by the auditor. (See Chapter 3, Field Audits.) A “program” for the purpose of defining the audit scope should be mutually determined by the ISD and the district. The audit risk, i.e., the risk that the building pupil membership counts may not be accurate, needs to be considered when determining audit frequency. The overall risk assessment for each building and population is based on the auditor’s judgment and must be documented. The risk assessment is used to determine the buildings to be audited and the sample size of pupils to be tested. In determining the overall risk of a building or program, the auditor should consider the following. The results of the prior field and desk audits. Buildings or programs with error rates over 5% should be considered higher risk. The effectiveness of district procedures and controls. The experience of district personnel assigned to process pupil count data. (See , Local District Planning Form.) The frequency of pupil absenteeism noted during the count period. The number of nonconventional pupils attending the building. The number of State School Aid Act §25e adjustments. MCL 388.1625e. Required Documentation The district must submit the reports listed below to the pupil membership auditor. District Level Requirements: District or Building/Program Calendar Attendance Policy Graduation Requirements List of Approved Courses Record Retention Policy Master Teacher Schedule Building/Program Level Requirements: Building/Program Schedules Building/Program Alpha List - The building/program alpha list must be printed from MSDS and signed by the building principal or authorized representative. The auditor may require the alpha list printed from the district’s student information system (SIS) for comparison purposes. Nonconventional Pupil Lists – There must be a separate list indicating which nonconventional categories apply to each pupil. Attendance Records - There must be a separate list indicating which pupils are absent in any class on the count day and their return date(s) within the 10/30-day period or 45-day period for suspended or expelled pupils.
SAMPLE SUMMARY AND ANALYSIS INITIAL SAMPLE 1st EXPANSION 2nd EXPANSION Total Pop. % Sample Size # of Errors % Risk 25% 1st Exp. # of Errors Cum Errors % Risk 40% 2nd Exp # of Errors Cum Errors % 400 40 3 25% 60 2 5 40% 60 0 5 I Appendix F 3rd EXPANSION 4TH EXPANSION 100% x 1
attended during the count period. S5 Enrollment - the Count Day Pupil who enrolled after the count day was listed on the alpha list and claimed for state aid. Administrative Rule 340.2; §6(8) of the School Aid Act S6 Enrollment - Attendance Before the Count Day District was unable to document the reason why did not attend any classes on or before the count day. Administrative Rule 340.2; §6(8) of the State School Aid Act S7 Alpha Roster - Duplicate Pupil Pupil was listed twice on the alpha list, resulting in a claim of more than 1.0 FTE. Administrative Rules 340.2 and 340.7; §6(4)(a) of the State School Aid Act S8 Duplicate Count Pupil counted in more than one district for an FTE total greater than 1.0. Administrative Rules 340.2 and 340.7; §6(4)(a) of the State School Aid Act S9 Alpha Roster - Pupils Not on List but Eligible The auditor verified the eligibility of who was not included on the original alpha list and not claimed for state aid. ___ FTEs were added. §6(8) of the State School Aid Act
S14 General Education/Special Education Split The FTE between General Education and Special Education was inaccurate. §51a of the State School Aid Act; Administrative Rules 340.1701b and 340.1702 S15 General Education/Special Education Split Cooperative Education pupil was counted in both General Education in one district and Special Education in another, resulting in FTE greater than 1.0. §6(4) of the State School Aid Act S16 General Education/Special Education Split Special Education pupils over age 20 attended General Education classes and not counted on MSDS. §6(4)(l) of the State School Aid Act S17 Special Education - §53a to 52 Pupil reported as §53a was not approved by the Department so changed to §52. §52 and 53a of the State School Aid Act S18 Special Education - §52 to 53a Pupil reported as §52 was approved by the Department so changed to §53a. §52 and 53a of the State School Aid Act S19 Special Education - Ancillary Services Only Pupil was receiving ancillary services only and not eligible to be counted in membership.
S20 Special Education – Wrong Category Pupil was reported in the wrong Special Education category. S21 Juvenile Home Pupil was in attendance at and claimed by a juvenile facility. §6(4)(d) and §24 of the State School Aid Act S22 Residency Requirements Pupils did not meet the residency requirements. §6(4)(b) of the State School Aid Act; Administrative Rules 340.2 and 340.3; Section 4 of the Pupil Accounting Manual S23 Nonresident Pupil - Waiver/Release The educating district did not receive a waiver/release from the nonresident pupil's district of residence that allowed the pupil to be counted in membership. §6(4)(b) and §6(6) of the School Aid Act; Section 4 of the Pupil Accounting Manual S24 Pupil - High School Diploma A pupil previously received a high school diploma and therefore, is not eligible to be counted in membership. §6(4)(m) of the State School Aid Act
S25 Learning Lab FTE claimed for the learning lab classes exceeded the FTE for the same class in a traditional setting. Section 5-A of the Pupil Accounting Manual; Administrative Rule 340.13 S26 Alternative Education - Other S27 Cooperative Agreement Programs S28 Home-Based – Record of Service Record of service was not maintained for pupil who was identified on the alpha list as receiving instruction under the home-based provision. Section 5-C of the Accounting Manual; §6(4)(u) of the State School Aid Act; §1311 and §1311a of the Revised School Code; Administrative Rule 340.2 S29 Home-Based – Hours of Instruction by Certified Teacher Pupil identified on the alpha list as receiving home-based instruction did not receive the required hours of instruction per week by a certified teacher during the count period. Section 5-C of the Pupil Accounting Manual; §6(4)(u) of the State School Aid Act; §1311
and §1311a of the Revised School Code: Administrative Rule 340.2 S30 Home-Based – Prorated FTE was not subject to a mandatory expulsion, so FTE for home-based services must be prorated. Sections 5-C and 5-N of the Pupil Accounting Manual; §6(4)(u) of the State School Aid Act; §1311 and §1311a of the Revised School Code; Administrative Rule 340.2 S31 - Other S32 Homebound/ Hospitalized - Service Record of service was not maintained for pupil who was identified on the alpha list as receiving instruction under the homebound/hospitalized provision. §109 of the State School Aid Act; Section 5-D of the Pupil Accounting Manual S33 Homebound/ Hospitalized - Pupil identified on the alpha list as receiving homebound/hospitalized Administrative Rule 340.2; §109 of the
Accounting Manual S42 Reduced Schedule – Educational Interest Pupil did not meet the best educational interest criterion for a reduced schedule. The membership was adjusted to reflect the appropriate FTE for the number of scheduled hours. §101(7)(c) of the State School Aid Act; Section 5-H of the Pupil Accounting Manual S43 Reduced Schedule - Documentation The school did not fill out the appropriate reduced schedule The membership was adjusted to reflect the appropriate FTE for the number of scheduled hours. §101(7)(c) of the School Aid Act; Section 5-H of the Pupil Accounting Manual S44 Reduced Schedule - Other S45 Schools of Choice – Special Education - Cooperative Agreement District does not have a signed cooperative agreement with resident district covering Special Education pupils. Section 5-I of the Pupil Accounting Manual; §105c of the State School Aid Act.; Administrative Rule 340.4
S51 Suspended and Expelled - Other S52 Michigan Virtual High School and Distance Learning - Mentor Virtual and distance learning pupils were not mentored by an on-site certified teacher. Sections and 5-O-D of the Pupil Accounting Manual; §98 of the State School Aid Act; Administrative Rule 340.11 S53 Michigan Virtual High School and Distance Learning - Number of Courses Courses are at the self-scheduled time and place and pupil's schedule exceeded the two course limit for virtual or distance learning classes. Sections and 5-O-D of the Pupil Accounting Manual; §98 of the State School Aid Act; Administrative Rule 340.11 S54 Michigan Virtual High School and Distance Learning - Charges District did not pay applicable charges for virtual or distance learning classes. Sections and 5-O-D of the Pupil Accounting Manual; §98 of the State School Aid Act; Administrative Rule 340.11
S55 Michigan Virtual High School and Distance Learning - Attendance Pupil was not in attendance during the count period. Sections and 5-O-D of the Pupil Accounting Manual; §98 of the State School Aid Act; Administrative Rules 340.2 and 340.11 S56 Michigan Virtual High School and Distance Learning - Other S57 Work-Based - Attendance Attendance record was not maintained. Administrative Rules 340.2, 340.15, and 340.16; Section 5-P of the Pupil Accounting Manual S58 Work-Based - Training Plan Training plan and training agreement were not completed. Administrative Rules 340.15 and 340.16; Section 5-P of the Pupil Accounting Manual S59 Work-Based – Site Visits Certified teacher/coordinator Administrative Rules 340.15,
employed by the district failed to monitor pupil’s work with site visits as required or a staff member failed to visit the worksite of a Special Education pupil as required to check pupil’s attendance and progress and to assess placement in terms of health, safety, and welfare. 340.16, and 340.1733(i); Section 5-P of the Pupil Accounting Manual S60 Work-Based – Special Education Special Education work site based files were missing one or more of the requirements to count in membership, i.e., training plan or training agreement incomplete, not aligned with IEP/EDP, no safety training, no visitation log, no worker’s compensation/general liability insurance, etc. Administrative Rules 340.15 and 340.16; Section 5-P of the Pupil Accounting Manual S61 Work-Based - General Education The pupil's work-based files were missing one or more of the requirements to count in membership, i.e., training plan or training Administrative 340.15 and 340.16; Section 5-P of the Pupil
agreement incomplete, not aligned with EDP, no safety training, no visitation log, no worker’s compensation/general liability insurance, etc. Accounting Manual S62 Work-Based - Other S63 Experiential Learning Courses - Other Section 6-A of the Pupil Accounting Manual; Administrative Rule 340.14 S64 Other S65 Adult Ed S66 Attendance - Other S67 Residency - Other S68 Seat Time Waiver - Other S69 Seat Time Waiver – Logins Pupil did not log into at least one online course for ten calendar days during the 30-calendar day count period. Section 5-O-B of the Pupil Accounting Manual; §101(9) of the State School Aid
Act; Administrative Rule 340.18 S70 Seat Time Waiver – Two-way Weekly Interaction No documentation of weekly two-way interaction that is relevant to the pupil’s course content between the teacher of record and pupil for each week of the count period. Section 5-O-B of the Pupil Accounting Manual; §101(9) of the State School Aid Act; Administrative Rule 340.18 S71 Seat Time Waiver –Course-Specific Schedule Pupil does not have a course-specific schedule. Section 5-O-B of the Accounting Manual; §101(9) of the State School Aid Act; Administrative Rule 340.18 S72 Seat Time Waiver –On-Site Mentor Teacher of record is not assigned to pupil or teacher of record is not a certified Michigan teacher employed by the district. Section 5-O-B of the Accounting Manual; §101(9) of the State School Aid Act; Administrative Rule 340.18
S73 Approved §25e Adjustments (November) System-generated audit finding for §25e requests in the month of November §25e of the State School Aid Act S74 Approved §25e Adjustments (December) System-generated audit finding for §25e requests in the month of December §25e of the State School Aid Act S75 Approved §25e Adjustments (January) System-generated finding for §25e requests in the month of January §25e of the State School Aid Act S76 Approved §25e Adjustments (February) System-generated audit finding for §25e requests in the month of February §25e of the State School Aid Act S77 Approved §25e Adjustments (March) System-generated finding for §25e requests in the month of March §25e of the School Aid Act S78 Approved §25e Adjustments (April) System-generated audit finding for §25e requests in the month of April §25e of the State School Aid Act S79 Approved §25e Adjustments (May) System-generated finding for §25e requests in the month of May §25e of the State School Aid Act
S80 Approved §25e Adjustments (June) System-generated audit finding for §25e requests in the month of June §25e of the State School Aid Act S81 Manual §25e Adjustments §25e requests manually entered by the Pupil Auditor §25e of the State School Aid Act S82 Certified Teacher Pupil is not taught by a certified teacher. §6(8) and §163 of the State School Aid Act; Administrative Rule 340.10(2)(a)
TOPICAL INDEX OF REFERENCES Topic Revised School Code MCL 380.1 – 380.1852 State School Aid Act MCL 388.1601– 388.1896 School District Accounting for Distribution of State Aid Rules 340.1– 340.18 Accounting Manual § Other Absence, child of member of armed services 380.1138 Interstate Compact on Educational Opportunity for Military Children, MCL 3.1041 Absence, excused 388.1606(8) 340.7(6) 1 Absence, unexcused 388.1606(8) 340.7(6) 1 Adjustments, aid 388.1615(3) 388.1625e Adult education 388.1707 Age, maximum 388.1606(4)(l) 340.1702 3 Age, minimum 380.1147 388.1606(4)(l) 3 Age, proof of 380.1135(1) 3 Alternative education, minimum attendance requirement waiver 388.1701(3)(f) 388.1701(3)(g) Alternative education, instructional time waiver 388.1701(9) 5-A Alternative education, mandatory suspension/expulsion 340.2(14) 5-A Alternative education, membership 388.1606(4)(o) 388.1606(4)(v) 5-A Alternative education, nonresident 388.1606(6)(h) 5-A Attendance, 75% 388.1701(3)(e) 2 Attendance, compulsory 380.1561 et seq. 3 Attendance, count day 388.1606(8) 340.2 3 Attendance, defined 340.1(a) Audit, access to records for state aid eligibility 388.1768 Audit, authority 380.1281(2) 388.1615 388.1618
388.1606(6)(k) Expulsion, pro rata membership 388.1606(4)(u) 340.2(15) 5-N Extended school year program, membership 388.1606(4)(k) Foreign or foreign exchange student 340.2(8) Foster care, membership 380.1148(2) FTE, maximum 1.0 per pupil 388.1606(4)(a) 340.7 GED 388.1606(4)(m) General education/Special education allocation 388.1651a Graduation rates 388.1619 Graduation requirements completed, instructional time 340.10(4) High school diploma or GED, not counted in membership 388.1606(4)(m) 3 Home schooled pupil 388.1606(6)(a) 388.1766b 340.2(20) 5-E Home-based 380.1311 380.1311a 388.1606(4)(u) 340.2(13) – (15) 5-C 5-N Homebound/Hospitalized 380.627a 388.1709 340.2(11) – (12) 5-D Homebound/Hospitalized, special education 340.2(12) 5-D Special Education Programs and Services Rule 340.1746 Homeless pupil 388.1606(4)(l)(ii) 388.1763a 340.2(19) Hospitalized 380.627a 388.1709 340.2(11) – (12) 5-D Hours and days of instruction 380.1284 388.1701 340.10 2 Identity, of 380.1135(1) 3 Independent study 340.12 5-O-A
Instructional time, defined 340.10 2 Instructional time, graduation requirements completed 340.10(4) 2 Instructional time, Junior ROTC 388.1701(7)(e) 340.10(3)(a) Instructional time, minimum 380.1284 388.1701 340.10 2 Instructional time, professional development 388.1701(10) 2 Instructional time, reduced schedule 388.1701(7)(c) 5-H Instructional time, travel time 388.1701(7)(d) 340.10a 5-B Instructional time, waiver 388.1701(9) 5-A Intermediate school district, employment of person trained in pupil accounting and auditing 388.1681(5)(a) Intermediate school district, employment of person trained in student data for graduation and dropout rates 388.1681(5)(b) Junior ROTC, instructional time 388.1701(7)(e) 340.10(3)(a) Juvenile detention facility, child caring institution, or mental health institution 388.1606(4)(d) 388.1624 Kindergarten, alternate schedule 388.1701(5) 2 Kindergarten, enrollment 380.1147 3 Kindergarten, FTE 388.1606(4)(r) 3 Learning lab 340.13 5-A Manuals 388.1618(4)(d) 388.1618(8) Membership, adjustment based on pupil transfer 388.1625e 5-Q-B
Membership, alternative education 388.1606(4)(o) 388.1606(4)(v) 5-A Membership, approval of resident district 388.1606(4)(b) 340.2(10) 4 Membership, class hours 388.1606(4)(q) 388.1701(3) 3 Membership, cooperative education program 388.1606(4)(n) and (t) 5-B Membership, data due dates 388.1701(1) Membership, defined and calculated 388.1606(4) 388.1606(8) 340.2 340.7 Membership, dropout recovery program 388.1606(4)(ff) 5-Q-A Membership, enrollment, count day 388.1606(8) 340.2(1) 3 Membership, extended school year program 388.1606(4)(k) 5-Q-A Membership, former pupil of closed PSA 388.1606(4)(z) Membership, foster care 380.1148(2) Membership, FTE, maximum 1.0 per pupil 388.1606(4)(a) 340.7 Membership, fully subsidized teaching costs, not counted 388.1706 Membership, high school diploma or GED 388.1606(4)(m) Membership, 388.1606(4)(u) Membership, homeless pupil 388.1606(4)(l)(ii)(A) 388.1763a 340.2(19) 3 Membership, kindergarten 388.1606(4)(r) 388.1701(5) 3 Membership, Michigan schools for deaf and blind 388.1606(4)(e) Membership, Michigan virtual school 388.1606(6)(i) Membership, middle college/early college 388.1606(4)(cc) 340.7(8) 5-G-B Membership, move before count date 388.1606(8) 340.3(a)
district or in district and PSA 340.7(3) Pro rata membership, nonpublic/homeschooled, nonessential courses 340.2(20) 5-E Pro rata membership, part-time pupil 388.1606(4)(p) 340.2 340.7 5-F Pro rata membership, suspension or expulsion 388.1606(4)(u) 340.2(15) 5-N Professional development 388.1701(10) 2 Pupil, defined 388.1606(6) auditing and accounting manuals 388.1618(4)(d) 388.1618(8) Pupil enrollment and attendance, data due dates 388.1701 Pupil membership count day, defined 388.1606(7) 3 Pupil membership report, due date 388.1618(4)(e)(iii) Pupils in K to 12 actually enrolled and in regular daily attendance, defined 388.1606(8) 3 Public school academy 380.501 – 380.507 388.1606(4) 388.1769 Public school academy, nonresident 388.1606(6)(c) Record retention 1 Records Retention and Disposal Schedule for Michigan Public Schools Records, access for audit 388.1768 Reduced schedule 388.1701(7)(c) 5-H Register 340.1(d) Religious instruction, release for 340.2(7) Repayments 388.1615(3) 388.1625e
Residence, district of, defined 388.1603(9) 4 Residence, federal land 380.1297 380.1298 340.2(16) Residence, foster care 380.1148 Residence, licensed home 380.1148 Residence, move before count date 388.1606(8) 340.3(a) 4 Residence, parents in different school districts 380.1148a 388.1624b 4 Residence, relative’s home 380.1148 4 Residence, requirement 388.1606(4)(b) 340.2 340.3 4 Residence, special education Special Education Programs and Services Rule 340.1732 Residence, state institution 340.2(17) Residence, transfer after fall count ROTC 388.1701(7)(e) 340.10(3)(a) Schools of choice 388.1705 (within ISD) 388.1705c (contiguous ISD) 340.4 5-I Schools of choice, nonresident 388.1606(6)(d) – (e) Schools of choice, pilot ISD program 388.1691a 388.1705b 5-J Schools of choice, 5% penalty 388.1705 388.1705c(20) Schools of excellence 380.551 – 380.561 Seat time waiver 388.1701 340.18 5-O-B Section 25e Pupil membership transfers 388.1625e 5-Q-B
Rule 340.1733(h) Special education, records 380.1711(1)(f) Special education, residence Special Education Programs and Services Rule 340.1732 Special education, schools of choice 388.1705 340.4(2) – (3) 5-I Special education, travel time 388.1701(7)(d) Special education, 5-L 5-P Special Education Programs and Services Rule 340.1733(i) Split schedule 5-M State aid, adjustments 388.1615(3) 388.1625e aid, eligibility, access to records for audit 388.1768 State aid, forfeiture for noncompliance with instructional time requirements 388.1701 aid, installment payments and advance release 388.1617b State aid, withheld for noncompliance 388.1618(10) Strict discipline academy, mandatory suspension/expulsion 380.1311b et seq. 340.2(14) Supplemental count day 388.1606(15) 388.1606a 340.1(b) 3 Suspension 380.1311 380.1311a 388.1606(4)(u) 340.2(13) – (15) 5-C 5-N
Suspension, attendance for FTE 388.1606(8) 340.7(6) 5-N Suspension, nonresident 388.1606(6)(h)(i) Suspension, pro rata membership 388.1606(4)(u) 340.2(15) 5-N Teacher, certification required 388.1606(8) 388.1763 340.10(2)(a) 2 Transfer count day, membership adjustment 388.1625e Travel time 388.1701(7)(d) 340.10a Tuition, nonresident pupil 380.1401 – 380.1416 388.1711 388.1718 Tuition, postsecondary dual enrollment 340.17 Tuition, virtual learning 340.11 Tuition defined 388.1606(16) Urban high school academy 380.521 – 380.529 Virtual learning 388.1698 388.1621f 340.11 5-O-A Vocational education 388.1621b 388.1901 – 388.1913 340.17 5-G-A Postsecondary Enrollment Options Act, MCL 388.511 – 388.524 Career and Technical Education Reimbursed Programs, Rules 395.231 – 395.376 Postsecondary Dual Enrollment Criteria for Fifth-Year High School Pupils, Rules 388.151 – 388.155