall use a double entry financial accounting system organized in a manner that enable
s
preparation of the
audit
under
s
s.
PI
35
.09
and
PI
35
.10
and
contains
any
other information
necessary
to fiscally manage the school. The accounting system shall identify all sources of funding
a
school uses
in the school
’s
operation
.
The accounting system shall
identif
y
all of the following if the school receives revenue from the specified source:
(a)
Revenue from pupils participating in the choice program.
(b)
Revenue
from parents or other
privately paid
tuition pupils.
(c)
Revenue from the school district in which the school is located for instruction
of
pupils enrolled in the school.
(d)
Revenue from the school district in which the school is located for transportation of the school
’s
pupils.
(e)
Revenue from federal, state
,
and local governments.
(2)
C
ontinuing
school budget
.
A school that is not a first time participant shall complete all of the following:
(a)
A
nnually
by June 30,
a budget for the
following
school year
that
contains all of the following:
1.
A
nticipated enrollments for all pupils enrolled in the school
.
2.
Anticipated enrollments
for choice program pupils
.
3.
E
stimated total revenues and costs
.
5.
A
schedule of anticipated beginning and ending
net assets.
6.
Identification of the
contingent funding sources the school will use should actual enrollments be less than expected.
(b)
I
f
a school’s
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 the school used in the budget required under par.
(a)
, the school shall
,
a
nnually by November 1,
complete
a revised budget containing
all of
the
following:
1. The information
required in par.
(a)
that
reflects revenues resulting from the school’s actual third Friday in September enrollment
.
2. Any other required budget changes
related
to the change in
revenues resulting from the school’s actual third Friday in September enrollment
.
(3)
E
xpense
p
ayment
.
A school shall
pay in full
all
of
the following
as required by the written agreement or, if there is no written agreement,
within 90 days of
the
receipt of
the
invoice or payment request:
(a)
Amounts owed
to vendors.
(b)
Reimbursements to employees and other
persons
for expenses incurred on behalf of the school.
A
school
may only
reimburse an employee or other person
if the employee or other person
submits
receipts supporting the reimbursement
to the school
and the request for reimbursement is made within the time period specified in the school
’s
written policy for reimbursement
.
The school shall
retain a record of all reimbursements, including supporting receipts
.
(4)
E
mployee compensation
.
A school shall do all of the following:
(a)
H
ave a
signed,
written
agreement
for each employee
each employee
stating
the
employee’s compensation
.
(b)
P
rovide each employee with a document that states the
dates
that the school will pay the employee
. The school shall provide a copy of this document to the employee before the school makes the first payment required by the document.
(c)
Provide a written document to the employee specifying any changes
to a document under
par. (a)
or
(b)
before any change is effective.
(d)
M
ake payments to employees based on the documents
in
par
s
. (a)
to
(c)
.
(5)
F
inancial
internal control s
ystem
.
A school shall have an adequate system of financial internal controls
which
require
s
a
school to do all the following:
(a)
Depos
it
all receipts and pay all disbursements from a depository account maintained solely for the school
’s
purposes unless the operating organization
’s
financial accounting system separate
ly
identifies
the school
’s
transactions
and account balances
. The depository account
the school or its operating organization uses for school purposes
shall be located in the state of Wisconsin.
(b)
Maintain documentation as to the nature and source of all cash receipts.
(
c
)
Us
e
pre-numbered checks for all non-electronic school disbursements
except those from a petty cash fund.
(
d
)
Maintain invoices and payment requests supporting disbursements.
(
e
)
Ensur
e
that no
checks or other withdrawals
are
denied due to insufficient funds.
(
f
)
Authoriz
e
electronic fund transfers by the school in accordance with a policy established by the school.
(
g
)
Reconcile
the school
’s
bank accounts on a monthly basis.
(h)
Establish a policy indicating what expenses
will be included in eligible education expenses and the methods that will be used to allocate any expenses
or government assistance revenues
that are related to eligible education expenses and other activities.
(6)
G
overnment
agency filings
and
payments
.
A school shall be current with all of the following:
(a)
Filing, payments, and withholdings payment requirements of the U.S.
internal revenue service
.
(b)
Filing, payments, and withholdings payment requirements of the Wisconsin department of revenue.
(c)
Filing and payment requirements of the Wisconsin department of workforce development.
(d)
Filing and payment 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 entities. The school shall
submit
to
the department a copy of audit reports issued or revisions
of such reports
within 30 days of submission to the requiring government agency.
(7)
L
iability
insurance
.
A school shall have
insurance coverage
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.
A school
’s
m
inimum
insurance
coverage shall be as follows:
(a)
Worker
’s
compensation insurance as specified
in
ch.
102
, Stats.
(b)
Commercial general liability insurance in the following amounts unless the coverage amounts are based on a written recommendation of a risk or insurance consultant.
1.
For
each occurrence, minimum coverage in the amount of $1,000,000.
2.
Personal injury coverage of not less than $1,000,000.
(c)
Umbrella excess liability
insurance with
an aggregate limit minimum coverage of $5,000,000, unless the coverage amount
is
based on a written recommendation of a risk or insurance consultant.
(d)
Auto liability
insurance
with
a combined single limit minimum coverage of $1,000,000 for each accident unless the coverage amount is based on a written recommendation of a risk or insurance consultant.
(e)
Errors and omissions
insurance
for school
management
with
an aggregate limit minimum coverage of $1,000,000 unless the coverage amount is based on a written recommendation of a risk or insurance consultant.
(f)
Sexual misconduct liability
insurance with
an aggregate limit minimum coverage of $1,000,000 unless the coverage amount is based on a written recommendation of a risk or insurance consultant.
(8)
S
chool
bus
.
If a school operates or contracts for the operation of school buses with an organization other than a Wisconsin school district, the school or the contracted operator shall have school bus insurance as required
under
s.
121.53
,
Stats
.
,
and
complete
the inspections required
under
s.
TRANS
300.87
. The school may not contract for the school bus operation with an organization other than a Wisconsin school district unless the operator has provided the school with a certificate of insurance meeting the requirements of s.
121.53
, Stats
.
,
and has completed the inspection report required
under
s.
TRANS
300.87
.
(9)
A
lternative
vehicle pupil transportation
.
Any motor vehicle, other than school buses, used by a
school
to
provid
e
pupil transportation
shall
compl
y
with the conditions specified in s.
121.555
, Stats.
(10)
R
isk
management
and
insurance evaluation
.
A school shall have a written risk management and insurance evaluation
completed
by a risk or insurance consultant at least once every 3 years.
(11)
F
idelity
bond
.
A school shall have a fidelity bond indemnifying the school against loss resulting from dishonesty, malfeasance, or neglect by owners, officers
,
and employees.
(
12
)
E
mployee
education
.
A school shall ensure all teachers, administrators, and teacher aides meet the requirements of
s
.
119.23
(2) (a) 6.
and
(7) (b) 3.
, Stats
.,
and s.
PI
35
.
16
, unless a teacher or administrator is exempt under s.
119.23 (2) (c)
, Stats
.
(
1
3
)
M
anagement
letter review
.
An
auditor shall review the management letter
required
under
s.
119.23
(7) (am) 2m. a.
,
Stats.,
and
determine
whether
a
school has properly remediated any concerns raised by the auditor in the letter.
If the auditor determines
a
concern
has
not been properly remediated
by the school
, the auditor shall include the following in the report:
(a)
The concern that has not been properly remediated.
(b)
The action the school has taken
to remediate the
concern
.
(c)
The potential impact of not resolving the concern.
(d)
Recommendations for resolving the concern.
(14)
F
iscal and
internal control practices r
eport
.
A school shall engage an auditor to
submit
a report to the department
by
December
15 attesting to the school
’s
compliance or non-compliance with the fiscal and internal control practices required
in
this section. The report 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
shall
not rely on oral or written representations of the school
’s
management
or staff.
(b)
If the auditor determines that the school has not complied with the fiscal and internal control practices required
in
this section,
the report shall
include
a letter from the
school
describing the
reasons for noncompliance and
the
corrective action the school is taking.
PI 35.047 Note
Note:
The
f
iscal and
i
nternal
c
ontrol
p
ractices
r
eport
may be obtained at no charge from the Wisconsin department of public instruction
’s
webpage at
http://dpi.wi.gov/sms/choice-programs
.
PI
35
.
14
First
t
ime
p
articipant
f
inancial
r
equirements.
(1)
M
ay 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 school
shall
participate in a fiscal management training program approved by the department
and
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 enrollment
s
for choice program pupils.
3
. Estimated total revenues and costs.
5
. A schedule of anticipated beginning and ending net assets.
6
. A
schedule of monthly cash flows
.
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.
(
2
)
U
pdated
b
udget
s
.
By November 1 of a first time participant
’s
first year of participation, a first time participant school shall revise and submit to the department the information required in sub. (
1
)
to
reflect the school
’s
actual third Friday in September enrollments and any related changes in revenues, costs, and monthly cash flow requirements.
PI
35
.
15
Lack of financial viability and going concern determinations.
(1)
I
ndicators
.
Any of t
he following shall be indicators that a school
does not have the ability to continue as a going concern or that the school does not meet the financial viability requirements under s.
119.23
(7) (am) 2m.
b
.
or
119.23
(7) (d) 2.
, Stats.:
(a)
The budget and statement of cash flows required under s.
PI
35
.13
(2)
or
PI
35
.14
show the school has inadequate revenues and other financial resources to fund current operations
,
has
negative cash flows,
has
a negative net asset balance
,
or
has
a net
operating
loss
.
(b)
The audit opinion statement
included in the financial audit
contains a qualification as to the school
’s
ability to continue as a going concern.
(c)
The school failed to make payments as required
under
s.
PI
35
.13
(3)
or
(4)
.
(d)
The
school failed to
be current with
filings, payments
,
or withholdings payments
required
under
s.
PI
35
.
13
(6)
.
(e)
The audit reports
required under
s.
PI
35
.13
(6)
(f)
contain questioned costs or compliance findings that
may
affect the school
’s
ability to continue.
(
f
)
The school has a negative net asset balance in
its
financial audit
.
(
g
)
The school has a negative net current obligation in
its
financial audit
.
The net current obligation shall be calculated as
the current assets less the current liabilities.
(
h
)
The school has a net loss in
its
financial audit
.
(2)
I
nformation to be
submitted
.
A school shall
submit
to the department any information the department requires
to determine the ability of the school to continue financially
, including an audit of the school
’s
legal operating organization
prepared
in accordance with generally accepted accounting principles.
The school shall
provide
the department authority to speak directly to the U.S. internal revenue service,
the
Wisconsin department of revenue
,
or the Wisconsin department of workforce development to determine the school
’s
compliance with the requirements
under
PI
35
.
13
(6).
(3)
N
otification of
financial impairments
.
The school shall promptly notify the department in writing of impairments in the school
’s
ability to finance its operations.
(
4
)
N
otification of
ceasing operations
.
A school participating in the choice program shall notify the department immediately of a decision to cease educational program operations.
(
5
)
T
raining
.
Upon the request of the
department
,
a
school that ha
s
one or more of the indicators in sub. (1)
shall
attend
a
fiscal management training approved by the department.
(
6
)
F
inancial
viability review
and
surety bond requirement
.
(a)
The state superintendent shall review information
submitted
under s.
119.23
,
Stats.
,
and this chapter
and
determine
whether
a
school is financially viable.
(b)
If the state superintendent determines that
a
school is not financially viable,
t
he state superintendent may require
a
school to
immediately obtain a surety bond
. The surety bond shall be made payable to the
s
tate
of Wisconsin. The purpose of the bond shall be to protect the
department
and the taxpayers of Wisconsin against loss in the event
of any of the following:
2.
The school fails to timely refund any amount certified due from the school under s.
PI
35
.07 (
4
)
.
3.
The school fails to
timely
repay the reserve balance under s.
PI
35
.10
.
(c)
The amount of
the
bond required under
par. (
b
)
shall
be equal to 25% of the total current
school
year payment amount as determined under s.
119.23
(4)
and
(4m)
, Stats.
(
d
)
The bond shall remain in force until all of the following occur:
1. The school has a positive net asset balance for two consecutive
school
years, as indicated in the
school
’s
financial audit.
The net asset balance used for this determination
may only
include pledge receivables or other receivables for which
the school receives
cash payments within one year of the date pledged or
within
one year
of
the date the amount is
included as a receivable.
2. The school has a positive net current obligation for two consecutive
school
years, as shown by the
school
’s
financial audit
.
The net current obligation shall be calculated as the current assets less the current liabilities.
The asset balance used for this determination
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.
3. The school has net income for two consecutive
school
years, as indicated in the
school
’s
financial audit.
The net income used for this determination
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.
4. The school pays all amounts ow
ed
to
the U.S. internal revenue service, Wisconsin department of revenue, and Wisconsin department of workforce development on a timely basis for two consecutive years
, including
full payment of any wage claims
and past due amounts, interest
,
and penalties
.
The
school shall
submit to the department
a letter from each of these entities indicating compliance with this requirement and
provide
the department the authority necessary to speak
directly
to these agencies to confirm compliance.
5. The school has paid all vendors and employees as required by
s
.
PI
35
.
13
(3)
and
(4)
for two consecutive years.
6. The
school
’s
financial audit
does not contain a qualified audit opinion or an expression of the auditor
’s
doubt as to the school
’s
ability to continue as a going concern for two consecutive years.
7. If the school’s financial audit does not include all revenues, expenditures, assets, and liabilities of the legal operating organization of the school, the school shall submit to the department financial statements for the school’s legal operating organization prepared in accordance with generally accepted accounting principles
that meet all of the following requirements:
a. The financial statements
do not contain a qualified audit opinion or an expression of the auditor’s doubt as to the organization’s ability to continue as a going concern.
b.
The financial statements
are
two-year comparative financial statements that include the audit of the full-year financial information for the school years in which the requirements in
subds
. 1. to 6.
are
satisfied.
c. The financial statements show that the legal operating organization of the school also meets the requirements under
subds
. 1. to 5.
(
e
)
If the school is unable to complete the requirements in par. (
d
)
within
5 years from the date the department initially requires a surety
bond
or if the school
’s
financial position worsen
s
, the department may terminate the school from the program.
(
f
)
Upon the request of the department, a
school that is required to provide a
surety
bond under par. (b)
shall
do all of the following:
1. A
ttend fiscal management trainings
.
2. S
ubmit
to the department
budget and cash flow reports
and
turnaround plans
as
prescribed by
the department.
PI
35
.16
Administrator, teacher and teacher aide requirements.
(
1)
D
efinitions
. In this section:
(a)
“Accredited institution of higher education” means an institution that is listed on the U.S. Department of Education Database of Accredited Postsecondary Institutions and Programs.
(
b
)
“Administrator”
has the meaning given in
s.
119.23
(1) (
ae
)
, Stats.
(
c
)
“Teacher”
has the meaning give
n
in
s.
119.23
(1) (
d
)
, Stats.
(
d
)
“Teacher aide” means any individual
assisting with educational programming
who is not a teacher
or volunteer
.
(2)
A
dministrator and
teacher requirements
.
Except as provided under
s.
119.23
(2) (c)
,
Stats.,
all
administrators and teachers at
a
school shall comply with the requirements under s.
119.23
(2) (a) 6.
, Stats.
,
whether they are a paid employee, substitute, independent contractor
,
or uncompensated volunteer.
(3)
T
eacher
aide requirements
.
All teacher aides at the school shall comply with the requirements under s.
119.23
(7) (b)
3.
,
Stats., whether they are a
compensated or uncompensated
employee, substitute,
or
independent contractor.
(4)
F
oreign
degree transcript evaluation
. If an individual
requires
a bachelor
’s
degree
under s.
119.23
(2)
(a) 6.
, Stats.,
and
has
a degree or educational credential from a
foreign
institution, the
individual
shall
have the degree or
educational
credential, transcripts, and pattern of training
evaluated by
one of the following
professional evaluation service
s
to determine if
the
degree or credential
is equivalent to a bachelor
’s
degree from an accredited institution of higher education in the United States
:
(a)
Educational Credential Evaluators, Inc.
(b)
Academic and Credential Records Evaluation and Verification Service.
(c)
American Association of Collegiate Registrars and Admissions Officers.
(d)
Any other organization
members of
the National Association of Credential Evaluation Services or the Association of International Credentials Evaluators.
(5)
R
equired
documentation
.
A
school shall obtain and retain
the following
documentation
to demonstrate
that each administrator
and
teacher has the credentials
required under s
s
.
119.23
(2) (a) 6.
a
.
and
(2) (a) 6. b.
,
Stats
.
:
(a)
A
copy of the degree or diploma or an official transcript that states the month and year the degree was earned.
(b)
If the adm
inistrator or teacher
has a degree or educational credential from a foreign institution, the
school shall obtain a copy of the
evaluation report required under sub. (4)
and
ensure it indicates the individual has the equivalent of a bachelor
’s
degree
or higher
from an accredited institution of higher education
in the United States
.
(c)
A copy of the license issued by the department and verification that the license is current from the department website.
35
.
17
Auditor
f
ee
.
(1)
Annually b
y October 1
,
the
department
shall determine the amount of the nonrefundable fee a school shall pay to the department
under s.
119.23
(2)
(a)
3
.
,
Stats
. The
department
shall
calculate the amount of the auditor fee by dividing the
cost of the auditor position and unfunded prior year auditor costs, as determined by the department, by the number of schools that are required to submit the information under s.
PI
35
.
06
(
8
)
.
(2)
Except as
provided under
s.
PI 35.04 (1) (e)
,
a school shall pay
t
he auditor fee with a
cashier
’s
check
by January 10
of
the
year prior to the school year in which the school participates in the choice program.
PI
35
.
1
8
Income
l
imit
c
alculation.
Annually by December 1, t
he state superintendent shall calculate the income and tuition limits for pupil participation in the
choice
program for the next school year as follows:
(
1
)
Multiply the
most recent federal poverty level available from the federal office of management and budget
by 3.00
to determine the income limit for pupils participating
in
the choice
program in
the next school year.
(
2
)
Multiply the most recent federal poverty level available from the federal office of management and budget
by 2.20 to determine the income limit above which
a
school
may
charge tuition to choice
pupil
s who are in grades 9
to
12.
PI
35
.19 State aid payment calculation.
The state superintendent shall make
the
payment
s
under ss.
119.23
(4)
and
(4m)
,
Stats.,
to schools
participating in the choice program.
The state superintendent may withhold payment from a school under
s
s.
119.23 (4)
and
(4m)
,
Stats.,
if the school violates this chapter or s.
119.23
, Stats
.
The state superintendent shall make the payments
as follows:
(1)
S
eptember
payment
.
The
state superintendent
shall calculate the September payment as the
full-time equivalent for the
choice program
pupils
multiplied by the per pupil
payment amount
determined under s.
119.23
(4)
,
Stats.,
multiplied by 25%.
T
he
full-time equivalent
for the
choice program
pupils
at the school as of September 1
shall be based
on the report submitted under s.
PI
35
.06 (
7
)
. The
state superintendent
may not make a September payment to a school that has ceased instruction prior to the payment date.
(2)
N
ovember
payment
.
The department shall calculate the November payment as the
full-time equivalent for the
choice program
pupils
multiplied by the per pupil
payment amount
determined under s.
119.23
(4)
,
Stats.,
multiplied by 50% less the September payment received for the pupil.
The
full-time equivalent
for the
choice program
pupils
shall be based on the choice
program
pupils
reported by October 1
in
the
school
’s
pupil count report required
under s.
PI
35
.06 (
8
)
unless
a pupil is
determined ineligible by the department
.
The November payment shall include any payments due
to
the school for summer school instruction of choice program pupils in the immediately preceding summer as indicated in the report submitted under s.
119.23
(4) (a)
,
Stats.,
unless otherwise determined ineligible by the
department
.
The department may not make a November payment to a school that has ceased instruction prior to the payment date.
(3)
F
ebruary
payment
.
The department shall calculate the February payment as the
full-time equivalent for the choice program pupils
multiplied by the
per pupil
payment amount
determined under s.
119.23
(4)
,
Stats.,
multiplied by 25%.
The
full-time equivalent
for the
choice program
pupils
shall be based on the choice program pupils
reported
in
the
school
’s
pupil count report required
by
February 1 under s.
PI
35
.06 (
8
)
unless
a pupil is
determined ineligible by the department. The department may not make a February payment to a school that has ceased instruction prior to the payment date.
(4)
M
ay
payment
.
The department shall calculate the May payment as the
full-time equivalent for the
choice program
pupils
multiplied by the per pupil
payment amount
determined under s.
119.23
(4)
,
Stats.,
multiplied by 25%.
The
full-time equivalent
for the
choice program
pupils
shall be based on the choice program pupils
reported
in
the school
’s
pupil count report
required
by February 1 under s.
PI
35
.06 (
8
)
unless
a pupil is
determined ineligible by the department. The department may not make a May payment to a school that has ceased instruction prior to the end of its scheduled school
term
unless the school obtained prior written approval from the department to end the school term early.
PI
35
.20
D
epartment authority.
(
1)
I
nquiries
. Except as provided under s.
119.23
,
Stats.,
the department may make inquiries
to ascertain the accuracy and completeness of information contained in audits or reports required under s.
119.23
, Stats., or this chapter. Schools and auditors shall promptly respond to inquiries made by the department.
(
2
)
T
raining
. The department may provide training to school staff and auditors. The department may charge a reasonable fee for providing training
under this subsection.
(
3
)
D
isqualified
person
. The department may disqualify a person under
s.
119.23
(1) (ag)
,
Stats.,
whether the individual is compensated or uncompensated.
(
4
)
P
upil
confidentiality
. The department
shall
maintain pupil confidentiality at all times.
PI
35
.
2
1
Request for a hearing on department action
.
(1)
W
ho
may request
. A person
or school
adversely affected by a
n
action
of the department
under this chapter
or s.
119.23
,
Stats.,
may request a contested case hearing on that action. A request for a contested case hearing shall be filed with the office of legal services
within 14 days of the date of the department
’s
action.
Note:
See s.
227.42
, Stats. A request for a contested case hearing may be filed with the office of legal services at the following address:
Office of Legal Services
Wisconsin Department of Public Instruction
125 S. Webster St.
PO Box 7841
Madison, WI 53707-7841
(2)
R
equest
form
.
(a)
A request for a contested case hearing under sub. (1)
shall
be in writing and shall describe all of the following:
1. The department action on which a hearing is requested.
2. The
requester
’s
substantial interest claimed to be adversely affected.
3. How the department
’s
action adversely affected the requester
’s
substantial
interest
.
4. The grounds for the hearing request, including
each of the specific
material facts or legal issues that are in dispute.
Any material fact or legal issue that is not disputed shall be deemed admitted.
5. The relief sought.
(b)
Upon the request of the department, the person or school who filed a request for a hearing under sub. (1)
shall
provide the department with any additional clarifying information the department determines is necessary to decide whether to grant
or
deny a hearing request.
(3)
G
ranting or
denying request
.
(a)
The department shall grant or deny a request for a contested case hearing under sub. (1)
within
20 days after a request is filed, unless the person or school requesting the hearing agrees to an extension of time. The department may grant a request for a contested case hearing if, upon preliminary review, it appears that all of the following apply:
1
. The department has jurisdiction over the matter.
2
. The request for a hearing complies with the requirements under subs. (1) and (2).
3
. The requestor is entitled to a hearing under s.
227.42
, Stats.
(b)
Any action taken by the department which is contested under sub. (1)
shall
remain in effect until the state superintendent issues a final decision and order under s.
227.47
, Stats.
(
4
)
Transcript
.
(a)
Upon filing a written request with the
department
, any party in a contested case hearing may obtain a written transcript of the hearing
.
Except as provided in par. (b), t
he department shall charge the requesting party the actual cost
to produce the transcript.
(b)
The department may provide a written transcript free of charge to a requesting party if the requesting party demonstrates, to the department's satisfaction, that the requesting party is indigent and has a legal need for the transcript.
SECTION 2
. EFFECTIVE DATE:
The proposed rules contained in this order shall take effect on the first day of the month commencing after the date of publication in the Wisconsin Administrative Register, as provided
under
s.
227.22
(2)
(intro.)
, Stats.
