Questions and Answers Pertaining to Membership Audits

Issue: No Documentation to Support Claimed Summer School FTE

Question: What is required of the auditor if the district does not have documentation to support the summer school FTE claimed?

Answer: The auditor should disclaim an opinion on the summer school FTE count for which the district cannot provide documentation. The Membership Report attestation should identify the reason for this disclaimer as being a lack of documentation to support the reported FTE count.

Question: What will the DPI do when receiving a disclaimed opinion on summer school 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.

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Issue: Classes for Claimed Summer School FTE Occur in Another School District

Question: The district is claiming summer school 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 district claiming the FTE except to verify that the claimed FTE is as 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 examination procedures were limited to verifying that claimed FTE was as reported by the district providing the service.

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Issue: Summer School Fees

A review should be made of "Summer School Guidelines," specifically as it relates to fees. dpi.wi.gov/sfs/sumguidelines.html

Also see DPI's website regarding fees: dpi.wi.gov/sfs/fees.html.

When performing audit procedures concerning summer school 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, nor the 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 audit of summer school FTE include an examination of 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, books. If the district charges fees in excess of those permitted, it is 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 standard fee from all pupils enrolled in summer school classes. What is an acceptable procedure to determine that fee charges are as permitted?

Answer: Inquire how the standard fee was determined. Request the district provide documentation that items for which fees were charged are as legally permitted (review "Summer School Guidelines" and PI 17 requirements) and were actually purchased for summer school use.

Question: What should be reported if the district cannot demonstrate that the total amount of standard fees was 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.
• The district's explanation or justification for the fee charge.

In the situation where a standard fee is charged for all pupils in Summer School, the explanation need not identify the Summer School FTE involved.

Question: The district collects a varying fee for each summer school class. What is an acceptable procedure to determine that fee charges are as permitted?

Answer: Inquire how fee charges were determined. For selected classes, request the district provide documentation that items for which fees were charged, are as legally permitted (review Summer School Administrative Code requirements) and were actually purchased for summer school use.

Question: What should be reported if the district cannot demonstrate that the total amount of fees charged for a particular class was necessary to cover the cost of items for which a fee charge is permitted?

Answer: Attach to the Membership Report a discussion of the situation and identify for each class where the district was unable to demonstrate that fees were charged as permitted:

• The amount of fees collected.
• Expenditures identified by the district for allowable items funded by the fee charge.
• The Summer School FTE for the class where fee charge appears excessive.
• The district's explanation or justification for the fees charged.

Question: What is the 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 the DPI will vary dependent on the circumstances. Examples of actions the DPI may take are:

• The district may be asked to provide assurance fees charged in the future will be in accordance with statutory requirements.
• The Summer School FTE claimed may be adjusted or disallowed.
• The district will be required to have a membership audit of claiming Summer School FTE in the following year.

For other questions, please contact:

Gene Fornecker	(608) 267-7882	eugene.fornecker@dpi.wi.gov
Kathy Guralski	(608) 266-3862	kathryn.guralski@dpi.wi.gov
Natalie Rew	(608) 267-9212	natalie.rew@dpi.wi.gov

For questions about this information, contact dpifin@dpi.wi.gov (608) 267-9114

Last updated on 2/25/2008 11:56:30 AM