State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
August 23, 2007
To the Honorable, the Assembly:
As required by s.
39.46, Wis. Stats., we have completed a limited‐scope review of the dental education contract between the State of Wisconsin and the Marquette University School of Dentistry for fiscal year (FY) 2004‐05 and FY 2005‐06. During this period, the State provided $8,753 each to 142 Wisconsin residents enrolled in the undergraduate dental education program in FY 2004‐05, and 159 Wisconsin residents in FY 2005‐06, for a total of nearly $2.6 million during the two‐year period.
Overall, we found that Marquette University was in compliance with its contract with the State and with requirements set forth in s.
39.46, Wis. Stats. During our review, we found the students for whom Marquette University claimed tuition aid were certified by the Higher Educational Aids Board as Wisconsin residents and were eligible to receive this state aid. In addition, we found that Marquette University spent state funds only for the undergraduate dental school program, gave preference in admissions to Wisconsin residents, and promoted minority enrollment.
We appreciate the courtesy and cooperation extended to us by Marquette University staff during our review.
Sincerely,
Janice Mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
August 29, 2007
To the Honorable, the Assembly:
As requested by the Public Service Commission (PSC), we have completed a financial audit of the Universal Service Fund, which was established to ensure that all state residents receive essential telecommunications services and have access to advanced telecommunications capabilities. It is funded primarily through assessments on telecommunications providers, which totaled $30.2 million in fiscal year (FY) 2005‐06. Our audit report contains our unqualified opinion on the Universal Service Fund's financial statements for the fiscal years ending June 30, 2006 and 2005.
The largest program supported by the Universal Service Fund is the Educational Telecommunications Access Program, which is administered by the Department of Administration. This program subsidizes data lines and video links for eligible educational institutions. In FY 2005‐06, expenditures for these activities totaled $11.6 million, or 50.4 percent of the Universal Service Fund's total expenditures. In September 2006, the State completed the conversion to a new statewide data and video network for program participants, as well as for state government and other public sector users.
Eight of the 13 programs supported by the Universal Service Fund are operated by the PSC. The Legislature limits the amount the PSC can annually assess telecommunications providers for the PSC‐operated programs to $6.0 million. The limit and growth in expenditures from FY 2001‐02 through FY 2004‐05 have presented budgetary challenges for these programs. In response, the PSC has reduced benefits and limited expenditures to better match its spending authority.
During FY 2005‐06, revenues exceeded expenditures by $8.8 million for several of the programs funded through the Universal Service Fund, which increased the fund balance to $15.8 million as of June 30, 2006. Most significantly, funding received for the Educational Telecommunications Access Program exceeded expenditures by $6.6 million. We include a recommendation that the PSC work more closely with the Department of Administration and the University of Wisconsin System in establishing annual assessment levels.
We appreciate the courtesy and cooperation extended to us by staff at the PSC; the departments of Administration and Public Instruction; the University of Wisconsin System; and the Universal Service Fund's administrator, Wipfli LLP.
Respectfully submitted,
Janice Mueller
State Auditor
__________________
Representative Nygren moved that the Assembly stand adjourned until 10:00 A.M. on Tuesday, September 4.
The question was: Shall the Assembly stand adjourned?
Motion carried.
The Assembly stood adjourned.
10:56 A.M.
