As required by s.
13.94 (1)(dm), Wis. Stats., we have completed our annual financial audit of State Fair Park. We have issued an unqualified opinion on State Fair Park's financial statements for fiscal year (FY) 2010-11. In addition, we have continued to monitor its financial condition.
State Fair Park's operating revenue exceeded expenditures by $2.4 million in FY 2010-11, on a cash basis, primarily because of a successful 2010 Wisconsin State Fair. State Fair Park's cash deficit was reduced to $235,000 as of June 30, 2011. State Fair Park projects positive operating results for FY 2011-12 that would allow it to eliminate the deficit.
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Although State Fair Park's financial condition continues to improve, close monitoring of the operations of the Milwaukee Mile racetrack, the Wisconsin Exposition Center, and the Wisconsin State Fair's ride and amusement area will be important. We note that State Fair Park continues to be involved in a legal dispute with a former racetrack promoter, the outcome of which may affect State Fair Park's financial condition in the future.
We again report a weakness in State Fair Park's internal controls related to financial reporting, which we discuss in the Report on Internal Control and Compliance included in this report. Although State Fair Park has made some improvements to the financial reporting process, we identified material errors in the FY 2010-11 financial statements. State Fair Park corrected the financial statements and agreed to take steps to continue to improve its financial reporting.
We appreciate the courtesy and cooperation extended to us by staff of State Fair Park. A response from the Chief Executive Officer follows the appendix.
Respectfully submitted,
Joe Chrisman
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
June 12, 2012
To the Honorable, the Assembly:
We have completed a review of the State's economic development programs, as required by s.
13.94 (1)(mm), Wis. Stats. The Department of Commerce and seven other state agencies administered 196 economic development programs at some point during the 2007-09 and 2009-11 biennia. These programs provided grants, loans, bonding authorization, tax credits, and direct services to businesses, local governments, and others. In the 2009-11 biennium, state spending on economic development was an estimated $226.5 million.
2007 Wisconsin Act 125 required the eight state agencies to evaluate the effectiveness of each economic development program and to annually report publicly on program results. We evaluated agency compliance with these requirements and identified a number of concerns with the completeness of information tracked and reported. For example, Commerce provided us with information on results for less than 75.0 percent of the programs it administered during the 2009-11 biennium as the State's lead economic development agency.
In July 2011, Commerce was abolished and the Wisconsin Economic Development Corporation (WEDC) became the State's lead economic development organization. Although insufficient time has passed since WEDC's creation for us to assess its administration of economic development programs, we include recommendations it could use to improve program effectiveness and accountability. As required by statutes, we will conduct an audit in 2013 to assess WEDC's financial management and evaluate its programs.
We appreciate the courtesy and cooperation extended to us by WEDC and the eight agencies we reviewed. WEDC's response follows the appendices.
Respectfully submitted,
Joe Chrisman
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
June 15, 2012
To the Honorable, the Assembly:
As required by s.
13.94 (1)(em), Wis. Stats., we have completed our annual financial audit of the Wisconsin Lottery, which is administered by the Department of Revenue. We have issued an unqualified opinion on the Wisconsin Lottery's fiscal year (FY) 2010-11 and FY 2009-10 financial statements. We also found that the Wisconsin Lottery was in compliance with statutory spending limitations related to prizes, product information, administrative expenses, and retailer compensation.
During FY 2010-11, the Wisconsin Lottery generated total ticket sales of $502.7 million, which was 4.5 percent more than FY 2009-10. Instant ticket sales increased $29.4 million as a result of an increase in sales of $20 instant scratch-off tickets and an increase in the number and timing of new scratch-off games offered during FY 2010-11. Sales of lotto tickets, which are sold through terminals at lottery retail locations, declined $7.6 million during FY 2010-11 primarily because there were fewer large Powerball jackpots. As ticket sales increased during FY 2010-11, so did the Wisconsin Lottery's operating expenses.
In FY 2010-11, lottery proceeds used for property tax relief totaled $144.9 million, which included $129.1 million for the Lottery and Gaming Tax Credit. On November 1, 2011, the Department of Administration and the Legislature's Joint Committee on Finance authorized the use of $137.6 million in Wisconsin Lottery proceeds for the Lottery and Gaming Tax Credit for property tax relief in FY 2011-12.
We appreciate the courtesy and cooperation extended to us by the Department of Revenue.
Respectfully submitted,
Joe Chrisman
State Auditor
