ORDER OF THE
STATE SUPERINTENDENT OF PUBLIC INSTRUCTION
ADOPTING
PERMANENT
RULES
The scope statement fo
r this rule, SS
081-15
, was published in
Register No.
716B
, on
August 31, 2015
, and approved by
State
Superintendent
Tony
Evers
on
September 15, 2015.
Pursuant to
Coyne v. Walker
, the Department of Public Instruction is not required to obtain the Governor’s approval for this rule.
Coyne v. Walker,
2016 WI 38
.
The
State Superintendent of Public I
nstruction hereby proposes to
create PI 49
, relating to
the Special Needs Scholarship Program
.
__________________________________________________________________________________________________
ANALYSIS BY THE DEPARTMENT OF PUBLIC INSTRUCTION
Statute interpreted:
s.
115.7915
, Stats.
E
xplanation 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.
Under s.
115.7915 (10)
, Stats., the department is required to promulgate rules to implement and administer the Special Needs Scholarship program, including rules relating to: (a) eligibility and participation of eligible schools
, including timelines that maximize child and school participation
; (b) calculation and distribution of scholarships; and (c) application and approval procedures for
pupil
s
and eligible schools.
Plain language analysis:
2015 Wisconsin Act 55
created the Special Needs Scholarship Program. The effective date of the program is the 2016-17 school year. Section
115.79
1
5 (10)
,
Stats.,
requires the department to promulgate administrative rules related to
pupil
and school application processes.
Additional changes to s.
115.7915
, Stats., were made by
2015 Wisconsin Act 289
and
2015 Wisconsin Act 297
, including requiring
schools accept applications in the order they are received
,
allowing an applicant to apply for the program at any time
,
and
expanding the list of private school accreditation entities.
This proposed rule creates procedures for administering the special needs scholarship program, including procedures related to the eligibility and participation of schools, the calculation and distribution of state aid paid for special needs scholarships, and the application procedures for
pupil
s
and private schools.
Summary of, and comparison with, existing or proposed federal regulations:
N/A
Comparison with rules in adjacent states:
N/A
Summary of factual dat
a and analytical methodologies:
The proposed rule is needed to implement the Special Needs Scholarship Program provided under s.
115.7915
, Stats., that was created by the 2015-17 budget,
2015 Wisconsin Act 55
.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report:
N/A
Anticipated costs incurred by private sector:
N/A
Effect on small business:
The proposed rules will have no significant economic impact on small businesses, as defined in s.
227.114 (1) (a)
, 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 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
which will provide information on the deadline for the submission of comments.
__________________________________________________________________________________________________
SECTION 1.
PI 49 is created to read:
SPECIAL NEEDS SCHOLARSHIP PROGRAM
PI 49.01 Purpose.
Any qualified pupil in grades kindergarten to 12 who meets the requirements under s.
115.7915
,
Stats.,
may attend any school participating in the special needs scholarship program under s.
115.7915
, Stats. This chapter establishes eligibility and participation requirements for schools participating in the special needs scholarship program under s.
115.7915
, Stats., the calculation and distribution of scholarships under s.
115.7915 (4m)
, Stats., and the application and approval procedures for pupils and eligible schools under s.
115.7915
, Stats.
PI 49.02
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)
“Applicant” means a child’s parent
who is acting
on behalf of
the
child, or, for a child with a disability who has reached the age of 18 and has not been adjudicated incompetent, the child.
(
3
)
"Classroom records" means teacher-
originated
test scores, report cards
,
progress reports,
and
attendance records.
(
4
)
“Count date” means the third Friday in September and the second Friday in January except as provided under s.
121.05 (3m)
, Stats.
PI 35.02(7)
(
5
)
"Department" means the Wisconsin department of public instruction.
(
6
)
“Eligible education expenses” means all direct and indirect costs associated with a private school’s educational programming for pupils enrolled in grades kindergarten to 12.
(
7
)
“Financial audit” means the audit of a school required under s.
115.7915 (6) (e)
,
Stats.
,
including the audit opinion.
(
8
)
“Full scholarship pupil” means a pupil who was determined to meet the application requirements of s.
115.7915
(2)
,
Stats.,
and
this
chapter, and is eligible for a payment under s.
115.7915 (4m) (a)
, Stats.
(
9
)
"Generally accepted auditing standards" means the auditing standards prescribed by the accounting examining board
under
s.
Accy
1.202
.
(
10
)
“Official attendance records” means a listing of all kindergarten through grade 12 pupils enrolled in the school by
grade
level.
(
11
)
“Parent” has the meaning given in s.
115.76 (12)
, Stats.
(
12
)
“Partial scholarship pupil” means a pupil who was determined to meet the application requirements of s.
115.7915
(2)
,
Stats.,
and this chapter, and is eligible for a payment under s.
115.7915 (4m) (e)
, Stats.
(
13
)
"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.
(
14
)
“Reserve” means the difference between the revenue received under s.
115.7915
,
Stats.,
and the amount of net eligible education expenses for special needs scholarship program pupils.
(
15
)
“Scholarship” means a payment under s.
115.7915 (4m)
, Stats.
(
16
)
"School term" has the meaning given in s.
115.001 (12)
, Stats.
(
17
)
"School year" has the meaning given in s.
115.001 (13)
, Stats.
(
1
8
)
"Special needs scholarship program administrator" means the person
designated as such on
the
notice of
intent to participate form
under s.
PI
49
.03 (3)
.
(
19
)
"
Special needs scholarship program
"
means the program established under s.
115.7915
, Stats.
(
20
)
"State superintendent" means the state superintendent of public instruction.
(
21
)
“Working papers”
mean
s
the record of audit procedures performed
by the auditor
,
the relevant audit evidence obtained by the auditor
, and
the
conclusions reached
by the auditor
.
PI 49.03 School requirements.
(1)
P
rivate s
chool
. A school participating in the special needs scholarship program shall be a private school as defined in s.
115.001
(3r)
, Stats.
(2)
S
pecial
n
eeds
s
cholarship
p
rogram
a
dministrator
. The special needs scholarship program
administrator
shall be one of the following:
(a)
An owner of the school.
(b)
A
n individual appointed as the school's special needs scholarship program administrator by the governing body of the organization operating the school.
(3)
N
otice of i
ntent to
p
articipate
.
Annually by March 1, a school that intends to participate in the special
needs
scholarship 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)
The
number of spaces the school has available for new
pupils
applying
to the
special needs scholarship
program
under s.
PI 49.05 (3)
or transferring to the school
under s.
PI 49.05 (5)
.
(b)
The number of full scholarship pupils and partial scholarship pupils that will continue to participate in the special needs scholarship program
based on the following:
1.
The school shall include all special needs scholarship program pupils on the
second
Friday in January count report submitted under s.
PI 49.06 (5)
, unless the school has received written correspondence from the parent withdrawing the pupil from the special needs scholarship program.
2. The school shall include
any other
special needs scholarship
pupils
accepted at the school after the
second
Friday in January
,
unless the school has received written correspondence from the parent withdrawing the pupil from the special needs scholarship program.
3.
The school may only identify a pupil as a partial scholarship pupil if the pupil’s individualized education program team has determined that the pupil is no longer
a child with a disability
as specified under s.
115.7915 (4m) (e) 1.
, Stats., prior to the date the school submits its notice of intent to participate to the department.
(c)
The school’s special education program profile required under s.
115.7915 (6) (g)
, S
tats.
(d)
The signature of the
head of the governing board
.
(4)
B
ackground c
hecks
.
A
school shall conduct a criminal background check prior to employing any individual at the school
and every 5 years
thereafter
.
A
school shall conduct the criminal background check for all employees, including contracted individuals.
A
school may not employ any of the following individuals:
(a)
Individuals who have engaged in immoral conduct as defined under s.
115.31 (1) (c)
, Stats.
(b)
Individuals who
are
not eligible for a teaching license under s.
118.19 (4)
, Stats.
(5)
C
ertificate of o
ccupancy
.
(a)
By May 1 prior to the first year a school participates in the special needs scholarship program,
the
school shall submit one of the following to the department for all locations of the school:
1. A certificate of occupancy issued by the municipality within which the school is located.
2. If the municipality within which the
building
is located does not issue certificates of occupancy, a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy.
3. A letter or form
from the municipality within which the
building
is located that explains that the municipality does not issue certificates of occupancy.
(b)
If a school moves to a new location or adds a new location, the school shall submit to the department one of the following before pupils attend the new location:
1. A certificate of occupancy issued by the
municipality within which the building
is located.
2. If the muni
cipality within which the building
is located does not issue certificates of occupancy, a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy.
3. A letter or form
from the municipality within which the
building
is located that explains that the municipality does not issue certificates of occupancy.
(c)
A temporary certificate of occupancy does not meet the requirement
s
of this subsection.
(d)
Notwithstanding par. (a), a school that first participates in the
special needs scholarship
program in the school year
ending June 30, 2017
, shall
meet
the requirements
under
par. (a)
for
the school year ending June 30, 2017,
by
August 1
, 2016
.
(6)
A
ccreditation r
equirements
.
Annually by August 1, a school participating in the special needs scholarship program shall provide to the department a letter from the school’s accrediting agency
under s.
115.7915 (2) (c)
,
Stats.,
stating that 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 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.
PI 49.04 Financial information and surety bond.
(1)
Financial
r
equirements
. The department shall calculate the amount of scholarships expected to be received by each school based on the number of pupils included in a school’s
notice of
intent to participate submitted under s.
PI 49.03 (3)
. If a school expects to receive at least $50,000 in scholarships
in
the following
school year
, the school shall do one of the following:
(a)
Annually by June 1 prior to the school year, provide a bond payable to the state of Wisconsin equal to 25
%
of the total amount of scholarships expected to be received by the school during the school year.
(b)
Annually by March 1 prior to the school year, submit financial information to the department that demonstrates that the school has the ability to pay an amount equal to the total amount of scholarships expected to be received by the school during the school year, including all of the following:
1. A budget and cash flow report, on a form provided by the department, f
or the
following
school year that
contains all of the following:
a. Anticipated enrollments for all pupils enrolled in the school.
b. Anticipated enrollment
s
for special needs scholarship program pupils.
c
. Estimated total revenues and costs.
e. A schedule of anticipated beginning and ending net assets.
2. 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.
3.
Submit to the department t
he most recent balance sheet and income statement for the legal entity of the school.
4.
Submit to the department b
ank statements for all cash and investment accounts included in the balance sheet required under
subd
. 3.
5.
Submit to the department a
ny other information required by the department to determine the financial position of the school.
(2)
F
inancial
i
nformation
r
eview
. The department shall review the financial information provided by a school under sub. (1) (b) and any other information available to the department to determine if the school meets the requirements under s.
115.7915 (6) (f)
2.
,
Stats. In making a determination, the department shall remove the special needs scholarship program revenue from the school’s budget to determine if any of the following indicators exist:
(a)
The school has inadequate revenues and other financial resources to fund current operations in the budget submitted under sub. (1) (
b
).
(
(b)
The school has negative cash flows in any month in the budget submitted under sub. (1) (
b
).
(c)
The school has a negative net asset balance in the financial audit or in the budget submitted under sub. (1) (
b
).
(d)
The school has a negative net current obligation in its financial audit or in the budget submitted under sub. (1) (
b
). The net current obligation shall be calculated as the current assets less the current liabilities.
(e)
The school has a net operating loss in the financial audit or in the budget submitted under sub. (1) (
b
).
(f)
The audit opinion statement included in the financial audit contains a qualification as to the school's ability to continue as a going concern.
(g)
The school failed to make payments to vendors as required by written agreement or, if there is no written agreement, within 90 days of invoice or payment request. The department shall consider this an indicator even if the school has entered into a payment plan with the vendor to pay the past due amount.
(h)
The
school has past due amounts with government agencies, including payment of employee withholdings. The department shall consider this an indicator even if the school has entered into a payment plan with the government agency to pay the past due amount.
(
i
)
The school failed to pay its employees as required by
ch.
109
,
Stats.,
or
by
written agreement with the employee.
(3)
I
nsufficient
f
inancial
i
nformation
.
(a)
Except as provided under par. (b), t
he
department shall determine that a school does not
meet the requirements under s.
115.7915 (6) (f)
2.
,
Stats., if any of the indicators under sub. (2)
exist
.
(b)
An amount in dispute identified
under
sub. (2) (
g
) shall not be considered an indicator
under sub. (2) (
g
)
if all of the following are true:
1. The school provide
d
the department with
written
correspondence between the school and the vendor
evidencing
that the amount is in dispute.
2. The school has sufficient cash available to pay the amount in dispute.
3.
T
he disputed amount is included in the budget as a current liability and paid in the first month of the budget
.
(c)
A school that does not meet the requirements under s.
115.7915 (6) (f)
2.
,
Stats., shall provide a surety bond that meets the requirements under sub. (1) (
a
) by June 1 prior to the school year.
(4)
B
ond
c
all
p
rovisions
.
The department may call a bond submitted by a school under this section for any of the following reasons:
(b)
The school failed to timely refund the department any amount certified due from the school under s.
PI 49.07 (4)
.
(c)
The school failed to timely refund the department the reserve balance as prescribed under s.
PI 49.09
.
(d)
The school failed to timely refund the department any other money owed to the department for any other reason under this chapter or s.
115.7915
, Stats.
(
5
)
Notwithstanding subs. (1) (a) and (3) (c), a school
shall provide
a surety bond that meets the requirements under sub. (1) (a) by
August 1
, 2016
, if the school is required to provide a surety bond under this section
for the
school year ending June 30, 2017
.
PI 49.05
Pupil application requirements.
(
1
)
E
xplanation of
r
ights &
s
pecial
e
ducation
p
rogram
p
rofile
. When an applicant applies to a school, the school shall provide the applicant with all of the following:
(a)
An
explanation of the rights of a child with a disability and his or her parent in a public school co
mpared to the rights of a
child with a dis
ability and his or her parent at
a private school
participating in a special needs scholarship program
on a document provided by the department under s.
115.7915 (4) (a) 1.
, Stats.
(b)
The profile of the school’s special education program
required
under s.
PI 49.03 (3) (c)
.
(
2
)
A
ge requirement
. In order to be eligible for the
special needs scholarship
program, a 4-year-old kindergarten pupil, 5-year-old kindergarten pupil, and a first grade pupil shall attain the ages specified in s.
118.14
(1)
, Stats.
(3)
Application
r
eceipt
.
An
application shall be considered received
under s.
115.7915 (3) (b)
,
Stats.,
when
an applicant has submitted all of the following to the school:
(a)
A
n
application.
(
b
)
R
esidency documentation.
(
c
)
Documentation
that the
pupil
meets the requirements
under
s.
115.7915 (2)
,
Stats
.,
as required by the application
.
(
4
)
Application
e
ligibility
d
etermination
.
Within 21 days of receiving
an
application under sub. (3), a
school shall
do
all of the following:
(a)
Determine
if
the
application
is
eligible by
verifying
all of the following
:
1.
T
he address on
the
pupil’s application is in the Wisconsin school district listed on the application using the
state of Wisconsin’s Statewide Voter Registration System or
any
another
source
permitted by the department.
2.
T
he residency document provided under
sub. (3)
(
b
) is one of the residency documents specified by the department
that shows the
pupil
resides at the address on the application at the time of application. The residency document shall be
dated no earlier than
3
months prior to the date the application is
provided
under
sub. (3)
(
a
)
. If a school receives a lease agreement as a residency document, the lease term shall include the date the application was
provided under sub. (3) (
a
)
.
The document shall contain the name of the parent on the application and match the address on the application.
3.
T
he applicant has provided the documentation required under
sub. (3)
(c)
.
(b)
Identify if the application is eligible in the online application system, or another manner permitted by the department.
(c)
N
otify an applicant in writing if
one of the following occurs
:
1.
T
he application under
sub. (3)
is
determined ineligible.
The school shall state in
its letter
the reasons why
t
he application is ineligible.
2.
The application under sub. (3)
is
determined eligible but the school does not have space available for the student. The
school shall state in
the letter
the pupil’s
place
on
the school’s
waiting list.
(
5
)
T
ransfer
requests
.
(a)
A
n applicant
may transfer an application under this chapter to a different school participating in the special needs scholarship program if all of the following apply:
1.
The pupil has an individualized education program
or
services plan that is currently in
effect
.
2.
The pupil is not receiving a partial scholarship.
3. The pupil has been continuously enrolled in the special needs scholarship program.
(b)
A
n applicant
transferring
an application under
par
. (a)
shall
submit a transfer request on a form provided by the department.
The date
the
application
is
received
under s.
115.7915 (3) (b)
,
Stats.,
shall be the date the transfer request is received
by the school
.
(
c
)
Within 21 days of receiving
a
transfer request
under par. (b)
,
a
school shall
do
all of the following:
1.
Identify if
the
transfer
request
is eligible
, using
the online application system or another
manner
permitted
by the department.
2.
N
otify an applicant in writing if
one of the following occurs:
a. T
he
transfer request
under
par. (b)
is
determined ineligible.
The school shall state in its letter the reasons why the application is ineligible.
b. The
transfer request
under par. (
b
) is determined eligible but the school does not have space available for the student. The
school shall state in the
letter
the pupil’s
place
on the
school’s
waiting list.
(d)
If a pupil is determined eligible under par. (c) and the school has space available, t
he resident public school district shall
provide
all of the following
in the same manner required under s.
115.7915 (4) (b)
, Stats.
:
1. V
erification
to the department
that the child has an individualized education program or services plan in place for the child
.
2. A
copy of the child’s individualized education program
or services plan to the school that received the transfer request.
(
6
)
Sibling preference.
(a)
If
a
school receives an application
under
sub. (3)
or
a
transfer request under sub. (
5
)
from
a sibling of a pupil who is already attending the school, the school may give the sibling preference over a
pupil
who has not yet been
identified as eligible
under sub. (
4
)
(
b
)
or (5)
(c) 1
.
(b)
A school shall determine the eligibility of a sibling receiving preference under par. (a)
before
the date the school is required to determine
the eligibility
,
under sub. (4)
or
(5)
,
of
any application
or transfer request
the sibling is given preference over.
(c)
If the school is unable to determine if the sibling application
or transfer request
is eligible within the time period required under par. (b), the school must accept the applications in the order they
were
received
in
.
(
7
)
i
ndividualized
e
du
cation
p
rogram or
s
ervices
p
lan
in effect
.
(a)
A
pupil
shall
ha
ve
an individualized education program or services plan in
effect
at the time
an
applicant submits an
application
under
sub. (3)
or
a
transfer request under sub. (
5
)
.
(b)
Within 7 days of a school receiving
the individualized education program or services plan
that is
in effect
from
a
resident school district
or notification that
a
pupil does not have an individualized education program or services plan
in effect
,
a
school
shall
n
otify
an applicant in writing
if the application under
sub. (3)
or
transfer
request
under sub. (
5
)
w
as
determined eligible or ineligible.
If the application
or transfer request
is determined ineligible, the school shall state in its letter the reasons why the application is ineligible.
(
8
)
Scholarship
continuance.
A
scholarship awarded to a pupil under
this chapter shall
continue until any of the following occur:
(a)
The pupil graduates from high school.
(b)
The pupil attains the age of 21. A pupil who attains the age of 21 shall receive the scholarship until the end of the school term in which the pupil attains the age of 21.
(c)
The pupil no longer resides in Wisconsin as of the
third
Friday in
September.
(d)
The pupil is
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.
PI 49.06 School
year enrollment.
(
1
)
D
ocument r
etention
.
A
school shall retain
all of
the following records for at least 5 years from the end of the school year in which the pupil applies or 5 years after the pupil no longer attends the school, whichever occurs later, unless the department or a law enforcement agency requires the school to retain the records for a longer period:
(a)
Copies of
all documentation required under s.
PI 49.05
for all accepted and non-accepted special needs scholarship program pupils who have submitted applications
or transfer requests
to the school.
(b)
Copies of any documentation received for reevaluations under s.
115.7915 (2) (h)
, Stats
.
(c)
Copies of all documents required under s.
PI 49.12
.
(
2
)
Si
multaneously
e
nrolled
p
upil
.
A
A
pupil participating in the special needs scholarship program may not
receive a scholarship
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 scholarship under s.
115.7915
,
Stats.,
may not receive a payment under s.
118.60
or
119.23
, Stats.
(
3
)
Full-time equivalent
. The amount paid by the department to a school under s.
115.7915
(4
m
)
,
Stats.,
shall be based on the full-time equivalent for each pupil times the payment amount in s.
115.7915
(4
m
)
, Stats. The full-time equivalent shall be determined as follows:
(a)
Pupils in grades one through 12 shall be one full-time equivalent.
(b)
A kindergarten pupil shall be one-half full-time equivalent except as follows:
1.
A pupil
enrolled in a 5-year-old kindergarten program
that requires full−day attendance by the pupil 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
that
requir
es
full-day attendance
by the pupil
for
less
than 5 days a week for an entire school
term
shall be calculated as follows:
a.
Multiply 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.
Divide the result under
subd
. 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.
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.
(
4
)
S
eptember
1
a
pplication and
c
lass
l
ist
s
ubmission
. Annually by September 1, a school shall submit to the department
, using
the online application system or other manner specified by the department
,
all of the following:
(b)
A list of pupils
enrolled
in the special needs scholarship program at the school that identifies if each pupil was determined to no longer be a child with a disability under s.
115.7915 (4m) (e) 1
.
, Stats., in a previous year.
(
c
)
A class list of all pupils
enrolled
in the special needs scholarship program
at
the school
by
grade level. The class list may not include pupils that have withdrawn from the school.
(
d
)
The school’s start and end date for the current school year.
(
5
)
A
pplication s
ubmission and
p
upil
c
ount
r
eports
. 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)
All applications determined eligible under s.
PI 49.05
(
4
)
and
(
7
)
or transfer
request
s
accepted
under s.
PI 49.05 (
5
)
and
(7)
that have not previously been submitted
to the
department
.
(b)
A pupil count report stating all of the following:
1.
The grade of each pupil participating in the special needs scholarship 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.
Whether each pupil meets the requirements under sub. (
6
).
3.
Whether each pupil is a full scholarship pupil or
a
partial scholarship pupil.
4.
The total number of pupils in the school on the immediately preceding count date that meet the requirements under sub. (6).
(
c
)
As part of the pupil count report for the third Friday in September, a school
shall do all of the following for pupils that participated in the special needs scholarship program in the previous school year:
1.
Obtain residency documentation for the pupil’s address on the third Friday in September
that
meets
all of
the following requirements:
a. The documentation
is dated between the third Friday in August and October 1.
If a school receives a lease agreement as a residency document, the lease term include
s
the
third
Friday in September.
b.
The
documentation
is
one of the residency documents specified by the department.
c.
The document contain
s
the name of the
applicant
.
d. The address on the document
match
es
the
pupil’s
address
as of
the
third
Friday in September
.
2.
Determine
whether the pupil has a different address than the previous school year. If a pupil has a different address, the school shall determine
the
pupil’s
resident school district for the new address
using the state of Wisconsin’s Statewide Voter Registration System or
any other source
permitted by the department.
(
6
)
C
ount
r
equirements
. A school may include a pupil on its pupil count report under sub. (
5
) (
b
) only if one of the following applies:
(a)
The pupil is in attendance for instruction on the count date.
(b)
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 the pupil was 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 49.07 Enrollment audits.
(1)
R
eport
c
ompletion
a
nd
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.
115.7915 (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 49.
06
(
5
) (b)
.
A
school shall submit its third Friday in September enrollment audit to the department by December 15.
(b)
The
second
Friday in
January
enrollment reported under s.
PI 49.
06
(
5
) (b)
.
A
school shall submit its second Friday in January enrollment audit to the department by May 1.
(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 special needs scholarship program.
PI 35.04(9)(c)
(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 (3) (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)
If the school uses a student information system, complete testing of the
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 participating in the special needs scholarship program on the official attendance records match the total number of pupils participating in the special needs scholarship 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 special needs scholarship program pupils reported on the pupil count report under s.
PI 49.06 (
5
) (
b
)
using the school's official attendance records.
(h)
Verify
all of the following:
1.
That
all special needs scholarship program pupils the school include
d
on its official attendance records are also included on the original classroom records.
2.
T
hat all special needs scholarship program pupils the school include
d
on the school's original classroom records are included on the official attendance records.
(
i
)
Verify that the special needs scholarship program pupils meet the requirements of s.
PI 49.06 (6)
.
(j)
Verify that the school did not receive a payment under s.
115.7915 (4m)
,
Stats.,
for any of the following:
1.
Pupils for whom the school is receiving a childcare payment for all day care.
2.
Pupils who are enrolled in a public school district.
3.
Pupils participating in a program under ss.
118.60
or
119.23
, Stats.
(k)
Select a sample of at least 60 pupils not participating in the special needs scholarship program from original classroom records and verify the school included the selected pupils in the pupil count report under s.
PI 49.06 (
5
)
(b)
. 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 did not participate in the special needs scholarship program, the auditor shall examine records for all pupils who did not participate in the special needs scholarship program.
(L)
Reconcile the enrollment the school reported to the department under s.
115.30 (3)
,
Stats.,
with the official attendance records of the school.
(m)
Verify that
any application that has not been counted on a previous count date under s.
PI 4
9
.06 (
5
) (b)
meet
s
the requirements of s.
PI 49.05
and s.
115.7915 (2)
, Stats.
If the auditor identifies that an application is missing the information required under
s.
PI 49.0
5
(
4
)
(a) 2.
or
3.
, the application
may be corrected if the
applicant
provides the missing documentation. The missing documentation shall be provided by
December 15 for applications accepted by the third Friday in September and by May 1 for applications accepted by the second Friday in January.
If the missing documentation is not provided by the required date, the application
shall be determined
ineligible.
(n)
If a
pupil
participated in the special needs scholarship program in the previous year, the auditor shall verify that the residency documentation obtained pursuant to s.
PI 49.06 (
5
) (
c
)
meets the requirements of that paragraph.
(
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
)
Verify that the
school completed the background checks required
under s.
PI 49.03 (4)
and did not employ or contract any individuals that met the requirements
under
s.
PI 49.03 (4)
a. or b
.
(
q
)
PI 35.04(9)(d)9.
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 special needs scholarship program 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 special needs scholarship program payments, the department shall reduce the payments made under s.
115.7915 (4m)
, Stats., by the amount owed.
2.
If the school is not currently eligible to receive special needs scholarship 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 eligible pupils within 60 days of the date of the certification letter.
PI 49.08
Financial a
udit
.
(1)
F
inancial
a
udit
r
equirement
. 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 fi
nancial audit shall include 2
-
year comparative financial statements containing all of the statements required by generally accepted acco
unting principles, including a statement of financial position, a statement of activities
,
and a
s
tatement of cash f
lows.
(b)
The first year a school completes a financial audit for the special
needs scholarship program, the statement of a
c
tivities and statement of cash f
lows 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.
115.7915 (6) (e)
,
Stats.,
and this chapter unless the modification is approved by the department.
(2)
C
ompliance with
American Institute of Certified Public Accountants
r
equirements
. 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.
(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 49.09 Financial audit supplemental s
chedule.
(1)
E
ligible
e
ducation
e
xpenses
. 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 statement of activities, except for the cost of land. The amount that the school paid for land shall be included in the first year the land is used for educational programming
using an allocation method under par. (d),
if applicable
.
(c)
An expense may only be included as an
eligible education expense one time.
(d)
If an expense or government assistance revenue is partially related to educational programming, the school shall use an allocation method to determine the portion that is related to educational programming.
(e)
The following may not be included in kindergarten through grade 12 eligible education expenses:
1.
Contributed services, 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 for pupils who are enrolled in the public school district
and attending the private school
.
(2)
A
uditor
r
eview of
e
ligible
e
ducation
e
xpenses
. An auditor shall ensure the eligible education expenses a school included in the supplemental schedule
mply with the requirements under
sub. (1).
(3)
S
upplemental
s
chedule
c
alculations
. The supplemental schedule shall calculate all of the following:
(a)
Net
e
ligible
education expenses exclusively for special needs scholarship program pupils
as follows:
1. Determine the amount of eligible education expenses
exclusively for special needs scholarship program pupils
.
2. Subtract all government assistance revenues received for eligible education expenses
exclusively for special needs scholarship program pupils
.
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
exclusively for special needs scholarship program pupils
.
(b)
Net eligible education expenses for all pupils as follows:
1. Determine the amount of eligible education expenses, excluding eligible education expenses in par. (a).
2. Subtract
all
government assistance revenues
received for eligible education expenses
, excluding eligible education expenses in par. (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 par. (a)
.
(c)
The net eligible education expenses for special needs scholarship program pupils as follows:
1. Calculate the percentage of pupils at the school participating in the special needs scholarship program as the
full-time equivalent
for the
special needs scholarship program pupils compared to the all pupil
full-time equivalent
. The
full-time equivalents
shall be based on the average of the
full-time equivalents determined
in the enrollment audits under s.
PI 49.07
.
2. Multiply the amount calculated under par. (b)
by
the percentage under
subd
. 1.
3. Add the
net
eligible education expenses
under
par. (a).
(d)
The reserve balance as follows:
1. Determine the total scholarships received.
2. Add the prior year reserve balance, if any.
3.
Subtract the
amount
determined under par.
(
c).
(e)
The school’s cash and investment balance that must be maintained
under sub. (4)
as
follows:
1. Determine the sum of any remaining depreciation on fixed assets used by the school and any land purchases that have not yet been included in eligible cost under sub. (1) (
b
).
2. Subtract the amount under
subd
. 1. from the
amount under
par. (d).
(4)
M
aintain
r
eserve
balance
.
The school shall maintain the reserve balance, if positive, for future eligible education expenses for special needs scholarship program pupils. The school’s cash and investment balance shall be at least as much as the amount calculated under sub. (3) (
e
), if positive. If the school is participating in a program under s.
118.60
or
119.23
, Stats., the cash and investment balance shall be at least as much as the
reserve calculated
under this chapter, s. PI 35, and s. PI 48
less
the sum of any remaining depreciation on fixed assets used by the school and any land purchases that have not yet been included in eligible cost under sub. (1) (
b
)
.
(5)
F
inal
f
inancial
a
udit
. If a school ceases to participate or is barred from participation in the special needs scholarship program under s.
115.7915
,
Stats.,
it shall submit to the department the financial audit for the final school year in which it participated. If a school fails to submit the financial audit,
the school’s net eligible education expenses for the year shall
b
e determined to be zero for purposes of
determining the school’s reserve balance.
(6)
R
efund of the
r
eserve
. If a school ceases to participate or is barred from participating in the special needs scholarship program under s.
115.7915
,
Stats.,
and the school’s reserve is positive, the school shall refund the reserve balance to the department. 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 49.10 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
)
.
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.
115.7915
,
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 use a double entry financial accounting system organized in a manner that enables preparation of the financial audit
and financial audit supplemental schedule
. A school shall balance the financial accounting system 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
recommended 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 49.07
and
the audit
required
under ss.
PI
49.08
and
PI 49.09
for at least 5 years from the due date of the financial audit for each school year, unless the department or a law enforcement agency requests that the school retain the records for more than 5 years.
(5)
PI 35.046(1)(g)
R
ecords
av
ailability
.
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
r
esponsibility
. An auditor’s failure to completely or properly perform the responsibilities set forth in s.
115.7915
,
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 unde
r s.
PI 49.07 (4)
or
PI 49.09 (6
)
.
(7)
A
uditor
b
ar
. A school participating in the special needs scholarship program may not engage an auditor who
the department bars under
s.
PI 35.12 (7)
,
PI 48.12 (7)
, or
PI 49.1
1
(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 35
,
ch.
PI 48
, and ss.
115.7915
,
118.60
, and
119.23
, Stats
.
PI 49.11
Auditor requirements
.
(
1)
I
ndependence
r
equirements
. An auditor engaged by a school
to meet the requirements under this chapter
and
s.
115.7915
, Stats.
,
shall comply with the standards of the American Institute of Certified Public Accountants, including all of following:
(a)
An auditor shall comply with the requirements of s.
Accy
1.101
.
(b)
An auditor shall obtain the school’s trial balance if 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.
Identify 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
r
etention
. An auditor shall retain working papers relating to the enrollment audits under s.
PI 49.07
and
the audit
required
under ss.
PI 49.08
and
PI 49.09
for at least 5 years from the due date of the financial audit for each school year, unless the department or a law enforcement agency requests that the auditor retain working papers for more than 5 years.
(4)
W
ork
ing
paper
s
r
eview
. An auditor shall permit the department to review audit working papers prepared in support of the enrollment audits under s.
PI 49.07
and the audit
required
under ss.
PI 49.08
and
PI 49.09
. An auditor shall promptly provide copies of working papers the department requests.
(5)
A
uditor
p
eer
r
eview
r
eports
. An auditor completing any of the audits and agreed upon procedure reports under s.
115.7915
,
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 issuance.
(6)
L
icense
r
equirement
s
.
(a)
The
auditing firm
that is engaged by a school to complete
the audits and agreed upon procedure reports under this chapter or s.
115.7915
,
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.
115.7915
,
Stats.,
shall be a licensed certified public accountant
by the accounting examining board under
c
h.
442
, Stats.
(7)
A
uditor
b
ar
.
(a)
The department
may bar
PI 35.05(2)(c)
PI 35.05(2)(d)
an
auditor who fails to timely and properly fulfill the auditing and reporting requirements of this chapter or s.
115.7915
,
Stats.
(b)
An auditor who is barred under par. (a)
shall not complete accounting, auditing, or other reporting requirements for any schools participating in the special needs scholarship program
or in a program under s.
118.60
or
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 35
,
ch.
PI 48
, and ss.
115.7915
,
118.60
, and
119.23
, Stats
.
PI 49.12
Quarterly reporting to parent
.
A school shall report to the parent of a pupil participating in the special needs scholarship program
at least quarterly
using a form provided by the department.
The report shall describe
the
implementation of the child’s individualized education program or services plan, as modified by agreement between the school and the child’s parent, and the
pupil’s academic progress.
PI 49.13
State aid payment calculation.
)
The
state superintendent shall make the payments under s.
115.7915 (4m)
, Stats., to schools participating in the special needs scholarship program.
The state superintendent may withhold payment from a school under s.
115.7915 (4m)
,
Stats.,
if the school violates this chapter or s.
115.7915
, Stats
.
PI 35.05(3)(b)
The state superintendent shall make the payments as follows:
(1)
S
eptember p
ayment
. The September payment shall be based on the number of special needs scholarship program pupils at the school reported under s.
PI 49.06 (
4
)
. The state superintendent shall calculate the September payment as 25
%
times the total of
all of
the following:
(a)
The
full-time equivalent for
full scholarship pupils multiplied by the per pupil payment amount
determined under s.
115.7915 (4m) (a)
, Stats.
(b)
The full-time equivalent for partial scholarship pupils, as reported under s.
PI 49.06 (
4
) (
b
)
, multiplied by the per pupil payment amount
determined under s.
115.7915 (4m) (e)
, Stats.
(2)
N
ovember
p
ayment
.
a.
The November payment shall be based on the number of special needs scholarship program pupils reported by October 1 in the school’s pupil count report required under s.
PI 49.06 (
5
) (
b
)
, unless a pupil is determined ineligible by the department. The state superintendent shall calculate the November payment as 50
%
times the amount owed for eligible pupils less the September payment received. The state superintendent shall calculate the amount owed for eligible pupils as the total of
all of
the following:
(a)
The
full-time equivalent for
full scholarship pupils multiplied by the per pupil payment amount
determined under s.
115.7915 (4m) (a)
, Stats.
(b)
The full-time equivalent for partial scholarship pupils, as reported under s.
PI 49.06 (
4
) (
b
)
, multiplied by the per pupil payment amount
determined under s.
115.7915 (4m) (e)
, Stats.
(3)
F
ebruary
a
nd
m
ay
pa
yments
.
The February payment and May payment shall each be based on the number of special needs scholarship program pupils reported by February 1 in the school’s pupil count report required under s.
PI 49.06 (
5
) (
b
)
, unless a pupil is determined ineligible by the department. The state superintendent shall calculate the February and May payments as 25
%
times the total of all of the following:
(a)
The
full-time equivalent for
full scholarship pupils multiplied by the per pupil payment amount
determined under s.
115.7915 (4m) (a)
, Stats.
(b)
The full-time equivalent for partial scholarship pupils, as reported under s.
PI 49.06 (
4
) (
b
)
, multiplied by the per pupil payment amount
determined under s.
115.7915 (4m) (e)
, Stats.
(4)
C
eased
i
nstruction
. The state superintendent may not make a September, November, or February payment to a school that has ceased instruction prior to the payment date.
(5)
E
nd
ing a
s
chool
t
erm
early
. The state superintendent 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.
(5) (
PI 49.14 Department authority.
(1)
I
nquiries
. The department may make inquiries to ascertain the accuracy and completeness of information contained in audits or reports required under s.
115.7915
,
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)
P
upil
c
onfidentiality
. The department shall maintain pupil confidentiality at all times.
(4)
O
rder
t
o
b
ar
. The department may issue an order barring a private school from participating in the special needs scholarship program if the department determines that the school has done any of the following:
(
a
)
Failed to provide the financial audit
or financial audit supplemental schedule
in two or more years by the date specified in s.
PI 49.08
.
(b)
Provided a financial audit
or financial audit supplemental schedule
that does not comply with the requirements under s.
49.08
or
49.09
in two or more instances in the same year or in different years.
(c)
Excluded liabilities, whether or not the school disputes the amount owed, from the financial information required under s.
115.7915 (6) (f)
2.
,
Stats., and s.
PI 49.04 (
1
)
(b)
.
(e)
Failed to provide a bond required under s.
PI 49.04
for
3
consecutive months after the date the bond is due.
(f)
Failed to conduct background checks required under s.
PI 49.03 (4)
for two or more individuals.
(g)
Employed
an
individual or contracted with
an
individual who met the requirements under s.
PI 49.03 (4)
a. or b
.
PI 49.15 Right to a request a hearing.
(1)
W
ho
m
ay
r
equest
. A person or school adversely affected by an action of the department under this chapter
or s.
115.7915
,
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
f
orm
.
(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 requestor’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
o
r
d
enying
r
equest
.
(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 in
s.
227.22
(2)
(intro.)
, Stats.
