This is the annual report on Prison Industries for the fiscal year ending June 30, 1996, as required by Wisconsin Statutes 303.018. This report includes the cash balance of each industry and the total amounts expended by state agencies for wood furniture and printing. It also shows what portion of the total wood furniture and printing state agencies purchased from Prison Industries and includes year-end cash balances.
The cash deficit decreased by $233,800 (from -$1,678,800 to -$1,445,000) in fiscal year 1996. Total assets of plant, equipment and inventories of $8,150,500 exceed the cash deficit by $6,705,500.
See Appendix A for a summary of the cash balance for each industry and the overall financial condition of Prison Industries.
The net income on the accrual accounting basis was $1,216,800 for the fiscal year ending June 30, 1996.
State agencies spent $1,674,990 on wood furniture in FY 96. Of that amount, $558,320 or 33% was purchased from Prison Industries. During the same period, state agencies purchased $38,727,892 in printing from all sources. Of that amount, $1,123,161 or 2.9% was purchased from Prison Industries. State printing bulletins now require that all forms for which Prison Industries has negotiated a contract be purchased from Prison Industries. Appendix B provides comparisons with FY95.
Sincerely,
Michael J. Sullivan
Secretary, Department of Corrections
Mark Bugher
Secretary, Department of Administration
__________________
State of Wisconsin
Department of Corrections
Madison
June 27, 1997
To the Honorable, the Legislature:
Attached is the third quarter report on Prison Industries for the fiscal year ending June 30, 1997, as required by 303.019 of the Wisconsin Statutes. This report includes the year-to-date cash balance of each industry as of March 31, 1997 although Prison Industries financial picture changed substantially during the final quarter of the fiscal year.
This report reflects private sector joint venture balances separately, unless otherwise noted, from the remainder of Prison Industries. The actual non-private sector joint venture cash received for the period July 1, 1996 through March 31, 1997 was $9,846,400 and cash expenditures for the same time period were $10,649,000. On a cash basis, non-private sector industries lost ($802,600) for the first three quarters of the fiscal year. Several large invoices were processed during the third quarter. Payment is expected during the final quarter of the fiscal year. Non-private sector ventures were projecting $381,000 profit on the accrual basis for the period ending June 30, 1997.
Private sector ventures had a cash balance of $121,500 on March 31, 1997 with an accounts receivable balance of $230,300. Expenditures during this period were $646,000, including $103,600 in one-time start up costs. As of March 31, 1997, the total projected revenue for the private sector ventures for FY 97 were $1,560,100 with expenditures of $1,802,600.
It should be noted that during this same time period, inmates employed by the private industries contributed approximately $182,000 towards state and federal taxes, room and board, court ordered fees, and child support.
Sincerely,
Michael J. Sullivan
Secretary, Department of Corrections
Mark D. Bugher
Secretary, Department of Administration
__________________
Representative Foti moved that the Assembly stand adjourned until 10:00 A.M. on Tuesday, July 15.
The question was: Shall the Assembly stand adjourned?
Motion carried.
The Assembly stood adjourned.
2:01 P.M.
