Health Insurance Risk-Sharing Plan (HIRSP) Authority
We provided an unqualified opinion on the HIRSP Authority's financial statements for 2011. As of December 31, 2011,21,317 policyholders were enrolled in the state-based HIRSP plan and 998 policyholders were enrolled in the temporary federal high-risk pool. The HIRSP Authority's net assets totaled $9.5 million at the end of 2011.
FoodShare Wisconsin,
Department of Health Services
In 2011, 1.1 million individuals received $1.1 billion in FoodShare benefits. The Department of Health Services has made it easier
to apply for benefits, but not all eligible individuals receive them. We identify instances in which program rules were violated and ineligible
individuals, including inmates, received benefits. We include recommendations to improve program administration and fraud prevention.
Driver Improvement Surcharge Funding, Department of Health Services
Statutes require that counties retain 60.0 percent of each driver improvement surcharge imposed and transfer 40.0 percent to the State. Five state agencies spent $4.5 million in surcharge funds in FY 2010-11 to support local efforts to address alcohol and drug abuse. To help meet statutorily required budget reductions, agencies lapsed surcharge funds to the General Fund in FY 2009-10 and FY 2010-11.
FoodShare Benefits Spent Outside of Wisconsin, Department of Health Services
In fiscal year 2010-11,3.0 percent of FoodShare benefits, or $32.9 million, was spent outside of Wisconsin.
Although this is permitted by federal law, 152 assistance groups, which represented 0.04 percent of all assistance groups receiving benefits,
made purchases totaling $324,187 exclusively outside of Wisconsin that may indicate inappropriate benefit use.
Medical Assistance Program, Department of Health Services
Expenditures increased from $5.0 billion in FY 2006-07 to $7.5 billion in FY 2010-11, primarily due to
growth in the number of recipients. The management data currently produced by the Department of Health Services (DHS) have limitations. We make several
recommendations to improve DHS's contracting, budgeting, and financial management practices.
Health Insurance Risk-Sharing Plan (HIRSP) Authority
We provided an unqualified opinion on the HIRSP Authority's financial statements for 2010. The HIRSP Authority has maintained a sound financial position, with net assets
totaling $13.7 million at the end of 2010. In addition to the state-based HIRSP Plan, the HIRSP Authority operated a temporary federal high-risk pool under a contract with the federal government during the period we reviewed.
Unemployment Reserve Fund, Department of Workforce Development
We provided an unqualified opinion on the Fund's financial statements for FYs 2009-10 and 2008-09. As its reserves have been depleted, the Fund has borrowed from the federal government to pay unemployment benefits to eligible individuals. Federal borrowing will need to be repaid, with interest, beginning in 2011.
Family Care operated in 53 counties and had expenditures of $936.4 million in FY 2009-10. Participant assessments and care plans are
generally complete and timely, but cost-effectiveness is difficult to assess. As the Department and the Legislature consider program changes, it will be important
to balance budgetary considerations, the needs of low-income adults who have disabilities or are frail and elderly, and the quality of available services.
Wisconsin Veterans Homes,
Department of Veterans Affairs
The homes' operating expenditures have exceeded revenues in four of the past five fiscal years. We identified spending, staffing, purchasing,
and accountability issues and make recommendations for the Department to enhance the usefulness of its reports to the Board of Veterans Affairs,
clarify eligibility requirements for the Aid to Indigent Veterans program, and improve both compliance with state purchasing requirements and central
office oversight of the homes’ operations.
Health Insurance Risk-Sharing Plan (HIRSP) Authority
The HIRSP Authority has maintained a sound financial position, with net assets totaling $27.5 million at the end of 2009. We provided an unqualified opinion on its financial statements for 2009 but identified a concern with access to the pharmacy claims adjudication system.
Minorities and Women in Construction Trade Apprenticeships,
Department of Workforce Development
Many minorities and women who are eligible for construction trade apprenticeships do not find work as apprentices. Oversight of the local trade committees that assign apprentices to employers should be improved, and appeals of apprenticeship contract cancellations should be decided more quickly. Additional efforts are needed to enforce an Executive Order requiring apprentices to be employed on certain state construction projects.
Child Care Regulation, Department of Children and Families
The Department shares responsibility for regulating more than 11,000 child care facilities with county and tribal agencies. It also administers Wisconsin Shares, which subsidizes care in about 60 percent of regulated facilities. Regulatory staff visit facilities and cite violations of child care rules, but higher-risk facilities are not targeted for increased regulatory attention because of insufficient management information. We found eight instances of felons or individuals who had abused or neglected children either working or reported living in child care facilities.
Health Insurance Risk-Sharing Plan (HIRSP) Authority
We provided an unqualified opinion on the HIRSP Authority's financial statements for 2008. The HIRSP Authority has maintained a sound financial position, with net assets totaling $35.4 million at the end of 2008. Policyholder enrollment has decreased in recent years because of the availability of the federal Medicare Part D program and the State's BadgerCare Plus Program for individuals under the age of 19.
Mental Health Institutes, Department of Health Services
We express unqualified opinions on each Institute's financial statements for FY 2007-08. Mendota reported a $0.6 million gain in net assets, primarily the result of increased settlements from the federal government. Winnebago reported an operating loss of $2.5 million as it did not generate sufficient revenue to cover its expenses.
Inmate Mental Health Care, Department of Corrections and Department of Health Services
In FY 2007-08, expenditures for inmate mental health care totaled approximately $59.8 million, and the Department of Corrections identified 6,957 inmates, or 31.0 percent of adult inmates, as mentally ill. Mentally ill inmates have had a disproportionate effect on safety and discipline in the correctional institutions.
Unemployment Reserve Fund, Department of Workforce Development
We provided an unqualified opinion on the Fund's financial statements for FYs 2007-08 and 2006-07. The Fund's balance continues to decline. The Department of Workforce Development expects that the Fund's cash balances will be depleted in February 2009, at which time borrowed federal funds will be needed in order to continue unemployment benefit payments.
Medical Assistance Program Integrity, Department of Health Services
We evaluated the Department of Health Services' efforts to ensure the integrity of the Medical Assistance program by certifying and auditing providers. We recommend the Department improve its efforts to monitor providers and enhance recoveries, and determine whether the $268,000 in payments for claims in FY 2005-06 that we identified as potentially unallowable can be recovered.
Health Insurance Risk-Sharing Plan (HIRSP) Authority
We provided unqualified opinions on the HIRSP Authority's financial statements for the six-month
period ended December 31, 2006, and for calendar year 2007. The newly
created HIRSP Authority assumed oversight responsibility for HIRSP beginning
July 1, 2006. The HIRSP Authority has maintained a sound financial position, with
a net increase in assets of $6.8 million during 2007.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Institutes' FY 2006-07 financial statements at the request of the Department of Health Services. We express unqualified opinions on the financial statements. Each Institute reported an operating loss of $3.7 million. Increases in salaries and fringe benefit costs contributed to the reported losses.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Institutes FY 2005-06 financial statements at the request of the Department of
Health and Family Services. We express unqualified opinions on the financial statements. In FY 2005-06, Mendota
reported a financial gain of $1.2 million, and Winnebago reported a financial gain of $1.8 million.
Health Insurance Risk-Sharing Plan (HIRSP) Authority
We provide an unqualified opinion on HIRSP’s FY 2005-06 financial statements. HIRSP maintains a sound financial position
as policyholder enrollment and claims costs begin to moderate. On July 1, 2006, a newly created HIRSP Authority assumed oversight
responsibility for HIRSP.
We provided an unqualified opinion on the Fund’s financial statements for FYs 2005-06 and 2004-05. While unemployment rates were lower during our audit period, unemployment benefit payments and other expenses continued to exceed revenues, and the Fund’s balance declined to $895.0 million as of June 30, 2006, the lowest fund balance since 1988.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Institutes’ FY 2004-05 financial statements at the request of the
Department of Health and Family Services. We express unqualified opinions on the financial statements. Each Institute
reported a net loss for FY 2004-05. Mendota reported a loss of $2.6 million, and Winnebago
reported a loss of $1.7 million.
Health Insurance Risk-Sharing Plan (HIRSP) Authority, Department of Health and Family Services
We provided an unqualified opinion on HIRSP’s FY 2004-05 financial statements.
While enrollment has begun to moderate, increasing claims costs present continuing management and funding challenges.
On July 1, 2006, the newly created HIRSP Authority assumed oversight responsibility.
Milwaukee County Child Welfare, Department of Health and Family Services
Program improvements have reduced the number of children in out-of-home care and the length of
their stays. However, we identified concerns with the timeliness of investigations of abuse and neglect, the provision
of court-ordered services, and service coordination. Financial oversight should also be improved. We
identified $677,694 in unallowable and questioned costs charged by the six contractors that provided
most program services in 2004.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Institutes’ FY 2003-04 financial
statements at the request of the Department. We express unqualified opinions
on the financial statements. Each Institute reported a small financial gain
during FY 2003-04. Mendota reported a gain of almost
$90,000 in net assets and Winnebago reported a gain of over $54,000.
Health Insurance Risk-Sharing Plan (HIRSP) Authority, Department of Health and Family Services
We provided an unqualified opinion on HIRSP’s FY 2003-04 financial statements.
HIRSP’s financial position continued to improve, but increasing enrollment and claims costs
present continuing challenges to management and funding. We identified two types of claims
processing errors, including pharmacy claims totaling $210,689 that were inappropriately
paid on behalf of cancelled policyholders.
Wisconsin Works (W-2) Program, Department of Workforce Development
The program was created in 1997 to help low-income families with dependent children achieve economic
self-sufficiency through employment. Through June 2004, program expenditures have totaled $1.5 billion.W-2’s success in assisting participants to achieve self-sufficiency has been mixed, and we identified
concerns with oversight of the local W-2 agencies that administer the program.
Unemployment Reserve Fund, Department of Workforce Development
We provide an unqualified opinion on the Fund’s financial statements for FYs 2003-04 and 2002-03.
The adjusted cash balance related to taxable employers declined to $812.3 million as of June 30, 2004.
Since this cash balance is between $300 million and $900 million, the second-highest tax rate
schedule will be applied to taxable employers during calendar year 2005.
The Department of Health and Family Services contracts with counties for
eligibility determinations and case management. In 6.5 percent of
200 cases we reviewed, worker errors affected eligibility. In 12.9
percent of an additional 101 cases we reviewed, individuals were
inappropriately denied benefits.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We audited the Institutes’ FY 2002-03 financial statements at the
request of the Department. Although each Institute reported a positive
accounting balance, their financial results for FY 2002-03 were
mixed. Mendota reported a gain of $1.4 million in net assets,
while Winnebago reported a loss of $1.8 million. The Department
did not comply with a statutory requirement that funds received on behalf of
state-funded patients be lapsed to the General Fund, but it has agreed to do so
in the future.
Restorative Justice Programs, Milwaukee and Outagamie Counties
The programs operated by the Milwaukee and Outagamie County district attorneys’
offices achieved modest success through 2003. Participation increased in both
counties from 2002 to 2003, and participants in Milwaukee County have a lower
recidivism rate than nonparticipants. State and federal funding for the
programs ends with FY 2004 05. We note that at least 11 additional
counties have restorative justice programs.
Health Insurance Risk-Sharing Plan, Department of Health and Family Services
We provided an unqualified opinion on HIRSP’s FY 2002-03 financial
statements. HIRSP’s accounting deficit decreased by $5.1 million to
reach $0.9 million. Increasing enrollment and claims costs present
continuing challenges to the management and funding of HIRSP. Legislative
action will be needed to address a technical issue in HIRSP’s statutory funding
formula.
Health Insurance Risk-Sharing Plan, Department of Health and Family Services
We provided an unqualified opinion on HIRSP’s FY 2001-02 financial
statements. Under an accrual-based funding approach that was implemented in
FY 2001-02, HIRSP’s accounting deficit has been reduced by $2.7
million. However, management and funding challenges will continue
because of HIRSP’s increasing enrollment and claims costs, together with the
elimination of GPR support beginning in FY 2003-04.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Institutes’ FY 2001-02 financial
statements at the request of the Department. The financial position of each
Institute improved significantly during FY 2001-02: Mendota Mental
Health Institute reported a net increase in assets of $2.5 million,
and Winnebago Mental Health Institute reported a net increase of $1.0
million.
Use of Tobacco
Control Board Funds, Tobacco Control Board
The Wisconsin Tobacco Control Board spent $26.2
million from FY 1999-2000 through FY 2001-02
to administer a statewide tobacco control program. Some of the tobacco control
projects it funded have been successful, others less so. In addition, project
coordination could be improved. The Board should ensure it funds only effective
tobacco control projects.
Unemployment
Reserve Fund, Department of Workforce Development
We provide an unqualified opinion on the Fund’s
financial statement for FYs 2001-02 and 2000-01. The Fund’s cash
balance related to taxable employers declined $236 million to $1.47 billion as
of June 30, 2002. Since this cash balance continues to exceed the statutory
minimum that allows employers to be taxed under the lowest rate schedule, the
Fund is able to charge employers the lowest authorized unemployment tax rates.
Regulation of Nursing Homes and Assisted Living Facilities, Department of
Health and Family Services
From FY 1997-98 to FY 2000-01,
the number of citations issued to nursing homes increased 6.1 percent, and the
number issued to assisted living facilities increased 140.3 percent. Regulatory
oversight differs, but nursing homes are inspected more frequently than
assisted living facilities. The most common enforcement option is the state
forfeiture. Other penalties, such as restrictions on admissions, licensure
constraints, additional management oversight, and criminal charges, are rarely
imposed.
Health Insurance Risk-Sharing Plan, Department of Health and Family Services
We provided an unqualified opinion on HIRSP’s FY
2000-01 financial statements. Although HIRSP showed an accounting
deficit of $8.2 million at the end of FY 2000-01, a recent change
from a cash-based to an accrual-based funding approach is expected to improve
the plan’s financial position. Enrollment increased 28.1 percent in FY
2000-01, and claims costs increased 48.9 percent. Continuing increases
in both areas will present continuing challenges for the Department, which also
needs to remain diligent in its financial management of HIRSP.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Institutes’ FY
2000-01 financial statements at the request of the Department. While
we express an unqualified opinion on the Institutes’ financial statements,
one-time adjustments totaling $14.6 million were required to correct reporting
errors in both Institutes’ patient receivable balances.
Wisconsin Mental Health Institutes, Department of Health and Family Services
A well-established network of regional Level A
teams responds to releases of hazardous materials throughout Wisconsin. FY
2000-01 hazmat-related expenditures, which total $2.1 million
and include $1.4 million for the regional teams, are higher than
other states’. The costs that regional teams charge responsible parties vary
widely, and reimbursement rates paid by the State should be standardized. The
Legislature may wish to review funding and response structures. We have issued
a separate letter on the hazmat teams’ role as first responders to threats of
terrorist activity and the availability of federal funds to enhance state and
local preparedness are discussed in a separate letter.
Regional Hazardous Materials Response Teams, Department of Military Affairs
We provided an unqualified opinion on HIRSP’s FY
1999-2000 financial statements and followed up on issues raised in
prior audits. Steps are being taken to address an overpayment of prescription
drug claims, which totaled $5.5 million from July 1998 through
January 2001. Beginning in FY 2001-02, funding for the plan will
change from a cash-based to an accrual-based approach, which will require
policyholders, insurers, and health care providers to provide an additional
$16.6 million to fund an accumulated accounting deficit.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Wisconsin Mental
Health Institutes’ FY 1999-2000 financial statements at the
request of the Department of Health and Family Services. While we express an
unqualified opinion on the Institutes’ financial statements, we note continuing
concerns with the Department’s patient billing and accounts receivable system.
Prior Authorization for Therapy and Other Services, Department of Health and
Family Services
The Department requires prior authorization for
some therapy services provided under the Medical Assistance program. Processing
times have increased primarily because forms must be returned to providers for
additional information. Service requests for individuals from 3 to 21 are
denied or modified most frequently.
In FY 1999-2000, the Department spent
$37.2 million and employed 232.5 full-time equivalent staff to provide
health care to approximately 14,900 adult inmates. Since FY 1994-95,
health care expenditures increased 120 percent, while the number of inmates
increased 56 percent. Management improvements could potentially offset some
cost increases. The Governor’s 2001-03 Biennial Budget Proposal includes $2.3
million and 39.5 positions to increase health care staffing levels at
existing institutions.
Wisconsin Works (W-2) Program, Department of Workforce Development
Approximately two-thirds of the 2,129 former
participants who left W-2 in the first quarter of 1998 filed tax returns in
1999. Based on reported income alone, 33.8 percent of this group was above the
federal poverty level for 1999. However, when earned income tax credits are
included, 46.7 percent of the group was above the federal poverty level. The
increasing number of former participants who return to W-2 for assistance and
the sanctions imposed by some W-2 agencies warrant legislative attention.
Wisconsin Shares Child Care Subsidy Program, Department of Workforce
Development
The program assists Wisconsin Works (W-2)
participants and other low-income working families in paying for child care.
Participation has grown substantially since 1996. In FY 1999-2000,
approximately 33,000 families and 60,500 children participated at a cost of
$191.3 million in federal and state funds. Should participation continue to
grow, the Legislature will need to determine whether to appropriate additional
funds or make program changes to limit participation.
Unemployment Reserve Fund, Department of Workforce Development
We have provided an unqualified opinion on the
Unemployment Reserve Fund’s financial statements for FYs 1999-2000
and 1998-99. The Fund’s June 30 cash balance for this period allowed the lowest
unemployment tax rate schedule to be applied to taxable employers.
Health Insurance Risk-Sharing Plan, Department of Health and Family Services
We provided an unqualified opinion on the plan’s
FY 1998-99 financial statements. The plan had net income of $6.6
million, which is a considerable improvement over the $9.4 million
loss of the previous year. Several prior audit concerns have been addressed,
but concerns related to funding structure, service delivery, and reporting
still need to be addressed. We also found that because important system pricing
controls had been suspended, prescription drug claims were overpaid by an
estimated $3.7 million during FYs 1998-99 and
1999-2000.
Division of Vocational Rehabilitation, Department of Workforce Development
In FY 1999-2000, the Vocational
Rehabilitation program spent $66.3 million in federal and state
funds to help 35,000 disabled individuals with employment. Program expenditures
have increased while participation remained stable and rehabilitation rates
declined. In August 2000, the program was closed to new participants because of
a projected funding shortfall. Service delivery is not well-managed, and
improvements are needed in both financial planning and monitoring. Future
recruitment and retention of program staff may be challenging. This report is
available in alternative formats.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We performed an audit of the Wisconsin Mental
Health Institutes’ FY 1998-99 financial statements at the request
of the Department of Health and Family Services. While we express an
unqualified opinion on the Institutes’ financial statements, we note continuing
concerns with the Department’s patient billing and accounts receivable system.
Food Stamp Program, Department of Workforce Development
The Food Stamp Program served approximately
311,800 individuals in Wisconsin during FY 1998-99 at a cost of
$167.7 million. Program participation declined by 45.2 percent from
March 1995 through July 1999. A number of factors contributed to this decline,
including the implementation of Wisconsin Works (W-2) and other welfare reform
initiatives. Changes could be made to increase participation, but some would
require federal action to implement.
Enforcement of Prevailing Wage Laws, Department of Workforce Development and
Department of Transportation
Both departments enforce compliance with
prevailing wage laws for public works projects. Wage rates for 233 job
classifications in each county are determined accurately, but the survey
process is time-consuming. Enforcement efforts include investigation and
monitoring; however, statutory penalty options are seldom invoked. Enforcement
could be improved by monitoring contractors independent of complaint
investigations, providing the agencies with new penalty options, and improving
program management.
Special Needs Adoption Program, Department of Health and Family Services
The Department arranges adoptions for children
determined to have special needs because of disability, age, ethnicity, or
other factors that may make placement difficult. In 1998, the Department placed
415 such children in adoptive homes. Although program performance has improved
and additional funding has been used for expanded program capacity, additional
management changes are necessary to ensure effective use of program resources
and timely placement of children.
County Nursing Home Funding, Department of Health and Family Services
The Department reimburses county-owned and private
skilled nursing facilities for care they provide to Medical Assistance
recipients. County-owned facilities provide care to a greater percentage of
residents who present behavioral challenges that appear to be associated with
higher staffing levels. Although the State has used federal Intergovernmental
Transfer (IGT) program funds to help offset county deficits, a declining
percentage of county deficits has been covered, while the State’s share of IGT
funding has increased.
Wisconsin Mental Health Institutes Department of Health and Family Services
We performed an audit of the Wisconsin Mental
Health Institutes’ FY 1997-98 financial statements at the request
of the Department of Health and Family Services. While we express our
unqualified opinion on the Institutes’ financial statements, we qualify our
report on internal controls and compliance because the Department does not
maintain an adequate patients billing system.
The Wisconsin Legislature has enacted a series of
measures expanding the authority of judges and caseworkers to place juveniles
in secure detention, especially as a form of punishment after being adjudicated
delinquent. Judges and caseworker have used this expanded authority to increase
post-adjudicatory placements by 46.6 percent in the two-an-one-half-year period
since the changes took effect in 1996, compared to the period before the
changes.
Recidivism, when defined as a new arrest or
placement into secure detention, has been and remains high for juveniles. In
our review of 907 juveniles from four counties, recidivism was 71.5 percent
before the changes and 69.7 percent after the changes.
Community Options Programs, Department of Health and Family Services
Program funding has more than doubled since FY
1991-92, but demand for services has consistently exceeded available
funds. Waiting times and services vary among the 72 counties and 1 tribe that
administer local programs.
Health Insurance Risk-Sharing Plan, Department of Health and Family Services
The plan provides medical insurance for
individuals unable to obtain private coverage. It is funded by policyholder
premiums, insurers, health care providers, and general purpose revenue. Our
independent auditor’s report for FY 1997-98 is qualified because
the Department did not account for provider funding in a way that allowed it to
determine whether statutory funding requirements had been met. In addition, we
identified several problems with plan design, policyholder service, and
administration. The Legislature may wish to consider statutory changes to
clarify and simplify the plan’s operations.
Unemployment Reserve Fund, Department of Workforce Development
We performed an audit of the Unemployment Reserve
Fund’s FY 1997-98 and FY 1996-97 financial statements
at the request of the Department of Workforce Development, which administers
the Fund. The Fund’ s June 30 balance for this period allows the lowest tax
rate schedule to be applied to taxable employers. Our independent auditor's
report is qualified because, in our judgment, it is not possible to obtain
sufficient audit evidence to support newly required year 2000 disclosures.
Wisconsin Works (W-2) Expenditures, Department of Workforce Development
Declining W-2 caseloads resulted in first-year
program expenditures of $118.4 million, which is only 59.7 percent
of the amount the State contracted to pay counties, private agencies, and
tribes for local program implementation. Consequently, the contractors will
likely earn $33.0 million in unrestricted profits and $47.2 million
for community reinvestment, and the Department has the potential to retain $47.2
million in unexpended program funds. During budget deliberations, the
Legislature may wish to consider enhancing program oversight and limiting
future profits.
In 1998, counties received $81.2 million
in state Youth Aids to help fund their juvenile delinquency service costs,
which totaled $181.4 million in 1997. Over time, however, the
amount of state funding available for services other than correctional
placements has declined. Reallocating Youth Aids funding using updated data
would result in some counties gaining funding while others would lose funding.
To date, recently created state programs to reduce county juvenile delinquency
costs have not been as successful as intended.
Kinship Care Program, Department of Health and Family Services
The program provides cash assistance to relatives
caring for children whose parents are unable or unwilling to provide care. Its
FY 1998-99 budget of $24.2 million is greater than was
anticipated in 1997, when the program was created. We found inconsistent
program implementation among local agencies and recommend additional
legislative attention to eligibility criteria and improved oversight by the
Department.
Nursing Home Regulation, Department of Health and Family Services and Board on
Aging and Long Term Care
Most nursing homes correct most violations of
state and federal requirements, but a few are cited repeatedly for serious
deficiencies. Enforcement of state regulations is not always consistent, and
available state penalties are not always imposed. Few ombudsmen are responsible
for monitoring many facilities.
Kids Information Data System, Department of Workforce Development
Although the State’s automated child support
enforcement system received conditional federal certification in September
1997, it does not fully meet the needs of county staff who rely on it to
fulfill their day-to-day responsibilities. Currently available management
information is inadequate for reaching conclusions about the system’s overall
effect on the child support program. The State will continue to incur
substantial costs to operate and modify the system, and resources may be needed
to ensure ongoing problems are addressed.
Nurse Aide Misconduct Investigations, Department of Health and Family Services
Within the 60 days directed by administrative
rules, the Department has resolved only 4.2 percent of misconduct complaints
involving abuse, neglect, or theft by nurse aides against vulnerable
individuals in nursing homes and other facilities. Average disposition exceeds
11 months. Better investigative guidelines, training, and supervision are
needed to eliminate the case backlog and conduct timely investigations.
Wisconsin’s average daily cost of $53.51 to
incarcerate an inmate is slightly higher than the national average and
comparable to costs of other midwestern states. Experience in Wisconsin and
other states has shown that while in some cases it may be possible to reduce
costs through privatization, in other cases the costs of privatization may
exceed the costs of direct provision of services. The audit includes best
practices for the Department to follow when privatizing services and
recommendations for the Department to improve its tracking of funds spent,
coordination of rehabilitation programs among institutions, and evaluation of
rehabilitation program effectiveness.
Milwaukee County General Assistance-Medical Program
Milwaukee County has been slow in decentralizing
the provision of health care from Froedtert Memorial Lutheran Hospital to
community-based clinics. If goals established for the program are to be met,
program management must improve and a number of questions must be resolved
within the next three months.
Wisconsin Mental Health Institutes, Department of Health and Family Services
We expressed an unqualified opinion on the Mendota
and Winnebago Mental Health Institutes' fiscal year 1995-96 financial
statements. However, the Institutes combined have a $10.9 million unsupported
cash deficit. The Legislature is considering removal of a mandate that the
deficit be eliminated by July 1999, and proposed changes in Medical Assistance
reimbursement may help reduce the deficit.
Unemployment Reserve Fund, Department of Workforce Development
We performed this audit at the request of the
Department of Workforce Development and to meet our requirements under s.
13.94, Wis. Stats. The Fund's financial statements for FY 1994-95
and FY 1995-96 are fairly presented in all material respects.
Prevention Programs for Children, Youth, and Families
There is extensive overlap in the 88 programs and
$181.8 million in funding that 13 state agencies administer to provide
direct services and financial assistance to prevent a wide variety of problems,
and limited efforts have been made to evaluate the effectiveness of individual
programs.
96-6
State Laboratory of Hygiene, University of Wisconsin-Madison
Efforts to evaluate whether to divert tests from
the Laboratory to the private sector, where some have expressed concern about
competition and questioned the Laboratory’s pricing, are hampered by inadequate
financial and management information. Improved cost accounting would enable the
Laboratory to manage resources more efficiently.
96-4
Winnebago Mental Health Institute, Department of Health and Social Services
We conducted this audit at the request of the
Department of Health and Social Services, to meet the Institute’s accreditation
requirements. FY 1994-95 financial statements are fairly presented
in all material respects. A related management letter notes that the Winnebago
and Mendota Institutes will not meet a legislative mandate to eliminate a
negative cash balance by July 1, 1997.
96-3
Mendota Mental Health Institute, Department of Health and Social Services
We conducted this audit at the request of the
Department of Health and Social Services, to meet the Institute’s accreditation
requirements. FY 1994-95 financial statements are fairly presented
in all material respects. A related management letter notes that the Mendota
and Winnebago Institutes will not meet a legislative mandate to eliminate a
negative cash balance by July 1, 1997.
95-21
Inmate Transportation, Department of Corrections
The Department could substantially reduce the
costs of inmate transportation, which are at least $2.26 million annually,
by increasing staffing and scheduling efficiency and by decreasing the demand
for trips, particularly for non-emergency off-site medical care.
95-12
Unemployment Reserve Fund, Department of Industry, Labor and Human Relations
We performed this audit at the request of the
Department of Industry, Labor and Human Relations and to meet our requirements
under s. 13.94, Wis. Stats. The Fund’s financial statements for
FY 1993-94 and FY 1992-93 are fairly presented in all
material respects.
95-10
Winnebago Mental Health Institute, Department of Health and Social Services
The Institute’s FY 1993-94 financial
statements are fairly presented in all material respects, according to this
audit conducted to meet its accreditation requirements. However, a related
management letter notes that the legislative mandate to eliminate a negative
cash balance by the end of FY 1996-97 is not likely to be met.
95-9
Mendota Mental Health Institute, Department of Health and Social Services
The Institute’s FY 1993-94 financial
statements are fairly presented in all material respects, according to this
audit conducted to meet its accreditation requirements. However, a related
management letter notes that the legislative mandate to eliminate a negative
cash balance by the end of FY 1996-97 is not likely to be met.
95-6
Adolescent Pregnancy Prevention and Pregnancy Services Board
Participants in community-based pregnancy
prevention projects that serve adolescents appear to be avoiding teenage
pregnancy, even when they are considered to be at high risk. Long-term success
is unknown because most participants have not yet reached adult age.
94-22
Employment and Job Training Programs
In FY 1992-93, 12 state agencies
administered 101 employment and job training programs at a total cost of $294.2
million. Opportunities to consolidate duplicative programs are limited
given constraints imposed by federal regulations.
94-17
Veterans 1981 Mortgage Revenue Bond Program, 1993-94, Department of Veterans
Affairs
The FY 1993-94 financial statements
of the bond program are fairly presented.
94-16
Fair Housing Services, Department of Industry, Labor and Human Relations
The Department has not exercised adequate
oversight of its contract with the Metropolitan Milwaukee Fair Housing Council
to provide fair housing services, nor has it provided services on a statewide
basis.
94-10
Special Supplemental Food Program for Women, Infants and Children, Department
of Health and Social Services
Increased efforts are needed to control fraud and
abuse in the rapidly growing Women, Infants and Children Program. These abuses
include vendors charging excessively high prices for food and exchanging food
drafts for cash.
94-9
Special Needs Adoption Program, Department of Health and Social Services
Improved management and more prompt assessment of
families wishing to adopt can reduce the waiting time for children in need of
placement.
94-7
Winnebago Mental Health Institute, Department of Health and Social Services
The FY 1992-93 financial statements
of the Institute are fairly presented in this audit conducted to meet the
Institute's accreditation requirements.
94-6
Mendota Mental Health Institute, Department of Health and Social Services
The FY 1992-93 financial statements
of the Institute are fairly presented in this audit conducted to meet the
Institute's accreditation requirements.
94-4
Specialized Medical Vehicle Transportation, Department of Health and Social
Services
More controls are needed over the use of
specialized medical vehicles for the transport of disabled Medical Assistance
recipients. Program expenditures, which totaled $26.4 million in
FY 1992-93, increased by 123.7 percent over the past four years.
93-28
Adoption Search, Department of Health and Social Services
A two-year backlog in information requests from
adult adoptees could be reduced significantly by streamlining procedures, and
some adoption search activities currently provided by the Department could be
privatized.
93-22
Veterans 1981 Mortgage Revenue Bond Program, 1992-93, Department of Veterans
Affairs
The FY 1992-93 financial statements
of the bond program are fairly presented.
93-21
Veterans 1980 Series A Mortgage Revenue Bond Program, 1992-93, Department of
Veterans Affairs
The FY 1992-93 financial statements
of the bond program are fairly presented.
93-14
Child Caring Institution Costs
Counties could help to control the over $39
million in expenditures for youth placed in child caring institutions
by more systematic consideration of price and services offered.
93-11
Moveable Equipment, Department of Corrections
Weaknesses in planning and estimating procedures
have resulted in cost overruns of 92 percent for equipment in three major
prison building projects.
93-9
Winnebago Mental Health Institute, Department of Health and Social Services
The FY 1991-92 financial statements
of the Institute are fairly presented in this audit conducted to meet the
Institute's accreditation requirements.
93-8
Mendota Mental Health Institute, Department of Health and Social Services
The FY 1991-92 financial statements
of the Institute are fairly presented in this audit conducted to meet the
Institute's accreditation requirements.
93-6
Unemployment Reserve Fund, Department of Industry, Labor and Human Relations
The FY 1990-91 and FY 1991-92
financial statements of the Unemployment Reserve Fund are fairly presented.
93-4
Alcohol and Other Drug Abuse Programs, Department of Health and Social Services
Better cooperation is needed among 13 state
agencies operating 156 alcohol and other drug abuse programs at an annual cost
of $141.4 million.
93-1
Staffing Needs at the Centers for the Developmentally Disabled, Department of
Health and Social Services
Although the Centers for the Developmentally
Disabled have requested staff to meet current federal treatment guidelines,
pending results of a federal Department of Justice review could require that
additional staff be assigned.
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In FY 2011-12, WEDC administered 30 programs through which it authorized local governments to issue $346.4 million in bonds, awarded
$41.3 million in grants and $20.5 million in loans, and provided $110.8 million in tax credits. WEDC did not have sufficient
policies, including some that were statutorily required, to administer its programs effectively. It made some awards to ineligible recipients, for ineligible
projects, and for amounts that exceeded specified limits. Additional efforts are needed to help ensure effective program administration.
We provided an unqualified opinion on the financial statements for FY 2011-12 and FY 2010-11. The USF is funded by assessments on telecommunications providers that are typically recovered from consumers. In FY 2011-12, the USF provided $40.5 million for 13 programs operated by 4 state agencies, including all state aid to public library systems. We estimate that at least $4.3 million in a DOA appropriation represents excess administrative services fees charged to the USF.
We provided an unqualified opinion on the Fund's financial statements for FY 2011-12,FY 2010-11, and FY 2009-10. The Fund,
which pays secondary medical malpractice claims and is funded by health care providers, has experienced a significant improvement in its financial position. We also
reported a material weakness in the Fund's internal controls over financial reporting.
Eight state agencies administered 196 economic development programs at some point during the 2007-09 and 2009-11 biennia. We identified concerns
related to the completeness of program information the agencies tracked and reported. We include recommendations the Wisconsin Economic Development Corporation and state
agencies can use to improve program results and accountability.
We have issued an unqualified opinion on State Fair Park's FY 2010-11 financial statements. As of June 30, 2011, State Fair Park's cash deficit was reduced to $235,000. Although its financial condition has improved, close monitoring of State Fair Park's facilities and operations will be important.
We provided an unqualified opinion on the Property Fund's financial statements for the fiscal years ended June 30, 2011, June 30, 2010, and June 30, 2009. The Property Fund's surplus balance declined from $41.2 million as of June 30, 2009, to $20.5 million as of June 30, 2011. In response, the Office of the Commissioner of Insurance is implementing premium rate increases and will continue monitoring the surplus balance.
Programs overseen by the Public Service Commission (PSC) and funded through utility customers' electricity and natural gas rates provided $58.6 million in
incentives for the purchase of energy-saving products and services. Additional information from the PSC would
enhance legislative oversight.
We provided an unqualified opinion on the financial statements for FY 2009-10 and FY 2008-09. The Fund supports telecommunications and other programs and is the sole funding source for state aid to public library systems. It is funded by assessments on telecommunications providers that are typically recovered from consumers and that totaled $51.7 million in FY 2009-10. We estimate that the Fund has paid at least $4.3 million in excess fees that were subsequently lapsed to the State's General Fund.
We have issued an unqualified opinion on State Fair Park's FY 2009-10 financial statements. Revenue exceeded expenditures by $1.6 million on a cash basis, which allowed State Fair Park to further reduce its cash deficit. Changes related to the major facilities operating on State Fair Park grounds will affect its financial condition in the future and warrant close attention.
We have provided an unqualified opinion on State Fair Park's FY 2008-09 financial statements. Revenue exceeded expenditures by $828,000 on a cash basis, which allowed State Fair Park to reduce its cash deficit to $7.8 million as of June 30, 2009. State Fair Park has not properly tracked and monitored the use of in-kind support to fund its operations.
Injured Patients and Families Compensation Fund, Office of the Commissioner of Insurance
We issued an unqualified opinion on the Injured Patients and Families Compensation Fund's financial statements for FYs 2008-09,2007-08, and 2006-07. The Fund, which pays secondary medical malpractice claims and is funded by health care providers, has experienced a significant decline in its financial position over the last two years.
State Life Insurance Fund, Office of the Commissioner of Insurance
The Fund provides low-cost life insurance to Wisconsin residents and is self-funded through insurance premiums and investment earnings. Its financial statements for the years ended December 31, 2008, 2007, 2006, and 2005 were fairly presented in accordance with accounting provisions allowed by the Commissioner of Insurance, and the ratio of surplus to assets was within the statutorily required range.
We provided an unqualified auditor's opinion on the Universal Service Fund's (USF's) FY 2007-08 financial statements. The USF supports telecommunications and Internet services and access, including programs to assist low-income and disabled individuals, and is now the sole funding source for state aid to public libraries. It is funded primarily through assessments on certain telecommunications providers, which totaled $31.6 million in FY 2007-08. Providers of cell phone services will begin to pay assessments in FY 2009-10.
We have provided an unqualified opinion on State Fair Park's FY 2007-08 financial statements. Revenue exceeded expenditures by $1.1 million on a cash basis, reducing the cash deficit to $8.6 million as of June 30, 2008. State Fair Park is currently involved in a legal dispute with the former racing promoter for the Milwaukee Mile and has contracted with a new promoter beginning with the 2009 racing season.
Local Government Property Insurance Fund, Office of the Commissioner of Insurance
We provided unqualified opinions on the Fund's financial statements for the fiscal years ended June 30, 2008, 2007, 2006, and 2005. The surplus balance, which was $36.7 million as of June 30, 2008, should be closely monitored. We question the manner in which the Office of the Commissioner of Insurance charged its appropriations for the purchase of a new computer system and recommend consistent use of an approved methodology for charging costs.
We provided an unqualified auditor's opinion on the Fund's FY 2006-07 financial statements. The Fund supports telecommunications services and access, including Internet access in schools and libraries and programs to assist low-income and disabled individuals. It is primarily funded through assessments on telecommunications providers, which totaled $30.0 million in FY 2006-07.
We have provided an unqualified opinion on State Fair Park's FY 2006-07 financial statements. Revenue exceeded expenditures by $1.3 million. A renegotiated agreement that significantly lowers the annual license fee for use of the Milwaukee Mile racetrack will have negative financial consequences for State Fair Park. Recent policy changes by State Fair Park's Agriculture Department and allegations of conflicts of interest require further review.
Food and Dairy Safety Program, Department of Agriculture, Trade and Consumer Protection
DATCP regulates approximately 29,400 food and dairy establishments in Wisconsin. We identified concerns with inspection timeliness and the sufficiency of enforcement action for noncompliant establishments. However, DATCP appears to have taken appropriate action in responding to the 41 food emergencies it identified over the past five years.
We provided an unqualified auditor’s opinion on the Fund’s FY 2005-06 and FY 2004-05 financial statements. The
Fund supports telecommunications services and access, including Internet access in schools and libraries and programs to assist
low-income and disabled individuals. It is primarily funded through assessments on telecommunications providers. The fund balance
increased by $8.8 million during FY 2005-06.
We have provided an unqualified opinion on State Fair Park’s financial statements for FY 2005-06.
However, State Fair Park’s financial condition continues to be a concern. A cash shortfall of $1.7 million has increased its
accumulated cash deficit to $11.5 million. State Fair Park believes that the recent privatization
of management of the Milwaukee Mile racetrack and its sale of the Pettit Center will improve its financial
condition.
Injured Patients and Families Compensation Fund, Office of the Commissioner of Insurance
We issued an unqualified opinion on the Fund’s financial statements for FYs 2003-04,
2004-05, and 2005-06. The Fund, which pays excess medical malpractice claims
and is funded by health care providers, maintains a sound financial position.
The Department of Commerce and seven other state agencies spent an estimated $152.8
million on economic development in the 2003-05 biennium. We identified 152 programs that
provided financial and other assistance to businesses, local governments, and other organizations. We include
recommendations to improve accountability by reducing duplicative programs, improving coordination, and tracking
program results.
We provided an unqualified opinion on State Fair Park’s FY 2004-05 financial statements. State
Fair Park’s financial condition continued to deteriorate. Expenditures exceeded revenues by $3.6 million
in FY 2004-05. To limit future demands on State Fair Park’s financial resources, agency officials have
entered into an agreement to license the Milwaukee Mile to a private promoter and are pursuing options to sell
the Pettit Center.
We provided an unqualified auditor’s opinion on the Fund’s FY 2004-05 and FY 2003-04
financial statements. The Fund supports telecommunications services and access, including Internet
access in schools and libraries and programs to assist low-income and disabled individuals. It is
funded through assessments on telecommunications providers, which totaled $28.3 million in FY 2004-05.
Increasing program demand and expenditures are presenting budgetary challenges for some of the Fund’s programs.
State Life Insurance Fund, Office of the Commissioner of Insurance
The Fund, which is self-fund through insurance premiums and investment earnings, provides low-cost
life insurance to Wisconsin residents. Its financial statements for the years ended
December 31, 2004, 2003, and 2002, were fairly presented in accordance with accounting provisions
allowed by the Commissioner of Insurance. In a separate management letter, we report concerns because the
surplus-to-assets ratio declined to 2.7 percent as of December 31, 2004, and was
lower than the 7.0 to 10.0 percent required by statute.
Local Government Property Insurance Fund, Office of the Commissioner of Insurance
We provided unqualified opinions on the Fund’s financial statements for the fiscal years ended
June 30, 2004, 2003, 2002, and 2001. Changes in reinsurance and increases in claims caused net losses
for the three-year period ended June 30, 2003, but increases in policyholder premiums allowed the Fund to
end FY 2003-04 with net income of $9.2 million. We reported a material weakness in internal controls
related to the premature destruction of claim files.
We provided an unqualified auditor’s opinion on the Fund’s FY 2002-03 and FY 2003-04
financial statements. The Fund supports telecommunications services and access, including Internet
access in schools and libraries and programs to assist low-income and disabled individuals. It is
funded through assessments on telecommunications providers, which totaled $25.5 million in FY 2003-04.
Increasing program demand and expenditures are presenting budgetary challenges for some
of the Fund’s programs.
Injured Patients and Families Compensation Fund, Office of the Commissioner of Insurance
We provided an unqualified opinion on the Fund's financial statements for
FYs 2002-03,2001-02, and 2000-01. The
Fund pays excess medical malpractice claims and is funded by health care
providers. It maintains a sound financial position. An actuarial audit is
expected to be completed by the end of November.
We provided an unqualified auditor’s opinion on the Fund’s FY 2002-03
and FY 2001-02 financial statements. The Fund supports
telecommunications services and access, including Internet access in schools
and libraries and programs to assist low-income and disabled individuals. It is
funded through assessments on telecommunications providers, which totaled $23.1
million in FY 2002-03. In the same year, expenditures and
transfers totaled $29.3 million.
We have issued an unqualified audit opinion on State Fair Park’s financial
statements for FY 2002-03. As we recommended in 2003, business
plans for 2004 have been prepared to solidify operations and improve State Fair
Park’s financial condition. However, these plans contain optimistic financial
projections and should be continually refined and modified to ensure they are
reasonable.
We have completed a management audit of State Fair Park. We found that State
Fair Park’s FY 2002-03 total expenses exceeded revenues by $4.5
million. The fairgrounds’ new and renovated facilities, which have not
met overly optimistic revenue projections, have contributed to this deficit. As
a result, State Fair Park’s ability to meet increasing debt service obligations
will be limited if program revenues do not increase.
We provided an unqualified opinion on the Fund’s FY 2001-02 and
FY 2000-01 financial statements. The Fund supports telecommunications
services and access, including Internet access in schools and libraries and
programs to assist low-income and disabled individuals. It is funded through
assessments on telecommunications providers, which totaled $22.3 million
in FY 2001-02. In the same year, expenditures and transfers
totaled $18.9 million.
State Life
Insurance Fund, Office of the Commissioner of Insurance
The Fund was created in 1911 to provide low-cost
life insurance policies to Wisconsin residents. Its statutory-based financial
statements for calendar years 2001, 2000, and 1999 are fairly presented in
accordance with insurance accounting practices prescribed by the Commissioner
of Insurance. The Fund, which is self-funded through insurance premiums and
investment earnings, returned between $3.7 and $3.9 million to
policyholders as dividends in each of the three years audited.
We provided an unqualified opinion on the Fund’s
FY 2000-01 and FY 1999-2000 financial statements. The
Fund supports telecommunications services and access, including Internet access
in schools and libraries and programs to assist low-income and disabled
individuals. It is funded through assessments on telecommunications providers,
which totaled $19.6 million in FY 2000-01. In the same year,
expenditures totaled $17.7 million.
We issued an unqualified opinion on State Fair
Park’s FY 2000-01 financial statements but note that expenses have
exceeded revenues in three of the past six fiscal years. State Fair Park’s
efforts to replace aging and deteriorating facilities have increased debt
service costs funded by program revenue from $1.2 million in FY
1995-96 to $2.0 million in FY 2000-01. Other
planned construction and organizational changes may help improve the financial
viability of the fairgrounds but could increase financial risk and limit
legislative oversight.
Milwaukee Brewers Stadium Costs, Southeast Wisconsin Professional Baseball Park
District
Stadium construction costs through December 2001
total $413.9 million, but the District will continue to incur
stadium operation and maintenance costs throughout its 30-year lease with the
Brewers. The District will likely own a greater share of the stadium complex
than the 64.0 percent that was originally anticipated. The District’s governing
board needs to improve its documentation of administrative expenditures.
Patients Compensation Fund, Office of the Commissioner of Insurance
We provided an unqualified opinion on the Patients
Compensation Fund’s financial statements for fiscal years 1999-2000, 1998-99,
and 1997-98. The Fund has improved its financial status with an accounting
surplus of $27.2 million as of June 30, 2000. To address concerns
being raised about actuarial estimates of loss liabilities, we have recommended
a comprehensive review of the consulting actuary’s methods and assumptions by
an independent actuary.
We provided an unqualified opinion on the Fund’s
FY 1999-2000 and FY 1998-99 financial statements. The
Fund is funded through assessments on telecommunications providers and supports
services and access provided by several state agencies, including the Public
Service Commission and the Technology for Educational Achievement Board.
Expenditures from the Fund totaled $13.0 million in FY
1999-2000.
Local Government Property Insurance Fund, Office of the Commissioner of
Insurance
We have provided an unqualified opinion on the
Property Fund's financial statements for fiscal years 1999-2000, 1998-99, and
1997-98. The Property Fund earned net income totaling $4.3 million
for the three-year period ended June 30, 2000, and as of that date had a
surplus of $23.4 million. The Property Fund had several large fire
and windstorm claims during the last three years, but reinsurance limited the
effect of these losses on the Fund.
State Life Insurance Fund, Office of the Commissioner of Insurance
The Fund provides low-cost life insurance policies
to Wisconsin residents. Its regulatory-based financial statements for calendar
years 1998, 1997, and 1996 are fairly presented in accordance with insurance
accounting practices prescribed by the Commissioner of Insurance. The Fund is
self-funded through insurance premiums and investment earnings, and it returned
between $3.6 and $3.8 million to policyholders as dividends in
each of the three years audited.
Milwaukee Brewers Stadium Costs, Southeast Wisconsin Professional Baseball Park
District
Total project costs are now estimated at $399.4
million. The District will fund $115.5 million in stadium
maintenance and repair costs incurred by the Brewers. The Brewers will not be
reimbursed directly for these costs, which may include rental payments, major
capital repairs, uniforms, insurance, and utilities; rather, payments will be
directed to repay $50.0 million in loans the Brewers secured to
meet their contribution for stadium construction. Efforts are being made to
reach statutory hiring and contracting goals for women and minorities.
The Fund was established to ensure all Wisconsin
residents receive essential telecommunication services and have access to the
advanced services. We issued an unqualified opinion on the Fund's financial
statements for the years ending December 31, 1997 and 1996. The Public Service
Commission will need to re-instate assessments against telecommunication
providers, which it previously suspended, to fund payments for additional
programs, including one of five programs related to the Technology for
Educational Achievement (TEACH) initiative in Wisconsin
Patients Compensation Fund, Office of the Commissioner of Insurance
The Fund provides medical malpractice insurance
coverage in excess of statutory minimums to Wisconsin's health care providers.
The financial statements for fiscal years 1994-95, 1995-96, and 1996-97 are
fairly presented in all material respects. The Fund's accounting deficit
decreased from $67.8 million to $44.1 million over
that period and appears to be a less-serious concern than it had been in
earlier years.
Wisconsin Development Reserve Fund, Wisconsin Housing and Economic Development
Authority
The balance of the Fund, which guarantees loans to
eligible farmers and small businesses, has declined 40 percent over the last
five years, to $12.9 million as of June 30, 1997. Even with
improvements in fiscal management, additional state funds are likely to be
needed. A default on a loan to restore the former home of Frank Lloyd Wright,
which WHEDA has guaranteed for $6.8 million, would accelerate the
need for state funds.
Local Government Property Insurance Fund, Office of the Commissioner of
Insurance
The Local Government Property Insurance Fund
provides property insurance to local units of government and is administered by
the Office of the Commissioner of Insurance. We concluded the financial
statements for fiscal years 1994-95, 1995-96 and 1996-97 are fairly presented
in all material respects.
Consumer Protection Programs, Department of Agriculture, Trade and Consumer
Protection and Department of Justice
The two agencies have different approaches to
consumer protection. Responsibility for most activities has been consolidated
in Agriculture, Trade and Consumer Protection, which emphasizes education,
prevention, and mediation but takes court action when other methods fail.
Justice questions whether this approach limits development of evidence for
civil and criminal cases and whether current investigative priorities address
emerging problems, such as telemarketing and Internet fraud.
Milwaukee Brewers Stadium Costs, Southeast Wisconsin Professional Baseball Park
District
An August 1995 memorandum of understanding signed
by representatives of the State, Milwaukee County, the City of Milwaukee, and
the Brewers budgeted a total of $322 million for a new stadium
project. Based on the current project budget, we estimate the actual cost will
be $397.6 million, consisting of $303.3 million for
construction, $82.5 million for infrastructure improvements, and
$11.8 million for the District's day-to-day operating costs.
The Department took reasonable steps to implement
uniform statewide minimum and maximum construction standards for multifamily
housing units efficiently and effectively, as required by the Legislature. Some
local officials continue to disagree with the policy of a statewide code, but
many believe the new code will result in increased fire safety standards
overall.
The Board and its staff could make management
improvements to address the deteriorating financial condition of State Fair
Park. In addition, the Legislature will need to decide whether to increase
general purpose revenue support for bonds and whether to begin supporting State
Fair Park’s operations.
95-19
Local Government Investment Practices
Local governments’investments are generally safe
and readily available, but all local governments should adopt investment
policies and review them periodically.
95-8
Local Government Property Insurance Fund, Office of the Commissioner of
Insurance
A surplus in the Fund, which provides property
insurance coverage to local units of government, is increasing and should
continue to be monitored closely by both the Office and the Legislature. As of
June 30, 1994, the surplus was over $23.4 million.
95-4
Economic Development Technical Assistance Contracts, Wisconsin Housing and
Economic Development Authority
Although most expenditures and services provided
under six grants were consistent with the agency’s plan to provide technical
assistance for economic development at the county level, we recommended that
steps be taken to ensure more effective use of state funds in any future
contracts.
95-2
State Life Insurance Fund, Office of the Commissioner of Insurance
This financial audit identified no significant
problems, although a related management letter expressed concern that the
purchase of a new life insurance and accounting system was not in compliance
with legislative budgetary intent.
94-29
Patients Compensation Fund, Office of the Commissioner of Insurance
An accounting deficit of $67.9 million
is a continuing concern, but various options are being considered to address
it.
94-2
Wisconsin's Financial Regulatory Agencies
The strength and increasing similarity of
Wisconsin's financial institutions may provide an opportunity to consider the
merits of consolidating the regulatory agencies.
94-2
Wisconsin's Financial Regulatory Agencies
The strength and increasing similarity of
Wisconsin's financial institutions may provide an opportunity to consider the
merits of consolidating the regulatory agencies.
93-20
Recycling Market Developments
Of $32.2 million made available for
grants and loans to businesses to stimulate recycling market development, state
agencies committed only $6.4 million. More focused and coordinated
efforts among three state agencies is necessary.
93-18
Patients Compensation Fund, Office of the Commissioner of Insurance
Steps need to be taken to reduce an accounting
deficit of $79 million in the state fund that provides excess
medical malpractice insurance and to address potential conflict-of-interest
concerns with annuity purchases.
93-10
Health Insurance Risk Sharing Pools, Office of the Commissioner of Insurance
Rapidly rising costs and increasing program
demands will require the Legislature either to increase funding or to restrict
eligibility in the State's health insurance plan for those individuals who
cannot obtain private insurance.
93-5
Economic Development Zones, Department of Development
Activity in the State's 12 development zones,
which provide tax credits to encourage business expansion, has been limited,
and only 4.8 percent of the authorized $18.2 million in credits
has been claimed.
93-3
Local Government Property Insurance Fund, Office of the Commissioner of
Insurance
Competition with private insurers is unavoidable.
However, the Office needs to evaluate options to reduce a fund surplus, which
more than doubled to $20.5 million in the past four years, and to
prevent potential conflicts of interest in contractual relationships.
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We have provided unqualified opinions on the FY 2011-12 financial statements of WHA Television and WHA Radio. WHA Television earned $15.1 million and WHA Radio earned $11.1 million in revenue during FY 2011-12, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
ECB operates a public television network and three public radio networks throughout the state, and reported a total of $20.6 million in revenue during
FY 2011-12. Although we provide an unqualified opinion on its financial statements for FY 2011-12, we again report a significant deficiency
in the financial reporting process.
UW System's Role in WiscNet and Grant-Funded Networks
UW System institutions and other public entities receive internet services from WiscNet, which is a nonprofit association. In FY 2011-12, WiscNet's fees
were generally lower than those of commercial providers. Inadequate documentation prevented us from determining whether all payments made between WiscNet and UW System
were sufficient and appropriate. Continued monitoring will be necessary to assess UW System's compliance with 2011 Wisconsin Act 32, which affects its future involvement
with WiscNet and grant-funded networks.
Test Score Data for Pupils in the Milwaukee Parental Choice Program (Report 5 of 5)
As required by statutes, we analyzed pupil test score data and the related analyses performed by private researchers as part of their five-year study of the Milwaukee Parental Choice Program. The extent to which the program affects pupil achievement cannot be definitively determined based on these test score results.
We have provided unqualified opinions on the FY 2010-11 financial statements of WHA Television and WHA Radio. WHA Television earned $16.7 million and WHA Radio earned $11.2 million in revenue during FY 2010-11, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
ECB operates a public television network and two public radio networks throughout the state. We provide an unqualified opinion on its financial statements for FY 2010-11. ECB reported a total of $20.5 million in support and revenue during FY 2010-11, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
We have provided unqualified opinions on the FY 2009-10 financial statements of WHA Television and WHA Radio. WHA Television earned $17.3 million and WHA Radio earned $10.7 million in revenue during FY 2009-10, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Wisconsin Educational Communications Board Television and Radio Networks and Wisconsin Public Broadcasting Foundation, Inc.
We have provided unqualified opinions on the FY 2009-10 financial statements of ECB's television and radio networks and the Foundation. The television network reported $10.0 million and the radio network reported $11.2 million in support and revenue during FY 2009-10, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Medical Education, Research, and Public Health Grants
The Medical College expended $32.1 million and the UW School of Medicine and Public Health expended $44.1 million from
endowments that were established when Blue Cross Blue Shield United became a for-profit corporation. Both medical schools have generally
complied with requirements for awarding and monitoring their grant funding, and most projects achieved their objectives. However, guidance
from the Commissioner of Insurance could help clarify certain policy issues. We reviewed 80 projects in detail.
Virtual Charter Schools, Department of Public Instruction
Enrollment in virtual charter schools has increased every year since they began operating in Wisconsin. These schools spent an estimated
$17.8 million on operations in the 2007-08 school year. Virtual charter school pupils typically scored higher
than other public school pupils in statewide reading assessments, and lower in mathematics. The 5,250 pupil limit on open enrollment
in virtual charter schools will likely be reached in the next few years.
Wisconsin Educational Communications Board Television and Radio Networks and Wisconsin Public Broadcasting Foundation, Inc.
We have provided unqualified opinions on the FY 2008-09 financial statements of ECB's television and radio networks and the Foundation. The television network reported $10.3 million and the radio network reported $9.4 million in support and revenue during FY 2008-09, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
We have provided unqualified opinions on the FY 2007-08 financial statements of WHA Television and WHA Radio. WHA Television earned $15.2 million and WHA Radio earned $10.3 million in revenue during FY 2007-08, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Wisconsin Educational Communications Board Television and Radio Networks and Wisconsin Public Broadcasting Foundation, Inc.
We have provided unqualified opinions on the FY 2007-08 financial statements of the Board's television and radio networks and the Foundation. The television network reported $10.3 million and the radio network reported $9.2 million in support and revenue during FY 2007-08, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
We have provided unqualified opinions on the FY 2006-07 financial statements of WHA Television and WHA Radio. WHA Television
earned $16.6 million and WHA Radio earned $10.2 million in revenue during FY 2006-07, including
state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Wisconsin Educational Communications Board Television and Radio Networks and Wisconsin Public Broadcasting Foundation, Inc.
We have provided unqualified opinions on the FY 2006-07 financial statements of the Board's television and radio
networks and the Foundation. The television network reported $11.2 million and the radio network reported $8.9
million in support and revenue during FY 2006-07, including state support, member contributions, funding from the Corporation
for Public Broadcasting, and various other grants.
Technical Colleges’ Personnel Policies and Practices, Wisconsin Technical College System
The 16 technical college districts are local units of government that establish their own personnel policies. In March 2006,
they employed 7,181 full- and part-time faculty and 5,664 support staff and administrators. Most district costs are for personnel.
Full-time faculty earned an average of $74,598 in FY 2004 05, in part because of compensation for work exceeding a full-time
workload of 32 to 40 hours per week. Policies regarding leave use vary by district.
Wisconsin Educational Communications Board Television and Radio Networks
We have provided unqualified opinions on the FY 2005-06 financial statements of the Board’s television and
radio networks and the Foundation. The television network earned $12.2 million and the radio network earned
$9.0 million in support and revenue during FY 2005-06, including state support, member contributions, funding
from the Corporation for Public Broadcasting, and various other grants.
We have provided unqualified opinions on the FY 2005-06 financial statements of WHA Television and WHA Radio. WHA Television
earned $14.9 million and WHA Radio earned $10.0 million in revenue during FY 2005-06, including state support, member
contributions, funding from the Corporation for Public Broadcasting, and various other grants.
UW System Personnel Policies and Practices, University of Wisconsin System
In 2005, UW System’s unclassified staff—and particularly faculty—reported using considerably less sick
leave than other UW System employees. At retirement, they also converted more accumulated sick leave to fund
their health insurance premiums. Policy changes intended to limit the job protections offered to “at will”
employees will require continued scrutiny, and more complete reporting is needed on staff with the position
title of consultant.
Wisconsin Educational Services Program for the Deaf and Hard of Hearing, Department of Public Instruction
In FY 2004-05, the program spent $11.0 million providing services at the Wisconsin School
for the Deaf and on outreach statewide. While outreach services have expanded, declining enrollment at the school requires
close monitoring of classroom staffing ratios.
We have provided unqualified opinions on the FY 2004-05 financial statements of WHA Television and
WHA Radio. WHA Television received $15.8 million and WHA Radio received $9.1 million
in revenue during FY 2004-05, including state support, member contributions, funding from the
Corporation for Public Broadcasting, and various other grants.
Wisconsin Educational Communications Board Television and Radio Networks
We have provided unqualified opinions on the FY 2004-05 financial statements of the Board’s
television and radio networks and the Foundation. The television network received $11.6 million and the
radio network received $8.6 million in support and revenue during FY 2004-05, including
state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Children At Risk Program, Department of Public Instruction
The program is intended to reduce the number of students in grades 5 through 12 who are at risk of not
graduating from high school. In FY 2003-04,$3.5 million in Children At Risk program
funding was spent in 21 school districts. Indicators of at-risk student achievement have been mixed.
We have provided unqualified opinions on the FY 2003-04 financial statements of
WHA Radio. WHA Radio earned $8.7 million in support and revenue during
FY 2003-04, including state support, member contributions, funding from the
Corporation for Public Broadcasting, and various other grants.
We have provided unqualified opinions on the FY 2003-04 financial statements of
WHA Television. WHA Television earned $15.9 million in support and revenue during
FY 2003-04, including state support, member contributions, funding from the
Corporation for Public Broadcasting, and various other grants.
Wisconsin Educational Communications Board Television Network
We have provided unqualified opinions on the FY 2003-04 financial statements of the
Board’s radio and television networks and the Foundation. The television network received
$11.9 million and the radio network received $8.3 million in support and
revenue during FY 2003-04, including state support, member contributions, funding from
the Corporation for Public Broadcasting, and various other grants.
UW System is Wisconsin’s largest employer, with 31,971.8
full-time equivalent employees. In March 2004, one-quarter of
these employees had administrative duties. We recommend UW System streamline
its position reporting and report to the Legislature on specific proposals to
reduce administrative expenditures and increase operating efficiencies.
We have provided an unqualified opinion on WHA Radio’s FY 2002-03 financial
statements. WHA Radio received $8.9 million in revenue during FY
2002-03, including state support, member contributions, funding from
the Corporation of Public Broadcasting, and various other grants.
We have provided an unqualified opinion on WHA Television’s FY 2002-03
financial statements. WHA Television received $16.1 million in
revenue during FY 2002-03, including state support, member
contributions, funding from the Corporation of Public Broadcasting, and various
other grants.
Wisconsin Educational Communications Board Television Network
We have provided an unqualified opinion on the television network’s FY
2002-03 financial statements. The television network received $17.1
million in revenue during FY 2002-03, including state
support, member contributions, funding from the Corporation of Public
Broadcasting, and various other grants.
Wisconsin Educational Communications Board Radio Network
We have provided an unqualified opinion on the radio network’s FY 2002-03
financial statements. The radio network received $9.3 million in
support and revenue during FY 2002-03, including state support,
member contributions, funding from the Corporation of Public Broadcasting, and
various other grants.
Wisconsin Center for the Blind and Visually Impaired, Department of Public
Instruction
The Center was created in October 1999 to serve as a statewide educational
resource. Its expenditures increased to $7.1 million in FY
2001-02, primarily because of expanded outreach activities. Overall
enrollment at the Center’s residential school has increased in recent years,
but short-term enrollment has not. The Center has implemented many, but not
all, of the outreach objectives in a transition plan that was developed to help
it fulfill its mission.
MATC’s revenues from property taxes and state aid are limited. Financial
management of specialized training contracts and enterprise activities could be
improved, because the fees MATC charges do not cover its costs. Furthermore,
instructor salaries are relatively high, and health care benefit costs have not
been effectively managed. Complete and accurate information is not always
available to the Board of Directors.
We have provided an unqualified opinion on WHA
Television’s FY 2001-02 financial statements. WHA Television
received $16.2 million in revenue during FY 2001-02, including
state support, member contributions, funding from the Corporation of Public
Broadcasting, and the various other grants.
We have provided an unqualified opinion on WHA
Radio’s FY 2001-02 financial statements. WHA Radio received $8.8
million in revenue during FY 2001-02, including state
support, member contributions, funding from the Corporation of Public
Broadcasting, and the various other grants.
Wisconsin Educational Communications Board Television Network
We have provided an unqualified opinion on WHA
Radio’s FY 2001-02 financial statements. WHA Radio received $8.8
million in revenue during FY 2001-02, including state
support, member contributions, funding from the Corporation of Public
Broadcasting, and the various other grants.
Wisconsin Educational Communications Board Radio Network
We have provided an unqualified opinion on the
radio network’s FY 2001-02 financial statements. The radio network
received $7.6 million in support and revenue during FY
2001-02, including state support, member contributions, funding from
the Corporation of Public Broadcasting, and the various other grants.
Open Enrollment Program, Department of Public Instruction
Participation has increased significantly since
the program’s implementation in the 1998-99 school year, but fiscal and
programmatic effects have been limited to a few districts. Minority student
participation has been relatively low. Increased participation through virtual
charter schools could increase school costs eligible for state general school
aids.
We have provided an unqualified opinion on WHA
Television’s FY 2000-01 financial statements. WHA Television
received over $14.8 million in support and revenue during FY
2000-01, including state support, member contributions, funding from
the Corporation for Public Broadcasting, and various other grants.
We have provided an unqualified opinion on WHA
Radio’s FY 2000-01 financial statements. WHA Radio received over
$8.2 million in support and revenue during FY 2000-01, including
state support, member contributions, funding from the Corporation for Public
Broadcasting, and various other grants.
In FY 2000-01, the Board spent $63.1
million, including $44.4 million in general purpose
revenue, on programs to invest in telecommunications equipment and services and
to train teachers and others in the use of educational technology. School
district officials support the programs, but limited information is available
on their effectiveness. The Legislature may wish to address reporting
requirements for participating school districts, how new technologies should be
assessed, and how TEACH programs should be funded and structured in the future.
Wisconsin Educational Communications Board Television Network
We have provided an unqualified opinion on the
television network's FY 2000-01 financial statements. The
television network received over $10.3 million in support and
revenue during FY 2000-01, including state support, member contributions,
funding from the Corporation for Public Broadcasting, and various other grants.
Wisconsin Educational Communications Board Radio Network
We have provided an unqualified opinion on the
radio network's FY 2000-01 financial statements. The radio network
received over $6.8 million in support and revenue during FY
2000-01, including state support, member contributions, funding from
the Corporation for Public Broadcasting, and various other grants.
University of Wisconsin Hospital and Clinics Authority
The Authority is an independent, nonprofit public
entity established in 1996 to operate the University of Wisconsin Hospital and
Clinics. In FY 1999-2000, it had revenue of $400.0 million
and operating expenses of $395.0 million. To finance an aggressive
building program, it has issued $106.5 million in bonds, the full
limit allowed by statutes. Financial performance has been mixed: revenue in
excess of expenses declined from $13.8 million in FY 1996-97
to $5.0 million in FY 1999-2000, but increased during
FY 2000-01. The Authority has had difficulty employing a sufficient
number of nurses.
We have provided an unqualified opinion on WHA
Radio’s FY 1999-2000 financial statements. WHA Radio received over
$7.3 million in support and revenue during FY 1999-2000, including
state support, member contributions, funding from the Corporation for Public
Broadcasting, and various other grants.
We have provided an unqualified opinion on WHA
Television’s FY 1999-2000 financial statements. WHA Television
received over $14.3 million in support and revenue during FY
1999-2000, including state support, member contributions, funding from
the Corporation for Public Broadcasting, and various other grants.
Wisconsin Educational Communications Board Television Network
We have provided an unqualified opinion on the
television network's FY 1999-2000 financial statements. The
television network received over $12.2 million in support and
revenue during FY 1999-2000, including state support, member
contributions, funding from the Corporation for Public Broadcasting, and
various other grants.
Wisconsin Educational Communications Board Radio Network
We have provided an unqualified opinion on the
radio network's FY 1999-2000 financial statements. The radio
network received over $6.5 million in support and revenue during
FY 1999-2000, including state support, member contributions, funding
from the Corporation for Public Broadcasting, and various other grants.
The program was established in 1990 and is the
largest in the nation. In the 1999-2000 school year, it will provide 7,996
children with $38.9 million in tuition vouchers for use at 91
private secular and religious schools. Participants choose schools based on
perceived quality, but the academic performance of Choice and Milwaukee Public
Schools pupils cannot be compared directly. The program appears to be serving
children who meet statutory requirements related to low income and city
residency, but admissions procedures could be improved.
We have performed an audit of WHA Radio’s fiscal
year 1998-99 financial statements at the request of the University of
Wisconsin-Extension, to fulfill audit requirements of the Corporation for
Public Broadcasting. We found WHA Radio’s financial statements to be fairly
presented in all material aspects.
We have performed an audit of WHA Television’s
fiscal year 1998-99 financial statements at the request of the University of
Wisconsin-Extension, to fulfill audit requirements of the Corporation for
Public Broadcasting. We found WHA Television’s financial statements to be
fairly presented in all material aspects.
Wisconsin Educational Communications Board Radio Network
We have performed an audit of the Wisconsin
Educational Communications Board Radio Network’s fiscal year 1998-99 financial
statements at the Board’s request, to fulfill audit requirements of the
Corporation for Public Broadcasting. We found the radio network’s financial
statements to be fairly presented in all material aspects.
Wisconsin Educational Communications Board Television Network
We have performed an audit of the Wisconsin
Educational Communications Board Television Network’s fiscal year 1998-99
financial statements at the Board’s request, to fulfill audit requirements of
the Corporation for Public Broadcasting. We found the television network’s
financial statements to be fairly presented in all material aspects.
Division of Intercollegiate Athletics, University of Wisconsin-Madison
The Division incurred a $1.1 million deficit
in FY 1998-99 and projects a deficit for FY 1999-2000.
Since FY 1994-95, expenditures have increased 17.8 million,
or 77.5 percent. To ensure financial stability, athletic program, facility, and
administrative expenditure increases will need to be better controlled. In
addition, more comprehensive financial reporting is needed.
Division of Intercollegiate Athletics, University of Wisconsin-Madison
The University of Wisconsin campuses in Madison
and Milwaukee have contracted with their local transit systems for bus pass
programs that allow students unlimited access to local bus routes. While the
programs provide benefits to local communities by reducing parking demand and
increasing bus ridership, any costs not covered by contract revenues and state
and federal aid must be paid with local revenues. We estimate that the
UW-Milwaukee program has generally covered its costs, while shortfalls have
occurred in each year of the UW-Madison’s program.
Special education costs increased 36.9 percent
from fiscal year (FY) 1992-93 to FY 1997-98, from
$630.8 million to $863.5 million. Neither federal aid nor
state categorical aid for special education has increased at the same rate as
special education costs. As a result, a larger portion of special education
costs has been shifted to state general equalization aids over time.
We have performed an audit of WHA Radio's FY
1997-98 financial statements at the request of the University of
Wisconsin-Extension, to fulfill audit requirements of the Corporation for
Public Broadcasting. We qualify the independent auditor's report because, in
our judgment, it is not possible to obtain sufficient audit evidence to support
newly required year 2000 disclosures.
We have performed an audit of WHA Television's
FY 1997-98 financial statements at the request of the University of
Wisconsin-Extension, to fulfill audit requirements of the Corporation for
Public Broadcasting. We qualify the independent auditor's report because, in
our judgment, it is not possible to obtain sufficient audit evidence to support
newly required year 2000 disclosures.
Wisconsin Educational Communications Board Television Network
We have performed an audit of the Wisconsin
Educational Communications Board Television Network's FY 1997-98 financial
statements at the Board's request, to fulfill audit requirements of the
Corporation for Public Broadcasting. We qualify the independent auditor's
report because, in our judgment, it is not possible to obtain sufficient audit
evidence to support newly required year 2000 disclosures.
Wisconsin Educational Communications Board Radio Network
We have performed an audit of the Wisconsin
Educational Communications Board Radio Network's FY 1997-98 financial
statements at the Board's request, to fulfill audit requirements of the
Corporation for Public Broadcasting. We qualify the independent auditor's
report because, in our judgment, it is not possible to obtain sufficient audit
evidence to support newly required year 2000 disclosures.
During the 1997-98 school year, 18 charter schools
in Wisconsin enrolled 1,472 students and spent, on average, amounts comparable
to per pupil spending at other district schools. The curricula and
administrative policies of charter schools resembled those of other schools;
however, school boards have not consistently required charter schools to follow
statutory requirements, including those related to admissions policies. In
addition, concerns about the provision of special education services and
charter schools' exemption from certain state education regulations, which may
have been unintended, may adversely affect the future of the program.
Administrative Salaries and Staffing, Wisconsin Technical College System
The salaries of senior administrators vary
substantially throughout Wisconsin's technical college system; however, on
average, they are lower than senior administrative salaries at two-year public
colleges. There are also significant differences among the districts in total
administrative salary costs, the rate of increase in administrative salaries,
and the number of full-time equivalent administrators. Local boards, which make
salary and staffing decisions, would benefit if the Wisconsin Technical College
System Board provided them with more management information.
Over 90 percent of 1,006 surveyed Wisconsin
kindergarten through third-grade classroom teachers report using a mixture of
approaches to reading instruction. Although reading curricula are determined by
local school districts, the State influences reading instruction through
teacher licensing requirements, which will soon include mandatory training in
phonics; educational standards; and curriculum planning guides.
Contracting for Statewide Student Achievement Tests, Department of Public
Instruction
The Department's vendor contract was not
sufficiently specific to prevent problems with the standardized tests used in
grades four, eight, and twelve during the 1996-97 school year, including
significant delays in scoring and reporting test results. Given the need to
ensure program continuity, a longer contract cycle may be appropriate; however,
the Department will need to take steps to ensure it is paying a competitive
price for the services it purchases.
We performed this audit at the request of the
University of Wisconsin-Extension to fulfill audit requirements of the
Corporation of Public Broadcasting. The fiscal year 1996-97 financial
statements of WHA Television are fairly presented in all material aspects.
We performed this audit at the request of the
University of Wisconsin-Extension to fulfill audit requirements of the
Corporation of Public Broadcasting. The fiscal year 1996-97 financial
statements of WHA Radio are fairly presented in all material aspects.
Wisconsin Educational Communications Board Television Network
We performed this audit to meet our requirements
under s. 13.94, Wis. Stats., as well as the audit requirements of
the Corporation for Public Broadcasting. The fiscal year 1996-97 financial
statements of the Television Network are fairly presented in all material
aspects.
Wisconsin Educational Communications Board Radio Network
We performed this audit to meet our requirements
under s. 13.94, Wis. Stats., as well as the audit requirements of
the Corporation for Public Broadcasting. The fiscal year 1996-97 financial
statements of the Radio Network are fairly presented in all material aspects.
We performed the FY 1995-96 single
audit of the University of Wisconsin (UW) System to meet audit requirements
included in the federal Single Audit Act of 1984 and the provisions of federal
Office of Management and Budget Circular A-133. Overall, UW campuses have
complied with federal grant requirements and taken steps to address our prior
audit concerns. We identified $2,060, plus an undetermined amount, in
questioned costs. Our report includes descriptions of our findings of internal
control weaknesses and noncompliance with federal requirements, along with UW
campuses' plans for corrective action.
Children At Risk Program, Department of Public Instruction
As a result of modifications that have affected
participation, the program no longer has a statewide focus. Its effectiveness
in lowering the number of dropouts and increasing the number of graduates also
is questionable. The Legislature may wish to consider funding changes because
the program has become little more than a way to pass general purpose revenues
from the State to a limited number of school districts.
UW-Extension expenditures, which totaled $135.3
million in FY 1995-96, have grown significantly in the
last ten years. Both the breadth and the increasing cost of programming raise
questions about whether UW-Extension should redefine its core mission and
evaluate its future funding, direction, and organizational structure.
We conducted this audit at the request of the
University of Wisconsin-Extension, to fulfill audit requirements of the
Corporation for Public Broadcasting. The FY 1995-96 financial
statements of WHA Television are fairly presented in all material respects.
96-17
WHA Radio
We conducted this audit at the request of the
University of Wisconsin-Extension, to fulfill audit requirements of the
Corporation for Public Broadcasting. The FY 1995-96 financial
statements of WHA Radio are fairly presented in all material respects.
96-16
Wisconsin Educational Communications Board Television Network
We conducted this audit to meet our requirements
under s. 13.94, Wis. Stats., as well as the requirements of the
Corporation for Public Broadcasting. The FY 1995-96 financial
statements of the Television Network are fairly presented in all material
respects.
96-15
Wisconsin Educational Communications Board Radio Network
We conducted this audit to meet our requirements
under s. 13.94, Wis. Stats., as well as the requirements of the
Corporation for Public Broadcasting. The FY 1995-96 financial
statements of the Radio Network are fairly presented in all material respects.
96-13
Financial Audit of University of Wisconsin System, 1994-95 and 1993-94
We conducted a financial audit at the request of
University of Wisconsin System Administration and to meet state audit
requirements under s. 13.94, Wis. Stats. The University of
Wisconsin System’s financial statements for FY 1994-95 and FY
1993-94 are fairly presented in all material respects.
96-12
Compliance Audit of University of Wisconsin System, 1994-95 and 1993-94
Overall, University of Wisconsin campuses have
complied with federal grant requirements and taken steps to address our prior
audit concerns. However, this audit, which we conducted at the request of
University of Wisconsin System Administration and to meet state audit
requirements under s. 13.94, Wis. Stats., identified several areas
of noncompliance with federal regulations and $303,617 in questioned costs.
95-27
WHA Television
We conducted this audit at the request of the
University of Wisconsin-Extension, to fulfill audit requirements of the
Corporation for Public Broadcasting. The FY 1994-95 financial
statements of WHA Television are fairly presented in all material respects.
95-26
WHA Radio
We conducted this audit at the request of the
University of Wisconsin-Extension, to fulfill audit requirements of the
Corporation for Public Broadcasting. The FY 1994-95 financial
statements of WHA Radio are fairly presented in all material respects.
95-23
Wisconsin Educational Communications Board Television Network
We conducted this audit to meet our requirements
under s. 13.94, Wis. Stats., as well as the requirements of the
Corporation for Public Broadcasting. The FY 1994-95 financial
statements of the Television Network are fairly presented in all material
respects.
95-22
Wisconsin Educational Communications Board Radio Network
We conducted this audit to meet our requirements
under s. 13.94, Wis. Stats., as well as the requirements of the
Corporation for Public Broadcasting. The FY 1994-95 financial
statements of the Radio Network are fairly presented in all material respects.
95-18
Issues Related to Mandates on Local School Districts
We were unable to identify any existing model for
efficiently measuring the fiscal effects of state mandates on local school
districts.
95-3
Milwaukee Parental Choice Program
Low-income parents whose children are able to
attend private, nonsectarian schools in Milwaukee support the program, but no
conclusions can be drawn about students’academic success based on the limited
data available.
95-1
Children at Risk Program, Department of Public Instruction
As a result of program modifications that have
affected participation, appropriated funds, which total $3.5 million
in general purpose revenue annually, are not being expended. Given past
concerns regarding effectiveness, the Legislature should consider eliminating
the program.
94-28
Wisconsin Educational Communications Board Television Network
The FY 1993-94 financial statements
of the Television Network are fairly presented in this audit conducted to meet
Corporation for Public Broadcasting requirements.
94-27
Wisconsin Educational Communications Board Radio Network
The FY 1993-94 financial statements
of the Radio Network are fairly presented in this audit conducted to meet
Corporation for Public Broadcasting requirements.
94-26
WHA Television, University of Wisconsin
The FY 1993-94 financial statements
of WHA Television are fairly presented in this audit conducted to meet
Corporation for Public Broadcasting requirements.
94-25
WHA Radio, University of Wisconsin
The FY 1993-94 financial statements
of WHA Radio are fairly presented in this audit conducted to meet Corporation
for Public Broadcasting requirements.
94-24
The Chapter 220 Program
Changing demographics and growing enrollment at
Milwaukee area schools will make it increasingly difficult for the Chapter 220
program to achieve its integration goals, and the program has had a limited
effect on the test scores of participating students.
94-21
Financial Audit of University of Wisconsin System, 1992-93 and 1991-92
This report contains the financial statements,
supplementary schedule of federal financial assistance, related notes, and the
auditor's reports on the statements and schedule for the audited period.
94-20
Compliance Audit of University of Wisconsin System, 1992-93 and 1991-92
This audit identified several areas of
noncompliance with federal regulations, but only $203,366 of costs were
questioned. This represents a small portion of the $747 million in
federal funds received by the University of Wisconsin System.
94-11
Residential Schools, Department of Public Instruction
Neither the Wisconsin School for the Deaf nor the
Wisconsin School for the Visually Handicapped has taken steps to adjust to
significant declines in enrollment, and current space is not efficiently and
effectively used.
94-5
The Proposal to Restructure University of Wisconsin Hospital and Clinics
The need to preserve access to patients and
maintain sources of patient revenue may justify the establishment of a Hospital
Authority. However, the Hospital had already diverted $4.4 million
in public funds to a private, not-for-profit corporation for these purposes.
93-32
Wisconsin Educational Communications Board Television Network
The FY 1992-93 financial statements
of the Television Network are fairly presented in this audit conducted to meet
Corporation for Public Broadcasting requirements.
93-31
Wisconsin Educational Communications Board Radio Network
The FY 1992-93 financial statements
of the Radio Network are fairly presented in this audit conducted to meet
Corporation for Public Broadcasting requirements.
93-30
Medical College of Wisconsin, Inc.
During the 1991-93 biennium, state funds were
expended appropriately for tuition aids for Wisconsin residents and development
of a family practice residency program.
93-29
Marquette University School of Dentistry
During the 1991-93 biennium, state funds were
expended appropriately for tuition aids for Wisconsin residents for the
Marquette Dental School program.
93-26
WHA Television
The FY 1992-93 financial statements
of WHA Television are fairly presented in this audit conducted to meet
Corporation for Public Broadcasting requirements.
93-25
WHA Radio
The FY 1992-93 financial statements
of WHA Radio are fairly presented in this audit conducted to meet Corporation
for Public Broadcasting requirements.
93-23
Selected Management Issues, Department of Public Instruction
The Department's management practices raise
questions as to whether staff and other resources are efficiently used.
93-19
Student Family Housing, University of Wisconsin-Madison
Renovation costs for the student housing
apartments at the University of Wisconsin-Madison have been $12 million
more than originally projected, and the renovation projects is behind schedule.
93-16
Bilingual/Bicultural Education Programs, Department of Public Instruction
The costs of providing bilingual-bicultural
education more than doubled between the 1987-88 and 1991-92 school years due to
increases in staffing, staff compensation, and the number of school districts
eligible for state aid.
93-15
Instructional Workload, University of Wisconsin System
Faculty are spending less time with undergraduates
than they were ten years ago, and teaching loads vary throughout the University
of Wisconsin System.
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Petroleum Inspection Fee Revenue Obligations Program
The program issued bonds and other debt to fund claims under the Wisconsin Petroleum Environmental Cleanup Fund Award (PECFA) program.
We provide an unqualified opinion on its financial statement for FY 2011-12 and FY 2010-11. A $0.02 per gallon fee charged
for petroleum products sold in Wisconsin will be used to repay the $188.7 million in revenue obligations outstanding as of June 30, 2012.
Petroleum Inspection Fee Revenue Obligations Program
The program issued bonds and other debt to fund claims under the Wisconsin Petroleum Environmental Cleanup Fund Award (PECFA) program. We provide an
unqualified opinion on its financial statement for fiscal year (FY) 2010-11 and FY 2009-10. As of June 30, 2011,
$188.7 million in revenue obligations remained outstanding, to be repaid from a $0.02 per gallon fee charged for petroleum
products sold in Wisconsin.
Petroleum Inspection Fee Revenue Obligations Program
The program issued bonds and other debt to fund claims under the Wisconsin Petroleum Environmental Cleanup Fund Award (PECFA) program. We provide an unqualified opinion on its
financial statement for FYs 2009-10 and 2008-09. As of June 30, 2010, $188.7 million in revenue obligations remained
outstanding, to be repaid from a $0.02 per gallon fee charged for petroleum products sold in Wisconsin.
Petroleum Inspection Fee Revenue Obligations Program
The program issued bonds and other debt to fund claims under the Wisconsin Petroleum Environmental Cleanup Fund Award (PECFA) program. We provide an unqualified opinion on its financial statement for FYs 2008-09 and 2007-08. As of June 30, 2009,$231.0 million in revenue obligations remained outstanding, to be repaid from a $0.02 per gallon fee charged for petroleum products sold in Wisconsin.
Petroleum Inspection Fee Revenue Obligations Program
The program issued bonds and other debt to fund claims under the Wisconsin Petroleum Environmental Cleanup Fund Award (PECFA) program. We provide an unqualified opinion on its financial statement for FYs 2007-08 and 2006-07. As of June 30, 2008, $252.3 million in revenue obligations remained outstanding, to be repaid from a $0.02 per gallon fee charged for petroleum products sold in Wisconsin.
Petroleum Inspection Fee Revenue Obligations Program
The program issues bonds and other debt to fund claims under the Wisconsin Petroleum Environmental
Cleanup Fund Award (PECFA) program. We provide an unqualified opinion on its financial
statement for FYs 2006-07 and 2005-06. As of June 30, 2007,
$272.6 million in revenue obligations remained outstanding, to be repaid from a $0.02
per gallon fee charged for petroleum products sold in Wisconsin.
Wetland Regulatory Programs,
Department of Natural Resources
In FY 2005-06, DNR spent $1.75 million on wetland regulatory activities that include permitting,
enforcement, and mapping. Permits were generally issued within 120 days, as required by statute, but the complex process
can be confusing for applicants. Efforts to verify compliance with permit requirements could be improved, and increased use
of compensatory mitigation could be considered for projects in which wetland losses are likely to be approved.
Petroleum Inspection Fee Revenue Obligations Program
The program issues bonds and other debt to fund claims under the Wisconsin Petroleum Environmental Cleanup Fund Award
(PECFA) program. We provide an unqualified opinion on its financial statement for FYs 2005-06 and 2004-05.
During the audited periods, the program collected sufficient fees from suppliers of petroleum products to meet debt service
requirements but improperly calculated amounts to be credited to the Petroleum Inspection Fund.
Chronic Wasting Disease, Department of Natural Resources
The Department of Natural Resources and three other agencies spent $32.3 million to address the
disease in the past five fiscal years. However, neither the estimated number of deer in CWD zones nor the percentage
infected with CWD has declined. Wisconsin’s approach to combating the disease should be reevaluated, and we identify
three broad approaches for consideration.
Fish and Wildlife Funding, Department of Natural Resources
In FY 2004-05, the Department spent $120.2 million on fish and
wildlife activities, including $68.2 million generated from user fees paid
primarily by hunters and anglers. We found that 97.6 percent of user fee
expenditures benefited hunters and anglers. Fish and Wildlife Account expenditures have
exceeded revenues in each year since FY 2000-01, and close monitoring of the
account balance is warranted.
Petroleum Inspection Fee Revenue Obligations
Program
The program issues revenue obligations to provide financing for payment of
claims under the Wisconsin Petroleum Environmental Cleanup Fund Award (PECFA)
program. We provide an unqualified opinion on its financial statement for
FYs 2004-05 and 2003-04.As of June 30,
2005,$348.5 million of revenue obligations remained
outstanding, to be repaid from a fee charged for petroleum products sold in
Wisconsin. That fee has been $0.03 per gallon since before the revenue
obligations program was established in January 2000. The fee will
be reduced effective May 1, 2006, to $0.02 per gallon,
as provided for in 2005 Wisconsin Act 25.
Petroleum Inspection Fee Revenue Obligations
Program
The program provides financing for payment of claims under the Wisconsin Petroleum Environmental
Cleanup Fund Award (PECFA) program. We provide an unqualified opinion on its financial statement for
FYs 2003-04 and 2002-03. The State has issued $387.6 million in
revenue obligations to pay PECFA claims and to address a backlog of approved but unpaid PECFA
claims. As of June 30, 2004, $361.2 million of that debt remained outstanding, to be repaid
from the $0.03 per gallon fee charged for petroleum products sold in Wisconsin.
Air Management Programs, Department of Natural Resources
DNR administers state and federal air management programs and is responsible
for issuing permits to 2,219 stationary sources of air pollution.
Wisconsin is among the slowest states in the nation to issue major operation
permits and is the slowest among midwestern states. We identified a pattern of
significant program management deficiencies.
Petroleum
Inspection Fee Revenue Obligations Program
We provide an unqualified opinion on the program’s financial statement for FYs
2002-03 and 2001-02. As of June 30, 2003, the
State had issued $342.55 million in revenue obligations. However,
it is expected that PECFA claims submitted for payment will continue to exceed
the amount of petroleum inspection fees available to pay them. The revenue
obligations limit has since increased to $436 million, and the
Building Commission has authorized the issuance of $95.88 million in
additional revenue obligations.
Petroleum
Inspection Fee Revenue Obligations Program
We provide an unqualified opinion on the program’s
financial statement for FYs 2001-02 and 2000-01. From January 2000
through June 30, 2002, the State issued $280.25 million in revenue
obligations under the program. This debt has allowed the State to reduce a
backlog of approved but unpaid PECFA claims and to pay current-year claims.
However, as of June 30, 2002, a backlog of $30 million in approved
claims was awaiting payment and $50 million in additional claims
had been received but not yet reviewed.
Although a $2.3 billion sewer
improvement program has significantly reduced both the number and the volume of
sewer overflows, the program has not reduced overflows to the extent
anticipated. The District is in the process of implementing a $786.4
million building program to reduce overflows. Water quality has
improved in parts of the District’s service area.
Vehicle Emissions Testing Program, Department of Natural Resources and
Department of Transportation
Wisconsin tests vehicle emissions in seven
southeastern counties to comply with the federal Clean Air Act and to reduce
ozone levels. The Department of Transportation has not adequately managed the
State’s contract with a private firm operating the testing stations. The
Legislature may wish to consider a number of program changes if Wisconsin
achieves current federal air quality standards in 2002.
In FY 2000-01, expenditures from the
account totaled $72.3 million and included $18.7 million
in DNR administrative costs. DNR and other state agencies spent $4.5
million from the account on activities not directly related to
forestry. Rapid growth in the Managed Forest Law program has limited forest
management efforts.
Petroleum Inspection Fee Revenue Obligations Program
We provide an unqualified opinion on the program’s
FY 2000-01 financial statement. During our audit period, the State
issued $20 million in revenue obligations. Along with debt issued
in prior years, these revenue obligations have allowed the Department of
Commerce to reduce a backlog of approved but unpaid Petroleum Environmental
Cleanup Fund Award claims from $196 million as of January 1, 2000,
to $15 million as of June 30, 2001.
Wisconsin recycles a larger percentage of its
municipal solid waste than the national average. However, this level of
recycling comes at substantial cost to local governments. Recycling costs $95
per ton, while landfilling costs $85 per ton and local governments spent $77.7
million on recycling in 1999. State grants cover approximately 30
percent of local costs. In the coming biennium, the Legislature will face
several issues related to the funding and structure of state recycling
programs.
Petroleum Inspection Fee Revenue Obligations Program
We have provided an unqualified opinion on the
Petroleum Inspection Fee Revenue Obligations Program’s Statement of Changes in
Program Assets for the partial year ending June 30, 2000. During our audit
period, the State issued $230 million in revenue obligations,
which allowed the Department of Commerce to reduce the backlog of approved but
unpaid Petroleum Environmental Cleanup Fund award claims from $196 million
as of January 1, 2000, to $16 million as of June 30, 2000.
Warren Knowles-Gaylord Nelson Stewardship Program, Department of Natural
Resources
Through FY 1999-2000, program
expenditures to preserve natural area for outdoor recreation and wildlife
habitat have been $190.6 million, of which $45.3 million
has been for 974 grants awarded to local governments and nonprofit conservation
organizations. In the sample of grants we reviewed, the average appraised value
supplied by grant applicants was $2,802 per acre, which was 120.2 percent
greater than the average local assessment for property tax purposes. We noted
that some local governments may have limited incentives to control program
costs, and that questions exist about the definition of nature-based outdoor
recreation.
The Board manages the 8,600 acre Kickapoo Valley
Reserve in Vernon County under a lease agreement with the U.S. Army Corps of
Engineers, which holds title to the land. Federal legislation provides for
ownership of the reserve to be transferred to the State and the Ho-Chunk Nation
when certain requirements are met. Three unresolved issues could postpone the
transfer. The Board has operated effectively, but continued uncertainty about
the transfer could affect its ability to manage the reserve in the future.
Petroleum Environmental Cleanup Fund, the Department of Commerce and the
Department of Natural Resources
The State has spent $541.3 million to
reimburse property owners who clean up soil and groundwater contaminated by
petroleum from commercial and other storage tanks. Controlling program costs,
which are third-highest in the nation, will require more aggressive
cost-control efforts by the two state agencies with program-management
responsibilities. The Legislature may also be faced with consideration of
financial and program changes.
Funding Fish and Wildlife Programs, Department of Natural Resources
Hunting and fishing licenses and other user fees
funded $50.4 million of the Department's fiscal year 1996-97
spending on fish and wildlife activities. Approximately 40 percent of user fee
expenditures directly benefited hunters and anglers. Substantial spending
flexibility has raised concerns about accountability.
Fish Stocking Activities, Department of Natural Resources
The Department of Natural Resources has reduced
the number of game fish it stocks in state waters by 58.9 percent during the
last ten years. Stocking reductions have occurred as angler surveys indicate
significant dissatisfaction with the quality for fishing for walleye, the most
popular game fish, and have coincided with significant expansions at state
hatcheries, resulting in significant excess capacity.
The District's monthly capital fund balance has
averaged $114 million more than short-term needs; however, its
financing strategy appears to have limited taxpayer costs. Producing
Milorganite, a fertilizer made from sludge, is currently the least-costly waste
disposal option available. Management costs related to a training program the
District has administered for minority individuals and businesses since 1985
have been excessive.
State funds totaling $25.2 million since FY
1985-86 have been used appropriately in funding harbor projects, but
both the Commission’s authority and its level of funding may warrant
legislative review.
94-19
Forest Tax Programs, Department of Natural Resources
Owners of forest land received $14.5 million
annually in tax savings, which amounted to an overall reduction of 79 percent
in their property tax bills, in return for managing their property for timber
production and, in some cases, allowing limited public access.
94-8
Surface Water Programs
The five state agencies that spend $124.3
million annually on programs to improve water quality need to develop
effective methods to measure whether water quality is improving.
94-1
Hazardous Materials Regulatory and Response Programs
At least seven state agencies share responsibility
for regulating the manufacture, transport, use, and disposal of hazardous
materials and for responding to incidents of misuse.
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Major Highway
Program, Department of Transportation
The program, which funds new highway construction,
had a budget of $241.6 million in FY 2002-03. In
September 2003, 32 major highway projects were being planned or were under
construction. Cost estimates for seven of these projects increased by at least
$20.0 million each since enumeration. Bonds are increasingly funding
the highway program, and debt service costs totaled $101.1 million
in FY 2002-03.
Bridge Inspection
Program, Department of Transportation
The Department does not adequately monitor program
expenditures, which were an estimated $2.2 million in FY
2000-01, or evaluate the cost-effectiveness of its use of
private-sector consultants. The Department has not always completed inspections
as frequently as required by law, and its efforts have not improved in recent
years. Although inspections could not have detected the failure of Milwaukee’s
Hoan Bridge in December 2000, the Department had not inspected the bridge in a
timely manner.
General Transportation Aid Program, Department of Transportation
In 1997, the program will provide $292.9
million in state aid to help fund local road costs. Modifying aidable
cost categories so local expenditures that are reimbursed by special
assessments are not aidable under the program, and limiting aid for police
costs, could increase the program's emphasis on maintenance and rehabilitation
of existing roads.
Management of the Highway Program, Department of Transportation
The cost of design and construction engineering
within the Department of Transportation's highway program has increased 35.8
percent above inflation since FY 1987-88. The Department has taken
some steps to improve program management and increase cost-effective use of
existing resources, but continued attention over several years is needed to
limit project cost overruns and improve program management. The Department's
contracts with counties to provide highway maintenance permit considerable
flexibility in the use of maintenance funding and have allowed a 9.4 percent
reduction in inflation-adjusted maintenance expenditures over the past ten
years.
Transportation Programs and Revenues, Department of Transportation
State transportation expenditures will total $1.58
billion in FY 1996-97, and demand for additional funding
remains high. The State’s current revenue structure is insufficient to meet
this demand. In addition, reliance on revenue bonding to fund major highway
improvements is of particular concern.
93-24
Real Estate Practices, Department of Transportation
Improved management practices could save time in
the acquisition of real estate for highway construction projects and the sale
of excess land.
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Wisconsin Retirement System (WRS) Annuitants Hired by Employers Participating in the WRS
State agencies administered $12.9 billion in federal financial assistance, including approximately $1.1 billion under the federal American
Recovery and Reinvestment Act of 2009. Our audit identified more than $4.5 million in additional funds for state agencies to claim from the federal government.
Although state agencies generally complied with federal grant requirements, we include 65 recommendations to improve the State’s administration of federal funds.
Wisconsin Retirement System (WRS) Annuitants Hired by Employers Participating in the WRS
From January 2007 through March 2012, UW System and state agencies on Central Payroll hired 2,783 WRS annuitants who had terminated employment from 2007 through 2011. Local agencies responding to our survey indicated that they hired 2,599 annuitants from January 2011 through March 2012. Because statutes provide few restrictions on annuitants returning to work, we provide several options for legislative consideration.
In June 2012, 11 tribes operated 25 casinos in Wisconsin. In 2011, tribal gaming revenue totaled $1.3 billion and tribal gaming profits, or revenue in
excess of expenses, totaled $566.7 million. The State received $52.1 million from tribes in FY 2011-12 under the revenue-sharing provisions
of negotiated gaming compacts.
We issued an unqualified opinion on the Wisconsin Lottery's financial statements for FY 2009-10 and FY 2010-11. We found the Lottery was in compliance
with statutory spending limitations related to prizes, product information, administrative expenses, and retailer compensation.
This report includes findings related to internal controls and compliance with federal grant requirements, agency plans for corrective action, and the State's
Schedule of Expenditures of Federal Awards. State agencies administered nearly $15.0 billion in federal financial assistance, including approximately
$2.8 billion received under the federal American Recovery and Reinvestment Act of 2009. Although state agencies generally complied with federal grant
requirements, we include 58 recommendations to improve the State's administration of federal funds.
Fraud, Waste, and Mismanagement Hotline (2011 Summary)
From April 2008 through December 2011, our hotline (1-877-FRAUD-17) received 389 reports, of which 79 were received in 2011. Of these reports, 58 were specific to
state agencies or programs. The summary highlights 2011 hotline activities.
Contract Sunshine, Government Accountability Board
The Contract Sunshine Web site is currently of limited value in providing the public with sufficiently clear, comprehensive, and useful information. However, before considering repeal of the Contract Sunshine statutes, it will be important to ensure that a new Web site the Legislature required be established in 2011 Wisconsin Act 32 can achieve its intended goals at a reasonable cost and in a timely manner.
We issued an unqualified opinion on the Wisconsin Lottery's financial statements for FY 2008-09 and FY 2009-10, when ticket sales
totaled $480.9 million. The Wisconsin Lottery was in compliance with statutory limitations on expenses related to prizes, informational advertising,
retailer commissions and incentives, and other administrative functions, but we include a recommendation that it specify how the effectiveness of
$7.5 million in annual spending to publicize games will be measured.
This report includes findings related to internal controls and compliance with federal grant requirements, agency plans for corrective action,
and the State's Schedule of Expenditures of Federal Awards. Overall, state agencies properly administered $15.5 billion in
federal grant programs, including more than $3.5 billion received under the federal American Recovery and Reinvestment Act of 2009.
Significant investment losses of $23.6 billion in 2008 will affect Wisconsin Retirement System participants and employers for several years.
Although both the Core Fund and the Variable Fund exceeded their ten-year benchmarks, the Core Fund's ten-year returns were less than actuarial expectations
for the long term. We recommend careful review of the earnings assumption and the new investment strategies the Investment Board is undertaking.
Emergency Management, Department of Military Affairs
Office of Justice Assistance
In 2009, 11 tribes operated 27 casinos in Wisconsin. Tribal gaming revenue totaled $1.3 billion and tribal gaming profits, or revenue in excess of expenses, totaled $543.4 million. The State received $122.2 million from tribes under the revenue-sharing provisions of negotiated gaming compacts in FY 2008-09.
Emergency Management, Department of Military Affairs
Office of Justice Assistance
Wisconsin received $318.5 million in federal emergency management funds from the Department of Homeland Security through
FY 2008 09. The grants we reviewed were spent in accordance with federal requirements. However, Wisconsin does not yet have
a statewide communications system for emergency responders, and additional efforts are needed to improve emergency preparedness.
We have issued an unqualified opinion on the Wisconsin Lottery’s financial statements for FY 2007-08 and FY 2008-09.
We found the Lottery was in compliance with statutory limitations on expenses related to prizes, informational advertising, retailer
commissions and incentives, and other administrative functions.
This report includes findings related to internal controls and compliance with federal grant requirements, agency plans for corrective action,
and the State’s Schedule of Expenditures of Federal Awards. Overall, state agencies properly administered $13.6 billion in federal grant programs,
including $1.5 billion received under the federal American Recovery and Reinvestment Act of 2009. However, we question a minimum of
$2.4 million in costs the State charged to federal grants.
Consolidation of Administrative Functions and the ACE Initiative, Department of Administration
The consolidation of certain human resources functions within the Department of Administration has generally been successful, but results of efforts to consolidate purchasing services have been mixed. Surplus property sales have earned significantly less than anticipated. Spending on three ACE Initiative–related IT projects significantly exceeded original estimates and totaled $113.5 million through June 2009.
Overall, state agencies administered $10.0 billion in federal grant programs and complied with federal requirements, although we question a minimum of $669,799 in costs the State charged to federal grants. We also indentified additional funds available from the federal government.
In FY 2007 08, ticket sales totaled $494.7 million and the Wisconsin Lottery provided $146.5 million in property tax relief. We reviewed the Wisconsin Lottery’s oversight of its contracts and include recommendations that it annually evaluate its product information contractor and review procedures for assessing liquidated damages against its operations contractor.
We have issued an unqualified opinion on the Wisconsin Lottery’s financial statements for FY 2005-06 and FY 2006-07. We found the Wisconsin Lottery was in compliance with statutory limitations on expenses related to prizes, informational advertising, retailer commissions and incentives, and other administrative functions.
This report includes findings related to internal controls and compliance with federal grant requirements, agency plans for
corrective action, and the State's Schedule of Expenditures of Federal Awards. Overall, state agencies properly administered
$9.6 billion in federal grant programs and complied with federal requirements.
We have provided an unqualified opinion on the Division's financial schedules related to the Indian Gaming,
Racing, and Charitable Gaming programs. Payments the Indian tribes' made to the State were $27.4 million
in FY 2004-05,$118.7 million in FY 2005 06, and $49.8 million
in FY 2006-07. The amounts fluctuated because of the timing of payments and because of unresolved
compact disputes with several tribes.
The statewide voter registration system continues to have problems verifying voter eligibility, and some polling places are not fully
accessible to individuals with disabilities. Although individuals did not report widespread concerns about the November 2006
general election, additional efforts are needed to ensure local election officials receive statutorily required training.
In 2006, tribal gaming revenue totaled $1.3 billion and tribal gaming profits, or revenue in excess of expenses, totaled
$555.9 million. We recommend improvements to Division procedures to identify potential irregularities in gaming
operations and financial reporting.
The retirement funds provided mixed returns for periods ending December 31, 2005 and 2006. International equities, real estate, and
private equity were among the better-performing asset classes; the most notable underperforming asset class was domestic equities.
We include a recommendation that the Investment Board reassess its policies and procedures affecting the Variable Fund's performance.
The Investment Board has made several changes to address past concerns with the management of its private markets investments.
We have issued an unqualified opinion on the Wisconsin Lottery's financial statements for FY 2005-06 and FY 2004-05. In FY 2005-06,
ticket sales totaled $509.0 million and generated $133.3 million in property tax relief. The management of games has been strengthened,
and the number of higher-priced games has increased over the past five years.
We identified and describe 184 projects with expected costs of $291.7 million at completion. Case studies of large,
high-risk projects identified inadequate planning and oversight that increased costs and compromised time lines. We include
recommendations to improve project planning, monitoring, and oversight.
This report includes findings related to internal controls and compliance with
federal grant requirements, agency plans for corrective action, and the State's
Schedule of Expenditures of Federal Awards. In addition to $4.4
million already returned to the federal government, we question a minimum
of $14,697, which represents a small portion of the $9.4
billion in federal financial assistance administered in FY
2005-06.
We have issued an unqualified opinion on the Wisconsin Lottery’s financial statements for FY 2003-04
and FY 2004-05. We found the Wisconsin Lottery was in compliance with statutory limitations on expenses
related to prizes, informational advertising, retailer commissions and incentives, and other administrative
functions.
This report discusses opportunities for state agencies to increase federal funding by $3.2
million and includes findings related to internal controls and compliance with federal grant
requirements, agency plans for corrective action, and the State’s Schedule of Expenditures of
Federal Awards. We question a minimum of $354,531, which represents a small portion of the $9.2
billion in federal financial assistance administered in FY 2004-05.
Volunteer Fire Fighter and EMT Service Award Program
This retirement program is funded by municipalities and with GPR. In September 2005, its assets totaled
$10.3 million. Because investment options were not clearly understood when vendors were selected in
2001, three departments have forfeited nearly all their contributions and the governing board’s flexibility
in selecting future contractors may be limited. The board requires immediate assistance to improve contracting
and oversight.
Voter registration is now mandatory in 172 municipalities with populations of
5,000 or more, but it will be required statewide beginning in January 2006. Requirements
differ depending on how and when an individual registers to vote. Current efforts to maintain
accurate voter registration lists are insufficient because municipalities neither consistently
send address verification cards nor remove ineligible voters.
We have issued an unqualified opinion on the Division of Gaming’s financial
schedules for FY 2001-02 through FY 2003-04. Total tribal revenue has increased
from $889.5 million in 2000 to almost $1.2 billion in 2004. Aggregate gaming
profits increased from $418.7 million in 2000 to $516.3 million in 2004. We
identify a number of concerns with the compact provisions regarding the timeliness
and accuracy of future payments to the State.
We have issued an unqualified opinion on the Wisconsin Lottery’s financial statements for
FYs 2002-03 and 2003-04. Property tax relief generated by Wisconsin Lottery operations increased
in both years, and expenses have remained within legal limits. The Wisconsin Lottery should
formalize its game development and management practices and ensure that its contracts include
adequate safeguards.
As of December 31, 2004, the State owned 6,669 cars, trucks, vans, and buses—a reduction of
13.8 percent since 2001. The Department of Administration could improve its management of the State’s vehicle
fleet by improving the vehicle purchasing process; enforcing its minimum driving standards; and better
monitoring fleet costs, vehicle leases, rentals, and mileage reimbursements.
We performed the FY 2003-04 single audit of the State of Wisconsin to meet federal
audit requirements. We question a minimum of $237,797, which represents a small portion of the
$9.3 billion in total federal financial assistance the State administers. We also identified
additional opportunities for state agencies to increase federal reimbursement. Our report includes descriptions
of our findings related to internal controls and compliance with federal requirements, state agencies’
plans for corrective action, and the State’s Schedule of Expenditures of Federal Awards.
The Department of Revenue assesses the value of manufacturing property, which accounted
for $292.7 million, or 4.1 percent, of all property taxes paid in
2003. While it generally follows statutorily accepted practices for determining property value,
there are some differences across districts. The Department is not meeting the statutory requirement
to inspect all manufacturing property every five years because of an inefficient assessment
process, an increase in appeals, and a decrease in staff.
Despite negative returns from 2000 through 2002, the Investment Board continues
to exceed its long-term actuarial investment expectations for the Fixed
Retirement Trust Fund. Most of a 79.3 percent increase in costs
from 1999 to 2003 is related to the increasing costs of outside investment
managers and advisors, although salaries and bonuses for unclassified staff have
also increased. Changes to statutory limits on internal operating costs and on
externally managed investments may be warranted.
Credentialing Fees, Department of Regulation and Licensing
The Department’s proposed fee-setting methodology could increase its ability to
allocate credentialing costs based on services provided, as required by
statutes. However, additional changes could improve accuracy. The report also
provides options for the Legislature as it considers the Department’s funding
and spending authority.
We have issued an unqualified opinion on the Wisconsin Lottery’s financial
statements for FY 2001-02 and FY 2002-03. We note
that lottery ticket sales totaled $435.0 million in FY
2002-03, which represents an increase of $7.4 million over
FY 2001-02. Property tax relief distributions increased from $119.0
million in FY 2001-02 to $129.6 million in
FY 2002-03.
We performed the FY 2002-03 single audit of the State of Wisconsin
to meet federal audit requirements. We question a minimum of $81,879,
which represents a small portion of the total federal financial assistance the
State administers. We note that an additional $1.0 million or more
in federal Adoption Assistance funds could be available to the State if a
timely claim is made. Our report includes descriptions of our findings related
to internal controls and compliance with federal requirements, state agencies’
plans for corrective action, and the State’s Schedule of Expenditures of
Federal Awards.
State Purchasing Cards, Department of Administration
In FY 2001-02, approximately 17,500 cardholders in 43 state
agencies and throughout the University of Wisconsin System used purchasing
cards to spend $86.3 million, with an average purchase price of
$196. Our review found that abuse of the cards was very rare but that oversight
could be improved to ensure the cards are used appropriately.
We have issued an unqualified opinion on the Wisconsin Lottery’s financial
statements for FYs 2001-02 and 2000-01. We note that
lottery sales increased by $26.4 million in FY 2001-02,
to $427.6 million, as a result of record-setting jackpots that
occurred in that year. In October 2002, lottery staff projected FY 2002-03
sales to be $412.7 million.
We performed the FY 2001-02 single audit of the State of Wisconsin
to meet federal audit requirements. We question $847,283 in costs
the State charged to federal grants. Our opinion on compliance is qualified
because of material noncompliance with federal foster care requirements.
The Division monitors and regulates tribal gaming
operations, pari-mutuel wagering at dog tracks, charitable gaming, and crane
games. In 2001, tribal gaming revenue increased to $970.9 million;
however not all tribes experienced revenue increases. The tribes now share an
additional $24.0 million in annual gaming revenue with the State.
The State’s oversight of Indian gaming operations could be improved.
Oversight of the Milwaukee County Employees’
Retirement System should be improved. Operations of the county board could be
further streamlined, budgeting for sick leave could be improved, and the hiring
process could be made more efficient. In addition, some lesser-used golf
courses could be closed to reduce operating costs. Prescription drug costs for
inmates are likely to far exceed budgeted amounts for 2002.
We have issued an unqualified opinion on the
Division’s financial statements for FY 2000-01 and FY
1999-2000. During this period, revenues from gaming activities were
affected by changes in tribal-state gaming compacts. We will issue an
evaluation of the Division’s oversight and regulatory authority later this
year.
We issued an unqualified opinion on the Wisconsin
Lottery’s financial statements for FYs 2000-01 and 1999-2000 and
reviewed the incentive-based Retailer Performance program that was implemented
in January 2000 to address declining sales. In FY 2000-01, participating
Wisconsin retailers earned 7.1 percent of lottery sales, the highest rate among
seven midwestern states. However, lottery sales declined by $21.6 million
in FY 1999-2000 and by $5.6 million in FY
2000-01.
We performed the FY 2000-01 single
audit of the State of Wisconsin to meet federal audit requirements. We question
$124,829 in costs the State charged to federal grants and in interest earnings
lost to the federal government because unspent federal funds were not returned
promptly. Our report includes descriptions of our findings of internal control
weaknesses and noncompliance with federal requirements, state agencies’ plans
for corrective action, and the State’s Schedule of Expenditures of Federal
Awards.
The Investment Board has recently been successful
in exceeding its performance benchmarks for the Fixed Retirement Trust Fund,
although long-term returns continue to lag those of other public pension funds.
The $1 billion Opportunity Portfolio, which is a higher-risk
portfolio, is not meeting expectations of earning higher returns, in part
because South Korean investments have been troubled. Increased oversight is
needed to prevent potential conflicts of interest.
Expenditures increased 27.1 percent from 1995 to
1999, but the county’s financial condition has been satisfactory. However,
corrections expenditures increased substantially from 1995 to 1999 and are
projected to increase 27.1 percent from 2000 to 2001, largely because of
staffing increases for a new jail. Brown County provides a level of cultural,
recreational, and educational services that most other counties do not; many of
these services are funded by property tax revenue. To address projected
deficits in the future, the county will need to better control costs or seek
additional revenue.
Administration of the County Sales and Use Tax, Department of Revenue
In calendar year 2000, 53 county governments
imposed the tax, from which they received $215.2 million in
revenues. However in June 2000, the Department made a delayed distribution of
$13.0 million that raised concerns about the accuracy and timeliness
of its distribution process. The Department has since developed measures to
reduce inaccuracies in distributions.
We performed the FY 1999-2000 single
audit of the State of Wisconsin to meet federal audit requirements. We question
$1,027,571 in costs the State charged to federal grants and in lost interest
earnings to the federal government because of various delays. Our opinion on
the State’s compliance with federal regulations is qualified because of
material noncompliance by the Department of Workforce Development.
Executive branch agencies spent $93.6 million
in FY 1998-99 for consulting services to supplement the work of
1,383 state information technology staff. Consultants have been used to develop
large IT systems and to manage peak workloads, as well as for ongoing projects,
including work also done by state staff. The management of both consultant use
and large-scale IT projects could be improved. The proposal to establish a
Department of Electronic Government warrants careful consideration by the
Legislature.
We issued an unqualified opinion on the Wisconsin
Lottery’s financial statements for FYs 1999-2000 and 1998-99.
Total lottery sales decreased from $428.2 million in FY
1998-99 to $406.7 million in FY 1999-2000. However,
a one-time provision of general purpose revenue to fund $76.0 million
in FY 1999-2000 expenses contributed to the increase in property
tax relief funded by the Lottery in FY 1999-2000.
In FY 1998-99, the State spent an
estimated $17.3 million and employed 103.3 hearing officers to
conduct approximately 24,900 contested case hearings related to employment,
social services, corrections, civil rights and discrimination, and other areas
it regulates. Two state agencies account for more than 80 percent of
hearing-related staff and expenditures. Most hearing officers are subject to
performance standards established by statute or rule; standards typically apply
to productivity and timeliness rather than decision quality. However, one
indicator of quality; the rate at which decisions are reversed on appeal; shows
that most hearing officer decisions are upheld.
We have issued an unqualified opinion on the
Wisconsin Lottery’s financial statements for fiscal years 1998-99 and 1997-98.
We note that GTECH Corporation, which maintains the computer system for on-line
and instant-ticket games, recently agreed to pay the Lottery a tentative
settlement of $750,000 to resolve an outstanding balance due related to
computer system problems. We recommend that the Wisconsin Lottery report to the
Legislature on its planned use of the settlement funds.
We performed the FY 1998-99 single
audit of the State of Wisconsin to meet federal audit requirements. After
testing compliance with federal requirements for 30 major grants administered
by various state agencies, including the University of Wisconsin System, we
question $688,051 in costs the State charged to federal grants and in lost
interest earnings to the federal government because of various delays. Our
report includes descriptions of our findings of internal control weaknesses and
noncompliance with federal requirements, state agencies’plans for corrective
action, and the State’s Schedule of Expenditures of Federal Awards.
We have issued an unqualified opinion on the
Division’ s financial statements for the past two fiscal years. Although the
State’s revenues from Indian gaming are expected to increase from $350,000 in
FY 1996-97 to $22.1 million in FY 1999-2000,
revenues from racing and charitable gaming continue to decline. Despite
increases in staffing levels, the number of on-site casino audits conducted by
the Division’s Office of Indian Gaming declined markedly from 1996 through
1999, and backlogs have developed in certifying vendors to do business with
tribal casinos.
The Investment Board has taken steps to improve
its operations since a 1995 derivatives loss in the State Investment Fund.
Further, even with the loss, the State Investment Fund's returns have exceeded
performance goals, or benchmarks. In contrast, the Fixed Retirement Trust Fund,
which accounts for approximately 80 percent of the Investment Board's $60.6
billion in assets, has experienced an erosion of its investment
performance. We recommend that the Investment Board reassess its investment
strategy and report to the Joint Legislative Audit Committee on steps it plans
to take to improve investment performance.
With the exception of fiscal year (FY)
1998-99, Lottery ticket sales have continued to decline, and instant
ticket sales — which represent over 50 percent of all ticket sales — have
declined each year since FY 1994-95. Different strategies have
been undertaken or proposed to increase sales. To date, these strategies have
met with limited success, in part because additional staff positions approved
by the Legislature were not filled on a timely basis.
We performed the FY 1997-98 single
audit of the State of Wisconsin to meet federal audit requirements. After
testing compliance with federal requirements for 28 major grants administered
by various state agencies, including the University of Wisconsin System, we
question the allowability of $293,474 in costs the State charged to federal
grants. Our report includes descriptions of our findings of internal control
weaknesses and noncompliance with federal requirements, state agencies’ plans
for corrective action, and the State’s Schedule of Expenditures of Federal
Awards.
We issued an unqualified opinion on the Wisconsin
Lottery’ s financial statements for FY 1997-98 and FY 1996-97.
A total of $216,895,949 in Wisconsin Lottery proceeds was used to provide local
property tax relief in FY 1997-98. This amount effectively
included two years of property tax credits because of a court ruling that
prevented the distribution of property tax credits in FY 1996-97.
State Employe Training Programs, Department of Employment Relations
In FY 1997-98, the Department of
Employment Relations provided training to approximately 3 percent of state
employes at a cost of approximately $272,400. Vendor-taught courses do not
cover their total costs and are subsidized by revenue generated through
state-taught courses. The Legislature could consider maintaining the
Department’s current role in providing state employe training, changing its
role to that of a coordinator of services, or encouraging state agencies to
play larger roles in administering employe training.
We performed the FY 96-97 single
audit of the State of Wisconsin to meet federal audit requirements. After
testing compliance with federal requirements for 30 major grants administered
by various state agencies, including the University of Wisconsin System, we
question the allowability of $417,036 in costs the State charged to federal
grants. Our report includes descriptions of our findings of internal control
weaknesses and noncompliance with federal requirements, and state agencies'
plans for corrective action.
We performed this audit to meet our requirements
under s.13.94, Wis. Stats. The FY 1995-96 and FY
1996-97 financial statements are fairly presented in all material
respects. We note that lottery sales continue to decline from prior years, from
$518.9 million in FY 1994-95 to $431.1 million
in FY 1996-97. Sales are projected to decrease further in FY
1997-98, to $414.0 million.
We issued an unqualified opinion on the Division's
fiscal year (FY) 1995-96 and FY 1996-97 financial
statement for the Racing, Indian Gaming, and Charitable Gaming programs.
However, Racing program revenues paid for administrative expenditures of
approximately $164,500 that should have been charged to the Indian Gaming and
Charitable Gaming programs in FY 1996-97, resulting in reduced
transfers to agricultural and livestock programs.
The county is experiencing serious financial
problems because of a severely limited property tax base. Expenditures have
exceeded revenues for five of the last seven years, taxes are comparatively
high, and services are limited. State assistance may be needed at least for a
time, and the Legislature should encourage the federal government to assume
greater responsibility for financial support of land that is not taxable
because it is held in federal trust.
A proposal to replace the sales tax on food and
beverages sold through vending machines with an annual permit fee of $65 per
machine would result in a net revenue loss to the State. To be revenue neutral,
the fee amount would need to be increased to at least $123 per machine. A
permit system would affect different industry sectors differently, but there do
not appear to be significant constitutional impediments to its enactment.
We issued an unqualified opinion on the Gaming
Board's financial statement for the three programs it administers--Racing,
Charitable Gaming, and Indian Gaming--for fiscal years 1994-95 and 1995-96. Tax
revenues from racing and charitable gaming are declining. However, for the
five-year period from 1992 through 1996, Indian tribes' gaming-related revenues
totaled $2.4 billion, and net profits were $946.8 million.
The Bond Underwriting Process, Department of Administration
The State sold over $1.8 billion in
bonds between January 1, 1994 and April 30, 1997, three-fourths through
competitive bids and one-fourth through negotiated sales. We audited the
process to select underwriters to purchase these bonds and noted nothing to
indicate it was not fair and equitable, although we recommend the Department
develop formal written procedures to guide the selection process and fully
document that these procedures have been followed.
We performed the fiscal year 1995-96 single audit
of the State of Wisconsin to meet audit requirements included in the federal
Single Audit Act of 1984 and the provisions of federal Office of Management and
Budget Circular A-128. We tested compliance with federal requirements for the
29 major grants administered by the State and identified $745,134 in questioned
costs. Our report includes descriptions of our findings of internal control
weaknesses and noncompliance with federal requirements, along with state
agencies' plans for corrective action.
We performed this audit to meet our requirements
under s. 13.94, Wis. Stats. The fiscal year 1995-96 financial
statements are fairly presented in all material respects.
We performed this audit to meet our requirements
under s. 13.94, Wis. Stats. The fiscal year 1995-96 financial
statements are fairly presented in all material respects.
Wisconsin Lottery sales fell from $518.9 million
in fiscal year (FY) 1994-95 to $482.1 million in FY
1995-96, a 7.1 percent decline. The decline, which is not part of a
national trend, is expected to continue through the current fiscal year and the
next biennium. Reasons for it include waning consumer interest in the Lottery;
an advertising budget that is significantly lower than most state lotteries';
and a largely unsuccessful attempt to privatize many functions, which
contributed to a 63.5 percent staff vacancy rate in January 1997.
We performed this audit to meet our requirements
under s. 13.94, Wis. Stats. The Fund’s financial statements for
calendar years 1995 and 1994 are fairly presented in all material respects.
96-10
Duty Disability Program, Department of Employe Trust Funds
Consideration could be given to establishing
additional work incentives or adjusting the level of benefits provided to
partially disabled protective workers. Approximately 73 percent of recipients
have estimated disabilities of 20 percent or less.
96-9
Financial and Compliance Audit of the State of Wisconsin, Statewide Single
Audit 1994-95
This audit was performed at the request of state
agencies, to meet requirements of the federal Single Audit Act of 1984 and the
provisions of Office of Management and Budget Circular A-128. We identified
$720,290 in questioned costs and include 33 audit recommendations to improve
compliance with federal requirements. This is the first single audit for which
we were able to issue an unqualified opinion that the State’s financial
statements are fairly presented in accordance with generally accepted
accounting principles.
96-8
Wisconsin Lottery, Department of Revenue
We performed this audit to meet our requirements
under s. 13.94, Wis. Stats. The FY 1994-95 financial
statements of the Lottery program, for which the Department of Revenue assumed
management and operating responsibility during FY 1995-96, are
fairly presented in all material respects.
96-7
Wisconsin Gaming Commission
We performed this audit to meet our requirements
under s. 13.94, Wis. Stats. The FY 1994-95 financial
statements of the Racing, Indian Gaming, and Charitable Gaming programs are
fairly presented in all material respects.
96-1
State Group Health Insurance Program, Department of Employe Trust Funds
The method by which the State contributes toward
employe health insurance premiums results in cost savings for the State but
affects employe costs and continuity of care. Most options available to address
perceived program inequities are likely to affect the State’s ability to
control costs. Total program costs are now more than $310 million.
95-25
Office of the State Treasurer
While the Office has taken reasonable steps to
ensure it receives monthly and quarterly collections reports from the counties,
effective procedures are not in place to ensure receipt of all payments due. As
a result, some counties have failed to remit required fees.
95-24
Allocation of District Attorney Positions
The accuracy of the State’s caseload measure,
which is used to allocate prosecutorial positions to district attorney offices
in the counties, could be improved to create a more reliable measure of
caseload and staffing needs.
95-20
Outside Legal Counsel and Services
State agencies need clear and consistent
guidelines for hiring private attorneys and controlling the costs of outside
legal services, which have totaled $16.7 million since FY
1990-91.
95-17
Bonus Compensation and Private Placement Activities, State of Wisconsin
Investment Board
Although the Investment Board continues to be
concerned about staff turnover, the bonus compensation program appears to have
had some effect on senior staff turnover. In making private placement loans and
other direct investments in business, staff generally appear to be following
the Board’s guidelines.
95-16
Investment Practices, State of Wisconsin Investment Board
A $95 million loss to the State
Investment Fund was caused by efforts to enhance earnings without an adequate
understanding of the risk involved. Management controls within the Investment
Board were inadequate to identify problems before losses occurred.
95-15
Financial and Compliance Audit of the State of Wisconsin, Statewide Single
Audit 1993-94
This audit was performed at the request of state
agencies, to meet requirements of the federal Single Audit Act of 1984 and the
provisions of Office of Management and Budget Circular A-128. We identified
$480,402 in questioned costs and include 39 audit recommendations to improve
compliance with federal requirements.
95-14
Financial Audit of Wisconsin Gaming Commission
The FY 1993-94 financial statements
of the Lottery and the Racing, Indian Gaming, and Charitable Gaming programs
are fairly presented in all material respects.
95-11
Debt Collection in State Agencies
State agencies report over $1.8 billion
in delinquent debt. While much of the reported debt cannot be expected to be
collected, collections could be increased through more effective use of
technology, more aggressive use of techniques such as state income tax refund
intercepts, increased inter-governmental cooperation, and increased use of
private collection firms.
95-7
Wisconsin Gaming Commission
If public accountability can be maintained, an
increased reliance on contracting for lottery services could shift the
Commission’s focus from day-to-day operations to the broader issue of
regulation of the gaming industry. However, the potential benefits of
contracting for security services are not as evident.
94-18
Risk Management Program, Department of Administration
The Department has taken several steps to address
the State's increasing workers' compensation costs, although additional steps
to control costs are suggested. Estimated costs to clean the State's hazardous
waste sites are expected to exceed $18 million.
94-14
Wisconsin Gaming Commission
Over $446,000 in Lottery program funds that were
intended for property tax relief were used by the Gaming Commission to cover
the costs of providing oversight of Indian Gaming activities. The audit
recommends the Lottery program be repaid these funds.
94-13
Department of Employe Trust Funds, for Calendar Year 1992
The Wisconsin Retirement System appears to be a
financially sound public employe retirement system. However, a fund deficit of
$110.4 million in the Duty Disability program for protective employes
is expected to require over 30 years to eliminate.
94-12
Financial and Compliance Audit of the State of Wisconsin, Statewide Single
Audit 1992-93
The single audit tested state agency compliance
with federal requirements in 30 major federal programs. The report identifies
questioned costs of $114,779 and includes 37 audit recommendations to improve
compliance with federal requirements.
93-27
Office of the State Treasurer
A report on the activities of the Office of the
State Treasurer includes a recommendation to eliminate an investments
record-keeping function that is no longer necessary.
93-17
Financial and Compliance Audit of the State of Wisconsin, Statewide Single
Audit 1991-92
The single audit tested state agency compliance
with federal requirements in 36 major federal programs. The report identifies
questioned costs of $86,754 and includes 43 audit recommendations to improve
compliance with federal requirements.
93-13
Department of Employe Trust Funds, for Calendar Year 1991
The financial statements of the Wisconsin
Retirement System and other smaller programs administered by the Department of
Employe Trust Funds are fairly presented.
93-7
Lottery, Gaming Commission
Although this financial audit and program
evaluation found weaknesses related to internal controls and budgetary
procedures, it also found that steps had been taken to address previously
identified employe morale problems and security concerns.
The Lottery Board applied $2.6 million
in fees collected from retailers to costs associated with its on-line retailer
network, allowing the Board to use funds appropriated for the network for other
purposes.
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Crime Victim and Witness Assistance Surcharge Revenue
Circuit courts assess the surcharge for felony and misdemeanor convictions. A decrease in the number of criminal charges and convictions, as well as unpaid surcharges, may help explain the decline in surcharge revenue in recent years despite an increase in the surcharge amount. Although unrelated to the decline in revenue, we found that some surcharge revenue has not been deposited into the correct state appropriations.
17-Year-Old Offenders in the Adult Criminal Justice System, Department of Corrections
From 2002 through 2006, 17-year-olds were most frequently charged with property crimes, such as theft and burglary. During
the period we reviewed, 585 17-year-old offenders were admitted to prison and 10,632 were placed on probation. Fewer
than one-half successfully completed their probation, and nearly one-half of those released from prison in 2002 were reincarcerated
within 3 years. Returning 17-year-olds to the juvenile justice system could cost $53.5 to $82.4 million annually.
Allocation of Prosecutor Positions, Department of Administration
County-level prosecutors, including district attorneys, deputy district attorneys, and assistant district attorneys, are state
employees. State expenditures for 424.65 full-time equivalent prosecutor positions totaled $44.4 million in FY 2005-06. We include
recommendations to improve the quality of data used to estimate staffing needs, which vary among the counties.
Determining the
Need for Circuit Court Judges, Director of State Courts
The State’s methodology for measuring judicial
workload is capable of providing objective and comparable information on the
need for additional judges; however, recent data used in the methodology are
incomplete and need to be changed to yield more reliable information.
94-23
Office of the State Public Defender
Increasing costs for indigent defense
representation can be partially controlled by improved management, especially
of private bar services. More aggressive procedures to collect from clients
whose financial condition improves could yield $4.7 to $6.5 million
annually.
The reporting and transcribing of circuit court
proceedings could be made more efficient by the effective use of available
audio and computer technology.
94-3
Sentencing Commission
Guidelines have been established for approximately
70 percent of felony cases, and voluntary use by judges is increasing. The
Commission needs to continue to update the guidelines to reflect sentencing
practice and statutory changes.
93-12
Inmate Litigation, Department of Corrections and Department of Justice
State agencies spent over $1.55 million
in FY 1991-92 on prison inmate lawsuits. While the right of
inmates to file lawsuits is protected by state and federal statutes, the
prisons' internal complaint review process serves as a viable, and inexpensive,
alternative to lawsuits.
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Legislative Audit Bureau
22 E. Mifflin Street, Suite 500
Madison, WI 53703
Phone: (608) 266-2818
Fax: (608) 267-0410 leg.audit.info@legis.wisconsin.gov
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