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Office: 118 South, State Capitol ~ Phone: (608) 266-0484; Toll-Free: (800) 334-1465, FAX: 267-0304 ~ Mail: P.O. Box 7882, Madison, WI 53707-7882
3/31/2011
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Latest Audit Report Reveals Overpayments by State Agencies

Audit identifies instances of inappropriate benefit payments
 
MADISON – The Joint Audit Committee co-chairs announced the release of Report 11-4 by the nonpartisan Legislative Audit Bureau (LAB) today. The LAB report, also called the Single Audit, provides an overview of how state agencies administered $15.5 billion in federal financial assistance during the 2009-2010 fiscal year. These funds include more than $3.5 billion the state received under the federal American Recovery and Reinvestment Act of 2009.
 
Of the total federal funds received, the report identifies $12.6 million worth of inappropriate benefit payments and other questionable costs charged to the federal programs. This includes nearly $9.9 million in overpayments made to claimants collecting unemployment benefits.
 
LAB also found that benefits were inappropriately sought and received by inmates. Fifty-nine inmates likely collected Unemployment Insurance program benefits while incarcerated, 37 of which received more than $221,000 in overpayments.
 
Additionally, 33 inmates likely collected FoodShare benefits inappropriately. Of these, 10 have received nearly $22,000 worth of benefits and the Department of Health Services is investigating the other individuals at this time.
 
“Whether it’s federal or state money, the taxpayers want it used appropriately,” said Senator Robert Cowles. “It’s irritating to me and the taxpayers of this state that money is wrongfully going to inmates and it must be stopped.”
 
“Heading into the final months of the budget season, the results of this audit will give us an idea of how we need to better manage the federal money our state takes in each fiscal year,” Representative Kerkman added. “With the cuts projected by Congress in the federal budget, Wisconsin will likely take in fewer dollars during the upcoming fiscal biennium, forcing us to adjust our spending accordingly.”
 
The report includes 29 recommendations related to the administration of federal grant programs by state agencies. The federal government will work with these agencies in resolving the inconsistencies identified by LAB. Copies of LAB’s report may be obtained from its Web site at www.legis.wisconsin.gov/lab or by calling (608) 266-2818.