State of Wisconsin
Department of Health and Family Services
Madison
July 7, 2003
To the Honorable, the Assembly:
As required by s.
252.04 (11), Wis. Stats., enclosed is the Annual Statewide Immunization Program Report. Please distribute this report to the appropriate standing committees.
Sincerely,
Helene Nelson
Secretary
Referred to committee on Public Health.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
July 9, 2003
To the Honorable, the Legislature:
The Department of Employee Trust Funds (ETF) and the Investment Board are partners in administering the Wisconsin Retirement System (WRS). As part of this relationship, ETF relies on investment information the Investment Board provides to properly report WRS investments and returns. During our audit of ETF's 2001 financial statements, we found that an error in information the Investment Board provided ETF resulted in a significant error in the crediting and reporting of the investment account balances for the Milwaukee Retirement Systems, which invest in the WRS investment trust funds. The balances in the Milwaukee Retirement Systems were overstated by a total of $3.87 million for the period February 2001 through January 2003. The investment balance for the Milwaukee Schools Retirement System was adjusted for its overage, while ETF is attempting to recover funds from the City of Milwaukee Retirement System, which had discontinued its investment in the WRS funds as of June 2002.
The error occurred as the result of human error by Investment Board staff in transcribing information from its custodial bank. However, ETF may have been able to detect the error earlier if it had been more diligent in reviewing information in its financial reports. Further, the error demonstrates a need for additional care and collaboration by both agencies in ensuring that information is correctly calculated and communicated. Both the Investment Board and ETF have responded quickly to correct the error and to take steps to prevent similar errors from occurring in the future.
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A more detailed description of the error and the responses from the Investment Board and ETF on their plans to implement recommendations are attached.
Respectfully submitted,
Janice Mueller
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
July 9, 2003
To the Honorable, the Legislature:
We have completed a review of the State's purchasing card program through which state employees use credit cards to make low-dollar purchases for state business purposes. Purchasing cards represent a new way of paying for needed goods and services and offer increased flexibility by eliminating the need to prepare and submit purchase orders. In July 2002, approximately 17,500 purchasing cards were held by state employees at 43 state agencies and throughout the University of Wisconsin (UW) System. In fiscal year 2001-02, $86.3 million in goods and services were purchased with the cards, with an average purchase amount of $196.
Our review of 7,339 purchasing card transactions at five state agencies and three campuses found that abuse of the purchasing card was very rare. In all, we identified 449 exceptions. Most exceptions were purchases for valid business items; however, under Department of Administration or agency purchasing guidelines, these purchases should have been made using an invoice or purchase order. We also identified 107 transactions that appeared to be misuse of the cards, but we found apparent employee abuse of the card in only 2 transactions. We were unable to identify the purpose or the items purchased for 106 transactions.
While we found no evidence of widespread abuse, oversight of purchasing card transactions is important and could be improved, particularly at the campuses we visited. We offer several best practices for agencies and campuses to consider as they seek to improve their management of the program. We also include recommendations for improving guidelines to avoid cardholder errors, as well as for lapsing the purchasing card rebate amount received from the vendor to the funds that supported the original purchases. In calendar year 2002, the rebate amount was $751,100.
We appreciate the courtesy and cooperation extended to us by the Department of Administration, which administers the purchasing card program, and by the departments and UW campuses we reviewed: Corrections, Health and Family Services, Natural Resources, Transportation, Veterans Affairs, UW-Madison, UW-Milwaukee, and UW-Parkside. The Department of Administration's response follows the appendix.
Respectfully submitted,
Janice Mueller
State Auditor
