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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
January 27, 2005
To the Honorable, the Legislature:
As requested by the Joint Legislative Audit Committee, we have completed an evaluation of the process by which the Department of Health and Family Services (DHFS) determines eligibility for the SeniorCare program, which provides subsidized prescription drug benefits to individuals who are 65 or older. A similar review of eligibility determinations for the Medical Assistance and BadgerCare programs was provided in report 04-11, released in September 2004.
SeniorCare operates under the terms of a federal waiver, which allows states to receive federal Medical Assistance matching funds to provide program services. Only four states operate programs under this waiver, and Wisconsin's is the most comprehensive, both in terms of program eligibility and in benefits provided. In fiscal year (FY) 2004-05, the SeniorCare budget is $117.4 million, including $40.1 million in general purpose revenue. In June 2004, a total of 90,211 individuals were enrolled in the program.
Individuals apply for SeniorCare by mail. The application form requests an estimate of their income over the next 12-month period; no income verification is required. To determine the degree to which income is accurately reported, we reviewed a randomly selected sample of 1,000 applications approved in 2003. Participants were placed in the correct benefit level in 82.5 percent of the cases we reviewed. However, underestimated or under-reported income led to cost-sharing requirements that were lower than appropriate in 11.9 percent of cases. The opposite was true in 2.3 percent of cases. We were unable to determine actual income in 3.3 percent of the cases. Had placements been made in accordance with participants' actual income, we estimate annual net program savings of $6.9 million, which includes $3.0 million in general purpose revenue.
Given the under-reporting of income in our sample, we recommend DHFS increase its efforts to prevent, identify, and correct participant errors in income reporting. In addition, we recommend DHFS establish procedures for recovering SeniorCare benefits paid in error, as it is required to do under administrative rule.
We appreciate the courtesy and cooperation extended to us by DHFS staff in conducting this review.
Respectfully submitted,
Janice Mueller
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
January 27, 2005
To the Honorable, the Legislature:
We have completed a financial audit of WHA Television, as requested by the University of Wisconsin-Extension to fulfill the audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities to determine future funding levels.
WHA Television is licensed to the Board of Regents of the University of Wisconsin System and is operated by the University of Wisconsin-Extension. WHA Television earned $15.9 million in revenues during fiscal year 2003-04, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Our audit report contains the financial statements and related notes for the period July 1, 2003 through June 30, 2004. We were able to issue an unqualified independent auditor's report on these statements.
We appreciate the courtesy and cooperation extended to us by University of Wisconsin-Extension
Respectfully submitted,
Janice Mueller
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
January 27, 2005
To the Honorable, the Legislature:
We have completed a financial audit of WHA Radio, as requested by the University of Wisconsin-Extension to fulfill the audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities to determine future funding levels.
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WHA Radio is licensed to the Board of Regents of the University of Wisconsin System and is operated by the University of Wisconsin-Extension. WHA Radio earned $8.7 million in revenues during fiscal year 2003-04, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Our audit report contains the financial statements and related notes for the period July 1, 2003 through June 30, 2004. We were able to issue an unqualified independent auditor's report on these statements.
We appreciate the courtesy and cooperation extended to us by University of Wisconsin-Extension staff during the audit.
Respectfully submitted,
Janice Mueller
State Auditor
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State of Wisconsin
Investment Board
Madison
January 31, 2005
To the Honorable, the Assembly:
I have enclosed a copy of the FY 2004 Annual Fiscal Report and Schedule of Investments for the State of Wisconsin Investment Board. The report contains Independent Auditor's Reports, prepared by the Legislative Fiscal Bureau, for the funds that we manage. They include the Fixed and Variable Funds of the Wisconsin Retirement System, the State Investment Fund and various smaller funds.
I have attached an electronic copy for you to distribute to the members of the Assembly. Please contact Sandy Drew (261-0182) if anyone would prefer a hard copy of either. Thank you.
Sincerely,
David C. Mills
Executive Director
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State of Wisconsin
Legislative Audit Bureau
Madison
February 2, 2005
To the Honorable, the Legislature:
We have completed a financial audit of the State of Wisconsin Unemployment Reserve Fund for the years ended June 30, 2004 and 2003. We performed the audit at the request of the Department of Workforce Development and to meet our audit responsibilities under s.
13.94, Wis. Stats.
Our audit report contains our unqualified opinion on the financial statements and related notes. Wisconsin continued to experience higher unemployment rates, reaching a seasonally adjusted rate of 5.8 percent in January 2003. As a result, unemployment benefit payments exceeded employer contributions and other revenues, causing the Unemployment Reserve Fund balance to decline. The June 30, 2004 fund balance of $971.0 million is the lowest fund balance during the past 16 years. In contrast, the fund balance reached a high of $1.9 billion as of June 30, 2000. As required by s.
16.48, Wis. Stats., the Secretary of the Department of Workforce Development recently reported to the Legislature on the overall financial condition and outlook of the Unemployment Reserve Fund, including suggestions for increasing the fund balance to ensure sufficient reserves are maintained.
Accompanying the financial statements is the Schedule of Cash Balance Related to Taxable Employers. This cash balance is used to determine the tax rate schedule that applies to taxable employers. Section
108.18(3m), Wis. Stats., currently requires the second-highest tax rate schedule to be applied when the cash balance as of June 30 is between $300 million and $900 million. Because the June 30, 2004 cash balance related to taxable employers was $812.3 million, the second-highest of the four tax rate schedules will be applied to taxable employers in calendar year 2005. It is estimated that the higher tax rates will require employers to pay an additional $30.0 million into the Unemployment Reserve Fund during 2005.
We appreciate the courtesy and cooperation extended to us by Department of Workforce
Respectfully submitted,
Janice Mueller
State Auditor
