Veterans comprise and important segment of the Wisconsin workforce in both the private and public sectors. State government - and any other employer - can benefit greatly by recruiting and retaining our nation's trained and motivated veterans.
Sincerely,
Peter D. Fox
Secretary
Referred to committee on Veterans and Military Affairs.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
February 1, 2001
To the Honorable, the Legislature:
A104
This biennial report on the operations and performance of the Legislative Audit Bureau covers the period January 1, 1999 through December 31, 2000. It summarizes the Bureau's statutory responsibilities, significant developments affecting the Bureau, and reports released during the past two years and is required under s.
13.94(1)(j), Wis. Stats.
The Bureau conducts financial and program evaluation audits to assist the Legislature in its oversight of executive branch agencies. The Bureau's reports are received and reviewed by the Joint Legislative Audit Committee, whose 1999-2000 members were:
Rep. Carol Kelso Sen. Gary George
Rep. Stephen Nass Sen. Judy Robson
Rep. John Gard Sen. Brian Burke
Rep. Robert Ziegalbauer Sen. Mary Lazich
Rep. David Cullen Sen. Peggy Rosenzweig
In total, we released 42 numbered reports during the biennium, as well as several dozen other documents of a narrow scope or intended for a limited audience. We make every effort to deliver accurate, timely, and useful analyses that enhance the accountability of state government, and we look forward to serving the Legislature, the Governor, and the people of Wisconsin in the coming years.
Respectfully submitted,
Janice Mueller
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
February 16, 2001
To the Honorable, the Legislature:
We have completed a review of Employment Solutions, Inc. (ESI) and 15 other Wisconsin Works (W-2) agencies as part of a comprehensive audit of the statewide implementation of the W-2 program. We have identified charges for out-of-state work and other unallowable and questioned expenditures by ESI that are similar to those we identified for Maximus, Inc., an agency that also administers the W-2 program in Milwaukee County.
We identified $270,268 in unallowable costs that were related to ESI's activities outside of Wisconsin but charged to the W-2 program. Most were related to unsuccessful efforts to acquire a contract for administration of Arizona's welfare-to-work program. Our findings suggest the extent of ESI's out-of-state activities was greater than the agency had indicated.
Among $3.6 million in additional transactions for ESI, we identified $35,899 in unallowable costs and questioned another $61,234 in expenditures charged to the W-2 program. Unallowable and questioned transactions include expenditures for entertaining ESI employees, advertising, legal services, local hotel charges, and a variety of restaurant and other food charges.
We also reviewed staff performance incentives that were charged to the W-2 program by three agencies in 1999. ESI provided substantially higher incentives than the other agencies, partly because ESI has chosen to make a portion of employees' compensation contingent upon performance. ESI's incentives averaged $9,635 each for the 84 employees receiving them. ESI's chief executive officer received a total of $61,645 in 1999; that amount reflects incentive payments for performance in 1998 and 1999.
Finally, we identified $12,604 in unallowable costs and $114,487 in questioned costs made by six other W-2 agencies.
We appreciate the courtesy and cooperation extended to us by the W-2 agencies and the Department of Workforce Development during the course of our review.
Respectfully submitted,
Janice Mueller
State Auditor
