Indian gaming represents the most significant gaming activity in Wisconsin. In 2009, Indian gaming revenue was $1.3 billion, tribal gaming expenses were $780.2 million, and tribal gaming profits were $543.4 million. In FY 2008-09, the State received $122.2 million from tribes under the revenue sharing provisions of the negotiated gaming compacts.
The Division conducts on-site financial and compliance audits for each tribe to independently verify the amounts wagered on Class III gaming and to ensure that casino operations are consistent with standards established in the gaming compacts. From January 2007 through December 2009, the Division conducted 67 financial audits and 50 compliance audits, and it identified a total of $4.0 million in tribal underpayments to the State. We analyzed a random selection of working papers associated with audits completed in 2009. The documentation we reviewed was complete and accurate. In December 2009, the last operating greyhound racetrack in Wisconsin-Dairyland Greyhound Park-was closed. Statutes continue to authorize pari-mutuel racing in the State, but the Division has not received applications from businesses seeking to operate racing venues.
We appreciate the courtesy and cooperation extended to us by the Division. The Division's response follows the appendix.
Respectfully submitted,
Janice Mueller
State Auditor
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A1004
State of Wisconsin
Legislative Audit Bureau
Madison
August 12, 2010
To the Honorable, the Assembly:
As required by
2005 Wisconsin Act 125, we have reviewed the pupil test score data provided to us by the School Choice Demonstration Project, which is a group of privately funded education researchers who are studying the Milwaukee Parental Choice Program. The Choice program provides publicly funded private school tuition for low-income children in Milwaukee.
Project researchers are conducting a five-year longitudinal study of Choice and Milwaukee Public Schools (MPS) pupils first selected in the 2006-07 school year. The representative sample includes 2,727 Choice pupils who were in the third through ninth grades in fall 2006 and a comparable group of 2,727 MPS pupils. The researchers are tracking changes in Wisconsin Knowledge and Concepts Examination scores and determining how participation in the Choice program affects changes in academic achievement.
We reviewed the project's data for the 2008-09 school year, which is the third year the researchers arranged for the Wisconsin Knowledge and Concepts Examination to be administered to Choice pupils. We analyzed and generally confirmed the analyses that they reported in April 2010, which show no significant difference in the performance of Choice pupils and similar MPS pupils after three years. However, we note that only 1,097 of the 2,727 Choice pupils in the researchers' sample, or 40.2 percent, remained in Choice schools in the 2008-09 school year.
As we discussed in our September 2008 and August 2009 reports, we are unable to review average pupil test scores at individual Choice schools because the project, citing confidentiality concerns, has not provided us with this type of information. As a result, we cannot provide legislators and other policymakers with information about academic performance specific to each of the 127 Choice schools that operated in the 2008-09 school year.
2009 Wisconsin Act 28 made several changes to the testing requirements for Choice schools, and the Wisconsin Knowledge and Concepts Examination will be administered in Choice schools beginning with the 2010-11 school year.
We appreciate the courtesy and cooperation extended to us by project researchers as we conducted this review.
Sincerely,
Janice Mueller
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
August 17, 2010
To the Honorable, the Assembly:
We have completed a review of the methodology the Department of Veterans Affairs (DVA) has used to establish rates for nursing home and assisted living care provided to residents of the Wisconsin Veterans Homes at King and Union Grove. This review is the first phase of our comprehensive evaluation of veterans home operations.
From January 2008 to January 2010, daily "private pay" rates for veterans in Union Grove's skilled nursing facility who do not qualify for Medical Assistance or Medicare funding have increased by 45.8 percent, which resulted in an annual cost increase of $29,500. Private pay rates in Union Grove's assisted living facilities increased by as much as 58.6 percent for veterans and 284.6 percent for spouses living with veterans, which resulted in annual cost increases of as much as $15,400 and $40,500, respectively.
The unusually large rate increases in private pay rates, which contributed to the departure of at least 12 Union Grove assisted living residents since January 2010, resulted from DVA's efforts to comply with ch.
VA 6, Wis. Adm. Code, which requires rates to be based on the cost of care. Current rates, which were put in place in 2010, are consistent with agency officials' current interpretation of that rule, which was promulgated by the Board of Veterans Affairs in 1992. However, we note that neither administrative rules nor DVA policies specify exactly how rates should be calculated. Our report includes a recommendation for the Board to establish more specific rate-setting rules and to formally review and approve all rate-setting proposals developed by DVA staff.
From fiscal year (FY) 2004-05 through FY 2008-09, Union Grove had deficits in both its nursing and assisted living operations, while King's revenues have exceeded its expenditures. During that period, DVA transferred a total of $21.2 million from King's operating surplus to help support Union Grove's operations. However, DVA projects net losses at both homes in FY 2010-11, which could lead to the eventual depletion of the remaining surplus funds. If the homes are to achieve financial solvency while continuing to ensure they effectively serve Wisconsin veterans, additional action by DVA will be required. In addition, we believe legislative oversight will help to ensure that DVA's actions are realistic, timely, and appropriate.
We appreciate the courtesy and cooperation extended to us by DVA in completing this review.
Sincerely,
Janice Mueller
State Auditor
