SUMMARY

As required by 2017 Wisconsin Act 355, we performed a final audit of the Local Government Property Insurance Fund (Fund), which is administered by the Office of the Commissioner of Insurance (OCI). Coverage for policyholders was terminated by December 31, 2018, and no claims were filed after July 1, 2019, as required by statutes. From fiscal year (FY) 2015-16 through FY 2018-19, a total of $29.9 million was transferred from the State’s General Fund to the Fund and the Fund repaid $15.1 million. As of June 30, 2019, approximately $2.2 million was available in the Fund to make final claim payments and pay administrative costs. Therefore, it is unlikely that the Fund will acquire sufficient assets to either fully repay the General Fund or make a distribution to policyholders. We recommend that OCI report to the Joint Legislative Audit Committee on certain items that were not fully resolved as of late October 2019.