On February 1, 2008, the Dry Cleaner Environmental Response Fund cash balance closed at a negative $14 thousand (its intra‐month low). This negative balance continued through February 5, 2008, when the fund's cash balance closed at a positive $33.0 thousand. The negative balance was due to the difference in the timing of revenues and expenditures.
On February 1, 2008, the Conservation Fund cash balance closed at a negative $3.0 million. This negative balance continued through February 29, 2008, when the fund's cash balance closed at a negative $12.1 million (its intra‐month low). The negative balance was due to the difference in the timing of revenues and expenditures.
The Wisconsin Health Education Loan Repayment Fund, Injured Patients and Families Compensation Fund, Dry Cleaner Environmental Response Fund, and Conservation Fund shortfalls were not in excess of the statutory interfund borrowing limitations and did not exceed the balances of the funds available for interfund borrowing.
The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority, and as a result, the funds requiring the use of the authority will effectively bear the interest cost.
Sincerely,
Michael L. Morgan
Secretary
Referred to committee on Ways and Means.
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State of Wisconsin
Investment Board
Madison
March 31, 2008
To the Honorable, the Legislature:
Attached please find a copy of our annual “Goals, Strategies and Performance report". We provide this pursuant to section
25.17 (14m), Stats. The report contains in‐depth information about how we managed the funds and how they performed during very volatile markets in 2007. We expect the markets' volatility to continue and describe in the report steps we are taking to position the funds for 2008 and beyond.
Please contact me if you have any questions about the report or would like to discuss any of the issues in more depth.
Sincerely,
Keith Bozarth
Executive Director
Referred to committee on Ways and Means.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
March 31, 2008
To the Honorable, the Assembly:
We have completed our annual financial and compliance audit of the State of Wisconsin. This audit satisfies state agencies' audit requirements under the federal Single Audit Act of 1984, as amended, and the federal Office of Management and Budget Circular A‐133. It also assists us in meeting audit requirements under s.
13.94, Wis. Stats.
This audit covers $9.6 billion in federal financial assistance that state agencies administered in fiscal year 2006‐07. We assessed the propriety of revenues and expenditures and tested internal controls and compliance with laws and regulations for 22 federal programs that were selected for review using risk‐based assessment criteria established by the federal government.
Our report contains the auditor's reports on internal control over financial reporting and on compliance with program requirements, and our unqualified audit opinion on the State of Wisconsin Schedule of Expenditures of Federal Awards. We also discuss the results of our follow‐up to prior audit findings. Overall, state agencies have complied with federal grant requirements and have taken steps to address findings included in last year's single audit report. However, we report several new and continuing internal control deficiencies and areas of federal noncompliance. The federal government will contact state agencies to resolve the findings and questioned costs included in our report.
We appreciate the courtesy and cooperation extended to us by state agency staff during our audit. Agencies' comments on individual findings, along with their corrective action plans to address our concerns, are included within the agency narratives.
Respectfully submitted,
Janice Mueller
State Auditor
