Section 35.11. School financial requirements.

 

(1)   Engagement letter. 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. 119.23 , Stats., and this chapter.

(f) The auditor's compensation for the services the auditor provides to the school.

(2)   Financial accounting system. 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)   Adjusting entries. Adjustments 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)   Records retention. 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 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)   Records 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)   School 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 35.10 (6) .

(7)   Auditor bar. A school participating in the choice program may not engage an auditor who the department bars under s. PI 35.12 (7) , 48.12 (7) , or 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, chs. PI 48 and 49 , and ss. 115.7915 , 118.60 , and 119.23 , Stats.

CR 16-004 : cr. Register July 2016 No. 727 , eff. 8-1-16; correction in (7) made under s. 35.17 , Stats., Register July 2016 No. 727 .