No Documentation to Support Claimed Summer or Interim Session FTE
Question: What is required of the auditor if the district does not have documentation to support the summer or interim session FTE claimed?
Answer: The auditor should report a finding on Attachment 4 of the Independent Accountant's Report if the district cannot provide documentation to support the summer or interim session FTE reported. The attestation report should identify the reason for the finding as being a lack of documentation to support the reported FTE count.
Question: What will DPI do when receiving a finding related to lack of supporting documentation on summer or interim session FTE?
Answer: A case by case evaluation of the situation will be made. Depending on the circumstances, the DPI may disallow the FTE. The district may also be required to have a membership audit next year.
Classes for Claimed Summer or Interim Session FTE Occur in Another School District
Question: The district is claiming summer or interim session FTE for classes that take place in another school district. What is required for audit procedures and reporting?
Answer: No audit procedures are required at the district claiming the FTE except to compare the claimed FTE to the amount reported by the district providing the service. The Membership Report attestation should identify that the claimed FTE was provided by another district (identify the district) and that the procedures were limited to comparing the claimed FTE to the amount reported by the district providing the service.
Summer or Interim Session Course Fees
When performing agreed upon procedures concerning summer or interim session fees, note the limitation on what costs may be recovered through a fee. Also note that fees may NOT be charged for buildings, maintenance or maintenance supplies, and teaching apparatus.
There is no restriction to actual costs for materials for courses or activities administered through a district's Community Service/Fund 80 program. Such Fund 80 programs are not eligible for general state aid.
Question: Why is there a requirement that the agreed upon procedures for summer or interim session FTE include an procedures related to fee charges?
Answer: Wisconsin Administrative Code PI 17 limits fees charged for classes claimed for summer school FTE to the cost of personal use supplies and materials such as towels, gym clothes, uniforms, pens, pencils and books. If the district charges fees in excess of those permitted, it's not meeting the statutory requirements for claiming summer school FTE that is used for state aid and revenue limit calculations.
Question: The district collects a flat fee from all pupils enrolled in summer or interim session courses. What procedures should an auditor perform and what must be reported to DPI?
Answer: No membership may be claimed for classes where fees are charged for costs not permitted by Chapter PI 17. A flat fee such as a registration or tuition fee would not be permitted. The auditor should inquire how the flat fee was determined. The fee must be used for the purposes identified in PI 17. The auditor should report a finding in Attachment 4 of the membership audit report if a flat fee is charged.
Question: What should be reported if the district is charging a flat fee and it was not necessary to cover the cost of those items for which fee charges are permitted?
Answer: Attach to the Membership Report a discussion of the situation including:
- the amount of fees collected;
- expenditures identified by the district for allowable items funded by the fee charge; and
- the district's explanation or justification for the fee charge.
In the situation where a flat fee is charged for all pupils in Summer or Interim Session Courses, the explanation need not identify the Summer or Interim Session FTE involved.
Question: The district collects a varying fee for each summer or interim session courses. What are the acceptable procedures to determine that fee charges are as permitted?
Answer: The agreed upon procedures program has instructions on how to perform procedures related to fee charges. The auditor should use the program and inspect selected classes. The district will be requested to provide supporting documentation to support the amounts on the PI-1804-W.
Question: What should be reported if the district has not completed the fee reconciliation worksheets in the PI-1804-W?
Answer: A finding should be reported in Attachment 4 of the Membership Report. The auditor should include the following:
- Identify the class course title, the fees charged for the course, the total supply cost, and the excess revenue.
- the course’s instructional time in total minutes which can be located on column 6c of the worksheet.
Question: What is DPI going to do when the auditor identifies what appears to be an excessive fee charge?
Answer: The follow-up and corrective actions required by DPI will vary dependent on the circumstances. Examples of actions DPI may take are:
- the Summer or Interim Session FTE claimed may be adjusted or disallowed
- the district may be required to refund the excess fee revenue
- the district may be required to have a membership audit of claiming Summer School FTE in the following year.