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.
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), 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), 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.
Health Insurance Risk-Sharing Plan, Department of Health and Family Services
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.
Prior Authorization for Therapy and Other Services, Department of Health and
Family Services
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.
Department of Health and Family Services, Health Insurance Risk-Sharing Plan
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.
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.
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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