Sincerely,
frank r. hoadley
Capital Finance Director
Department of Administration
Debra k. martinelli
Bureau Director, Bureau of Community Financial Assistance
Department of Natural Resources
Referred to the committee on Environment and Natural Resources.
__________________
State of Wisconsin
Department of Administration
September 30, 2008
The Honorable, The Legislature:
This report is transmitted as required by s.
20.002(11)(f), Wisconsin Statutes, (for distribution to the appropriate standing committees under s.
13.172(3), Wisconsin Statutes) and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative cash balances during the month of August 2008.
On August 6, 2008, the General Fund cash balance closed at a negative $74.3 million (its intra-month low). This negative balance continued through August 11, 2008, when the fund's cash balance closed at a positive $34.4 million. The negative balance was due to the difference in the timing of revenues and expenditures.
On August 20, 2008, the Utility Public Benefits Fund cash balance closed at a negative $2.6 million. This negative balance continued through August 31, 2008, when the fund's cash balance closed at a negative $2.7 million (its intra-month low). The negative balance was due to a delayed cash transfer.
On August 1, 2008, the Injured Patients and Families Compensation Fund cash balance closed at a negative $153.1 million (its intra-month low). This negative balance continued through August 31, 2008, when the fund's cash balance closed at a negative $140.7 million. The negative balance was due to the transfer of $200 million to the Medical Assistance Trust Fund per
2007 Wisconsin Act 20, and the pending liquidation of fund securities necessary to offset this shortfall.
On August 1, 2008, the University Trust Fund - Principal cash balance closed at a negative $4.3 million (its intra-month low). This negative balance continued through August 13, 2008, when the fund's cash balance closed at a positive $6.3 million. The negative balance was due to an accounting error that was corrected in August.
The General Fund, Utility Public Benefits Fund, Injured Patients and Families Compensation Fund, and University Trust Fund - Principal 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 the joint committee on Finance.
__________________
State of Wisconsin
Department of Health Services
October 1, 2008
The Honorable, The Senate:
S894
The Department of Health Services operates BadgerCare under section 49.665 of the Wisconsin Statutes. Under this section of the statutes the Wisconsin Legislature requires the Department to submit a report summarizing the BadgerCare program and its progress. This submission fulfills that legislative requirement.
BadgerCare was established under the terms of the federal State Children's Health Insurance Program (SCHIP) enacted through the federal budget of 1997. The SCHIP program provided states with the options of creating a new independent program to insure children or to expand the state's existing Medicaid program. The Wisconsin Legislature created BadgerCare as an SCHIP Medicaid expansion program under
1997 WI Act 27.
The Department implemented BadgerCare Plus in February 2008 as authorized under section 49.471. BadgerCare Plus merges Family Medicaid, BadgerCare, and Healthy Start to form a comprehensive health insurance program for low income children and families to help ensure that 98% of Wisconsin's citizens have access to health care. The program provides coverage for more members while simplifying the program and promoting prevention and healthy behaviors.
Enrollment and expenditure data, reported below for SFY 08, shows both BadgerCare and BadgerCare Plus programs separately. Enrollment simplification implemented with BadgerCare Plus makes it difficult to identify BadgerCare Plus members made eligible under the enrollment rules of BadgerCare. Thus the department has determined that data on all BadgerCare Plus members, beginning February 2008, is pertinent information for this report.
Attached is a chart showing the total enrollment and expenditures in BadgerCare and BadgerCare Plus by state fiscal year. BadgerCare began enrolling residents in February 1999; BadgerCare Plus began enrollment in February 2008. BadgerCare enrollment is reported as of January 2008 and expenditures are reported through January 31, 2008. BadgerCare plus enrollment is reported as of June 2008 and total claims expenditures are reported for February 1, 2008 through June 30, 2008.
BadgerCare leverages significant amounts of federal funding for health care coverage of eligible Wisconsin residents.
Wisconsin is leading the nation in streamlining health care eligibility by making BadgerCare Plus more efficient and less costly to administer. We look forward to keeping Wisconsin on the cutting edge of quality and efficient health care coverage for those in need.
Sincerely,
jason a. helgerson
Medicaid Director
__________________
State of Wisconsin
Legislative Audit Bureau
October 2, 2008
The Honorable, The Legislature:
We have completed a review of the Department of Administration's (DOA's) oversight of a contract for print and mail staffing services, which we initiated in response to a complaint reported on the fraud, waste, and mismanagement hotline established by
2007 Wisconsin Act 126.
The complaint alleged that DOA was not exercising adequate oversight of contract staff provided by Spherion Corporation, whose employees filled 34.0 of 58.0 full-time equivalent positions in DOA's Bureau of Publishing and Distribution as of June 2008. We did not substantiate any allegations related to workplace safety concerns, a hostile work environment, and fraudulent time recording by contract staff. However, our report includes both a recommendation for DOA to recalculate its cost-benefit analysis related to print and mail service staffing and several strategies to better control state costs associated with DOA's print and mail services.
In fiscal year (FY) 2007-08, DOA spent $20.4 million on print and mail services, including $1.7 million paid to Spherion for staffing services. The current contract with Spherion will expire on June 30, 2009, and DOA has begun preparations to solicit bids in October or November 2008. Using a cost-benefit model developed by DOA, we estimate that as much as $616,500 could be saved in the five-year period from FY2009-10 through FY 2013-2014 if state staff filled all print and mail positions currently filled by contract staff. However, contract costs with be difficult to estimate until DOA has received vendors' bids, and the actual cost of adding state staff is difficult to estimate because of the uncertainty of future salary, fringe benefit, and recruiting costs.
If DOA chooses to continue to contract for some or all print and mail staff in the future, we recommend formalizing billing procedures for supervisory staff, prohibiting the contractor from billing for time new contract staff are trained in the operation of printing and other equipment, and including in the contract standard provisions to impose damages if confidential information is disclosed.
We appreciate the courtesy and cooperation extended to us by DOA and Spherion in conducting this review.
Sincerely,
janice mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
October 8, 2008
The Honorable, The Legislature:
We have completed financial audits of Mendota and Winnebago Mental Health Institutes for the period July 1, 2006, through June 30, 2007. The audits were requested by the Department of Health Services (formerly the Department of Health and Family Services) to comply with requirements of the Joint Commission on Accreditation of Healthcare Organizations. We were able to express an unqualified opinion on each Institute's financial statements.
Mendota and Winnebago Mental Health Institutes are licensed and accredited hospitals that provide specialized diagnostic, evaluation, and treatment services for mentally ill children and adults. The Institutes also provide services to forensic patients referred to them through the criminal justice system. The Institutes are funded through a mix of general purpose revenue and program revenue.
In FY 2006-07, each Institute reported an operating loss of $3.7 million, in part because operating expenses increased at a faster pace than operating revenues. Salaries and fringe benefit expenses, which were the largest expenditure category at each Institute, increased by $5.7 million at Mendota and $3.5 million at Winnebago. To help address the Institutes' operating losses, the Department increased daily patient rates by 9.5 percent at each Institute effective on October 15, 2007, and approved increases of 9.5 percent at Mendota and 11 percent at Winnebago to be effective October 12, 2008.
S895
Mendota's overall net assets increased by $1.5 million, while Winnebago's declined by $2.6 million for FY 2006-07. Mendota's increase in net assets in primarily attributable to proceeds from the sale of general purpose revenue-funded bonds, which it received to install equipment to reduce air pollution at the power plant it operates.
We continued to monitor the status of prior-year concerns related to the administration of approximately $476,000 in client funds by the Program of Assertive Community Treatment, and outpatient unit of Mendota. In our Report on Internal Control and Compliance, we report that the Department has taken some steps to improve controls subsequent to our audit period. However, we still noted concerns during FY 2006-07.
We appreciate the courtesy and cooperation extended to us by Department of Health Services staff during our audit. A response from the Department follows our report.
Respectfully Submitted,
janice mueller
State Auditor
__________________
State of Wisconsin
Office of the Governor
October 8, 2009
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Chang, Maytong,
of Milwaukee, as a member of the Council on Domestic Abuse, to serve for the term ending July 1, 2011.
Respectfully Submitted,
JIM DOYLE
Governor
Read and referred to committee on Judiciary, Corrections, and Housing.
__________________
The committee on Health, Human Services, Insurance, and Job Creation reports and recommends:
Relating to certification of programs for training and testing nurse assistants, home health aides, and hospice aides.
No action taken.
Relating to occupational therapist supervision of occupational therapy assistants.
No action taken.
Jon Erpenbach
Chairperson
The committee on Public Health, Senior Issues, Long Term Care and Privacy reports and recommends:
