Newsletter by Hawkins Ash CPAs
In this edition
April 2020

We Are Here for You

Choice Program Requirement Update

PODCASTS: Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL)

Breaking Down the Private School Choice Program Reserve Balance Schedule
We Are Here for You

During these difficult and unprecedented times, we want you to know that we are thinking of you and are here for you as you navigate through the many challenges that COVID-19 has caused for your school.

Our team at Hawkins Ash CPAs has been staying up to date on the new legislation containing financial assistance for those affected by COVID-19. For more information on this and to sign up for future updates from our team, visit our website.
Choice Program Requirement Update

Throughout the last few weeks, the Department of Public Instruction (DPI) has been working on due date extensions and additional guidelines for schools. Below are a couple of items to which you should pay attention.

January Enrollment Audit Due Date Extension
The due date for the January 2020 Enrollment Audit was moved from May 1, 2020, to June 30, 2020. Your assigned in-charge at Hawkins Ash will work with you to get these completed and submit the report to the DPI by the deadline.

Eligible Education Expenses and COVID-19
DPI Choice payments are expected to be received as scheduled. As operations at your school have been significantly impacted, many of you also will see decreases in your eligible education expenses.

Additional information released from the DPI has indicated that COVID-19-related financial assistance will be required to be included in your offsetting revenues and will reduce your eligible education expenses (for example, the Paycheck Protection Program). The only kind of assistance that needs to be included is for funding that does not need to be paid back. Any type of assistance received in the form of a loan will be treated as just a loan and will not reduce your eligible education expenses.

As your year-end begins to wrap up, it is important that you take a look at your eligible education expenses and determine what these impacts will have on your reserve balance. As you are completing this analysis, there are a couple of things to keep in mind:

  • Your prior year ending reserve balance will carry forward; this does include a negative balance (if applicable) from the prior year.

  • Any remaining depreciation on your fixed assets can offset your ending reserve balance when calculating your required cash and investment balance.

If you are projecting a positive required cash and investment balance, make sure to maintain that funding in your cash accounts for future use. Maintaining this cash reserve will ensure that you do not have to pay your reserve balance back to the DPI and can have these funds available for future years when your expenses return to normal levels. These funds need to be secured in your cash account as of June 30, 2020. To ensure that you meet the DPI requirements, so it is important that you evaluate your reserve balance before your fiscal year ends. Please note that the cash does not need to be set aside in a specific account; you just need to be able to prove to the DPI that as of June 30, 2020, on your statement of financial position that you had the required amount of money in your cash balance.

Further Updates
The DPI has provided updates on several other due dates and topics. All of these have been made available on their website at https://dpi.wi.gov/sms/choice-programs/school-information.

As each day seems to come with a new set of challenges, it is important that we take a step back and remember that this is all just temporary. Every time I have the opportunity to visit all of the wonderful schools with whom we work, I am blown away by the amount of compassion each of you have for what you do. This compassion is what will help you overcome these challenges. Thank you for everything you do!

Author: Brittany Leonard, CPA
Direct: 608.793.3123
Email: bleonard@hawkinsashcpas.com
The Paycheck Protection Program: An Overview

The Coronavirus Aid, Relief, and Economic Security (CARES) Act's new Paycheck Protection Program (PPP) is one relief option for businesses with less than 500 employees. Here is what we know as of April 1, 2020.
The Economic Injury Disaster Loan: An Overview

The Economic Injury Disaster Loan (EIDL) is a low-interest federal loan to help small businesses and private nonprofits that are experiencing hardships because of COVID-19. Here is what we know as of April 7, 2020.
Breaking Down the Private School Choice Program Reserve Balance Schedule

Each year along with your financial audit the School will be required to submit the Private School Choice Programs (PSCP) Reserve Balance Schedule as a supplemental schedule to the financial statements. This schedule compares the School’s net eligible education expenses for the corresponding year to the revenue received for the PSCP.

This article outlines the different types of expenses—including total expenses and non-administrative fundraising expenses—as well as calculations needed to prepare this schedule.
Current Articles and Other Resources
COVID-19: Business Relief to Act on NOW
New details on business relief programs seem to be revealed daily. Check out this article for updated dated information and make sure to contact us if you have questions.
Navigating the Challenges of COVID-19

Brittany Leonard, CPA, provides food for thought on nonprofit topics from expenses to fundraising and reaching out to local resources.
Not-for-Profit Year-End Reporting Deadlines

Sandy Jensen, CPA, provides insights on COVID-19-related IRS deadlines for not-for-profit Organizations in Wisconsin and Minnesota.

Hawkins Ash CPAs