Section 49.09. Financial audit supplemental schedule.

 

(1)   Eligible education expenses . The eligible education expenses included in the financial audit supplemental schedule shall comply with all of the following:

(a) Eligible education expenses may only include those expenses that already have or will result in a cash disbursement.

(b) Eligible education expenses may only include 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)   Auditor review of eligible education expenses. An auditor shall ensure the eligible education expenses a school included in the supplemental schedule comply with the requirements under sub. (1) .

(3)   Supplemental schedule calculations. The supplemental schedule shall calculate all of the following:

(a) Net eligible 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)   Maintain reserve balance. The school shall maintain the reserve balance, if positive, for future eligible education expenses for special needs scholarship program pupils. The school's cash and investment balance shall be at least as much as the amount calculated under sub. (3) (e) , if positive. If the school is participating in a program under s. 118.60 or 119.23 , Stats., the cash and investment balance shall be at least as much as the reserve calculated under this chapter and chs. PI 35 and 48 less the sum of any remaining depreciation on fixed assets used by the school and any land purchases that have not yet been included in eligible cost under sub. (1) (b) .

(5)   Final financial audit. 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 be determined to be zero for purposes of determining the school's reserve balance.

(6)   Refund of the reserve. If a school ceases to participate or is barred from participating in the special needs scholarship program under s. 115.7915 , Stats., and the school's reserve is positive, the school shall refund the reserve balance to the department. The school shall make the refund within 30 days of the date of the closure payment letter sent to the school by the department.

History: EmR1619 : emerg. cr., eff. 6-2-16; CR 16-005 : cr., Register October 2016 No. 730 , eff. 11-1-16; correction in (4) made under s. 35.17 , Stats., Register October 2016 No. 730 .