On June 13, 2008, the Commission opened a proceeding (docket 05-UI-l 13) as required by this law. The Commission identified issues and solicited comments from interested parties. At its open meeting on December 18, 2008, the Commission deliberated on these comments and unanimously agreed on an equitable means of allocating costs among energy utility customers. The Commission's proposal, which accompanies this letter and which is being sent by separate cover to the Governor, complies with Wis. Stat. § 196.3 74 (5)(bm)1.
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Under Wis. Stat. §
196.374 (3)(b)2., each energy utility must spend 1.2 percent of its annual operating revenues to fund the statewide energy efficiency and renewable resource programs that
2005 Wis. Act 141 mandates. Previously, the amounts that energy utilities and their customers paid for these programs varied widely. In 2005, before the enactment of
2005 Wis. Act 141, natural gas and electric customers contributed between 0 and 1.10 percent of their bills to these programs. While
2005 Wis. Act 141 equalized the amounts that energy utilities must pay, it retained some of the inequities among utility customers. Under Wis. Stat. §
196.374 (5)(b)l., energy utilities can collect from a large energy customer no more than the customer had been paying in 2005. The result is that some large energy customers still make no contribution to the statewide energy efficiency and renewable resource programs, while others pay more than 1 percent of their bills for these programs. The cap on payments by large energy customers also creates inequities for other utility customers because they must contribute excess amounts to make up for the shortfall of payments from large energy customers.
The Commission's proposal assigns to each customer class the projected costs of the energy efficiency and renewable resource programs that it is receiving. This ensures that customers are receiving benefits from the programs commensurate with their contributions. To date, large energy customers have been receiving energy efficiency and renewable resource services in excess of their contributions. The Commission's proposal increases the cost responsibility of large energy customers over three years until they are paying their full share. This gradual increase in cost responsibility is designed to mitigate the fiscal impact on large energy customers while still equitably allocating the cost of these programs among the classes of energy utility customers.
If this proposal is not enacted into law by July 1, 2009, the existing statute requires the Commission to annually raise the payments of a large energy customer by the lesser of the percentage increase in the customer's utility's operating revenues or the consumer price index.
Thank you for your consideration of this proposal. If you have further questions, please contact my Executive Assistant, Nate Zolik, at 267-7897.
Sincerely,
ERIC CALLISTO
Chairperson
Referred to committee on Energy and Utilities.
__________________
State of Wisconsin
Department of Administration
Madison
December 30, 2008
To 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 November 2008.
On November 1, 2008, the Injured Patients and Families Compensation Fund cash balance closed at a negative $137.0 million. This negative balance continued through November 30, 2008, when the fund's cash balance closed at a negative $124.7 million. The Injured Patients and Families Compensation Fund cash balance reached its intra-month low of a negative $137.4 million on November 14, 2008. 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 November 1, 2008, the Worker's Compensation Fund cash balance closed at a negative $2.5 million. This negative balance continued through November 30, 2008, when the fund's cash balance closed at a negative $2.6 million (its intra-month low). The negative balance was due to the difference in the timing of revenues and expenditures.
On November 1, 2008, the Mediation Fund cash balance closed at a negative $3.0 thousand. This negative balance continued through November 14, 2008, when the fund's cash balance closed as a positive $209 thousand. The Mediation Fund cash balance reached its intra-month low of a negative $13 thousand on November 13, 2008. The negative balance was due to the difference in the timing of revenues and expenditures.
On November 20, 2008, the Conservation Fund cash balance closed at a negative $2.7 million (its intra-month low). This negative balance continued through November 21, 2008, when the fund's cash balance closed at a positive $579 thousand. The negative balance was due to the difference in the timing of revenues and expenditures.
On November 20, 2008, the Utility Public Benefits Fund cash balance closed at a negative $1.6 million. This negative balance continued through November 30, 2008, when the fund's cash balance closed at a negative $4.0 million (its intra-month low). The negative balance was due to a delayed transfer to the fund.
The Injured Patients and Families Compensation Fund, Worker's Compensation Fund, Mediation Fund, Conservation Fund and Utility Public Benefits 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.
__________________
State of Wisconsin
Department of Health Services
Madison
December 31, 2008
To the Honorable, the Legislature:
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Section
46.03 (26) of the statutes requires the Department of Health Services to report annually on information systems projects under development including the implementation schedule, estimate of costs, and methods of determining changes (if applicable).
The Department has two groups of systems now under development; (1) Public Health Information Network, and (2) the Vital Records Reengineering Project. The required information is included in the attached reports.
Sincerely,
KAREN E. TIMBERLAKE
Secretary
Referred to committee on Health and Healthcare Reform.
__________________
State of Wisconsin
Department of Administration
Madison
January 5, 2009
To the Honorable, the Legislature:
Please find enclosed the Service Award Program 2008 Annual Report. The Service Award Board approved the report at its meeting on December 9, 2008. The report provides an overview of the program and outlines the accomplishments for the program year.
Wisconsin State Statute 16.25 (6) requires the Department to submit the report to the Chief Clerk of each house annually describing the activities of the board.
If you have any questions regarding the report, please contact Terri Lenz at the Department of Administration, Division of Enterprise Operations, at (608) 261-6580.
Sincerely,
JAMES M. LANGDON
Secretary, Service Award Board
Referred to committee on Urban and Local Affairs.
__________________
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
December 11, 2008
To the Honorable, the Assembly:
We have completed an evaluation of the efforts of the Department of Health Services (DHS), formerly the Department of Health and Family Services, to ensure the integrity of Wisconsin's Medical Assistance program, including its certification of providers and audits of provider payments. In fiscal year (FY) 2006-07, expenditures for DHS's program integrity activities, excluding payments made to contractors that assist DHS in these activities, totaled $3.2 million.
Most providers must be certified by the State to receive Medical Assistance reimbursement for services rendered. We found that the initial certifications are generally processed on a timely basis. Some provider recertifications, which are generally required every three years, have not been completed
since at least 2002, in part because of delays DHS has encountered in implementing its new Medicaid Management Information System. Delays in recertification increase the risk that unallowable payments will be made because some providers no longer meet certification requirements.
From FY 2002-03 through FY 2006-07, DHS conducted 8,517 audits of Medical Assistance providers and recovered $31.8 million, which was used to offset state and federally funded Medical Assistance expenditures. We independently analyzed 9.4 million claims paid to four types of providers during one year - FY 2005-06 - and found an additional $268,000 in payments for provider claims that appear to be unallowable. We make several recommendations to improve the audit process, including seeking recovery of the payments we identified, imposing sanctions on providers found to repeatedly violate program rules, and charging interest to providers that fail to promptly return unallowable claims payments.
We also reviewed the role of the Department of Justice (DOJ) in prosecuting cases of Medical Assistance fraud. From FY 2002-03 through FY 2006-07, DOJ obtained 34 criminal convictions and negotiated 16 civil settlements between the State and Medical Assistance providers. During that period, courts ordered convicted providers to pay a total of $2.9 million, and the State received $11.7 million from civil settlements.
We appreciate the courtesy and cooperation extended to us by DHS and DOJ staff. A response from DHS follows our report.
Respectfully submitted,
JANICE MUELLER
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
December 11, 2008
To the Honorable, the Assembly:
We have completed a financial audit of the State of Wisconsin as of and for the fiscal year ended June 30, 2008. The financial statements and related opinion are included in the State of Wisconsin's Comprehensive Annual Financial Report, which is published by the Department of Administration.
During the course of our audit, we identified a variety of internal control concerns at various state agencies that are required to be reported under Government Auditing Standards. As provided for in those standards, we are furnishing you with the Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters. The state agencies' responses to our concerns and recommendations are included in the text of the report so that readers may see the State's intended resolution of the matters discussed. In future audits, we will determine the extent to which findings in the report have been resolved.
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We appreciate the courtesy and cooperation extended to us by the Department of Administration and other state agencies during the audit.
Sincerely,
JANICE MUELLER
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
December 19, 2008
To the Honorable, the Assembly:
We have completed a financial audit of the Wisconsin Public Broadcasting Foundation, Inc.'s Television Fund and Radio Fund, as requested by the Wisconsin Educational Communications Board. The Foundation was organized by the Educational Communications Board under s.
39.12 and ch.
181, Wis. Stats., on September 29, 1983, for the exclusive purpose of raising funds for the Wisconsin educational television and radio networks.
We completed this audit in conjunction with our audits of the Wisconsin Educational Communications Board television and radio networks, reports 08-16 and 08-17. The Foundation's financial operations are separate and independent from the State of Wisconsin. The Foundation's financial statements are presented in two separate funds (radio and television) to accommodate reporting requirements and the Educational Communications Board's desire to maintain the funds separately.
Our audit report contains the Foundation's financial statements and related notes as of and for the periods ending June 30, 2008, and June 30, 2007. We were able to issue an unqualified independent auditor's report on these statements.
We appreciate the courtesy and cooperation extended to us by Educational Communications Board staff during the audit.
Respectfully submitted,
JANICE MUELLER
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
December 19, 2008
To the Honorable, the Assembly:
We have completed a financial audit of the State of Wisconsin Educational Communications Board (ECB) Television Network to meet our audit requirements under s.
13.94, Wis. Stats., and as requested by ECB 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.
ECB, which is an agency of the State of Wisconsin, operates a television network of 5 digital stations and 5 analog stations, as well as a radio network of 13 FM stations and 1 AM station. The ECB Television Network reported $10.3 million in support and revenue during fiscal year (FY) 2007-08, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Our audit report contains the ECB Television Network's financial statements and related notes as of and for the periods ending June 30, 2008, and June 30, 2007. We were able to issue an unqualified independent auditor's report on these statements.
We appreciate the courtesy and cooperation extended to us by ECB staff during the audit.
Respectfully submitted,
